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It has been just over a year since India's mobile payments and Quick Response (QR) pioneer <keyword id="6357120" type="General" weightage="100" keywordseo="paytm" source="Orion">Paytm</keyword> made its debut on the stock market and the company has made quite an impression. The initial public offering (IPO), which was the largest in the country's history, drew attention from investors far and wide. Paytm's impressive growth has sparked the interest of savvy investors, both retail and institutional, who are clamouring to add more Paytm stock to their portfolios. As the fintech firm continues to make significant strides towards achieving operating profitability, investors' belief in the Paytm story and the company's long-term potential for success has grown stronger than ever. The company's latest shareholding pattern for the quarter that ended December shows that mutual funds increased their stake by 0.47 per cent to 1.73 per cent. Two new mutual funds entered the stock, taking the total mutual fund shareholders in Paytm from 19 to 21 in the December quarter. Meanwhile, more retail investors have also jumped on board, with their shareholding increasing by 3 per cent to 9.7 per cent. Over 70,000 new investors were added during the quarter, bringing the total number of retail shareholders to around 12 lakh. These developments are a clear indication that more Indians believe in Paytm's ability to deliver profitability without compromising on growth. The increase in domestic investors' shareholding is a vote of confidence in the company's future prospects. Global investment firm <keyword id="6361649" type="General" weightage="50" keywordseo="goldman-sachs" source="Orion">Goldman Sachs</keyword> expects Paytm to be adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) positive by the March quarter, two quarters ahead of the estimates and the company's guidance of September 2023. Goldman Sachs has reiterated its 'Buy' rating for Paytm and has upwardly revised its share price target to Rs 1,120. The firm has stated that the current share price continues to offer a compelling entry point into India's largest and one of the fastest-growing fintech platforms. The increase in shareholding by domestic investors is also a positive sign for the Indian economy, as it shows that more and more Indians are investing in the country's rapidly growing fintech sector. An increase in retail shareholding can bring a number of benefits for a company. One of the most significant benefits is increased liquidity, which can help to stabilise the stock price and improve overall market sentiment. Retail shareholders also tend to have a long-term investment horizon and may be more likely to hold on to their shares, making the company more attractive to investors. The overall <keyword id="44528" type="General" weightage="50" keywordseo="fdi" source="Orion">FDI</keyword> shareholding in Paytm has declined from 71.49 per cent to 66.12 per cent, mainly because of SoftBank offloading a 4.53 per cent stake. The Japanese conglomerate, through its <keyword id="4031888" type="General" weightage="50" keywordseo="vision-fund" source="Orion">Vision Fund</keyword>, continues to own 12.92 per cent of Paytm. Meanwhile, foreign portfolio investors (FPI) holding in the company has gone up by 0.91 per cent to 6.68 per cent. The number of FPIs holding the Paytm stock has increased from 88 to 128 in the third quarter, representing a net addition of 40 investors. As a pioneer in India's fintech revolution, Paytm has been at the forefront of the country's technology-driven shift towards a cashless economy. The <keyword id="13945656" type="General" weightage="50" keywordseo="paytm-super-app" source="Orion">Paytm Super App</keyword> has become a household name that is synonymous with convenience and ease of use. Paytm is expected to post another strong quarter when it announces Q3 (third quarter) results. Meanwhile, its Q3 operating performance update shows strong growth in monthly transacting users, loan disbursals and devices deployed. According to data available, eight out of 12 analysts tracking the company have a 'buy' rating. Paytm is also included in Goldman Sachs' Asia (ex-Japan) 'Conviction List' of stocks that have a high potential for returns and are rated as 'buy'. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/mobile/news/samsung-galaxy-s23-series-to-launch-soon-launch-date-expected-price-and-features/articleshow/97243146.cms">Samsung Galaxy S23 series to launch soon – launch date, expected price and features</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/international/news/b20-has-important-role-to-play-can-be-value-adding-for-world-says-n-chandrasekaran/articleshow/97244919.cms">B20 has important role to play; can be value adding for world, says N Chandrasekaran</a>

