Reserve_Bank_of_India attracts foreign capital

The State Bank of India>>> (RBI) has announced a series of measures to attract foreign capital, reflecting growing concerns over rising inflation, slowing economic growth, and external sector pressures in India>>>. These measures include greater access for foreign investors to government securities, higher investment limits for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs), concessional external commercial borrowing facilities for public sector undertakings, support for FCNR(B) deposits, faster export proceeds realisation, and tax incentives for certain foreign investments. A report by Nuvama Institutional Equities>>> highlights that these policies aim to address Balance of Payments challenges stemming from a widening trade deficit, driven by higher Petroleum>>> prices, and weak capital inflows. The RBI has also revised its FY27 GDP growth forecast downward to 6.6% from 6.9% and increased inflation projections, indicating growing stagflationary risks for the India>>>n economy. While these measures are expected to provide near-term relief, the report cautions that they do not address deeper structural issues necessary for sustained long-term growth.