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Gold, Silver Surge to Record Highs on MCX Amid Tariff Jitters, Fed Rate Cut Buzz
Commodities, Economy, Markets - September 2, 2025

Gold, Silver Surge to Record Highs on MCX Amid Tariff Jitters, Fed Rate Cut Buzz

Gold, Silver Surge to Record Highs on MCX Amid Tariff Jitters, Fed Rate Cut Buzz

Precious Metals Rally on Safe-Haven Demand as Global Uncertainties and Trade Tensions Grip Investors

Introduction
Gold and silver have recently surged to unprecedented heights on India’s Multi Commodity Exchange (MCX), dominating headlines and captivating investors across the country. Driven by a perfect storm of Trump-era tariff shocks, persistent trade tensions, and renewed hopes for a US Federal Reserve rate cut, these metals have reaffirmed their status as the world’s preferred safe-haven assets. This article draws on the latest media coverage from late August and early September 2025, unpacking the forces behind this dramatic rally and analyzing its implications for market participants and the broader economy.

Record-Breaking Prices in August–September 2025
In recent weeks, both gold and silver futures on MCX broke past historic thresholds. Gold surpassed ₹1 lakh per 10 grams, while silver climbed above ₹1.17 lakh per kilogram, shattering previous records and drawing parallels to periods of extreme market instability.
These unprecedented prices weren’t isolated spikes but part of a sustained upward trend that began in early August—coinciding with major announcements in US trade policy and global monetary speculation. According to Economic Times and India TV News, gold’s rally peaked at ₹1,02,226 per 10g, with silver closing in on ₹1,17,000/kg as tensions escalated.

Trump-Era Tariffs Spark Flight to Safety
A decisive factor driving the metals surge has been trade uncertainty fueled by former President Donald Trump’s aggressive tariff measures. On August 6–8, Trump imposed additional tariffs—up to 50% on key Indian and Chinese imports—which sparked panic across global markets.
Investors responded by fleeing riskier equities, pouring their capital into gold and silver. Money Control and Rediff Money report that gold prices in India immediately jumped ₹1,800 on MCX, while silver gained nearly ₹1,500 in a single session. The move was a textbook example of how trade wars catalyze demand for hard assets, with precious metals seen as insurance against economic and policy shocks.

Fed Rate Cut Hopes: Positive Bias Persists
While tariffs grabbed headlines, expectations of a near-term Federal Reserve rate cut reignited global demand for gold and silver. When central banks lower interest rates, the opportunity cost of holding non-yielding assets like gold and silver diminishes, driving their prices higher.
In late August, encouraging US inflation data bolstered bets that the Fed would soon ease rates to cushion against economic headwinds. Reuters notes that ETF inflows into gold surged, with the metal tracking its best monthly gain since April. Financial analysts quoted in Times of India and Economic Times suggested that, despite some forecasts for price consolidation, the bullish bias remains entrenched due to lingering uncertainty and dovish monetary policy signals.

India’s Unique Position: Domestic Drivers and Investor Sentiment
Indian investors have been especially active. The MCX is one of India’s largest bullion exchanges, making its price movements a bellwether for the nation’s retail buyers, traders, and jewelers. Reports in Hindi-language media such as Times Now and Newstrack reveal continued public interest, with gold consistently trending above ₹1,02,000 per 10g and silver at ₹1,17,572 per kg as of September 1.
Local demand has also been buoyed by the festival season, during which gold and silver traditionally see a spike in purchases. Combined with global safe-haven flows, this has led to exceptional volatility and record-high rates nationwide. Outlook Money further highlights how the sell-offs in equity markets have reinforced the preference for physical assets, deepening the rally.

Market Volatility and Safe-Haven Dynamics
The escalation in precious metals isn’t merely a domestic story—it reflects a broader global flight to safety:
• ETF Inflows: Gold-backed exchange-traded funds saw dramatic increases in holdings, marking investor faith in gold’s resilience.
• Rupee Depreciation: The rupee’s recent slide against the dollar has further amplified local prices, making gold and silver more expensive in India.
• Global Uncertainties: Geopolitical risks—from ongoing trade disputes to tensions in Eastern Europe—continue to add fuel to defensive investing behaviors.
Times of India and Economic Times elaborate that, while prices may temporarily consolidate amid profit-taking, the underlying drivers—tariff fears and monetary easing—keep demand robust.

Implications for Investors
For investors, these developments offer both opportunities and risks. Key takeaways include:
• Diversification Benefits: Gold and silver provide crucial diversification, outperforming equities during periods of volatility.
• Timing Considerations: Buying during record highs can be risky, and experts urge caution, suggesting that partial allocations and cost averaging may mitigate exposure.
• Global Cues: Tracking US monetary policy, geopolitical headlines, and local festival demand is essential to forecasting future price moves.

Conclusion
The rally in gold and silver on MCX this August and September 2025 reflects a confluence of factors: aggressive US tariff policies, anticipated interest rate cuts from the Federal Reserve, local seasonal trends, and persistent global uncertainty. These precious metals have resumed their role as the ultimate hedge, drawing both institutional and retail interest as market participants seek refuge from volatility.
While the future remains uncertain—and sharp corrections are always possible—the past month’s record-setting prices have underscored the enduring appeal of gold and silver. For Indian investors and savers, the message is clear: In an increasingly unpredictable world, the case for precious metals is stronger than ever.

 

 

 

 

 

 

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Samvardhana Motherson’s Strategic Leap: Acquiring Yutaka Giken

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HAL Set to Benefit from $1 Billion GE Fighter Jet Engine Deal
Business, Economy, Equities - August 29, 2025

HAL Set to Benefit from $1 Billion GE Fighter Jet Engine Deal

HAL Set to Benefit from $1 Billion GE Fighter Jet Engine Deal

India Nears Groundbreaking $1 Billion Agreement with GE to Fortify Indigenous Fighter Jet Production. HAL Positioned at the Forefront of Boosting Defense Manufacturing and Technological Self-Reliance.