Mutual funds increase their stake in Paytm

<ul><li>Between April and June 2018, foreign investors withdrew ₹610 billion from India’s capital markets. </li><li>However, a renewed confidence in India’s <keyword id="34412" type="ORGANIZATION" weightage="20" keywordseo="economy">economy</keyword> has culminated in a back-to-back monthly inflows in July (₹23 billion) and August (₹52 billion). </li><li>The rebound follows an improvement in macro-economic <keyword id="42546" type="PERSON" weightage="20" keywordseo="Growth">growth</keyword> indicators and corporate earnings as well as a positive report from the IMF in early August. </li></ul>In terms of foreign portfolio investment, 2018 hasn’t been a great year for India. In the first six months of the year, the country experienced its highest level of investment outflows <a href="https://economictimes.indiatimes.com/markets/stocks/news/fpis-outflow-hits-10-year-high-at-rs-48000-crore-in-h1-2018/articleshow/64813079.cms">in ten years</a>, largely due to the fact that investors withdrew ₹610 billion from April to June. The reasons for this had to do with a pessimistic view of India’s short-term growth trajectory, as indicated by a depreciating currency, a widening fiscal deficit, rising oil prices and concerns of a global trade war. A gradual tightening of interest rates in the US has also rerouted inflows back to this safe haven. However, in the last few months, it seems that these worries have subsided slightly. A renewed confidence in India’s economy has culminated in a back-to-back monthly inflows in July and August. Following a net positive flow of ₹23 billion in July, foreign portfolio investors pumped ₹52 billion into India’s capital markets in August - 65% of which went into bonds and <keyword id="44647" type="ORGANIZATION" weightage="20" keywordseo="debt">debt</keyword> instruments, with the rest going into the stock market. The rebound follows an improvement in macro-economic growth indicators and corporate earnings as well as a positive report from the <keyword id="6366068" type="ORGANIZATION" weightage="20" keywordseo="international-monetary-fund">International Monetary Fund</keyword> (IMF) in early August. The IMF gave its stamp of approval to reforms such as improvements to the GST regime and easing of <keyword id="46757" type="ORGANIZATION" weightage="20" keywordseo="foreign-investment">foreign investment</keyword> protocols. It maintained its medium-term growth forecast for India at 7.8%, which will make it the world’s fastest-growing major economy. The reversal in inflows also coincides with a bull run in India’s <keyword id="6391506" type="UNKNOWN" weightage="20" keywordseo="Equity">equity</keyword> markets. The Sensex has been on a record spree since July as domestic institutional investors have filled in the demand gap caused by the exodus of foreign investors. However, while a rebound in foreign portfolio investments bodes well for India’s short-term prospects, the quantity of inflows still aren’t sizeable to sufficiently stem the rupee’s decline. However, this is also a symptom of a larger currency crisis in emerging markets, most notably Turkey and Argentina, and a renewed interest in safe haven markets. While there is a still a significant amount of wariness among foreign investors, India’s recent quarterly growth figures - an 8.2% GDP growth in Q1 - and a burgeoning market for stressed assets could result in larger inflows in September. In addition, the Indian government’s move to further ease the foreign investment process by introducing <a href="https://www.business-standard.com/article/economy-policy/govt-makes-fpi-s-job-easier-introduces-single-form-for-foreign-investors-118082600172_1.html">a single common application form</a> will make it easier for foreign investors to register themselves and invest in debt and equity instruments.

After a terrible start to the year, India’s foreign investment inflows have finally rebounded

NEW DELHI: The <keyword id="6355512" type="ORGANIZATION" weightage="20" keywordseo="Union-Cabinet">Union Cabinet</keyword> on Wednesday allowed foreign investment in the Railways for the first time and raised limit for such investment in the defence sector, steps intended to raise funds for expansion of the Railways and encourage domestic manufacture of arms. 
 
