Daily Banking Digest – 21 February 2024

Welcome to Daily Banking Digest, your premier source for the latest news and insights on February 21, 2024, focusing on banking, the economy, and finance. Our platform offers a comprehensive overview of the day’s most critical financial stories, market trends, and economic developments. Whether you’re a professional in the financial sector, an investor monitoring market movement, or someone interested in staying informed about the economic landscape, Daily Banking Digest provides reliable, up-to-date information.

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CCPA releases draft guidelines for prevention of greenwashing.

India’s Central Consumer Protection Authority (CCPA) has released draft guidelines to address the issue of greenwashing, which is the practice of making unsubstantiated or misleading environmental claims about products or services. These guidelines are meant to protect consumers and ensure that companies are transparent and honest in their marketing.

Key Points:

Back Your Claims: Companies making “green” claims must provide verifiable evidence to support them. Claims must be disclosed directly or via easily accessible QR codes or web links.
No Vague Terminology: Terms like “environmentally friendly” or “green” cannot be used without detailed justification and clarification.
No Greenwashing: Greenwashing, or deceptive practices to mislead consumers about environmental impacts, is prohibited.
Accessibility and Clarity: Disclosures about environmental claims must be easily accessible and understandable to consumers.
Comparative Claims Must Be Solid: If comparing products, companies must use reliable data and independent verification.
Substantiate Specific Claims: Claims about carbon neutrality, being cruelty-free, compostable, etc., require credible certification, scientific evidence, or third-party verification.
Define the Scope: Companies must clearly state whether the environmental claim applies to the product itself, manufacturing, packaging, usage, disposal, or overall service provision.
Actionable Plans: Companies making forward-looking or aspirational “green” claims must have clear, actionable plans to achieve those goals.
Exclusions: The guidelines don’t apply to general environmental messaging that isn’t tied to a specific product or service.

Important Note: Stakeholders have until March 21st to provide feedback on the draft guidelines.

MCA unveils ‘Leniency Plus’ regime to crack down on cartels.

India’s Ministry of Corporate Affairs (MCA) has introduced a “Leniency Plus” program designed to bolster the Competition Commission of India’s (CCI) ability to fight cartels. This new tool incentivizes companies being investigated for one cartel to disclose their involvement in other, unknown cartels to the CCI.

Key Points of the Article:

“Leniency Plus” Defined: The program allows companies being investigated for cartel activity to receive reduced penalties in that case if they fully disclose their involvement in additional cartels unknown to the CCI.
Benefits of the Program: This strategy helps authorities uncover secret cartels more effectively and obtain key insider information about their activities.
Implementation: The MCA has activated the “Leniency Plus” provisions, and the CCI is expected to issue regulations soon.
Global Precedent: This type of program is already successfully used in countries like the UK, US, Singapore, and Brazil.
Potential Impact: The “Leniency Plus” regime is expected to make it easier for the CCI to investigate cartels and increase the chances of successfully prosecuting them.

Focus on exports to achieve 10% growth: 16th Finance Commission chairman Arvind Panagariya.

Arvind Panagariya, chairman of India’s Sixteenth Finance Commission, stresses the importance of focusing on exports to achieve a sustained 10% economic growth rate. He emphasizes learning from successful economies like China, which achieved rapid growth through aggressive market capture in specific product categories.

Key Points of the Article

Embrace Open Markets: Panagariya believes countries that adopt open market policies tend to achieve higher economic growth.
Learn from China: India should study and potentially replicate China’s strategy of dominating specific segments of the global export market.
Limit Import Substitution: He expresses concern about India’s recent focus on import substitution, arguing it could hinder growth in the long run.
State-Level Focus on Labor-Intensive Industries: Panagariya urges Indian states to create environments that attract labor-intensive industries, providing opportunities for growth and job creation.
Manufacturing Reforms Needed: He indicates that a lack of reforms in the manufacturing sector is an obstacle to achieving the desired 10% growth rate.

Thousands of debtors resolving cases before admission under insolvency law: IBBI.

India’s Insolvency and Bankruptcy Code (IBC) has had a significant impact even before formal proceedings begin, as over 27,500 applications for resolution against corporate debtors were withdrawn. The threat of losing control of their companies compels debtors to settle debts early. This highlights a shift in debtor behavior due to the IBC.