India’s Strategic Defense Milestone
India is close to sealing a landmark $1 billion defense agreement with US aerospace major General Electric (GE) to supply 113 GE-404 fighter jet engines.
This agreement is critical for powering the Indian Air Force’s indigenous Light Combat Aircraft (LCA) Tejas Mk 1A fleet, a program that embodies India’s pursuit of technological self-reliance and indigenous defense manufacturing under the ‘Atmanirbhar Bharat’ vision.
The deal represents not just a procurement exercise, but a strategic move to ensure the country’s long-term air combat readiness, while reducing dependence on legacy Russian platforms such as the aging MiG-21 fleet.

The Deal in Focus: Engine Supply and Production Continuity
The proposed contract builds on an earlier agreement for 99 GE-404 engines, ensuring that Hindustan Aeronautics Limited (HAL) maintains a steady supply line for Tejas production. The new order, expected to be sealed by September 2025, will provide the engines required to meet ambitious delivery schedules—83 Tejas Mk 1A fighters by 2029-30 and an additional 97 jets by 2033-34.
Production continuity is vital. Without it, delays could hinder the timely replacement of older aircraft and compromise India’s aerial defense preparedness. Securing this deal ensures HAL’s operational continuity, enabling it to fulfill the Indian Air Force’s requirements for a modernized and battle-ready fleet.

HAL’s Role and Technological Gains
As India’s premier aerospace manufacturer, HAL stands to gain significantly from this agreement. Beyond securing engines, HAL is expected to negotiate for an 80% transfer of technology (ToT) with GE, a move that will enable the company to localize a large portion of the engine’s manufacturing.
Such a transfer will not only enhance HAL’s in-house capabilities but also strengthen the domestic defense industrial base, creating a multiplier effect for suppliers and partners within India’s aerospace ecosystem. This positions HAL as a central pillar in the nation’s journey toward self-reliance in advanced defense technologies.

Expanding Horizons: Next-Gen Jet Engine Procurement
The GE-404 deal is just one part of India’s broader fighter jet propulsion roadmap. HAL is in advanced discussions with GE over a $1.5 billion agreement to acquire 200 GE-414 engines.
These more powerful engines will serve as the backbone for future aircraft programs such as the LCA Mark 2 and the indigenous Advanced Medium Combat Aircraft (AMCA).
Crucially, the GE-414 agreement is expected to bring with it a higher degree of technology transfer, giving India deeper know-how in advanced jet engine design and production—an area where the country has long aspired for independence.

Wider Implications for India’s Defense Industry
This forthcoming acquisition is part of India’s strategic push to modernize its air fleet and reduce reliance on foreign suppliers. By securing engines under this deal, India will not only enhance the capabilities of its indigenous Tejas program but also create long-term capacity for future fighter aircraft.
The partnership with GE also signals a matured Indo-US defense collaboration, complementing India’s parallel discussions with French aerospace firm Safran on indigenous engine development. Together, these efforts showcase India’s dual approach: leveraging foreign partnerships for immediate capability while steadily building domestic expertise for the future.

Market and Shareholder Perspectives
News of the impending deal has already generated excitement in financial markets. HAL’s shares have drawn notable investor attention, reflecting optimism about the company’s growth trajectory and strong order book. Analysts point out that large-scale defense contracts, backed by government support and international collaboration, significantly bolster HAL’s financial stability and manufacturing prospects.
The completion of this agreement is likely to provide a strong tailwind for HAL, reinforcing investor confidence and strengthening its reputation as India’s flagship defense manufacturer.

Conclusion
The $1 billion GE-404 fighter engine agreement represents a pivotal milestone in India’s defense modernization efforts.
For HAL, it ensures production continuity, technological advancement, and an expanded role in the country’s strategic aerospace ambitions. For India, it represents progress toward achieving self-reliance in defense while simultaneously modernizing its air fleet.
As the agreement edges closer to finalization, the deal stands as both a practical necessity and a symbolic milestone—one that reinforces India’s position as a rising force in global defense manufacturing.

 

 

 

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Indian Steelmakers Gain as Import Duties Continue and China Cuts Supply

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Indian Steelmakers Gain as Import Duties Continue and China Cuts Supply
Economy, Equities, Markets - August 29, 2025

Indian Steelmakers Gain as Import Duties Continue and China Cuts Supply

Indian Steelmakers Gain as Import Duties Continue and China Cuts Supply

Ongoing Import Tariffs and Reduced Chinese Steel Output Offer New Opportunities for Domestic Producers. Indian Steel Industry Positioned for Growth Amid Protective Policies and Rising Demand.

Import Duties Shielding Indian Steel Industry
India’s steel industry is entering a favorable phase as government policies continue to shield domestic players from foreign competition. In early 2025, the government extended a 12% safeguard duty on specific steel imports, a measure designed to protect local mills from cheap inflows, especially from China.
The duty has created breathing space for India’s small and medium-sized producers, who often struggle to compete against low-cost imports. By limiting the penetration of foreign steel, particularly hot-rolled coils and other key products, the safeguard measure is helping Indian companies consolidate their position in the domestic market. Policymakers have also hinted at the possibility of raising tariffs further, to 24%, should import pressures intensify.
This protectionist environment, while debated internationally, is being viewed domestically as critical for enabling Indian producers to achieve scale, modernize facilities, and prepare for future competition on stronger footing.

China’s Reduced Steel Supply and Its Impact
Globally, the steel supply landscape is also shifting. China’s steel output, which dominates the global market, has seen a slowdown. From January to May 2025, China’s steel output declined by 1.7% year-on-year.
Although China’s steel exports to other countries have ticked upward, the reduced domestic output has tightened overall supply.
For India, this situation provides a dual advantage: reduced risk of Chinese oversupply driving down global prices and stronger support for domestic steel pricing. Analysts note that while China remains the largest steel producer, its moderated production levels post-pandemic are creating space for other markets—including India—to expand their footprint and enhance competitiveness.