100 per cent foreign investment in railway infrastructure projects will be allowed while in the case of defence the limit has been raised to 49 per cent from the current 26 per cent, subject to the Indian owners exercising management control. 
 The <keyword id="44528" type="ORGANIZATION" weightage="20" keywordseo="FDI">FDI</keyword> hike in defence is intended to cut imports by indigenising defence production as India is one of the world’s largest arms importers. 
 "It is a composite cap, incorporating all forms of foreign investment, FDI, FII, FPI, NRI, etc," said a <keyword id="6542458" type="POSITION" weightage="20" keywordseo="Government-official">government official</keyword> confirming that the proposals has been cleared. Experts did not seem impressed with the cautious stance of the <keyword id="6360789" type="ORGANIZATION" weightage="20" keywordseo="Modi-Government">Modi government</keyword> on defence. 
 
"Good development, but not great. Round one has gone to protectionist forces. 49 per cent is the same as 26 per cent technically and hence may not open the investment floodgates," said Amber Dubey, Partner and India Head of Aerospace and Defense at global consultancy KPMG. 
 
"We hope better judgment prevails and we have the FDI limit enhanced to 74 per cent later this year," he added. Official notifications giving effect to changes will be issued soon, after the minutes of the cabinet meeting are finalised. 
 Foreign investment in defence will be though the approval route, implying it will have to be cleared by the Foreign Investment Promotion Board (FIPB). Though the 49 per cent cap will be general rule for the defence sector, 100 per cent overseas ownership will be allowed in case the <keyword id="6362476" type="ORGANIZATION" weightage="20" keywordseo="investments">investments</keyword> comes bundled with state of the art technology. Such investment proposals will have to be cleared by the Cabinet Committee on Security (CCS). 
 
In companies with a 49 per cent foreign holding, more than one Indian company will be allowed to hold the 51 per cent share, unlike the present norm that mandates that a single Indian entity should own and control the entire 51 per cent, a move that will encourage more domestic players to enter the sector. 
 
In case of Railways, 100 per cent FDI will now be allowed in railway infrastructure segments such as electrification, signalling, high speed and suburban corridors. 100 per cent FDI will also be allowed through the Special Purpose Vehicle route to provide last mile connectivity to ports and mines. Further, some railway operations have also been partially opened up to foreign investment. 
 FDI is now allowed in PPP projects, suburban corridors, high speed train systems, and dedicated freight lines. Estimates suggest that the opening of railways to foreign <keyword id="47916" type="UNKNOWN" weightage="20" keywordseo="invest">invest</keyword>ors will add 1-1.5 percentage points to the overall GDP growth. China and Japan are keen to invest in the railways sector. 
 
As a result of these changes, railways transport will be removed from the list of prohibited sectors in the consolidated FDI policy.

Indian Cabinet Approves Raising FDI Cap In Defence To 49 Per Cent, Opens Up Railways

