Finance Minister breaks silence on Adani row, says 'National image hasn't affected'

Nirmala Sitharaman, India's finance minister, has commented on the Adani fiasco that led to the cancellation of India's largest ever FPO. She said macroeconomic fundamentals and national image were not affected. She cited the inflow of foreign reserves to prove that India's reputation as a market is intact on a global scale.

She also added that regulators are addressing the Adani stock rout independently, saying that "RBI made statement, prior to that banks, LIC came out & told about their exposure (to Adani group). Regulators independent of govt, they're left to themselves to do what is appropriate." Commenting on the state's acquisition of a 35 per cent stake in Vodafone Idea, she added that the government "are taking shares of Vodafone as they are unable to pay us dues."

Sitharaman also addressed the benefits offered to the middle class under the new tax regime, adding that “the government's intention is to simplify the direct taxation regime; there is no other incentive behind it”. She argued that people could stick with the old tax system if they felt more motivated that way.

Referring to the withdrawal of the canceled Adani share sale, the finance minister said that FPOs come and go and that such fluctuations occur in various markets.