Steel Demand Rising Amid Domestic Infrastructure Push
Domestic demand continues to drive India’s steel growth, with the sector expected to expand by 8–10% in 2025, supported by the government’s infrastructure-focused development push.
Key initiatives such as the National Infrastructure Pipeline (NIP), PM Gati Shakti master plan, and affordable housing projects are driving steel-intensive construction activity. Rapid urbanization and the growth of new industrial corridors further reinforce long-term demand.
Additionally, the government’s directive to prioritize the use of ‘Made in India’ steel in public sector projects ensures a steady pipeline of orders for local producers. This policy not only creates assured demand but also aligns with India’s broader self-reliance (Atmanirbhar Bharat) objectives.

Market Dynamics: Pricing and Supply Challenges
Despite strong demand indicators, steel prices in India faced some volatility in mid-2025. Global steel prices weakened due to softer international demand, while the domestic market saw a seasonal slowdown linked to the monsoon period, when construction activity typically dips.
Moreover, Chinese-origin imports, particularly hot-rolled coil (HRC), have become cheaper, creating renewed concerns of a potential surge in inflows. Indian authorities, however, are monitoring the situation closely. The existing safeguard duty, alongside discussions of higher tariffs, is intended to prevent the domestic market from being swamped by underpriced imports.
This delicate balance between ensuring affordable steel for end-users and protecting local manufacturers will remain a defining feature of India’s steel policy in the near term.

Industry Capacity and Future Prospects
By mid-2025, India’s steel production capacity rose to 205 million tons per year, firmly establishing it as the world’s second-largest producer after China.
The government aims to expand this to 300 million tons by 2030, supported by both public and private sector investments.
Challenges remain. India’s steel sector depends heavily on imported coking coal, a key input for production, making it susceptible to price volatility. The industry also faces limitations from inadequate scrap metal availability.
However, the industry is moving forward with modernization drives, digitalization, and green steel initiatives, aligning with global sustainability goals. Investments in hydrogen-based steelmaking and energy-efficient processes are expected to reduce carbon footprints while enhancing competitiveness.

Positive Stock Market Outlook
Equity markets have responded positively to these structural shifts. Shares of leading steelmakers like Tata Steel, JSW Steel, and SAIL have seen renewed interest, with investors factoring in improved pricing power, volume growth, and stronger policy support.
Infrastructure-driven demand is also expected to benefit ancillary sectors such as construction materials, engineering firms, and logistics providers. Together, these linkages create a multiplier effect, positioning the steel sector as a vital driver of India’s broader economic growth.
Analysts suggest that if current policies and demand trends continue, Indian steelmakers are well-placed to deliver robust earnings growth over the next several years, solidifying their global position.

Conclusion
With import duties continuing and China cutting back supply, Indian steelmakers find themselves in a uniquely advantageous position. Domestic demand, bolstered by massive infrastructure spending and government support for local production, is providing a solid growth foundation.
Although challenges such as input costs and potential import competition remain, the sector’s trajectory appears strong. As India works toward its 2030 steel capacity goals, the combination of protectionist policies, rising demand, and industry modernization suggests that the domestic steel industry is set to remain a key pillar of the country’s industrial growth story.

 

 

 

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IPO Watch: Vikran Engineering, Anlon Healthcare GMPs Signal Strong Gains

 

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India Set to Become World’s Second-Largest Economy by 2038: EY Report
Economy, Markets - August 28, 2025

India Set to Become World’s Second-Largest Economy by 2038: EY Report

India Set to Become World’s Second-Largest Economy by 2038: EY Report

Robust Growth, Structural Reform, and Demographic Strength Position India for Economic Supremacy Despite Global Trade Pressures

Introduction
India is primed for a historic rise in the global economic hierarchy, with the recent EY Economy Watch projecting the nation will overtake the United States to become the world’s second-largest economy by 2038. This forecast comes amidst daunting external challenges, most notably the steep 50% tariff hike imposed by the United States under former president Donald Trump—a move that raised questions about its impact on India’s economic future. Despite these headwinds, India’s resilient domestic fundamentals and strategic reforms underpin optimism in its growth trajectory.

EY’s Landmark Projection
The EY report (August 2025) projects India’s GDP (PPP) to soar to $34.2 trillion by 2038, making it the world’s second-largest economy after China. The report further suggests that by 2028, India will overtake Germany in market exchange rate terms, reinforcing its position as a key player in the global economy. The drivers cited for this meteoric ascent include:
• High rates of domestic savings and investment
• An increasingly young and skilled workforce
• Ongoing reforms in infrastructure, digital economy, and governance

Navigating Trump Tariffs: Impact and Adaptation
On August 27, 2025, the Trump administration’s doubling of tariffs hit approximately $48 billion of Indian exports, targeting sectors from textiles to IT hardware. While this decision generated concern over potential GDP losses and reduced export competitiveness, the EY report paints a more nuanced picture:
• EY estimates direct tariff exposure at 0.9% of GDP, with effective impact likely cushioned to about 0.1% through policy adaptation and market diversification.
• Indian authorities are accelerating the search for alternate markets and trade agreements to lessen dependency on the US, leveraging India’s expanding global footprint.
• Technology and service sectors continue to display resilience, offsetting some export vulnerability.

Structural Reforms Bolster Growth
India’s rise is attributed to sweeping reforms across critical sectors such as taxation, digital access, and labor laws. The creation of a more investor-friendly business climate has spurred an influx of foreign direct investment (FDI) and homegrown innovation:
• The pace of infrastructure upgrades—ranging from expressways and metro systems to renewable energy projects—has quickened across the country.
• Digital transformation initiatives have made India one of the world’s fastest-growing technology hubs, further propelling GDP growth.
Demographic advantage remains India’s ace: a young and increasingly skilled labor force ensures sustained productivity and demand.

The Road Ahead: Opportunities and Challenges
Despite its promising trajectory, India must continue addressing challenges such as inequality, education quality, and geopolitical risk. As EY cautions, future prosperity will rely on:
• Maintaining reform momentum
• Investing strategically in healthcare, education, and innovation
• Strengthening global trade partnerships, especially with ASEAN, Africa, and Europe
India’s ability to maintain strong domestic consumption and agility in export markets will be key to realizing the EY forecast.