<ul><li>The Dollar is strengthening in December adding to downward pressure on the <keyword id="6355302" type="General" weightage="20" keywordseo="rupee" source="Orion">Rupee</keyword>.</li><li>Festive-led consumption is the reason why it’s moving downward in spite of softening crude and buoyant markets.</li><li>Rupee is expected to trade with a depreciation bias, but without any sharp falls.</li><li>A depreciation rupee will support India’ ambitions to become an export-oriented economy. </li></ul>Indian rupee has hit new lows of 83.4 against USD in early December, when domestic markets were scaling new highs and crude prices coming down. It has recovered little since then, and economists say that it will keep trading with a depreciation bias in the near-term without central bank’s intervention. Unlike in November, the Dollar has also started strengthening in December, which is an added downward pressure on the Rupee. “Even as FPI flows continue and crude prices remain in check the <keyword id="6368584" type="General" weightage="50" keywordseo="us-dollar" source="Orion">US Dollar</keyword> has remained firm ahead of the Federal Open Market Committee (FOMC) and general buildup of uncertainties,” <keyword id="321486" type="General" weightage="50" keywordseo="upasna-bhardwaj" source="Orion">Upasna Bhardwaj</keyword>, chief economist at Kotak Mahindra Bank tells Business Insider India. The November trouble It however needs to be mentioned that the Rupee barely moved up even in November, when the dollar index was weakening. But in November, FII were selling their equities in the stock market, as they did in September and October. But now, they reversed their trend. In December until now, FIIs pumped in as much as ₹12,135 crore, but that too barely had any effect. In addition, Brent crude is now trading at around $75 per barrel which should have given Rupee some respite. It has missed this cue too. Widening trade deficit due to festival-linked consumption might have been the culprit, surmises Bharadwaj. “Rupee has been trending more with a depreciation bias with some volatility. Trade deficit for October 2023 reported at the highest led by imports (gold, oil and consumption) ahead of the festive season,” <keyword id="18350669" type="General" weightage="50" keywordseo="anitha-rangan" source="Orion">Anitha Rangan</keyword>, economist at Equirus, told Business Insider India. <keyword id="30067" type="General" weightage="50" keywordseo="rbi" source="Orion">RBI</keyword> on ‘wait and watch’ mode India’s central bank is sitting on foreign exchange reserves to the tune of $604 billion as on December 1, 2023. Yet, it has not been selling dollars and intervening to rescue the rupee in November. “RBI having spent sizable reserves in September-October, has not utilized its reserves to defend the rupee. Rupee has not appreciated while RBI reserves have grown in November,” comments Rangan. However, between March and October of 2022, RBI spent $100 billion in reserves to defend the rupee. This time too, it’s expected to intervene. “We expect RBI to continue to intervene and manage the volatility in INR very closely. We thus do not expect any sharp depreciation in INR in the near term,” says Bharadwaj. Rupee is expected to trade between 83-83.5/USD in the near term. Moreover, any new lows that it might hit will come gradually and will not be a sharp fall, expect economists. Over the last one year, Rupee depreciated by around 2.5% with interim bouts of strength and weakness. And this trend might continue going into the new year. “Let’s be mindful that the country is looking to strengthen its export franchise and taking advantage of global supply chain shifts and bolster its manufacturing capabilities. A depreciation rupee will be a support to exports, when global recovery arrives,” observes Rangan. In the meanwhile, India’s relative growth attractiveness will continue to make a case for FPI and FDI flows.They will also provide the much-needed immunity from volatility. SEE ALSO <a href="https://www.businessinsider.in/personal-finance/news/gold-rush-dont-recycle-or-book-profits-yet-another-bull-run-on-the-way-say-analysts/articleshow/105803018.cms">Gold rush: Don’t recycle or book profits yet, another bull-run on the way say analysts</a> <a href="https://www.businessinsider.in/stock-market/news/childs-play-high-recall-and-dominant-position-add-to-doms-appeal/articleshow/105923825.cms">Child’s Play: High recall and dominant position add to Doms’ appeal</a>

