The robustness of the Indian economy was reflected in the stock markets which was yielding good returns, said Finance Minister Nirmala Sitharaman, while responding to queries on persistent selling by foreign portfolio investors.
“The Indian economy today has an environment in which investments are yielding good returns and profit bookings also happen,” the minister said. The FM was in Mumbai for post-Budget interactions with industry and the media.
In times of global uncertainty foreign investors tend to go back to their home countries, said Finance Secretary Tuhin Pandey, adding that it was not true that FPIs were moving from one emerging market to another, and their flows would keep going up and down depending on where they wanted to park their investments.
“In real terms, Indian economy remains one of the fastest, in fact the fastest growing large economy,” he said.
When queried about the troubles in the co-operative banks sector and the recent instance of New India Co-operative Bank board being superseded and depositors’ savings getting stuck, M Nagaraju, the Department of Financial Services Secretary, said the ₹5 lakh limit that is insured under the Deposit Insurance and Credit Guarantee Corporation would be raised and is under the active consideration of the government.
The Finance Minister added that it is the job of the regulator – namely, the Reserve Bank of India - to take action against errant banks, but said that in different states, different co-operative banks were working well, and it would not be right to take a decision on the entire sector based on one bank.