 

 

 

 

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Vodafone Idea Share Price Plummets 10% as Government Denies Additional AGR Relief

 

 

 

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How India’s Fiscal & Monetary Settings Are Shaping Investment Flows
Economy, Markets - August 18, 2025

S&P Global Upgrades India's Credit Rating: A New Era for Growth

S&P Global Upgrades India’s Credit Rating: A New Era for Growth

S&P has upgraded India’s sovereign credit rating for the first time in 18 years, citing robust economic fundamentals, stronger fiscal management, and rising investor confidence.

Breaking News: S&P Elevates India’s Credit Rating
In August 2025, S&P Global Ratings raised India’s long-term sovereign credit rating to ‘BBB’ from ‘BBB-’ and upgraded the short-term rating to ‘A-2’ from ‘A-3’, while maintaining a stable outlook. This is India’s first sovereign rating upgrade by S&P since 2007, strengthening its position on the global investment landscape.
The upgrade actually shows greater confidence in India’s fiscal consolidation efforts, the quality of public expenditure, and its strong growth outlook.

What Are Sovereign Credit Ratings?
Sovereign credit ratings are independent evaluations of a country’s ability to meet its debt obligations, conducted by agencies like S&P, Moody’s, and Fitch. Ratings—ranging from speculative to investment grade—directly influence a nation’s access to global capital markets and its cost of borrowing. India’s new rating firmly places it within the investment grade spectrum—an attestation of its economic resilience.

Drivers Behind the Upgrade
Economic Growth and Fiscal Discipline
S&P’s decision rests on several pillars:
• Buoyant GDP Growth: India’s average real GDP growth reached 8.8% between 2022 and 2024, the highest among Asia-Pacific nations. S&P projects annual growth to average 6.8% over the next three years, seeing the economy expand from $3.9trillion in 2024 to over $5.5trillion by 2028.
• Fiscal Consolidation: The central and state governments have successfully reduced deficits and public debt post-pandemic. S&P expects that the general government deficit to narrow from 7.3% of GDP in FY2025-26 to 6.6% by FY2028-29. India’s debt-to-GDP ratio is expected to decline from 83% in 2025 to 78% by 2029, edging back toward pre-pandemic levels.
• Financial Sector Strength: Indian banks and financial institutions have benefited from structural reforms like the Insolvency and Bankruptcy Code (IBC), which improved asset quality and recovery rates. S&P recently upgraded ratings for ten major financial institutions, underlining improved profitability, asset quality, and capitalization.
Controlled Inflation, Reform Momentum
S&P notes that India’s monetary policy has become more adept at managing inflationary expectations, which, along with reforms in public finance and infrastructure, has anchored investors’ trust. The country’s relative reliance on domestic consumption, rather than exports, makes it less vulnerable to external shocks—such as trade tariff tensions.

Implications for India
Enhanced Access to Global Capital
The upgrade to ‘BBB’ will make it easier for India to access global capital markets. Borrowing costs are expected to decline, and the country may attract increased foreign investment. With a stronger credit profile, India is better positioned to finance infrastructure projects and drive economic expansion.
Investor Confidence and Economic Optimism
Investor sentiment has received a major boost. The changed rating supports confidence in India’s policy stability and governance, setting a favorable tone for both domestic and foreign stakeholders. This optimism is further emboldened by S&P’s assertion of India’s resilience and capacity for robust recovery post-pandemic.

Concerns and Caution
While S&P’s upgrade is a milestone, it comes with cautions:
• Any “erosion of political commitment to consolidate public finances” could reverse the gains. The agency warns of potential rating downgrades if the debt-deficit trajectory falters.
• Analysts caution that indirect effects from global trade tensions, particularly from U.S. tariffs, could still pose risks in the form of reduced investment flows.
Maintaining policy consistency and disciplined fiscal management will be crucial for sustaining and further improving India’s rating.

Conclusion
S&P Global’s upgrade of India’s sovereign credit rating stands as a landmark affirmation of the country’s economic strength, fiscal prudence, and ongoing reform momentum. The move heralds lower borrowing costs, greater access to capital, and robust growth prospects. Policymakers must remain prudent, sustaining fiscal consolidation and reform efforts to preserve the trust of the rating agency.
As India stands on the brink of its next economic leap, this upgrade is more than a financial milestone—it is a bet on India’s future by one of the world’s most influential credit agencies.

 

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RBI’s Revised Co-Lending Norms Set to Transform NBFC Growth

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Revolut Eyes $65 B Funding Round to Fuel U.S. Expansion
Business, business update, Economy - July 19, 2025

Revolut Eyes $65 B Funding Round to Fuel U.S. Expansion

Revolut Eyes $65 B Funding Round to Fuel U.S. Expansion

London-based fintech titan Revolut is in active discussions to raise around $1 billion in fresh capital under a $65 billion valuation, aiming to supercharge its ambitious expansion in the United States and beyond.

Turning Heads with a New Valuation

Revolut’s management is engaged in talks to mix new share issuance and existing stock sales to bring in about $1 billion. Industry observers expect the round will anchor around a “blended” $65 billion valuation—higher for new issuances, slightly lower for secondary-market transactions FinTech Weekly – Home Page+10AOL.com+10Devdiscourse+10.
This comes after Revolut’s valuation stood at $45 billion in 2024, following a secondary share sale that attracted fresh and existing investors FinTech Weekly – Home Page+7AOL.com+7MarketScreener Canada+7. The significant valuation bump signals strong investor appetite for fintech disruptors.

Big-Name Investors in the Mix
U.S. investment firm Greenoaks is reportedly leading the charge on this funding round, with Mubadala—Abu Dhabi’s sovereign wealth vehicle—also exploring a $100 million addition to its stake Benchmark Beat+6AInvest+6AInvest+6. Both parties have previously shown confidence in Revolut.
Sources indicate Greenoaks is poised to helm the round, though terms are still being negotiated Wikipedia+12AOL.com+12Finance Magnates+12.

Explaining the “Blended” Valuation
The $65 billion figure is not meant to be a straightforward valuation—it’s a blend:
• New shares are priced more optimistically.
• Secondary sales among current shareholders are pegged lower.
This results in a blended headline number FinTech Weekly – Home Page+4Axios+4Financial Times+4Tech Startups+4AInvest+4AOL.com+4MarketScreener Canada.
Such valuation mark-ups are common in fintech funding—consider Stripe, which hit a high-water mark before retreating during its public debut .

