Retail Investors: The New Pillars of Market Stability

Finance Minister Nirmala Sitharaman highlighted the pivotal role of retail investors in balancing the Indian stock markets against the backdrop of fluctuating overseas portfolio investments. "Our savings have traditionally been parked in banks," she noted, "but since 2020, the Indian retail investor has demonstrated a remarkable appetite for risk."

Finance minister Nirmala Sitharaman during an interaction with the Indian diaspora in Milan, where she is attending the Asian Development Bank's annual meeting, elaborated on how increased retail participation has provided a buffer against the volatility induced by foreign institutional investor (FII) outflows.

India's Economic Resilience Amid Global Challenges

Sitharaman also touched upon India's position as the fastest-growing economy, attributing this success to robust domestic demand. She pointed out the diminishing influence of multilateral agencies like the UN bodies or WTO, suggesting a shift towards bilateral engagements for future growth.

Earlier, in a meeting with ADB chief Masato Kanda, Sitharaman showcased India as a fertile ground for piloting innovative financing products and models, further cementing the country's role in shaping global economic strategies.