News

Published: Feb 6, 2023
Updated: Feb 6, 2023

Finance Minister Assures India's Image Unaffected by Adani FPO Pullout

India's Finance Minister, Nirmala Sitharaman, has stated that the recent decision by Adani Group to pull out of their Rs 20,000 crore follow-on public offer (FPO) has not impacted India's image. She cites the accretion of USD 8 billion to the country's forex reserves in just the past two days as proof of this.

India's Macroeconomic Fundamentals Intact

Minister Sitharaman highlighted that there will always be fluctuations in markets but the recent accretion is a testament to India's inherent strengths and the perception of the country being intact. The finance minister also assured that independent financial regulators such as the Securities and Exchange Board of India (SEBI) will be looking into the allegations against Adani Group and have the necessary measures in place to maintain stability in the market.

RBI Confirms Banking Sector Resilient and Stable

Sitharaman also referred to a recent statement by the Reserve Bank of India (RBI) that confirmed the banking sector's resilience and stability, despite the ongoing controversy surrounding Adani Group. The group has denied all allegations made by US-based short seller Hindenberg Research, who accused the company of financial wrongdoings.

Finance Secretary Stands by 'Storm in a Teacup' Comment

Finance Secretary TV Somanathan has defended his previous statement calling the controversy surrounding Adani Group a "storm in a teacup." He emphasized that this comment was made in the context of macroeconomic terms and the stability of India's public financial institutions.

Taxation Tweaks in Insurance Sector Will Not Impact Policy Agenda

The finance ministry officials present at the recent press meet also clarified that the taxation tweaks in the insurance sector will not impact the policy agenda of deepening penetration in this industry. They also denied any negative impact on the economy's savings.

Focus on Fiscal Consolidation and Green Initiatives

Regarding further fiscal consolidation, Somanathan stated that the government will focus on broadening revenues, reducing unnecessary expenditures, and increasing the denominator by achieving higher GDP growth. The government has also allocated Rs 35,000 crore for green initiatives, primarily for retrofitting in petroleum refineries and augmenting strategic storage capacity.

No Update on State-run Lenders' Privatisation

When asked about the budget's decision to privatize two state-run lenders in FY23, Sitharaman stated that there is no update to share at this time.

FM assures no impact on India's image as a whole

India's Finance Minister has reassured the public that the recent controversy surrounding Adani Group and their FPO pullout has not impacted the country's image or economy. The government remains focused on achieving fiscal consolidation and green initiatives.