Explained: Why Rupee is missing market and crude oil cues

New Delhi, The Finance Ministry has notified 21 countries, including the US, UK and France, from where non-resident investment in unlisted Indian startups will not attract angel tax. The list, however, excludes investment from countries like Singapore, Netherlands and <keyword id="56022" type="General" weightage="50" keywordseo="mauritius" source="Orion">Mauritius</keyword>. The government had in the <keyword id="6358021" type="General" weightage="50" keywordseo="budget" source="Orion">Budget</keyword> brought overseas investment in unlisted closely held companies, except DPIIT recognised startups, under the Angel Tax net. Following that, the startup and venture capital industry sought exemption for certain overseas investor classes. The <keyword id="121964" type="General" weightage="50" keywordseo="central-board-of-direct-taxes" source="Orion">Central Board of Direct Taxes</keyword> (<keyword id="128665" type="General" weightage="100" keywordseo="cbdt" source="Orion">CBDT</keyword>) on May 24 notified classes of investors who would not come under the Angel Tax provision. Excluded entities include those registered with <keyword id="35210" type="General" weightage="50" keywordseo="sebi" source="Orion">Sebi</keyword> as Category-I FPI, Endowment Funds, <keyword id="148003" type="General" weightage="50" keywordseo="pension-funds" source="Orion">Pension Funds</keyword> and broad-based pooled investment vehicles, which are residents of 21 specified nations, including the US, UK, Australia, Germany and Spain, as per the notification. The other nations mentioned in the notification are Austria, Canada, Czech Republic, Belgium, Denmark, Finland, Israel, Italy, Iceland, Japan, Korea, Russia, Norway, New Zealand and Sweden. The CBDT notification comes into effect on April 1. Nangia Andersen India Chairman Rakesh Nangia said by explicitly mentioning this list of countries, the government aims to attract more foreign investment (FDI) into India from countries that have robust regulatory frameworks. "Surprisingly, countries such as Singapore, Ireland, Netherlands, Mauritius etc from where the majority of inbound FDI is channelised into India, do not find a mention in this notification," Nangia said. Stakeholders may still have to hold their horses on a formal notification on the valuation guidelines as rules on the same are proposed to be released after a stakeholder consultation process, he added. The CBDT is expected to come out with valuation guidelines for valuing non-resident investment in unrecognised startups for the purpose of levying income tax. Under the existing norms, only investments by domestic investors or residents in closely held companies were taxed over and above the fair market value. This was commonly referred to as an angel tax. The Finance Act, 2023, has said that such investments over and above the FMV will be taxed irrespective of whether the investor is a resident or non-resident. Post the amendments proposed in the Finance Bill, concerns have been raised over the methodology of calculation of fair market value under two different laws.

CBDT exempts startup investments from 21 nations including US, UK from angel tax

<ul><li>Economists at Bank of Baroda in their macro outlook for FY24 see India’s <keyword id="598729" type="General" weightage="20" keywordseo="cpi-inflation" source="Orion">CPI inflation</keyword> moderating to 5.5% as opposed to 6.7% in FY23. </li><li>India’s GDP is expected to grow between 6-6.5% in FY24. </li><li><keyword id="6356076" type="General" weightage="20" keywordseo="indian-economy" source="Orion">Indian economy</keyword> expected to stay resilient; headwinds such as global slowdown and <keyword id="51549" type="General" weightage="80" keywordseo="el-nino" source="Orion">El Nino</keyword> factored in. </li></ul>After raising <keyword id="6371181" type="General" weightage="20" keywordseo="interest-rates" source="Orion">interest