Attracting Foreign Capital and Deepening Bond Markets Are Key Priorities, Says DEA Joint Secretary Alok Tiwari

The Department of Economic Affairs has identified attracting foreign capital and deepening India's corporate bond market as key priorities. Speaking at an industry conference, Joint Secretary Alok Tiwari noted that ongoing regulatory efforts include recasting foreign exchange rules and advancing the Securities Markets Code.

MUMBAI — Attracting foreign capital and deepening India's corporate bond market have emerged as key priorities for the Department of Economic Affairs (DEA), according to Joint Secretary Alok Tiwari.

Speaking at the FICCI Capital Markets conference in Mumbai on Wednesday, Tiwari addressed the recent trends in overseas investment flows. He noted that while foreign capital had not been very forthcoming of late, the investment cycle appeared to have turned in July, though some hiccups remain.

"If India has to grow and grow to become an important financial centre and provide resources for Viksit Bharat we need domestic capital as well as foreign capital," Tiwari said. He added that foreign capital must be welcomed and attracted, noting a broad consensus among the government, regulators, and market participants on this objective.

To facilitate foreign investment, Tiwari stated that the government is working to streamline the statutory architecture. Foreign Exchange Management and Foreign Investment rules are currently being recast and are open for public consultation through the Reserve Bank of India. The objective is to make the regulatory framework more principle-based, easier to follow, and easier to navigate.

In addition to foreign capital, the DEA is focusing on the domestic debt market. Tiwari pointed out that the corporate bond market currently lacks adequate depth, liquidity, and secondary-market participation.

Highlighting legislative updates, Tiwari mentioned the proposed Securities Markets Code as an important forward-looking legislation. The code is designed to create a new regulatory paradigm that includes the decriminalization of minor infractions while strengthening both investor protection and regulatory accountability.

"The focus of the Department of Economic Affairs on streamlining foreign exchange rules and addressing the liquidity gaps in the corporate bond market is a vital step for India's financial ecosystem. For businesses, startups, and investors alike, a more accessible bond market and a simplified regulatory framework will ease capital access and support long-term economic growth. Aligning statutory structures to be more principle-based will ultimately foster greater confidence among domestic and international market participants." — Dr. Shishir Gupta, Founder & CEO, StartupLanes