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Lenskart’s IPO: A Clear Vision for India’s Eyewear Future
Economy, Markets - July 15, 2025

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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The image added is for representation purposes only

IREDA Bonds Gain Tax Benefits to Promote Green Energy

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Government Mulls Relaxing FDI Rules for E-Commerce Exports — Who Wins, and by how much?
Economy - June 20, 2025

India Rises to 15th in Global FDI Rankings!

India Rises to 15th in Global FDI Rankings!

India Rises to 15th in Global FDI Rankings!

UNCTAD Report Highlights India’s Resilience as FDI Magnet, Bolstered by Greenfield Projects and Policy Initiatives

Summary:
India has improved its global standing by moving up one rank to the 15th position among top foreign direct investment (FDI) destinations in 2024, according to the latest World Investment Report by UNCTAD. While overall FDI inflows slightly declined to $27.6 billion from $28.1 billion in 2023, the country witnessed a strong surge in greenfield project announcements, underscoring its long-term attractiveness for investors despite global economic uncertainty.

India Moves Up to 15th Rank in Global FDI List Despite Decline in Inflows: UNCTAD
India has demonstrated its resilience and investment appeal by climbing one notch to 15th place among the world’s top Foreign Direct Investment (FDI) destinations in 2024, even as its total FDI inflows slightly dropped, the latest World Investment Report 2024 by the United Nations Conference on Trade and Development (UNCTAD) has revealed.

FDI Inflows: A Marginal Decline, But Big Picture Positive
The report indicates that India received $27.6 billion in Foreign Direct Investment (FDI) in 2024, a slight decrease from $28.1 billion in 2023, representing a decline of approximately 1.8%. This drop, however, must be viewed in the context of global headwinds: overall global FDI flows fell by 2% to $1.3 trillion in 2024, following a sharper 12% drop in 2023, reflecting economic uncertainty, geopolitical tensions, tighter monetary policies, and declining corporate profits worldwide.
Despite this modest dip, India’s performance stands out positively when compared with other developing economies. The report highlighted that the number of announced greenfield projects — which is a strong indicator of long-term investor confidence — in India, the number of greenfield project announcements increased by more than 20%, positioning the country as third in the world.

Greenfield Surge: The Underlying Strength
UNCTAD’s report underscores that India’s strength lies not just in short-term inflows but in long-term investment commitments. The country has recorded a remarkable increase in greenfield project announcements, especially in the renewable energy, electronics, automotive, and digital infrastructure sectors.
Sectors such as electric vehicles (EVs), semiconductor manufacturing, solar and wind energy, and data centres have witnessed robust investor interest. Companies like Foxconn, Micron Technology, and Tesla’s suppliers have either committed or shown interest in establishing new facilities in India, encouraged by government incentives and schemes such as PLI (Production Linked Incentive) and ‘Make in India’.
The greenfield momentum also reflects India’s demographic advantage, rapid digital transformation, policy consistency, and a growing consumer market that continues to attract global corporations despite short-term macroeconomic challenges.

FDI Inflows by Region: Asia Remains Dominant
Asia maintained its position as the top global recipient of foreign direct investment (FDI), securing $621 billion in 2024. India remains a bright spot within South Asia, accounting for over 80% of the region’s FDI, as per UNCTAD estimates. In contrast, FDI inflows to China fell significantly due to geopolitical factors and a subdued property market, whereas Southeast Asia saw moderate inflows supported by regional trade agreements and supply chain diversification.
The United States continued to be the leading destination for foreign direct investment, with China, Singapore, and Brazil following behind. Notably, countries like Vietnam, Indonesia, and the UAE also saw improvements in FDI rankings due to aggressive trade policies and infrastructure enhancements.

Government Response and Reform Agenda
India’s Ministry of Commerce and Industry welcomed the findings, stating that the improved rank in the UNCTAD index is reflective of the continued trust global investors place in India’s policy regime and long-term potential.
In the last year, the Indian government has implemented a number of significant reforms, including:
Simplifying FDI norms across key sectors like telecom, defence, and retail
Creating a National Single Window System to streamline investment approvals
Expanding PLI schemes to cover additional sectors
Fast-tracking land and labour reforms at the state level to make the business environment more investor-friendly
These proactive initiatives are aimed at not just attracting FDI but ensuring that it leads to job creation, technology transfer, and regional development.

