FM Sitharaman cites financial sector boom to woo Canadian investors

New Delhi: Finance minister Nirmala Sitharaman said there are significant opportunities for collaboration with Canadian banks, fintech firms and regulators, not only in the payments domain but also in shaping the next generation of digital financial infrastructure.

The minister was speaking at an interaction with prominent business community members of the Indian diaspora in Toronto on Tuesday. She said India can also provide trusted and cost-effective supply-chain alternatives for global markets.

The finance minister highlighted that India’s scheduled commercial banks are in robust financial health, and that the sector is witnessing widespread investment activity.

“India’s financial sector, the banking in particular, the NBFCs and their rapid growth are inviting a lot of international interest,” she said, adding GIFT City in Gujarat has had several foreign banks come and do business there.

“Our digital ecosystem has also dramatically reduced the cost of access and expanded the reach of financial and commercial services,” she said.

Sitharaman said India allows 100% foreign direct investment (FDI) in insurance, and its leadership in fintech at scale means opportunities for capital are expanding rapidly. “For Canadian institutional investors, this creates opportunities not only to participate in India’s growth but also to use India as a platform for wider regional and global financial activity,” she said, adding that emerging sectors such as semiconductors, magnets and rare earths offer significant potential to Canadian investors. Sitharaman said India offers an opportunity mix that’s difficult to match-scale, sustained growth, a young population, expanding consumption and rapidly deepening capital markets. “India today stands as the fastest-growing major economy in the world,” she said, adding the country’s transformation is structural, and rapid urbanisation, a growing middle class and world-class digital infrastructure are creating new opportunities across virtually every sector of the economy.

The finance minister further invited Canadian investors and rare earth operators to participate more actively in India’s growth story. Sitharaman said India is also creating new gateways for international capital.