New York: India's Finance Minister Nirmala Sitharaman met with Citibank CEO Jane Fraser in New York on Monday, discussing the future trajectory of India’s banking sector. The talks focused on key reforms, advancements, and the role of artificial intelligence (AI) in sectors such as agriculture and urban development. The two leaders also touched upon the potential growth of India's pharmaceutical industry.
Fraser lauded India’s digital payment revolution, noting its transformative impact on the financial ecosystem. She emphasised the importance of integrating Micro, Small, and Medium Enterprises (MSMEs) into global supply chains and acknowledged India's infrastructure reforms, which have contributed to MSME growth. Fraser also highlighted India's improvements in the ease of doing business, streamlining corporate processes and boosting investment appeal.
In a separate meeting, Sitharaman held discussions with Laurence Douglas Fink, CEO of BlackRock. The two explored global investment opportunities in India, particularly through the National Investment and Infrastructure Fund (NIIF) and the International Financial Services Centre (IFSC) at GiftCity. Fink underscored BlackRock’s focus on infrastructure projects and sustainable technologies, such as GreenTech and battery storage solutions, in collaboration with private partners in India.
Meanwhile, the finance minister reinforced India’s investment restrictions on neighbouring countries, days after a significant agreement with China over patrols along their disputed Himalayan border. This accord may signal the easing of a four-year military standoff and a potential restoration of strained political and economic relations between the two Asian giants. The border clash in 2020 severely disrupted capital, technology, and talent flow between the nations.
Speaking at Wharton Business School in the U.S., Sitharaman emphasised her cautious stance on foreign direct investment (FDI). She stated that India will not blindly accept FDI without considering its origin, stressing the importance of safeguarding national interests due to the country’s sensitive geopolitical location.
"We want business, we want investment, but we also need some safeguards, because India is located in a neighbourhood which is very, very sensitive," she remarked.
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These comments temper hopes for a quick relaxation of trade restrictions ahead of a likely meeting between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping at an upcoming BRICS summit in Russia. India heightened scrutiny on investments from neighbouring countries in 2020, in sectors such as electric vehicles, semiconductors, and artificial intelligence, though no specific country was singled out.
With continued caution on foreign investments and ongoing efforts to foster infrastructure development and investment opportunities, India remains poised to balance economic growth with strategic security concerns.
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