Union Finance Minister Nirmala Sitharaman on Tuesday (October 13, 2026) said the RBI will continue its efforts to prevent excessive volatility in the rupee, which has depreciated “very significantly” over the past year and a half.

She said the rupee has reached a low against the U.S. dollar mainly due to global uncertainties, even though India’s macro-economic fundamentals, including forex reserves, are strong and the regulator RBI is ensuring that the domestic currency stays stable.

“I am sure there are efforts which the RBI would take further to make sure that rupee doesn’t become too volatile,” Ms. Sitharaman said at the Bloomberg New Economy Forum 2026.

Asked about rationalisation in taxes in the securities market, the Minister said the debate around STT and long-term capital gains tax rationalisation is “healthy”, and she will “keenly” hear these debates.

“We are very close to the Budget, and the preparation for the Budget has started. It may not be the best time for me to say what I will or what I will not consider,” she said.

Ms. Sitharaman further said that the long-term capital gains tax is something on which a lot of people have been commenting, and the issue also came up during her conversation with investors in India and abroad.

“… It’s healthy to have this debate, and I will be keenly hearing them,” she said.

The Union Budget 2027-28 is likely to be presented on February 1.

On the rupee, the Minister said the RBI, through its measures, is trying to prevent volatility and not “fix” the rupee level.

“So, these efforts from the RBI… will continue not to, as I said, fix the rupee. We would appreciate it if the rupee finds its own (level),” the Minister said.

The Reserve Bank over the weekend announced a slew of measures to stem rupee fall.

The central bank announced the creation of a special window for oil marketing companies, which will take U.S. dollar demand away from the spot market and tightened rules governing forex derivatives trades to curb speculative bets against the rupee.

Ms. Sitharaman said the latest measures by the RBI supported the rupee as its value appreciated 1% on Monday (October 12, 2026). On Tuesday (October 13, 2026), it appreciated to ₹94.96 in the early trade.

India’s fundamentals are fine, with sound foreign exchange reserves, she added.

The Minister said the rupee depreciation is “very significant” over the last one and a half years, stemming mainly from external challenges.

“Within the country, we are making sure that we keep the macroeconomic fundamentals sound… fiscal discipline is not going to be a matter which should worry investors. But as regards the rupee, and as regards the way it is reacting to the ups and downs with the dollar, yes, that’s where the challenge is, and we will be attending to it,” Ms. Sitharaman added.

To support the rupee amid the West Asia crisis, the government and RBI in June announced a slew of steps to attract dollars into the country.

To reduce compliance burden for foreign investors in government securities (G-Secs), the government expanded the list of specified securities under the Fully Accessible Route (FAR) to include new issuances in G-Secs. Besides, income tax exemption was given to income from interest and capital gains made by FPIs from investments in G-Secs.

The RBI also allowed banks to access RBI’s swap facility for Foreign Currency Non-Resident (Bank) (FCNR(B) deposits with maturities ranging from three to five years. The facility would allow banks to swap US dollar deposits with the RBI and manage currency risks.

Banks have mobilised $133 billion under the FCNR(B) deposit scheme till August 31, the closing date, which was advanced by a month following a robust response from the Indian diaspora.

Talking about investment by the private sector, Ms. Sitharaman said, “Domestic private capital is flowing into India, while the country is also attracting investment from abroad”.

Investments are coming into sectors such as renewable energy, semiconductors and chip design, biosimilars, pharmaceuticals, generic drug manufacturing and aircraft maintenance, repair and overhaul (MRO) centres, she said.

These are among the sectors that are attracting private capital, whether from companies expanding their core businesses or those entering new areas, she added.

Published – October 13, 2026 04:58 pm IST

The story so far:The Goods and Services Tax (GST) Council met on Thursday (October 8, 2026) for the 57th time since GST was introduced a little more than nine years ago. In the run-up to the meeting, officials in the Finance Ministry said that GST rates would not be discussed in this meeting, something that was confirmed by Finance Minister Nirmala Sitharaman following the meeting. Nevertheless, the decisions that were taken by the Council stand to significantly alter GST in the medium and long term. 

What was the plan for this meeting?

The Centre has realised that, nine years on, the GST system has largely settled down now in terms of revenues. That is, the monthly collections are stable and do not vary by a large degree; the number of return filers has also stabilised, and businesses around the country have become familiar with the GST procedures. 