Challenges Still Loom
Despite the positives, experts caution that India must tackle specific persistent challenges to sustain this momentum. These include:
Regulatory complexities and policy unpredictability at the state level
Infrastructure bottlenecks in tier-II and tier-III cities
Delays in contract enforcement and land acquisition
Rising concerns over data privacy and cybersecurity in the digital economy
Moreover, global factors such as rising interest rates in developed markets and political instability in key partner nations may continue to impact short-term capital flows.

Outlook: Cautious Optimism Prevails
Analysts believe that India’s position as an emerging global FDI hub is only strengthening, particularly as global companies diversify supply chains and seek alternatives to China. The convergence of favourable demographics, proactive policy interventions, and improving infrastructure gives India a strong foundation to capitalize on global investment flows in the coming decade.
The slight fall in actual inflows is thus not a sign of weakness but rather a temporary blip in a broader upward trajectory.

Conclusion
India’s rise to the 15th position in global FDI rankings amid a worldwide slowdown in investment flows is a testament to its underlying economic resilience and improving ease of doing business. While inflows declined marginally, the surge in greenfield project announcements indicates strong investor confidence in India’s long-term growth story. With continued reforms, infrastructure upgrades, and policy stability, India is poised to attract even greater FDI in the years to come.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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The image added is for representation purposes only

Woodside and Petronas Secure Long-Term LNG Pact Backed by U.S. Project

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Government Mulls Relaxing FDI Rules for E-Commerce Exports — Who Wins, and by how much?
Economy - June 9, 2025

FDI Surge: 277.6% Rise Boosts India's Economy!

FDI Surge: 277.6% Rise Boosts India’s Economy!

India attracts $2.2 billion in FDI via the government route in FY25, marking a massive 277.6% YoY growth amid policy reforms and global investor optimism.

Summary:
India saw a remarkable 277.6% increase in FDI inflows via government approval in FY25, reaching $2.20 billion. This sharp rise is seen as a testament to the country’s improved policy environment, strategic sectoral liberalization, and increasing global investor confidence in India’s growth potential. A growing preference among foreign investors to acquire existing shares of Indian firms further underscores the nation’s maturing capital markets and economic appeal.

FDI Surge Signals Renewed Investor Trust
Foreign Direct Investment (FDI) in India through the government route saw a remarkable increase in FY2024–25, achieving an impressive year-on-year growth of 277.6% and totalling $2.20 billion. This surge indicates a resounding vote of confidence from global investors in the Indian economy and its regulatory reforms. While the automatic route continues to dominate overall FDI inflows, the government route’s sudden leap highlights the growing interest in sensitive or strategic sectors where approvals are mandatory.
This development comes at a time when global economies are grappling with inflationary pressures, geopolitical tensions, and supply chain realignments. In such a context, India’s robust macroeconomic fundamentals, consistent GDP growth, and policy-driven reforms have made it a compelling investment destination.

Government Route: What Does It Mean?
FDI via the government route pertains to sectors where foreign investment requires prior approval from the Indian government. These sectors include defence, telecom, media, private security, and others that are considered sensitive due to national interests. Investors must apply through the Foreign Investment Facilitation Portal (FIFP), and proposals are reviewed by respective ministries and departments before a final nod from the Ministry of Commerce and Industry.
Over the years, many sectors have progressively shifted to the automatic route. However, those still under government scrutiny are now seeing increased traction, signalling both strategic investor interest and bureaucratic efficiency in facilitating approvals.