rates</keyword> by 250 basis points in the last financial year (FY23), India’s central bank could now cut its lending rate twice in the second half of this year (FY24), say economists at Bank of Baroda. This means that the repo rate, which stands currently at 6.5% will come down to 6%. In a webinar titled ‘Indian Economy FY24 — A Prognosis’, economists at Bank of Baroda said that they do not expect any rate action in the first half of FY24, but believe that the Reserve Bank of India (RBI) may effect two rate cuts amounting to a 50 basis point cut in the second half of the financial year. “Generally, we expect stance to change before rate action, and now RBI is working on withdrawal of accommodation. I would be looking at the stance changing to neutral before the rate cut,” said Madan Sabnavis, chief economist at Bank of Baroda on Friday. The prediction comes on the back of the belief that India’s inflation reading will continue to moderate. The economists expect CPI, or the consumer price index, inflation to moderate to 5.5% as opposed to 6.7% seen in FY23. “The upside risks to this are a favourable base and lower energy prices globally. If the El Nino threat persists, it may affect the summer crops,” said Aditi Gupta, an economist at Bank of Baroda. India’s growth gears BoB economists expect India’s GDP to grow anywhere between 6-6.5% in FY24 which is slightly higher than IMF’s predictions of 5.9%. However, a report by SBI Ecowrap expects the GDP growth at 7.1% – in line with NSSO’s predictions of 7% growth. It is noteworthy that SBI Ecowrap says that India is likely to continue its showdown in pursuing a different pathway of zeroing in on drivers of growth, looking for a renewed surge in resilient manufacturing while supporting the services sector to embrace enhanced efficiency. “Locally, domestic consumption and investment stand to benefit from stronger prospects for agricultural and allied activities, strengthening business and consumer confidence, and strong credit growth while supply responses and cost conditions are poised to improve as inflationary pressure is easing,” SBI said. The challenges BoB believes that the Indian economy will continue to be resilient, but has also taken into account other factors like expected slowdown in the global economy. “Unlike China, India is primarily a domestic oriented economy but it needs rural demand, job creation and other factors to play out,” said Sabnavis adding that there is uncertainty around the agriculture sector, due to the El Nino phenomenon. In their presentation, BoB economists noted that downside risks to agriculture are – a possible heatwave from El Nino impact, <keyword id="484499" type="General" weightage="50" keywordseo="unseasonal-rainfall" source="Orion">unseasonal rainfall</keyword>, late departure of the monsoon and spatial distribution of rainfall. India’s bank credit is expected to grow anywhere between 12-14% in FY24, matched by a healthy growth of 11-12% in deposits. They also expect FPI inflows to turn positive after being in the negative zone in FY23. Quantitative tightening in the international markets will also present its set of challenges. While investors will be left with fewer funds to choose from, the risk of recession might make them look for safe haven investments. Economists believe that both will be deciding factors in how much foreign inflows (FDI as well FPI) India sees in the current financial year. SEE ALSO <a href="https://www.businessinsider.in/business/corporates/news/nykaa-is-going-strong-on-physical-stores-as-it-aims-for-an-optimum-offline-online-mix/articleshow/100506296.cms">Nykaa is going strong on physical stores as it aims for an ‘optimum offline-online mix’</a> <a href="https://www.businessinsider.in/india/news/indians-want-to-spend-the-2000-note-but-it-doesnt-look-easy/articleshow/100496839.cms">Indians want to spend the ₹2,000 note but it doesn’t look easy</a>

