Sitharaman Links Rupee Strength to Economy, Addresses FII Concerns Post-Budget

• Finance Minister Nirmala Sitharaman presented her ninth consecutive Union Budget on February 1, 2026.
• She addressed concerns regarding the increase in Securities Transaction Tax (STT) on equity derivatives, stating it wouldn't deter Foreign Institutional Investors (FIIs).
• Sitharaman emphasized that investment decisions are influenced by broader macroeconomic and structural factors, not just a single tax adjustment.
• She noted that the government cannot ignore retail investor losses in the futures and options segment.
• Long-term capital flows to India are driven by growth prospects, policy stability, and economic fundamentals, not short-term trading costs.

Why It Matters: FM Sitharaman asserts rupee strength reflects economic health and FIIs consider broader factors beyond STT.