Financial Strength & Growth Momentum
Revolut has demonstrated impressive financial firepower:
• In 2023, it reported £1.1 billion in pretax profit, overturning a previous loss Wikipedia+12AInvest+12Benchmark Beat+12MarketScreener Canada+1AOL.com+1.
• That momentum continued into 2024 with net profit doubling to £790 million and revenue roughly £3.1 billion Wikipedia.
• User numbers are climbing fast—it now serves over 60 million customers globally, up from around 50 million in late 2024 AInvest+2Wikipedia+2Finance Magnates+2.
These figures explain why fresh capital is incoming at a heftier valuation.

Expansion Strategy: U.S. Focus, Global Outlook
The fresh funding will help accelerate Revolut’s penetration in the U.S.—a core focus area—as evidenced by partnerships with Sutton Bank and Cross River Bank to support its American banking ambitions Benchmark BeatTechCrunch+10Tech Funding News+10Axios+10.
Additionally, Revolut is diversifying its offer with:
• Expansion into digital mortgages and business lending
• Launching an AI-driven financial assistant, branded ATMs in Spain, and global investment features like ETFs with BlackRock/Vanguard MarketScreener Canada+2AInvest+2Tech Funding News+2.
The offer is steadily evolving into a full-fledged “financial super app.”

CEO Incentives & Exit Strategy Options
Revolut CEO Nik Storonsky stands to benefit substantially from a successful round or future IPO—reportedly topping out at 10 % equity if the company reaches a $150 billion valuation Financial Times+3AInvest+3Benchmark Beat+3.
The firm is also reportedly laying groundwork for an IPO, with a preference for New York based on its global reach AInvest+5AInvest+5Tech Funding News+5. Although a listing isn’t imminent, market dynamics could influence timing.

Market Context & Valuation Trends
This round highlights wider trends in fintech investing. Revolut’s leap from a $45 billion to $65 billion evaluation in under a year reflects growing confidence, especially given its strong profit performance. However, caution is warranted: other fintechs like Stripe have seen valuations contract post-funding Finance Magnates.
Still, with $4 billion in annual revenue and half a billion in profit, Revolut distinguishes itself among peers—attractive to investors on both primary and secondary fronts Tech Funding News.

Regulatory & Competitive Landscape
Revolut faces regulatory scrutiny—which it has addressed with UK and EU banking licenses granted in 2024—and is improving its compliance systems Tech Funding News. Its capability to expand U.S. services hinges on navigating licensing and maintaining robust regulatory relations.
Furthermore, the fintech space is highly competitive: legacy banks and rivals like Wise and Monzo are vying for market share. Revolut’s growth, scale, and product breadth represent its main defense.

What Comes Next?
Expect the following developments:
1. Deal Finalization: Greenoaks and Mubadala are key players; terms and timing remain fluid.
2. U.S. Rollout: Accelerated launch of U.S. banking and lending services.
3. Product Rollout: New mortgages, business credit products, AI financial tools, banking app enhancements.
4. IPO Planning: Potential NYSE listing, timed with market conditions and internal milestones.
5. Valuation Watch: Investors and analysts will track how performance and market sentiment affect valuation.

Final Take: Bold Move with Smart Groundwork
Revolut’s move to raise funding at a lofty valuation underscores its strong financial footing and ambitious global expansion plans. While some may question fintech exuberance, the company’s profitability and growth-backed metrics set it apart. If regulatory and market conditions remain favorable, this funding round could be a powerful springboard for its next phase.

 

 

 

 

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IREDA Bonds Gain Tax Benefits to Promote Green Energy

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Temasek Targets Europe with $25 Billion Investment Surge Strategy
business update, Economy, Market News - July 17, 2025

Temasek Targets Europe with $25 Billion Investment Surge Strategy

Temasek Targets Europe with $25 Billion Investment Surge Strategy

Singapore’s state-backed investment giant Temasek is sharpening its focus on Europe, following a record-breaking year of capital deployment in the region. With a $7.8 billion investment in European assets during the last financial year, the firm now sees even more potential opportunities opening up across the continent due to lower company valuations and favorable market conditions.

A Strategic Shift Toward European Markets
Temasek’s increased interest in Europe is part of a broader strategic pivot that reflects shifting global dynamics. According to Nagi Hamiyeh, who leads Temasek’s operations in Europe, the Middle East, and Africa (EMEA), market volatility, inflation, and geopolitical uncertainty have made European companies more attractively priced than they were in previous years. This, in turn, has created an entry point for long-term investors like Temasek.
“Because of the economic environment and valuation corrections, many European firms are now available at fair prices, whereas earlier they were overvalued,” Hamiyeh said.
While the U.S. remains an important market, the valuation gap between European and American firms has widened, making Europe an increasingly attractive hunting ground for fresh investments.

Record-Breaking Portfolio Growth
Temasek experienced a significant rise in the overall worth of its investment portfolio by the end of the financial year closing on March 31, 2025.. The investment firm’s net portfolio value rose 11.6% year-over-year, reaching a historice high of S$434 billion (roughly $321 billion USD). This marks a strong rebound for the fund, especially following a challenging prior year where market fluctuations negatively impacted returns.
Out of the S$25 billion Temasek has planned to invest in Europe over a five-year period, S$10 billion has already been deployed—indicating that the fund is moving faster than expected in seizing opportunities across the continent.

Where Temasek Is Placing Its Bets Temasek’s investments in Europe are spread across a mix of sectors that align with its long-term themes such as digitization, sustainable living, future mobility, and healthcare. Some of the notable investments include:
• Renewable Energy: Temasek has increased its stake in Neoen, a French renewable energy company focused on solar, wind, and battery storage projects. This aligns with Temasek’s vision for environmental responsibility and reinforces its dedication to advancing renewable energy initiatives.
• Gaming and Tech Services: The fund invested in Keywords Studios, an Irish company that provides services to global video game developers. This initiative reflects Temasek’s strategic drive to strengthen its presence in the evolving digital landscape.
• Industrial and Financial Services: The company continues to show interest in industrial manufacturing, logistics, fintech, and financial platforms, especially those in early growth stages.
• Consumer Goods and Family Businesses: Temasek is also targeting well-established, often family-run businesses in countries such as Germany, Italy, and Scandinavia, which have proven business models and room ford modernization.