With inflation cooling, RBI may slash interest rates by 50 bps this financial year

<ul><li>India has the ability to bring out its best in adversity.</li><li>The government’s ‘Make in India’ programme is showing results.</li><li>India is at 63 in terms of ‘ease of doing business’ as of 2021, a sharp movement from the 142nd place in 2014.</li><li>India’s forex reserves have also moved up over these seven years.</li></ul>Indian markets have witnessed persistent FPI selling since Oct 21. Higher oil prices are Rahu and Ketu in India’s kundli having adverse effects on GDP, Inflation and Current Account Deficit. Ukraine invasion and sanctions on Russia have pushed oil prices in triple digits adversely affecting India. Inflationary pressures are visible with the RBI revising inflation estimates upwards for FY23 by ~2 % in the last two policies to 6.7 %. FY23 inflation will be above the RBI’s upper target level. <div type="image" title="The troika of slowing growth, rising inflation and FPI selloff is creating concerns among both local and global investors." msid="92676486" hostid="261" caption="&amp;lt;p&amp;gt;The troika of slowing growth, rising inflation and FPI selloff is creating concerns among both local and global investors.&amp;lt;/p&amp;gt;"></div> Motivated campaign against Índia for its import of Russian oil is adding to investor concerns. In such an uncertain scenario what makes me bullish about Índia is its ability to bring out the best in adversity. We transitioned from importing milk and milk products; to become the largest producer of milk. We transitioned from being dependent on donation of food grains to exporting food grains. We transitioned from pledging gold to borrow FX loans to top 5 holders of FX reserves in the world. Adversity has always brought the best out of us. Does the current correction in equity markets, the selling by FIIs or deteriorating macro-economic metrics take away the progress that has been made in the last few years? No. It is, therefore, important that investors focus beyond these uncertainties which undoubtedly is going to be painful. Let’s discuss a few of these metrics. In 2014, India was the world’s tenth-largest economy. <div type="image" title="A series of reforms, including the introduction of the Goods and Services Tax or GST, has seen the country rise to be the world’s sixth-largest economy as of 2021" msid="92676560" hostid="261" caption="&amp;lt;p&amp;gt;A series of reforms, including the introduction of the Goods and Services Tax or GST, has seen the country rise to be the world&amp;#8217;s sixth-largest economy as of 2021&amp;lt;/p&amp;gt;"></div> With its share in global GDP rising by 23% to 3.2%. In FY22 we will overtake our former colonial occupier to be the fifth largest economy. A lot of this has also come due to India’s heft in production, with the government’s ‘Make in India’ programme showing results. From being the world’s fourth-largest producer of steel in 2014, India is second only to China as of 2021, which alone manufactures more than half of the total steel produced in the world. India was also the world’s second-largest producer of mobile phones as of 2021, a sharp improvement from being the world’s twelfth largest producer in 2014. Notwithstanding the recent slowdown in demand in the automobile space over the last two-three years, India is the fourth largest manufacturer of automobiles by volume in the world as of 2021. This is an improvement from it being the seventh largest producer in 2014. These improvements reflect in other parameters as well. <div type="image" title="India is at the 63th rank in terms of ‘ease of doing business’ as of 2021, a sharp up move from being at the 142nd place in 2014." msid="92595550" hostid="261" caption="&amp;lt;p&amp;gt;India is at the 63th rank in terms of &amp;#8216;ease of doing business&amp;#8217; as of 2021, a sharp up move from being at the 142nd place in 2014.&amp;lt;/p&amp;gt;"></div> Equity markets have reflected this buoyancy, supported by both domestic and foreign investors. India accounted for 6.7% of global FDI inflows in 2021, more than three times the 2.1% that it got in 2021. India’s forex reserves have also moved up over these seven years, while targeting inflation has helped it come down to moderate levels from high levels seen earlier. The country has seen an influx of capital through venture capital and private equity, which has also spurred growth in the start-up economy in the country. India recently got its 100th unicorn, a massive 25X rise from the four unicorns that it had in 2014. An impetus on creating and building infrastructure, especially in the roads, power, ports, airports and power segment has also helped India move from a state of being deficit in infrastructure to that of availability of infrastructure. India is leaving behind the physical way of doing things, opting to go with the digital ecosystem in a remarkable way, with the Unified Payments Interface a significant example of such changes. Another significant shift that the country has seen over these years is the change in mindset for business activities. The government has moved to a psyche of not being involved in the running of businesses, a refreshing change from the earlier practice of being in business.Improvements in tax compliance have also helped the country move sustainably to moderate fiscal deficit, from a high fiscal deficit earlier. Undoubtedly in the short term there are challenges for the Indian economy emanating from higher energy prices. In the long term Índia having moderate inflation, surplus FX reserves and fiscally prudent policies will be in a better position to reward investors. There are, of course, more facets to this growth story. As investors, it is important that you can look beyond the short-term volatility and understand whether these factors are actual roadblocks for the country’s growth story in the long term. To make the most of it, it is important to remain focused as well as disciplined. So dear readers, happy investing!