Having implemented wide-ranging GST rate changes in its last meeting in September 2025 that not only rationalised rates across a wide range of products and services but also reduced the number of slabs in GST, the Council could now look at substantial reforms in the administrative and procedural aspects of GST — which so far have remained a big pain point for businesses. 

According to sources in the Finance Ministry, the Centre entered the meeting with a five-pronged proposal ranging from process reforms, structural reforms, and ease of living and doing business aspect, to the exports of services, and e-commerce related complications.

Several of these proposals were accepted by the Council while some have been slated for further discussion. However, as per Ms. Sitharaman, all of them will come into force from April 1, 2027 onwards. 

How has the Council eased GST-related paperwork?

One of the more far-reaching steps approved by the GST Council is a system that will provide greater certainty about the documents required during registration. As per the government, 61% of taxpayers are already being granted automatic registration within three working days. 

Now, the upgraded system is expected to further streamline the process for remaining low-risk taxpayers by doing away with unnecessary queries and rejections as far as possible. That is, the system is moving to a black-list, where most applications are accepted and only a few might get rejected, from the current white-list kind of system where each company has to go through the registration process before it can do business in the GST system.

The new system will also incorporate a simplified registration mechanism for small taxpayers who provide supplies through e-commerce platforms, such that they will have to register in only their home State rather than in each State that they want to sell in. The process for amendments and cancellation of registrations has also been eased. 

In what could substantially ease the paperwork process for small businesses, the Centre has shared a concept note with the GST Council and has received its in-principle approval for an optional scheme where business-to-consumer (B2C) firms with a turnover of up to ₹5 crore a year that supply to consumers can file returns one a year instead of quarterly. This will be taken up again in the next GST Council meeting. 

Regarding refunds, the new system aims at a faster processing time of acknowledgements of 10 days, down from the current 15 days. The system will also conduct a risk assessment using Customs and banking data and release 90% of the refund claims within three working days of acknowledgement. 

At the moment, additional business expenditure or expenditure incurred in the normal course of doing business, including employee health and life insurance, is not eligible for input tax credits. The new system will now make such expenditure eligible. 

How does the new system reduce litigation and harassment?

In a major departure from the earlier system, the GST Council has recommended removing the arrest powers of GST officers and has increased the prosecution threshold from ₹1 crore to ₹5 crore. The general penalty will also be reduced from ₹25,000 to ₹10,000. 

In addition, it said that only GST officers in originating or destination States can inspect, detain, or seize inter-State supplies. That is, no officer in a State in between the source and destination can interfere with the supply of goods. Further, such interceptions can only be done with the authorisation of a joint commission-level officer and that too only after “specific intelligence” has been obtained about the consignment. 

A major issue taxpayers have been facing over the years has been that the system rejects their claim for input tax credits because their suppliers have not filed their returns. So, even though a business receives supplies, has the invoice, and pays the tax on these supplies, it often cannot get a refund until the supplier themselves file their returns. This has been leading to a lot of businesses seeing their working capital being locked up.

The GST Council has instructed its officers’ committee to examine this issue. A decision on this will be taken so that it can be implemented by April 1, 2027.

Finally, the GST has also announced common standards for notices and proceedings, under which no notices will be sent for a tax amount below ₹10,000. All pending notices so far issued that fall below this threshold will be withdrawn, the government said.

What has been done for services?

Service exporters have, in particular, had a problem with the GST system. India’s service export industry usually functions through branches abroad. However, the system currently says that the business done by those branches can’t count as exports. That is what the GST Council has now decided to change. Basically, an Indian company selling its services to a foreign client through an overseas branch can now avail of export benefits under the GST system. 

Another issue is that the GST system currently says that something can be classified as an export only if it leaves India. However, there are a number of services offered by Indian companies where the final product does not leave Indian shores. For example, when a car or a phone is sent to India for testing, it is destroyed after that testing is done and not sent back. So far, this was not classified as an export of services. 

Now, the GST Council has said that testing, repair, certification, and research done in India for a client abroad will be classified as an export of services even if the goods stay within the country. 

There have also been some compliance issues regarding when a payment has been deemed to have been received by an Indian exporter, with different bodies having different rules on the matter. The Council has now decided that the date on which an export payment is deemed to have been received will follow the Reserve Bank of India’s rules. 