Drivers Behind the Inflow Boom
1. Improved Ease of Doing Business:
India’s ranking in global ease-of-doing-business indices and efforts to streamline the FDI approval process through digitization and faster clearances have played a critical role.
2. PLI Schemes & Sectoral Reforms:
Production-Linked Incentive (PLI) schemes in electronics, pharmaceuticals, and renewable energy have drawn foreign investors to sectors under the government route, encouraging capacity expansion and technology transfer.
3. M&A-Focused Investments:
Interestingly, much of the FDI under this route has been used to acquire existing shares of Indian companies. This trend highlights a shift from greenfield investments to brownfield expansions, suggesting that foreign companies are increasingly looking for immediate market access and operational leverage rather than building operations from scratch.
4. Geo-Economic Realignment:
Amid rising tensions between major economies and shifting global supply chains, India is being viewed as a stable and democratic alternative to China for manufacturing and service hubs. Several Japanese, European, and U.S. investors are shifting their capital to India as part of their strategy to diversify away from China.

Sectoral Spotlight: Where the Money Is Going
Defence and Aerospace:
India’s focus on Indigenous defence manufacturing through the ‘Make in India’ initiative has created opportunities for joint ventures, especially with defence companies from Europe and Israel. Several deals involving technology partnerships and share acquisitions have been approved in FY25.
Telecom and Electronics:
With 100% FDI allowed under the government route in telecom and relaxed norms in semiconductor manufacturing, the sector has witnessed an influx of funds, particularly from Southeast Asian investors.
Pharmaceuticals and Healthcare:
Acquisitions of Indian generic drug makers by global pharma giants and fresh equity infusions for manufacturing expansion have significantly contributed to the surge.
Digital Media and Technology:
Global interest in India’s rapidly growing digital landscape, including gaming, OTT platforms, and cloud services, has led to FDI proposals, particularly in acquiring stakes in tech startups and established players.

Global Comparisons: India Emerges as a Bright Spot
Globally, FDI flows declined marginally in 2024, as per UNCTAD’s World Investment Report, with developed economies facing a slowdown in inflows. In contrast, India’s resilience and proactive policy changes have helped buck this trend. While China has seen waning FDI sentiment amid regulatory uncertainties, India has positioned itself as a reliable, transparent, and investor-friendly market.

Challenges Ahead: Policy Consistency & Speedy Approvals
Despite the positive numbers, India must remain vigilant. Investors still cite concerns such as policy unpredictability in some states, delays in approvals, and bureaucratic red tape. To maintain momentum, it is imperative for the central government to ensure faster clearances, inter-ministerial coordination, and transparent communication regarding policy shifts.
Moreover, strengthening dispute resolution mechanisms and intellectual property protections will further enhance investor confidence, especially for high-tech and R&D-intensive sectors.

Way Forward: Leveraging the Momentum
The current momentum provides India with a golden opportunity to scale up reforms and attract long-term capital. By encouraging strategic partnerships, easing norms in defence and media further, and enhancing the speed of FDI clearance under the government route, India can position itself as the foremost FDI magnet in the Global South.

Conclusion
The 277.6% year-on-year rise in FDI under the government route is more than just a statistical achievement—it’s a strong validation of India’s economic vision, regulatory reforms, and global investor appeal. As more foreign investors choose India not just as a marketplace but as a manufacturing and innovation hub, it becomes crucial for policymakers to nurture this momentum and institutionalize investor confidence through consistent and visionary governance.

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

GRSE Shares Tumble 8% from Peak Despite 77% Monthly Surge

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Significant Step Taken by Javier Milei to Normalize Argentina's Economy
Economy, Markets - April 16, 2025

Significant Step Taken by Javier Milei to Normalize Argentina's Economy

Significant Step Taken by Javier Milei to Normalize Argentina’s Economy

 

Argentina has a lengthy history of economic instability, including high inflation, budget deficits, depreciating currency, and decades of reliance on government intervention. However, President Javier Milei has initiated a drastic economic shift, sometimes called a “chainsaw revolution,” after assuming office in December 2023. With a libertarian philosophy and an unreservedly pro-market stance, Milei hopes to overthrow Argentina’s long-standing economic restrictions and guide the country toward stability and prosperity in the long run.

The Context of Economic Anarchy

Argentina was experiencing economic instability before to Milei’s tenure as president. The peso was depreciating against the US currency, foreign reserves were almost exhausted, and inflation was over 300% annually. Heavy debt, including an unpaid loan arrangement with the International Monetary Fund (IMF), was another issue facing the country. Subsidies, currency controls, and high public spending had made the system brittle and unsustainable. Milei assumed leadership in this situation and launched one of the most ambitious reform programs in the history of the nation.