Key Points of the Article

IBC’s Deterrent Effect: The IBC’s threat of changing company ownership motivates debtors to resolve outstanding debts before insolvency proceedings are officially initiated.
Large-Scale Debt Resolution: Applications withdrawn prior to admission involved a substantial default amount of Rs 9.74 lakh crore.
IBC Success: As of December 2023, the IBC has helped rescue over 3,000 corporate debtors through various means.
Creditor Recovery: Creditors have realized Rs 3.21 lakh crore through IBC resolution plans.
Personal Guarantors: The IBC also addresses personal guarantor liabilities, with a focus on debt restructuring prior to outright bankruptcy. The Supreme Court has recently upheld the IBC’s provisions regarding personal guarantors.

India cuts import duty on blueberries, turkeys; fully exempts extra long staple cotton from levy.

The Indian government has adjusted import duties on several items. Notably, extra-long staple cotton now has no customs duty, while specific types of blueberries, cranberries, and frozen turkeys face reduced import tariffs.

Key Points of the Article

Duty-Free Extra-Long Staple Cotton: To support the cotton industry, extra-long staple cotton imports will now be duty-free.
Reduced Tariffs on Blueberries, Cranberries, Frozen Turkeys: Following a trade agreement with the US, import duties on these products have been lowered.
Trade Agreement Benefits: This move reflects India’s commitment to resolving trade disputes and could expand market access for US goods while potentially making these products more affordable in India.
Potential Impact: The adjustments could benefit consumers with lower prices and open the Indian market to increased imports of these products from the US and potentially other WTO member countries.

AI market in India to touch $17 billion by 2027: Nasscom-BCG report.

India’s Artificial Intelligence (AI) market is experiencing rapid growth and is projected to reach $17 billion by 2027. This expansion is driven by factors such as increased tech spending by companies, a highly skilled AI talent pool, and a surge in AI-related investments.

Key Points of the Article

Strong Growth Trajectory: India’s AI market is growing at a 25-35% compound annual growth rate (CAGR).
Global AI Investment: AI investments worldwide have also seen significant growth, reaching close to $83 billion in 2023.
Focus Areas: Indian tech investments in AI largely concentrate on data analytics, digital content, and supply chain advancements.
Talent Advantage: India boasts a large and rapidly growing AI talent pool, with skills penetration surpassing other countries.
Expanding Services: Tech companies are expanding their AI offerings, including proprietary platforms, automation tools, data analytics, and industry-specific applications.
Upskilling Initiatives: Companies are heavily investing in upskilling their workforce in AI and related technologies to meet growing demand.
Generative AI Impact: The rise of Generative AI is driving further expansion in AI-driven analytics, intelligent automation, and customized customer experiences.
Need for Ethical AI: The report emphasizes the importance of investing in ethical practices, governance frameworks, and a human-centered approach to AI development.

Govt mulls setting up maritime development fund to support shipping sector.

The Indian government is taking steps to bolster the shipping sector by creating a Maritime Development Fund (MDF) and potentially granting the sector infrastructure status. These initiatives are designed to provide essential financial support and improve investment opportunities for the industry.

Key Points of the Article

Maritime Development Fund (MDF): The government plans to establish the MDF to offer low-cost, long-term financing for the shipping sector.
Infrastructure Status: Consideration is being given to granting infrastructure status to the shipping sector, which would make it eligible for various benefits and incentives.
Attracting Investment: The government aims to facilitate increased investment in the sector by:
- Setting up specialized finance companies (NBFCs) at the International Financial Services Centre (IFSC).
- Amending regulations to create a new category of Alternative Investment Funds (AIFs) for ship leasing companies.
- Potentially allowing insurance companies to invest in ship leasing.
Shipbuilding Support: The government plans to renew the shipbuilding financial assistance policy for another decade.
Development Clusters: Efforts are underway to establish shipbuilding and repair clusters in Mumbai, Kochi, and Chennai.
Blue Economy Initiative: The government envisions substantial investment of Rs 75-80 trillion in the maritime sector under its Blue Economy 2047 initiative.

Onion export ban to continue till Mar 31 to keep prices under check: Govt

India’s government will maintain its ban on onion exports until the previously announced deadline of March 31st. This decision aims to prioritize domestic availability and keep onion prices affordable for consumers.

