'India Remains Trusted': Ashwini Vaishnaw Dismisses Investor Exit Concerns - Exclusive

New Delhi: Union Minister Ashwini Vaishnaw has dismissed concerns that India is losing its appeal as an investment destination, attributing recent foreign capital outflows to global uncertainty rather than any weakness in the Indian economy.'In an exclusive conversation with Navika Kumar, Editor-in-Chief of Times Now and Navbharat Times, Vaishnaw said India continues to be viewed globally as a stable and trusted economy, and predicted that investment inflows would rebound strongly once geopolitical tensions ease.Responding to concerns over nearly $13 billion in outflows amid the ongoing West Asia conflict, Vaishnaw said the movement of funds reflected a broader global trend of investors shifting towards safer assets such as bonds and treasuries

during periods of uncertainty.

'India Remains A Trusted And Stable Country'

Rejecting suggestions that the narrative around India as a preferred investment destination has weakened, Vaishnaw said global volatility has temporarily altered investor behaviour."The global uncertainties caused by the policies that we see in the world today have caused a lot of consternation across the world," he said.According to the minister, India continues to stand out because of its consistent economic growth and policy stability. "India is definitely seen as a trusted and a stable country, a country growing consistently at 6 to 8 per cent because of the policies which are followed here," Vaishnaw said.

Why Investors Are Moving To Bonds

Explaining the recent capital outflows, the minister said investors worldwide are increasingly choosing safer investment avenues amid geopolitical risks."They are looking more at bond-oriented investments and treasury-oriented investments rather than equities," he said.Vaishnaw argued that such shifts are common during periods of crisis and pointed to previous global shocks, including the 2008 financial crisis, the COVID-19 pandemic and the Russia-Ukraine war."Whenever there is an equity-to-bond movement, it happens. It happened in 2008, it happened during COVID, it happened when the Russia-Ukraine conflict started, and it is happening during the current West Asia crisis," he noted.

Rebound Will Be Bigger, Says Minister

Despite the current volatility, Vaishnaw expressed confidence that India would attract stronger investment flows once global conditions stabilise. "That's why the rebound will be much bigger than what we are seeing today," he said.The minister maintained that the fundamentals of the Indian economy remain strong and that global investors continue to view the country favourably despite short-term market fluctuations.During the rapid-fire segment, Vaishnaw also outlined India's strategy in the artificial intelligence race, saying the country is focused on deploying AI solutions across enterprises worldwide rather than merely competing in model development."Our IT sector is significantly trusted by global majors and they would like a trusted player to come and use this technology in their organisations," he said.According to Vaishnaw, India's established position in global technology services gives it a unique advantage in the next phase of AI adoption.