Overall, these changes will not only eliminate uncertainty but will allow exporters of services to recover the tax paid on the export of their services and also recover this amount faster.

What more remains to be done?

During her press conference, Ms. Sitharaman said that 99% of GST reforms relating to rates as well as processes will have been completed when this latest tranche of changes comes into effect. She said that the Council is open to more reforms, and that those will be taken up as and when needed. However, the overwhelming bulk has been sorted out. 

In an indication of the incremental work that remains to be done, the Union Finance Minister announced that the Centre was going to be rolling out a faceless assessment system for Central GST-registered companies along the line of the system that is currently in place for income tax. It will be up to each State to come up with a similar system in their own jurisdictions. 

There are also some inverted duty structure issues that remain. Ms. Sitharaman said that rates were not discussed during this GST Council meeting. She added that rates will now be discussed once a year, and that any changes would be applicable from April 1 of the subsequent financial year. 

Union Finance Minister Nirmala Sitharaman addresses the 7th edition of the IITMAA Sangam 2026 annual conference in Bengaluru
| Photo Credit: PTI

Finance Minister Nirmala Sitharaman said the Opposition was “searching for issues” and making allegations without fully understanding the matter.
| Photo Credit: PTI

Finance Minister Nirmala Sitharaman during a meeting with her Nepalese counterpart Swarnim Wagle, in New Delhi on September 17, 2026.
| Photo Credit: PTI

Union Minister for Finance Nirmala Sitharaman during a meeting with 3M Chairman and CEO William Brown on the sidelines of the G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting, in Asheville.
| Photo Credit: X/@FinMinIndia via PTI

Finance Minister Nirmala Sitharaman invited global investors to set up manufacturing bases, and technology and innovation centres in India, urging them to leverage talent and opportunity to build for the world.

Addressing a high-level Business Roundtable with leading investors and business leaders in Chicago on Friday (August 28, 2026), Ms. Sitharaman highlighted India’s broad-based growth, reform momentum and expanding opportunities for long-term investment.

Ms. Sitharaman emphasised that India’s investment proposition rests not on any single sector, but on the convergence of scale, growth, talent, infrastructure, technology, and sustained reform over the past decade.

“The policy environment is increasingly focused on enabling businesses to invest, manufacture, innovate and expand,” she said at the roundtable organised by India’s Consulate General in Chicago in association with U.S.-India Strategic Partnership Forum.

The Finance Minister invited global partners to co-develop, co-produce and build for global markets.

She urged them not to consider India merely as a market to serve, but as a platform from which to build for the world — whether as a manufacturing base, technology and innovation centre, consumer market or destination for long-term infrastructure investment — leveraging India’s engineering talent, manufacturing scale and technology ecosystem.

The focus of the meeting was “Manufacture in India — for India and for the world”, with opportunities across manufacturing, AI & digital, financial services, infrastructure, food processing, defence and advanced technologies.

“As global companies reassess supply chains and capital allocation, India offers not only scale as a market, but increasing depth as a long-term investment and operating platform,” Ms. Sitharaman said.

The Minister said India’s Digital Public Infrastructure such as Aadhaar, UPI, DigiLocker, ONDC and India Stack, has created platforms at population scale.

“The next opportunity is to build higher-value businesses in AI, engineering, analytics, product development, semiconductors and electronics, with India’s Global Capability Centres increasingly becoming global innovation hubs,” she said.

Ms. Sitharaman said GIFT City was emerging as an international financial centre connecting global capital with Indian opportunities.

With 1,250 registered entities as of June 2026, it offers opportunities across banking, fund management, reinsurance, aircraft and ship leasing, sustainable finance and other cross-border services, Sitharaman said, inviting global institutions to explore GIFT City as a gateway to India’s financial ecosystem.

She said with global supply chains being reconfigured, India offers a compelling combination of a large domestic market and globally competitive manufacturing capabilities.

The focus is moving beyond assembly towards deeper component manufacturing, engineering and advanced technologies, supported by targeted policy measures including production-linked incentives, the Minister said.

Ms. Sitharaman said India’s infrastructure build-out — from dedicated freight corridors and railway modernisation to electrification and high-speed rail — offers opportunities across engineering, technology, materials, specialised equipment and long-term institutional capital.