Key Points of the Article

Export Ban Remains: The export ban on onions will continue as planned, with no immediate change in policy.
Focus on Domestic Supply: The government’s priority is ensuring sufficient onion availability at reasonable prices within India.
Market Reaction: News suggesting a potential lifting of the ban led to a surge in wholesale onion prices.
Election Considerations: With general elections approaching, the government is unlikely to lift the ban even after March 31st.
Rabi Crop Concerns: Lower production estimates for the winter onion crop, due to reduced sowing area, further support the continuation of the export ban.
Case-by-Case Exports: Onion exports to friendly countries may still be permitted on a case-by-case basis, subject to approval.

Govt seeks $26 billion of private nuclear power investments: Report.

India is opening its nuclear power sector to private investment for the first time, aiming to boost clean energy production and meet its climate goals. The government plans to invite private companies to invest roughly $26 billion in nuclear power generation.

Key Points of the Article

Private Investment Sought: India is seeking private investment to increase nuclear energy capacity by 11,000 megawatts (MW) by 2040.
Goal of Increased Clean Energy: The initiative aims to help India reach its target of having 50% of its installed electricity generation capacity come from non-fossil fuel sources by 2030.
Companies in Talks: The government is discussing the plan with major companies including Reliance Industries, Tata Power, Adani Power, and Vedanta Ltd.
Hybrid Funding Model: Private companies would invest in non-reactor aspects of nuclear plants while state-run NPCIL would retain ownership and control of fuel and operations.
Regulatory Framework: The plan doesn’t require changes to India’s Atomic Energy Act but needs final approval from the Department of Atomic Energy.
Past Challenges: India has struggled to meet nuclear power targets due to issues such as fuel supply constraints and liability laws.

Outward remittances under LRS rise 20% to $24.80 billion in 9MFY24

Outward remittances (money sent outside of India) under the RBI’s Liberalised Remittance Scheme (LRS) increased significantly in the first nine months of the 2023-24 fiscal year. This surge is attributed to growth in areas like international travel, overseas investments, and financial support for relatives abroad.

Key Points of the Article

Overall Outflow Increase: LRS outflows rose 20.22% to $24.80 billion in the April-December 2023 period compared to the previous year.
Investments Drive Growth: Investments in foreign stocks and debt increased by 56.48%.
Travel Spending Surges: Remittances for international travel saw a 22.74% increase.
Other Notable Increases:
- Gifts: up 41.29%
- Maintenance of close relatives: up 29%
- Property purchases abroad: up 49.67%
Declining Segments: Remittances for overseas education and donations decreased.
Tax Considerations: The government previously proposed raising taxes on LRS outflows, a move that has been delayed until October 2023.

PM Modi seeks support of women to make 10 million ‘lakhpati didis’.

Prime Minister Narendra Modi aims to empower women in India by creating one crore “lakhpati didis” (women earning over one lakh rupees annually). He interacted with beneficiaries of various government schemes in Jammu and Kashmir to highlight the positive impact these programs have had on their lives.

Key Points of the Article

Focus on Women’s Empowerment: PM Modi seeks to support women entrepreneurs and help them achieve financial independence.
Beneficiary Success Stories: The PM interacted with women who have benefited from schemes like PMAY-G, PM Kisan, Jal Jeevan Mission, and the Deendayal Antyodaya scheme.
Rural Transformation: These government initiatives are credited with improving the lives of rural women and driving change in India’s countryside.
Entrepreneurial Spirit: PM Modi praised a woman entrepreneur for setting up Self-Help Groups (SHGs) and empowering other women in Kashmir.
Benefits of Government Schemes: Beneficiaries expressed how access to housing, clean water, gas connections, and forest rights have significantly improved their quality of life.

RBI becomes a net buyer of US dollar after four months in December.

In December, the Reserve Bank of India (RBI) became a net buyer of US dollars in the spot foreign exchange market, reversing a four-month trend of net selling. This shift, along with changes in the rupee forwards market, highlights the RBI’s efforts to manage the rupee’s exchange rate and build foreign exchange reserves.

Key Points of the Article

Net Purchase of US Dollars: The RBI bought a net total of $2.06 billion worth of US dollars in the spot market in December.
Forward Market Position: The RBI also became a net buyer in the rupee forwards market, a shift from its previous position.
Rupee Stability: The rupee experienced marginal fluctuation against the US dollar in 2023, showing less volatility compared to recent years.
Building Reserves: The RBI has been actively building foreign exchange reserves, which grew substantially in 2023.
Managing Exchange Rate: The RBI’s actions suggest efforts to manage the rupee’s exchange rate and maintain stability in the foreign exchange market.

