New Delhi, 15 June (HS): Finance Minister Nirmala Sitharaman on Monday said the measures announced by the Reserve Bank of India and the government to encourage foreign fund inflows are only the first step and indicated that additional initiatives could be considered to attract overseas capital.

Addressing a summit in New Delhi, Sitharaman said an assessment by the government and the Reserve Bank of India had indicated that the bond market could serve as an effective avenue for attracting foreign investment.

The Finance Minister said efforts are being made to strengthen the investment environment and facilitate greater participation by foreign investors in India's financial markets.

Sitharaman also stressed the need to remain prepared for challenges arising from the evolving global economic situation.

She said the Indian economy is facing pressures linked to imports of key raw materials, crude oil and fertilisers, making it necessary to closely monitor global developments and maintain preparedness for emerging contingencies.

The Minister said the government and the RBI continue to assess measures aimed at supporting economic stability and sustaining investor confidence.

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Hindusthan Samachar / Indrani Sarkar