Europe vs. U.S.: Valuation and Risk-Reward Balance
While American markets have generally commanded higher valuations due to their tech-heavy composition and investor optimism, Europe now presents a better value proposition, particularly for long-term investors seeking quality assets at discounted prices. The price-to-earnings ratios and other valuation metrics for many European firms have declined in recent months, giving investors like Temasek more bargaining power.
Hamiyeh noted that Temasek isn’t looking to pull back from Asia or North America, but rather to diversify in a way that balances its global exposure. Europe’s unique combination of attractive pricing, economic resilience, and forward-thinking industries makes it an ideal match for Temasek’s shifting investment strategy.

Riding Out the Global Uncertainty
Temasek’s strategy also reflects a deeper confidence in riding out global macroeconomic headwinds. From interest rate changes to global trade disruptions and inflationary pressures, the current landscape is uncertain. However, Temasek sees this uncertainty not as a deterrent, but as a potential source of value.
Rather than waiting on the sidelines, the investment firm is leaning in—deploying capital where it sees long-term growth potential. With a patient capital approach, Temasek is less concerned about short-term volatility and more focused on strategic positioning for the decades ahead.

Future Outlook: Scaling Up European Exposure
Looking forward, Temasek is expected to continue allocating more capital to Europe, particularly in regions where it already has a stronghold—such as France, Italy, Germany, and Scandinavian countries. The firm is also actively exploring new sectors including advanced manufacturing, agri-tech, digital healthcare, and sustainable infrastructure.
Temasek still retains nearly 60% of its planned five-year capital allocation for Europe, giving it substantial financial capacity to further grow and diversify its investments across the continent.. The current pace suggests that the fund may exceed its original targets if market conditions remain favorable.

Conclusion: A Long-Term Play in a Rebounding Market
Temasek’s aggressive move into European markets marks a transformative turn in global investment dynamics.While many investors remain cautious amid rising geopolitical tensions and economic uncertainty, Temasek is taking a proactive stance—investing in businesses that are poised for recovery and long-term growth.
By capitalizing on current valuation gaps and focusing on high-quality companies, Temasek is not just weathering the storm—it’s building for the future. For Europe, this could mean an influx of long-term capital from one of the world’s most respected institutional investors.

 

 

 

 

 

 

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RBI's Strategic Liquidity Management: A ₹2 Trillion Operation Looms

RBI’s Strategic Liquidity Management: A ₹2 Trillion Operation Looms

In a liquidity management move watched closely by financial markets, the Reserve Bank of India (RBI) conducted a two-day Variable Rate Reverse Repo (VRRR) auction on July 9, accepting ₹97,315 crore from banks. This came just shy of the ₹1 trillion it had offered. Market participants believe the cautious bidding reflects expectations of a much larger liquidity absorption—possibly ₹2 trillion—on the horizon.

RBI Tightens Grip on Surplus Liquidity
The accepted bids cleared at a cut-off rate of 5.49%, slightly higher than the 5.47% seen in the previous seven-day VRRR held on July 4. This increase, though modest, suggests that banks are pricing in tighter liquidity going forward or preparing for another, much larger VRRR operation.
Traders and treasury dealers believe the higher rate points to growing uncertainty in the short-term money market. With expectations of a ₹2 trillion auction soon, many institutions held back from fully subscribing to the current round, choosing instead to wait and see how the RBI proceeds.

Liquidity Remains in Surplus—But Banks Tread Carefully
Even after the RBI’s significant withdrawal of funds via the VRRR mechanism, surplus liquidity remains abundant in India’s banking sector. As per RBI figures dated July 8, the system still held an excess of ₹3.07 trillion.
Still, the higher cut-off rate indicates that banks are becoming more cautious. There is still no clarity on where the RBI wants overnight rates to settle—whether close to the repo rate of 5.50% or somewhere between the repo and the Standing Deposit Facility (SDF) rate of 5.25%.
A dealer from a state-owned bank noted:
“There is expectation of a ₹2-trillion VRRR announcement soon. It remains uncertain whether the RBI aims to anchor the overnight rate precisely at 5.50% or prefers it to fluctuate within the range bounded by the Standing Deposit Facility and the repo rate. This uncertainty is leading to cautious bidding and a higher cut-off.”

Short-Term Rates Show an Uptrend
The rising rates in the money market support this cautious outlook. Key short-term rates have moved upward recently:
• The Weighted Average Call Rate (WACR) increased to 5.34%, compared to around 5.26% a week ago.
The interest rate for Tri-party repos advanced to 5.29%, marking a rise from the previous benchmark of 5.13%.
This suggests that short-term money is becoming slightly more expensive, even with surplus liquidity still in the system.

A Look at Recent VRRR Activity
This auction is part of a series of regular VRRR operations the RBI has been conducting to manage surplus liquidity and guide short-term interest rates. Here’s a quick recap:
• On July 4, during a seven-day Variable Rate Reverse Repo (VRRR) auction, the Reserve Bank of India attracted ₹1.7 trillion in total bids but chose to absorb only ₹1 trillion, setting the cut-off yield at 5.47%.
• On June 27, the Reserve Bank of India absorbed ₹84,975 crore from the banking system, with the average return rate settling at 5.45%.
• June 18: A similar pattern was observed, with selective acceptance at competitive rates.
These auctions show RBI’s consistent effort to sterilize excess liquidity and fine-tune monetary transmission.

Expectations Building for a ₹2 Trillion Operation
Speculation within financial circles suggests that the Reserve Bank may soon initiate a Variable Rate Reverse Repo (VRRR) operation worth ₹2 trillion, possibly within the near-term horizon. There are several reasons why a large liquidity absorption may soon be necessary:
• A recent reduction in the Cash Reserve Ratio (CRR) has freed up nearly ₹2.5 trillion, effectively releasing that volume of funds into the banking system and enhancing overall liquidity.
• The Reserve Bank of India’s transfer of surplus funds to the government will, in due course, make their way back into circulation within the banking sector.
• Bond maturities and government spending: Both can temporarily elevate surplus liquidity.
Analysts predict that by October–November, the total liquidity surplus could grow to ₹5 trillion, making larger VRRR operations not just likely—but necessary.