She said the National Investment and Infrastructure Fund provides a commercially driven platform for global investors to participate in this opportunity.

Ms. Sitharaman said India’s agricultural base, rising incomes and changing consumption patterns are creating opportunities across food processing, automation, packaging, logistics and cold chains, with potential to build businesses serving both Indian and global markets.

The Finance Minister said through initiatives such as Atmanirbhar Bharat and iDEX, India is building domestic capabilities in drones, autonomous systems and other advanced technologies.

Ms. Sitharaman is on a six-day visit to the U.S. and is scheduled to attend the G-20 Finance Ministers’ meeting in Asheville in North Carolina and visit New York.

Published – August 29, 2026 10:41 am IST

Image used for representation purpose only.
| Photo Credit: Getty Images/iStockphoto

Union Finance Minister Nirmala Sitharaman and others during the inaugural session of the two-day ‘PSB Confluence’ (PSB Manthan) ideation conclave organized by the Department of Financial Services (DFS), in New Delhi
| Photo Credit: PTI

The government has approved the introduction of one billion polymer banknotes of ₹10 and ₹20 for field trials, Parliament was informed on Tuesday (August 11, 2026).

The Reserve Bank of India (RBI), with the recommendation of its central board, had sent a proposal to the government in terms of Section 25 of the Reserve Bank of India Act, 1934, for introduction of one billion pieces each of ₹10 and ₹20 polymer banknotes for field trials and for regular issuance of polymer banknotes in these two denominations after successful completion of field trials, Finance Minister said in a written reply to the Rajya Sabha.

“The proposal has been approved by the government. As per the RBI, these polymer banknotes are proposed to be issued along with paper substrate-based banknotes,” she said.

The RBI has informed that the procurement process is presently at an initial stage, she said.

Therefore, she said, at this point of time, it would not be possible to practicably determine the exact timeframe for introduction of polymer banknotes or the expenditure likely to be incurred thereon.

Replying to another question, Ms. Sitharaman said the average retail inflation, measured by the Consumer Price Index (CPI), has declined steadily from 5.4% in 2023-24 to 4.6% in 2024-25 and further to 2.1% in 2025-26.

Owing to the commodity price shock and elevated global energy prices stemming from the West Asia crisis, a seasonal pickup in vegetable prices, and the expected unfavourable El Niño conditions, retail inflation rose to 3.9% in Q1 of 2026-27, she said.

However, she said, it is still below the Reserve Bank of India’s inflation target of 4%.

“The 56th meeting of the Goods and Services Tax (GST) Council has brought in a two-rate structure with a standard rate of 18 per cent, a merit rate of 5 per cent and a special de-merit rate of 40 per cent for a select few goods and services (but inclusive of earlier compensation cess rate, and hence with no increase in overall tax burden),” she said.

This resulted in rationalisation of rates on many goods and services from 28% to 18%, 18% to 12 or 5%, and from 12% to 5%/nil.

In addition, she said, with a view to reduce input costs, boosting domestic manufacturing, promoting export competitiveness and supporting strategic sectors, the government announced in Union Budget 2026-27, rationalisation of Basic Customs Duty (BCD) on a host of goods with effect from February 2, 2026.

Additional measures to contain price pressures in essential commodities include a reduction in BCD on crude palm oil, crude soybean oil, and crude sunflower oil; a reduction in the agriculture infrastructure and development cess on masur; and a reduction in central excise duty on petrol and diesel by Rs 10 per litre in March 2026, she said.

In addition to the reforms in indirect taxes, the government has increased individuals’ disposable income by exempting annual incomes up to ₹12 lakh (₹12.75 lakh for salaried individuals, after the standard deduction) from income tax.

These measures have supported household consumption, as evidenced by the share of private final consumption expenditure in GDP remaining broadly stable at 56.5-56.7% (base year 2022-23), she said.

Moreover, as per the latest GDP estimates released by the Ministry of Statistics and Programme Implementation, per capita Private Final Consumption Expenditure (PFCE) recorded a robust growth of 6.8% in 2025-26, up from 4.8% in 2023-24.

Nevertheless, she said, the government continuously monitors the price situation in the country and undertakes fiscal, administrative and supply-side measures, as warranted by evolving economic conditions, to protect the purchasing power of households, particularly low- and middle-income households.

Published – August 11, 2026 09:36 pm IST