Page 3 - Latest Updates on FDI
India's outbound FDI down to $2.1 billion in August, shows RBI data
Outbound FDI, expressed as a financial commitment, comprises three components: equity, loans, and guarantees
 "India's outbound FDI down to $2.1 billion in August, shows RBI data")
China's Marshall plan is to go green with solar, EV battery investments
Since 2022, China's green-tech FDI has reached $227-$250 billion, roughly matching the post-WWII Marshall Plan that strengthened US-European alliances
 "China's Marshall plan is to go green with solar, EV battery investments")
Equity FDI grows 15% to $18.6 billion in Q1, total inflows up 12%
The US is also the third largest investor in India, with cumulative investments amounting to $76.26 billion between April 2000 and June 2025, ahead of Singapore and Mauritius
 "Equity FDI grows 15% to $18.6 billion in Q1, total inflows up 12%")
Govt draft norms to ease compliance for foreign investment in insurance
The draft norms for foreign investment in insurance propose easing compliance by scrapping residency requirements for directors and KMPs while retaining key leadership conditions
 "Govt draft norms to ease compliance for foreign investment in insurance")
'Make the rules open': Lord Swraj Paul's long campaign for transparent FDI
The NRI industrialist's on-record pitch for clear sectoral caps and minimal approvals anticipated today's ease-of-doing-business push
 "'Make the rules open': Lord Swraj Paul's long campaign for transparent FDI")
Govt mulling further FDI regime easing, more tax benefits for startups
The government is embarking on the next 100-day agenda of transformation to take India on a fast track to developed nation
 "Govt mulling further FDI regime easing, more tax benefits for startups")
Raising FDI limit for insurers to 100% will create jobs: FM Sitharaman
The increase in FDI in Indian insurance companies from 74 per cent to 100 per cent was announced in the Union Budget on February 1, 2025
 "Raising FDI limit for insurers to 100% will create jobs: FM Sitharaman")
Electronics to chemicals: Govt identifies critical sectors to boost FDI
Invest India, the investment promotion and facilitating agency under the Department for Promotion of Industry and Internal Trade (DPIIT), has been actively identifying key value chains to focus on
Net FDI slumps 98% to $40 million in May 2025 as outward flows accelerate
For May 2025, repatriation\divestment stood at $5.0 billion, up from $4.1 billion in May 2024. In May 2025, outward FDI was $2.1 billion, higher than $1.8 billion in May 2024
Delhi HC grants bail to NewsClick founder in ED, EOW foreign funding case
The Delhi HC granted anticipatory bail to NewsClick founder Prabir Purkayastha and director Pranjal Pandey in ED and EOW cases over alleged FDI rule violations and foreign funding
 "Delhi HC grants bail to NewsClick founder in ED, EOW foreign funding case")
ED files Fema case against Myntra over ₹1,654-crore FDI policy breach
The ED files Fema case against Myntra for ₹1,654 crore FDI violation, alleges it routed retail sales via group firm Vector while posing as wholesale; complaint filed under Section 16(3)
 "ED files Fema case against Myntra over ₹1,654-crore FDI policy breach")
Dixon Technologies' China playbook faces crucial Centre's FDI test
The note states that any investment or transfer of ownership from countries sharing a land border with India
 "Dixon Technologies' China playbook faces crucial Centre's FDI test")
Net FDI improves to $3.9 bn in April 2025 as repatriation slows: RBI
Net FDI rose to $3.9 billion in April 2025 on easing capital repatriation while gross FDI inflows touched $8.8 billion, with manufacturing and services leading
Centre likely to relax the board regulations for foreign insurers
The official stressed that while the reforms are not intended to open the floodgates to foreign control, they signal a more welcoming approach to global participation in leadership roles
 "Centre likely to relax the board regulations for foreign insurers")
India reaches 15th spot in top FDI destinations in 2024: UNCTAD report
India moved up to 15th in global FDI rankings as flows stayed at $28 billion in 2023 despite a global drop and led Asia in capital expenditures for new projects
 "India reaches 15th spot in top FDI destinations in 2024: UNCTAD report")
Global trade uncertainty, high capital costs may further hit FDI flows
Note that the US Budget deficit has increased structurally to over 6 per cent of gross domestic product (GDP), as against the past 50-year average of 3.8 per cent
 "Global trade uncertainty, high capital costs may further hit FDI flows")
India should open up its market to attract more FDI: Wendy Cutler
Trade negotiations involve many detailed issues and often take over one year to negotiate, says Cutler
 "India should open up its market to attract more FDI: Wendy Cutler")
Foreign private sector firms' return ratios at 17-year high, shows data
RoCE trended higher in FY25 amid a drop in net FDI
 "Foreign private sector firms' return ratios at 17-year high, shows data")
Lower net FDI due to repatriation signals mature market, says RBI governor
RBI governor Sanjay Malhotra explains net FDI decline in FY25 is due to repatriation, reflecting market maturity as gross FDI rose and India remains attractive to investors
 "Lower net FDI due to repatriation signals mature market, says RBI governor")
No plans to raise foreign ownership cap in banks beyond 15%: RBI Governor
RBI Governor Sanjay Malhotra has said there are no plans to raise foreign ownership in banks beyond 15% for now. A review of ownership norms is underway as India needs more banks with credible owners
 "No plans to raise foreign ownership cap in banks beyond 15%: RBI Governor")