Why VRRR Matters in Monetary Policy
1. Variable Rate Reverse Repo (VRRR) auctions serve as essential instruments in the Reserve Bank of India’s strategy to regulate liquidity. By conducting these operations, the RBI draws surplus funds out of the banking sector, helping to maintain monetary balance.
2. Prevent oversupply of money, which can lead to lower short-term rates and weaken monetary policy transmission.
3. Stabilize overnight rates like WACR, keeping them aligned with the central bank’s policy stance.
4. Manage inflation expectations, since surplus liquidity can fuel asset bubbles or consumption spikes.
By actively managing liquidity through VRRR, the RBI reinforces the effectiveness of its repo and reverse repo corridor.

Banks Playing It Smart
Banks, for their part, are being strategic. Many chose not to deploy their entire surplus in the latest VRRR, likely keeping some buffer for potential rate volatility or the upcoming larger auction. The move to bid at higher rates suggests that banks are aiming to hedge risk rather than chase marginal returns.
Some analysts believe this “wait and watch” behavior will continue until the RBI provides greater clarity on its short-term liquidity roadmap—especially if more durable liquidity (like long-term money) continues to flood the system.

Looking Ahead
With inflation under control and growth momentum holding steady, the RBI is expected to maintain its current policy stance. However, the central bank’s liquidity operations—like the VRRR—will remain active and adaptive to market conditions.
A potential ₹2 trillion auction will be watched closely not just for the amount, but also for the tenor (7-day, 14-day, etc.) and the cut-off rate. These factors will offer deeper insight into RBI’s evolving liquidity strategy.

Conclusion
By taking in ₹97,315 crore through its most recent VRRR operation, the Reserve Bank of India has demonstrated a forward-looking stance in handling excess liquidity within the banking system. As anticipation builds around a potential ₹2 trillion liquidity operation, financial institutions are treading carefully—mindful of excess funds in the system while closely observing the Reserve Bank’s next strategic steps. In the weeks ahead, the central bank may adopt a more assertive stance to fine-tune the delicate balance between economic expansion, price stability, and overall financial system health.

 

 

 

 

 

 

 

 

 

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Global Investors Reap Nearly $100 Billion Gains from India Investments

Global Investors Reap Nearly $100 Billion Gains from India Investments

In a powerful indicator of India’s growing prominence in the global investment landscape, overseas investors have reportedly earned close to $100 billion from their equity, debt, and direct investments in the country. This remarkable amount highlights India’s growing reputation as a trustworthy and profitable hub for international investors.
This large-scale repatriation of investment income comes amid a backdrop of increasing foreign direct investment (FDI), strong economic growth, and the government’s push for structural reforms that encourage business and innovation.

India Delivers Strong Returns to Foreign Investors
According to official estimates and industry analysts, foreign entities made substantial gains from various investment channels in India. These include returns from listed equity holdings, government and corporate bonds, and direct ownership in Indian businesses. The near $100 billion figure reflects net profits repatriated, not just inflows, showing that overseas investors are not only placing capital in India—but also realizing robust returns.
India’s dynamic and resilient economic performance, paired with its reform-driven policy approach, has created an ecosystem that attracts long-term foreign investment across industries ranging from manufacturing and digital infrastructure to green energy and consumer markets.

Economic Fundamentals Attracting Foreign Capital
Several factors have contributed to making India a hotbed for international investors:
1. Strong Economic Growth and Reform-Driven Environment
India has regularly achieved rapid economic expansion, ranking it among the fastest-growing large economies worldwide.. Strategic initiatives such as the Goods and Services Tax (GST), corporate tax cuts, and the ease-of-doing-business drive have improved investor sentiment.
The government’s ambitious “Make in India” and “Digital India” missions have created a more open and innovation-friendly environment, further encouraging global capital flows.
2. China-Plus-One Strategy
With shifting global dynamics and disruptions in supply chains, international businesses are deliberately diversifying away from their reliance on China. India, with its large talent pool, improving logistics, and supportive policies, has emerged as a favored alternative.
Major global manufacturers like Apple, Samsung, and several semiconductor firms are expanding their India operations, signaling deeper investor confidence in India’s long-term manufacturing potential.
3. Valuation Advantage and Market Potential
While valuations in the U.S. and some other developed markets have become steep, India continues to offer compelling value across sectors like financial services, infrastructure, clean energy, and consumer tech. Many foreign funds view Indian markets as being in a long-term structural bull phase.

What Made Up the $100 Billion in Earnings?
Foreign investors realized their earnings across multiple investment channels:
• Listed Equities: Gains from shares of Indian companies, especially in the tech, financial, and green energy sectors.
• Debt Markets: Steady yields from government securities and corporate bonds attracted bondholders, particularly as global interest rates remained volatile.
• Direct Investments: Exit opportunities through IPOs and secondary market transactions allowed global investors to unlock value from their stakes in Indian enterprises.
This combination of sources has made India a well-rounded opportunity—offering both growth and liquidity to investors looking for long-term capital appreciation.

Capital Mobility: A Sign of Economic Maturity
That such significant profits are being repatriated signals that India has reached a new level of maturity in its financial ecosystem. Investors are not just betting on Indian growth—they are successfully monetizing their investments and exiting with ease.
This level of flexibility and transparency is critical in attracting new investments. As profits return to global portfolios, they often serve as endorsements that encourage more investors to look toward India for the next cycle of opportunity.

