New York: The Union Finance Minister, Nirmala Sitharaman, has articulated that India has embarked on a comprehensive series of process and governance reforms over the past decade, aimed at enhancing investor-friendly engagement.
During her address at the Roundtable on Investment Opportunities in India at the New York Stock Exchange on Monday, Sitharaman underscored the significance of improving the ease of doing business parameters and alleviating the regulatory and compliance burdens faced by enterprises in India as a foundational policy objective.
A diverse array of pension funds, institutional investors, and fund managers from the United States participated in the Roundtable, underscoring the global recognition of India's potential as a premier investment destination.
In a statement on X, the Ministry of Finance highlighted, "Union Minister for Finance and Corporate Affairs Smt. @nsitharaman participated in the Roundtable on 'Investment Opportunities in India' at the New York Stock Exchange, the world's oldest and largest stock exchange, with approximately 11 Indian companies listed. The Roundtable was attended by various pension funds and institutional investors and fund managers across the United States, marking it as a significant event in the global financial landscape."
Sitharaman emphasized India's digital capabilities, which she believes will be pivotal in shaping India's future growth and development. The digitization reforms, coupled with the resulting efficiency gains, are projected to be key drivers of India's economic expansion in the medium to long term.
On X, the Ministry of Finance reiterated, "FM Smt. @nsitharaman highlighted India's policy cornerstone, which includes enhancing the Ease of Doing Business parameters and reducing regulatory and compliance burdens for enterprises in India. She also pointed out that India has undertaken a broad spectrum of process and governance reforms over the last decade, all aimed at fostering a more investor-friendly environment. These reforms, she emphasized, are contributing to India's rise as a global economic powerhouse."
Upon her arrival in the United States, Sitharaman was greeted with a warm welcome at Newark Liberty International Airport on Sunday (local time).
Following her arrival from Mexico City, India's Ambassador to the United States, Vinay Mohan Kwatra, along with Consul General of India in New York, Binaya Srikanta Pradhan, extended their warmest greetings to Sitharaman, marking the beginning of her visit.
Sitharaman's remarks on India's economic trajectory were highlighted, noting that India's market capitalization has surpassed USD 5.5 trillion, securing its position as the fourth largest in the world, after the United States, China, and Japan, further validating the impact of the reforms.
In a recent post on X, the Ministry of Finance announced, "The Union Finance Minister has communicated to the participants of the Roundtable that India's market capitalization has surpassed the USD 5.5-trillion milestone, currently securing the fourth position globally, following the United States, China, and Japan. This achievement underscores the positive outcomes of India's reform initiatives."
Referring to India's inaugural International Financial Services Centre in GIFTCity, the Finance Minister stated, "It has been noted that several global entities and investors, including CitiBank, JPMorgan, and Bank of America, have already begun engaging with it."
Further, the Finance Minister disclosed that as of August 2024, over 650 entities from various sectors such as Banks, Capital Markets, Insurance, FinTech, Aircraft Leasing, Ship Leasing, Bullion Exchange, etc. have been registered with the International Financial Services Centre Authority.
Emphasizing the importance of infrastructure, the Finance Minister highlighted that it remains a top priority for the Indian government. She underscored that India's future trajectory presents a wealth of opportunities for investment collaboration and participation from international investors.
"FM Smt. @nsitharaman mentioned that with Infrastructure being a key focus of the Government of India, the National Investment Fund (NIIF) was established as a partnership between the public and private sectors. Today, the NIIF is supported by a diverse group of leading global and domestic investors, opening up a plethora of investment opportunities across its platform," the Ministry of Finance elaborated.
"She further discussed the launch of several new funds by the NIIF, including the Private Markets Fund II, US-India Green Transition Fund (USIGF), and the Master Fund II. These funds offer promising avenues for long-term investments and returns," the Ministry of Finance concluded.
It was also noted that Finance Minister Sitharaman was in Mexico from October 17 to 20, where she engaged with political and business leaders from various sectors in Guadalajara and Mexico City.
She has extended invitations to Mexican investors to explore opportunities within India's Global In-House Capability Centers (GICCs), encompassing aircraft leasing, ship leasing, and the establishment of foreign universities at GIFT-IFSC, which is emerging as a global hub for reinsurance and sustainable finance. Furthermore, she has participated in the India-Mexico Trade and Investment Summit.
In the earlier part of September, the Ministry of Finance announced the new Foreign Exchange (Compounding Proceedings) Rules, 2024, with the objective of simplifying the rules and regulations pertaining to foreign investments. These new regulations are designed to streamline and rationalize the existing legal framework, thereby facilitating an easier environment for conducting business.
The Finance Ministry has stated, "In alignment with a comprehensive initiative to streamline and rationalize the current rules and regulations, the compounding proceeding rules have undergone a thorough review in consultation with the Reserve Bank of India."
These new regulations will supersede the Foreign Exchange (Compounding Proceedings) Rules, 2000. The Ministry has emphasized the government's commitment to simplifying the provisions to expedite and streamline the processing of compounding applications.
Additionally, the Finance Ministry is in the process of introducing digital payment options for application fees and compounding amounts, with a focus on simplifying and rationalizing the provisions to eliminate ambiguity and clarify the process.
"These amendments underscore the government's dedication to promoting 'ease of investment' for investors and 'ease of doing business' for businesses," the Ministry has stated.
The Compounding of Foreign Exchange (FEMA) Proceedings Rules, 2000 are the governing statutes for the resolution or settlement of offenses related to violations of the Foreign Exchange Management Act (FEMA), 1999. Under these rules, compounding allows individuals or entities to acknowledge a violation and settle a penalty to avoid prolonged litigation or criminal prosecution. This measure was implemented following the Union Finance Minister Nirmala Sithraman's emphasis on prioritizing foreign investment in the country and devising flexible rules to encourage foreign investments.