WTO meet: Govt to oppose continuation of moratorium on e-comm trade duties.

India opposes extending the moratorium on customs duties for e-commerce trade at the upcoming World Trade Organization (WTO) meeting. India advocates for continuing discussions on e-commerce under the existing work program, emphasizing the need for a development-focused approach.

Key Points of the Article

Opposition to Extension: India believes the moratorium negatively impacts developing countries’ revenues.
Focus on Development: India wants discussions to consider the interests of developing countries rather than solely focusing on the benefits for big tech companies.
Revenue Loss Concerns: Developing countries face estimated annual revenue losses of $10 billion due to the moratorium. India’s potential loss is over $500 million annually.
Need for Clarity: India seeks a clear definition of e-commerce trade and policy space for the sector.
WTO Context: The issue of customs duties on electronic transmissions will be a key topic at the WTO meeting in Abu Dhabi.

RBI’s economic researchers reject IMF’s contention that if historical shocks materialise, India’s debt will exceed 100% of GDP

Economic researchers at the Reserve Bank of India (RBI) disagree with the International Monetary Fund’s (IMF) assessment that India’s government debt could surpass 100% of GDP in the medium term. The RBI team projects a decline in the debt-to-GDP ratio, citing potential growth-promoting fiscal measures.

Key Points of the Article

RBI’s Optimistic Outlook: RBI researchers project India’s debt-to-GDP ratio to decline to around 73.4% by 2030-31, significantly lower than the IMF’s projection of 78.2%.
IMF’s Concerns: The IMF warns that historical shocks and fiscal slippage could push India’s debt beyond 100% of GDP, recommending further fiscal tightening.
Fiscal Consolidation Path: RBI researchers outline four scenarios. Their baseline scenario suggests a debt-to-GDP ratio of 77.4% by 2030-31, while the most optimistic scenario projects a ratio of 73.4%.
Growth-Promoting Measures: The RBI emphasizes that focusing on energy-efficient transition, digitalization, and other growth-focused spending can reduce debt while supporting long-term economic expansion.

India Inc must get its act together on capex: RBI bulletin.

Economic researchers at the Reserve Bank of India (RBI) anticipate that India’s corporate sector will play a leading role in driving the next phase of economic growth through increased capital expenditure (capex). They cite favorable conditions for this shift, including healthy corporate balance sheets and government focus on fiscal consolidation.

Key Points of the Article

Corporate Sector Poised for Capex: With improved profitability and reduced leverage, corporations are well-positioned to increase investments.
Early Signs of Growth: Sectors like oil and gas and chemicals are already showing fixed asset growth, although others like steel and automobiles lag behind.
Power Sector Focus: The power sector has ambitious capex plans, especially in renewable energy, where India has made significant progress.
Government’s Role: The government’s reduced borrowing program and emphasis on fiscal consolidation create space for increased corporate investment.
Positive Investment Outlook: Overall, private sector investment intentions are positive, with strong fundraising activity supporting capex plans.

Economic outlook appears bright, says FinMin report

India’s economic outlook remains positive despite potential headwinds from global factors such as the Red Sea crisis and inflationary pressures in developed countries. The Finance Ministry’s monthly economic review highlights India’s strong growth potential and improving macroeconomic fundamentals.

Key Points of the Article

Optimistic Outlook: The IMF and other agencies project India’s growth to be within the range of 6.3% to 6.5%, with potential for further optimism.
Growth Drivers: Healthy agricultural output, sustained manufacturing profitability, and robust services sector are expected to support economic activity in the coming fiscal year.
Demand-Side Factors: Household consumption is projected to improve, and capital formation is expected to benefit from factors such as increased private investment and the government’s continued focus on capital expenditure.
Global Integration: Improved global trade outlook and India’s rising integration into the global supply chain are anticipated to support net external demand.
Potential Headwinds: Geopolitical tensions, supply chain disruptions, volatile international financial markets, and inflationary pressures in developed countries could pose challenges to India’s export prospects.
Inflation Outlook: Food and core inflation eased in January, and the trend is anticipated to continue. Government measures to control food prices and the forecast of a normal monsoon are expected to further ease inflation.