Government Support and Policy Initiatives
The Indian government has played a key role in fostering a positive investment climate. Several policy steps have helped:
• FDI Liberalization: India has opened up several sectors to 100% FDI under the automatic route, cutting red tape and simplifying regulations.
• Production Linked Incentive (PLI) Schemes: These incentive-driven policies have attracted global players in mobile manufacturing, pharmaceuticals, textiles, and electronics.
• Strategic Trade Agreements: India’s trade pacts, such as the one with the European Free Trade Association (EFTA), are paving the way for smoother capital flows and more favorable trade terms.
The country is targeting $100 billion in annual FDI in the near term, showing its ambition to become a global hub for high-quality investment.

What This Means for the Future
The $100 billion profit figure is not just a measure of past success—it’s a signal for what lies ahead. With capital markets deepening and private equity and venture capital on the rise, India is poised to be an even bigger player in global portfolios.
Investors are likely to reinvest part of their profits back into India, driven by new opportunities in sectors such as:
• Renewable energy and climate tech
• Digital and AI-driven enterprises
• Advanced manufacturing and electric vehicles
• Logistics and infrastructure modernization
• Financial technology and inclusion-based platforms
Global private equity firms and sovereign wealth funds are also expanding their footprints in India, confident in the country’s long-term fundamentals and scalable opportunities.

Conclusion: A Virtuous Investment Cycle
India’s ability to deliver nearly $100 billion in profits to foreign investors underscores the nation’s strength as a globally competitive, investor-friendly economy. It validates the country’s efforts in building an open, modern, and resilient financial and industrial system.
As foreign capital continues to flow in—and out—India is proving that it is not just a place for emerging market exposure, but a core pillar in global investment strategies. The cycle of invest, grow, profit, and reinvest appears to be gaining strong momentum.

 

 

 

 

 

 

 

 

 

 

 

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India Proposes $3.83 Billion in Additional Tariffs on U.S. Steel and Aluminium

India Proposes $3.83 Billion in Additional Tariffs on U.S. Steel and Aluminium

In a move to counter U.S. trade actions, India has notified the WTO of its plan to hike duties on American metal imports worth billions.

India Plans Retaliatory Tariffs Amid Trade Tensions with U.S.

India has taken a firm stance in its ongoing trade conflict with the United States by seeking to impose additional tariffs worth $3.83 billion on American imports, primarily targeting steel and aluminium products. The proposal comes in response to earlier tariff increases by Washington that impacted Indian metal exports.

According to official communication submitted to the World Trade Organization (WTO), India has identified several categories of U.S. goods that could face increased customs duties. This retaliatory action is grounded in WTO rules and seeks to balance the economic harm caused by U.S. protectionist measures implemented in 2018.

Background: U.S. Tariffs Spark Trade Retaliation

The genesis of this trade standoff dates back to 2018 when the United States, citing national security concerns under Section 232 of its Trade Expansion Act, raised import duties on steel and aluminium. These hikes—25% on steel and 10% on aluminium—were applied across several countries, including India, significantly impacting the latter’s exports in these sectors.

India, viewing these actions as unjustified, initiated a formal dispute process under WTO mechanisms. While a WTO panel sided with India in December 2022, the U.S. lodged an appeal, stalling any enforcement as the WTO Appellate Body remains non-functional.

WTO Dispute Proceedings and Their Impact

India’s latest communication to the WTO Dispute Settlement Body highlights that it has experienced substantial economic losses due to the continued application of the Section 232 tariffs by the U.S. The appeal filed by Washington has rendered the original ruling non-actionable due to the dysfunctional state of the WTO’s top appellate mechanism.
This deadlock has left countries like India unable to secure relief through conventional legal channels. As a result, New Delhi is now turning to trade remedies available under WTO norms—specifically the right to suspend concessions or impose countermeasures of equivalent commercial value.

India’s proposed $3.83 billion in additional duties aligns with the level of trade impact estimated to have resulted from the U.S. tariffs.

What Could Be Affected: List of Targeted Goods

While the official list of U.S. goods that may face higher tariffs has not been disclosed in detail, India’s earlier retaliatory tariff proposal included items such as motorcycles, walnuts, apples, almonds, and various metal products. The aim is to select goods that are significant to American exporters but not vital for Indian consumers or manufacturers, minimizing domestic disruption.

This approach reflects a strategic balancing act—asserting India’s rights under WTO rules while safeguarding local economic interests.

Diplomatic Engagements Continue in Parallel

Despite the growing trade friction, both nations continue to engage in diplomatic and economic dialogue. Over the past two years, India and the United States have witnessed a surge in bilateral cooperation, covering areas like defense, technology, clean energy, and critical minerals.

During recent high-level meetings, officials from both countries have emphasized the importance of a rules-based global trading system and have expressed a shared interest in resolving trade disputes amicably. However, progress on contentious issues such as tariffs remains slow, particularly as the U.S. The U.S. continues to adopt a firm approach toward imports citing national security concerns.

India’s move to implement counter-tariffs highlights the growing complexity of resolving trade conflicts amid a fractured global trade system.

Broader Implications for Global Trade

India’s retaliatory move is part of a broader global pattern, with several countries expressing concern over the precedent set by the U.S. Section 232 tariffs. The WTO has witnessed similar disputes involving the European Union, China, and others, reflecting widespread unease about the erosion of multilateral trade norms.

The absence of a functioning appellate body has left numerous cases in limbo, prompting affected nations to seek alternative remedies. For India, this includes leveraging its rights under Article 22 of the WTO Dispute Settlement Understanding, which allows for the suspension of trade concessions when disputes remain unresolved due to procedural blockages.

Final Thoughts

India’s plan to impose $3.83 billion worth of additional tariffs on U.S. steel and aluminium imports marks a significant development in an ongoing trade standoff rooted in protectionist policies. Triggered by the U.S. decision to impose steep import duties under national security grounds in 2018, this dispute has escalated through legal proceedings and now sees India asserting its right to seek economic parity.

By formally notifying the WTO and preparing for countermeasures, India is not only aiming to offset its trade losses but also reinforcing its commitment to multilateral rules. However, the current paralysis of the WTO’s appellate system adds a layer of uncertainty to such actions, raising questions about the future of global trade governance.

As both countries continue to cooperate on broader strategic fronts, resolving these trade irritants remains crucial for fostering trust and ensuring long-term stability in economic relations.

 

 

 

 

 

 

 

 

 

 

 

 

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