Currency Liberalization: The Peso’s Unification

Milei’s decision to lift Argentina’s stringent capital and currency controls has been one of his most important policy changes. Multiple exchange rates coexisted in the nation for years, which led to uncertainty and promoted foreign exchange trade on the illegal market. The Argentine peso was permitted to fluctuate between 1,000 and 1,400 to the US dollar during Milei’s rule.
Eliminating the illicit market, boosting capital inflows, and restoring investor trust are the three main goals of this action. Argentina needs to take this step in order to reenter the global financial system on solid ground. With a $20 billion rescue plan that includes a $12 billion upfront payment, the IMF has supported this endeavor and given the nation’s central bank reserves much-needed support.

Shock Treatment: Budgetary Restraint and Austerity

Milei’s economic approach has frequently been compared to “shock therapy,” which is the quick and forceful application of market changes. In just the first quarter of his presidency, his administration achieved a 30% cut in public spending. Government official wages were reduced, non-essential public agencies were shut down, social programs were streamlined, and infrastructure projects that were judged to be ineffective were put on hold.
Results from this strict financial discipline are already starting to appear. Argentina achieved a budget surplus for the first time in more than ten years, a significant achievement that might aid in restoring trust with foreign investors and creditors.

Controlling Inflation and Stabilizing the Economy

Inflation has long been Argentina’s worst enemy since it undermines economic planning and lowers the country’s citizens’ purchasing powerUnder Milei’s leadership, inflation began to decline for the first time in recent memory. From a peak of nearly 300% at the start of 2024, it fell to approximately 55% by the year’s end. The government predicts that inflation will continue to fall and reach 18% by the end of 2025.
The decline has been attributed to tighter monetary policy as well as the removal of price distortions caused by exchange rate manipulation and subsidies. Despite the potential short-term suffering, these policies seek to restore the real worth of money and offer long-term price stability.

Deregulation and Privatization

Wide-ranging plans to privatize state-owned businesses that aren’t profitable and deregulate industries are part of Milei’s reform program. His omnibus law, officially known as the Law of Bases and Starting Points for the Freedom of Argentines, was ratified by the Argentine Senate in June 2024. The bill incorporates provisions to simplify labor regulations, offer tax incentives to foreign investors, and privatize underperforming state-owned enterprises.

Despite the fact that these policies are intended to increase productivity and draw in private capital, labor unions and segments of the populace have fiercely opposed them out of concern about possible job losses and rising inequality.

Political Risk and Social Unrest

The economic measures have sparked massive protests across Argentina, despite market praise. Layoffs in the public sector, cuts to subsidies, and rising living costs have all contributed to unrest among the working class and lower-income groups. Milei has drawn criticism for supposedly undermining democratic institutions and putting investors’ interests ahead of those of the people. But according to his administration, these tough decisions are required to keep the economy from total collapse. Milei stated during a recent press conference, “We are making the difficult decisions now so that Argentinians can prosper later.”

Managing International Partnerships

It’s interesting to note that Milei’s foreign policy has remained practical despite his ideological alignment with leaders such as Donald Trump and Nayib Bukele. He acknowledged Beijing’s significance as a commercial partner by renewing a $5 billion currency exchange agreement with China, despite previous bluster. In order to fully integrate Argentina into international supply chains, he also indicated interest in negotiating a free trade pact with the US in 2025.

Conclusion Uncertainty or Normalization?

The economic reform implemented by President Javier Milei marks a significant departure from Argentina’s populist history. He has set the stage for a possible long-term stabilization of the Argentine economy by minimizing government intervention in markets, ensuring fiscal restraint, and liberalizing the currency.
However, there are numerous barriers along the road. Many Argentinians have experienced temporary anguish as a result of the reforms, notwithstanding their necessity. The success or failure of Milei’s audacious experiment will largely depend on how well social cohesion and economic stabilization are balanced.

 

 

 

 

The image added is for representation purposes only

Tata Power Rises 4% on ₹4,500 Crore Deal with NTPC!

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