Don’t lose export focus at the altar of import substitution, says Finance Commission Chairman Arvind Panagariya

Arvind Panagariya, Chairman of the 16th Finance Commission, emphasizes the importance of maintaining an export-focused approach for India to achieve faster, sustained economic growth. He warns against the long-term risks of excessive reliance on import substitution strategies.

Key Points of the Article

Export Focus is Key: Panagariya stresses that openness to global markets is essential for rapid growth, citing examples of successful economies like Hong Kong, Singapore, Taiwan, South Korea, and China.
Import Substitution Risks: While acknowledging recent focus on import substitution policies, he cautions that exiting this phase could be challenging for India.
Case Against Industrial Policy: Panagariya highlights how even South Korea, initially successful with imports substitution, saw growth decline, demonstrating the long-term limitations of this approach.
Global Market Opportunity: India can achieve significant growth by capturing even a small share of the vast global export market, as China demonstrated.
Benefits of Openness: Competing on a global level drives innovation, improves productivity, and ultimately leads to faster economic growth.

TN Agri Budget maintains focus on priority schemes: Agro Food Chamber

The Tamil Nadu Agriculture Budget 2024-25 continues to prioritize initiatives aimed at improving farmers’ incomes and living conditions. S Rethinavelu, Founder & President of the Agro Food Chamber of Commerce & Industry, offers a positive assessment of the budget and highlights its key provisions.

Key Points of the Article

Focus Areas: The budget maintains emphasis on soil fertility, organic farming, crop diversification, value-added products, and agricultural exports.
Addressing Farmer Challenges: Funding for mobile paddy dryers will help farmers avoid selling produce with high moisture content at lower prices.
Traditional Paddy & Health: Support for cultivating traditional paddy varieties with medicinal properties promotes health security.
Awareness and Mechanization: Agri Business Expos and a Global Summit on Mechanisation will increase awareness and boost productivity.
Certification and Exports: Initiatives for Seed and Organic Certification will promote agricultural exports.
One District One Product: This scheme guides farmers in crop selection for better marketability.
Digitalization: Digital initiatives in agriculture improve farmer-processor connectivity and fair pricing.
Concerns and Suggestions:
- Limited funding for agri entrepreneurship.
- Need for greater focus on watershed development and reviving water bodies.
- Awareness drive for traceability of food products.

Formal job creation under EPFO up 11.9% to 1.56 million in December 2023: Payroll Data

Formal job creation in India, as measured by the Employees’ Provident Fund Organisation (EPFO), surged in December 2023. This increase is attributed to factors such as greater employment opportunities, awareness of employee benefits, and outreach programs.

Key Points of the Article

Increased Job Creation: Net new EPFO subscribers rose by 11.9% in December to 1.56 million, the highest in three months. This shows a year-on-year increase of 4.62%.
Focus on Youth: The majority of new members (57.18%) fall within the 18-25 age group, indicating a large proportion of first-time job seekers entering the organized workforce.
Job Switching: 1.20 million members exited and re-joined the EPFO, showing a trend of job switching while preserving long-term financial security through the EPFO scheme.
Women in the Workforce: New female members increased by 7.57%, highlighting a shift towards a more inclusive workforce.
Top Job-Creating States: Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Haryana led in job creation, accounting for 58.3% of net additions.

NARCL’s offer for Entertainment City debt pegs recovery at 95%.

The government-backed bad bank, NARCL, has made a significant offer of ₹711 crore to acquire the debt of Entertainment City, which operates popular venues in Noida and Delhi. This offer represents a potential recovery of 95% for the lender, Punjab National Bank, and a major step for NARCL in stress asset resolution.

Key Points of the Article

High Recovery Offer: NARCL’s offer is the highest it has made to date, demonstrating its focus on acquiring stressed loans.
Swiss Challenge Auction: The offer triggers a Swiss challenge auction, allowing for potentially higher bids.
Offer Terms: NARCL’s offer includes a combination of cash and security receipts, with 15% paid upfront.
Significance for Bad Bank: This move highlights NARCL’s increasing role in resolving stressed assets in the Indian banking system.

Banks set up panel to guard executives from corruption cases

Banks in India have formed a committee headed by a former CBI special director to develop strategies for dealing with cases filed against lenders under the Prevention of Corruption Act (PCA). The committee aims to protect bank officials from arbitrary arrests and investigations related to commercial decisions.

