India favoured nation for FIIs: MoS Finance

The government said India continues to be favoured destination for foreign institutional investors.

The government on Friday said India continues to be favoured destination for foreign institutional investors, despite volatility in domestic and global stock markets.

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"India still continues to be a favoured destination for foreign institutional investors," Minister of state for Finance PK Bansal told reporters.

Stock markets in India have been witnessing extreme volatility with the benchmark Sensex closing up 514.65 points on Friday after the loss of 1,555 points in the last four trading sessions.

Bansal said the Indian economy is expected to grow at more than eight per cent this fiscal. He said farm output is also expected to be higher if monsoons were normal.

On Thursday, the Prime Minister's Economic Advisory Council said if farm output grows at four per cent, which is desirable, the economy would grow at more than eight per cent this fiscal.

Even if the farm output grows at two per cent, which is not desirable, but other sectors of the economy maintain their robust growth, the economy would still grow at eight per cent this fiscal.

The economy grew at 8.4 per cent last fiscal, when agriculture growth was 3.9 per cent.

The Minister said the government would press on with reforms to the banking and pension sectors, and boost farm credit to ensure higher growth.

Bansal said the manufacturing sector was also doing well.