The government will review the foreign exchange management framework. It will also introduce a market-making framework to deepen and strengthen the corporate bond market. Finance Minister Nirmala Sitharaman said this during Budget 2026.

In a major move to boost capital flows, Sitharaman announced that individuals resident outside India will be allowed to invest directly in Indian equities through the Portfolio Investment Scheme. The individual investment limit will be raised from 5% to 10%. Meanwhile, the combined cap will increase from 10% to 24%. This will enable foreign investors to take more meaningful stakes in Indian companies.

Highlighting social and structural progress, the Finance Minister said around 25 crore people have moved out of multi-dimensional poverty over the past 10 years. She also announced the creation of a high-powered education-to-employment standing committee to align skills with services-led growth. In addition, the committee will assess the impact of emerging technologies, including artificial intelligence, on the sector.