Key Points of the Article

Committee Formation: The committee is led by former CBI special director DC Jain and includes representatives from major state-run banks.
Goal: To develop a framework that protects bank executives from arbitrary actions by investigating agencies in relation to commercial decisions like loan approvals.
Seeking Immunity: Banks are seeking immunity similar to that granted to top officials of the National Bank for Financing Infrastructure and Development (NaBFID) under Section 17A of the PCA.
Prior Approval: Section 17A mandates prior approval for any investigation into alleged offenses committed by public servants in the course of their official duties.
Context: The committee’s formation comes after instances like the arrest of former ICICI Bank MD Chanda Kochhar, which was criticized by the Bombay High Court.

Paytm users may take up to 6 months to shift to other service providers.

Paytm is facing potential complications due to RBI restrictions on its payments banking license. The company is exploring a TPAP (third-party application provider) license to ensure continued UPI services for its users, while discussions with major banks for UPI partnerships are ongoing.

Key Points of the Article

Migration Timeline: Migrating Paytm customers to another payment service provider could take 3-6 months.
TPAP License: Paytm aims to secure a TPAP license to enable continued UPI payments for its users.
VPA Functionality: The company expects its @paytm VPAs to remain functional beyond the March 15 deadline.
Partnerships: Paytm is in talks with Axis Bank, HDFC Bank, and SBI for potential UPI partnerships.
UPI Market Position: Paytm Payments Bank was the third-largest UPI platform in January 2024.
Nodal Account Shift: Paytm recently moved its nodal account to Axis Bank for seamless merchant settlements.
RBI Deadline Extension: The RBI extended the restrictions deadline for Paytm Payments Bank to March 15th.

Flows into NRI deposits up 72.7% in April-December 2023: RBI Bulletin.

Non-resident Indian (NRI) deposits in India have seen a significant increase in the April-December 2023 period. This growth is primarily driven by a surge in foreign currency non-resident (FCNR) deposits.

Key Points of the Article

Overall Deposit Growth: NRI deposits rose by 72.7% to $9.33 billion in April-December 2023 compared to the same period in 2022.
FCNR Surge: FCNR deposits increased nearly fivefold to $3.45 billion.
Increased Outstanding Deposits: Overall outstanding NRI deposits grew by $2.42 billion to $146.9 billion in December 2023.
Deposit Breakdown:
- FCNR deposits: $22.81 billion
- Non-resident external (NRE) deposits: $97.69 billion
- Non-resident ordinary (NRO) deposits: $26.40 billion

Govt debt to GDP may fall in contrast to global trend: RBI report.

A Reserve Bank of India (RBI) report projects a decline in India’s general government debt-to-GDP ratio by 2030-31, contradicting IMF estimates. This positive outlook is attributed to a strategic realignment of government spending.

Key Points of the Article

Projected Debt Decline: The RBI projects India’s debt-to-GDP ratio to decrease to 73.4% by 2030-31, significantly lower than the IMF’s projection of 78.2%.
Contrasting Global Trends: This decline contrasts with the expected increase in debt-to-GDP ratios for advanced and emerging economies.
Reasons for Optimism: The RBI attributes this favorable outlook to a recalibration of government spending, favorable interest rates, a decreased primary deficit, and minimal exchange rate risk due to domestic currency debt.
Focus on Growth-Oriented Spending: The report emphasizes the importance of prioritizing developmental expenditure, energy-efficient transition, and digitalization to support both growth and debt reduction.

Net FDI into India down 55% to $9.69 billion in Apr-Dec 2023: RBI Bulletin

Net foreign direct investment (FDI) into India experienced a significant decline in April-December 2023, primarily due to increased repatriation of equity capital. However, India remains an attractive destination for FDI, especially in green energy and digitalization sectors.

Key Points of the Article

FDI Decline: Net FDI into India fell by 55.2% to $9.69 billion in the first nine months of FY24 compared to the same period in FY23.
Increased Outflows: Repatriation of equity capital surged to $32.26 billion, contributing to the decline in net FDI.
Key Sectors: Manufacturing, electricity, transport, financial services, and retail continue to attract the majority of FDI inflows.
Top Sources: Singapore, Mauritius, the US, Japan, the UAE, and the Netherlands remain major sources of FDI.
Positive Outlook: India’s growing data center capacity and position as a potential global data hub bode well for future FDI.
Global FDI Trends: UNCTAD expects a modest increase in global FDI in 2024, though geopolitical tensions and macroeconomic uncertainties could pose challenges.