They further said that inflow will continue in the coming months, as Finance Minister Arun Jaitley announced a slew of measures to attract overseas investment in the country in his Union Budget. Investment by overseas investors in 2014 In 2014, the net investment by overseas investors in debt markets was 1.59 lakh crore, while the figure for equities stood at 97,054 crore. Overall net investment by foreign investors stood at 2.56 lakh crore last year. GAAR To soothe investors’ nerves, Jaitley deferred the controversial GAAR by two years, saying its immediate applicability can create ‘panic’ in markets. Besides, the new rules would be put in place after resolving “certain contentious issues” and the implementation would eventually happen with prospective effect, he said.
“Today I still feel there is vulnerability in Indian economy in terms of attracting investments.”... If I bring in GAAR now with or without amendment, it will create panic in the market. This is not the stage where I can afford allowing investors to run away or investment not to come... Inadequate investment can also affect rupee-dollar parity,” Jaitley said. Religare Enterprises’ Chairman and MD Sunil Godhwani said that the deferment of GAAR rules will improve business confidence in India and help attract global fund flows.