India’s FX reserves and fiscal policies will lead the India growth story

<keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword> reported a <keyword id="143643" type="PERSON" weightage="20" keywordseo="current-account">current account</keyword> surplus of 0.9 per cent of <keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword> in the pandemic-hit FY21, as against a <keyword id="6420764" type="UNKNOWN" weightage="20" keywordseo="deficit">deficit</keyword> of 0.9 per cent in FY20, data released by the <keyword id="30067" type="COMPANY" weightage="20" keywordseo="RBI">RBI</keyword> showed on Wednesday. The country's current account deficit widened to USD 8.1 billion or 1 per cent of GDP for the March quarter, as against a surplus of USD 0.6 billion or 0.1 per cent of the GDP in the year-ago period and a deficit of 0.3 per cent in the preceding December quarter, as per the central bank data. The CAD, the gap between the country's overall foreign receipts and payments, is an important factor representing a nation's external sector's strength. The <keyword id="6354335" type="COMPANY" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> said the current account balance swung into the surplus territory on the back of a sharp contraction in the trade deficit to USD 102.2 billion from USD 157.5 billion in 2019-20. Net invisible receipts were lower in FY21 due to an increase in net outgo of overseas investment income payments and lower net private transfer receipts, even though net services receipts were higher than the year-ago period, it said. Despite the pandemic, the net foreign direct investment inflows at USD 44 billion were higher in FY21 than the USD 43.0 billion in 2019-20, the central bank added. Net foreign portfolio investments also increased by USD 36.1 billion in FY21 as compared to USD 1.4 billion a year ago, it said. External commercial borrowings by <keyword id="46431" type="COMPANY" weightage="20" keywordseo="India-Inc">India Inc</keyword> recorded an inflow of USD 0.2 billion as compared to USD 21.7 billion in 2019-20, the RBI data showed. There was an accretion of USD 87.3 billion to foreign exchange reserve on a balance of payments basis, it said. The current account deficit in the March quarter was higher primarily on account of a higher trade deficit and lower net invisible receipts than in the corresponding period of the previous year, the RBI said. Private transfer receipts, mainly representing remittances by Indians employed overseas, increased to USD 20.9 billion, up by 1.7 per cent from the year-ago level. Net outgo from the primary income account, primarily reflecting net overseas investment income payments, increased to USD 8.7 billion from USD 4.8 billion a year ago, according to the data. The net FDI came at USD 2.7 billion during the March quarter as against USD 12 billion in the year-ago period. Net foreign portfolio investment (FPI) increased by USD 7.3 billion - mainly on account of net purchases in the equity market - as against a decline of USD 13.7 billion in Q4 FY20. Net external commercial borrowings to India was lower at USD 6.1 billion in the March quarter as compared to USD 9.4 billion a year ago, the RBI said. See also <a href="https://www.businessinsider.in/tech/apps/news/one-year-of-chinese-apps-ban-indian-alternatives-take-over-tiktok/articleshow/83943865.cms" data-type="tilCustomLink">One year of Chinese apps ban — Indian alternatives take over TikTok</a> <a href="https://www.businessinsider.in/cryptocurrency/news/chinas-oldest-crypto-exchange-exits-cryptocurrency-business-amid-government-crackdown-on-bitcoin-mining/articleshow/83953113.cms" data-type="tilCustomLink">China's oldest crypto exchange exits cryptocurrency business amid government crackdown on Bitcoin mining</a>

Jio’s fundraising spree and fall in imports help India clock the first current account surplus in 17 years

New Delhi, Jan 31 () The Indian stock market continues to be upbeat about the country's growth prospects, despite deceleration in GDP growth for the sixth consecutive quarter, the Economic Survey 2019-2020 said, adding that the BSE Sensex has increased 7 per cent till December 2019 over March.
 "This may also reflect the growing perception of India becoming an attractive destination for investment in the backdrop of a decline in the growth of major economies of the world and continued easing of monetary policy by the US Fed," it said on Friday.
 "Despite the deceleration in GDP growth for the sixth consecutive quarter, the stock market continues to be upbeat about the country's growth prospects," the Survey said.
 The net FDI and net Foreign Portfolio Investment (FPI) in first eight months of 2019-20 stood at USD 24.4 billion and USD 12.6 billion respectively, more than the inflows received in the corresponding period of 2018-19, it added.
 Benchmark indices Nifty50 and S&amp;P BSE Sensex reached record highs during 2019-20 (up to January 16, 2020). The Sensex reached an all-time high closing of 41,952 on January 14, 2020, witnessing an increase of 7.9 per cent from 38,871 level on April 1, 2019.
 Nifty-50 index reached an all-time high closing at 12,355 on January 16, 2020, the survey said.
 "Change in composition of sensex over the years shows that pro-business policies give a level playing field, providing opportunities to all and keeping incumbents on their toes," Chief Economic Adviser Krishnamurthy Subramanian said in a tweet. SUM ABM
ABM

Stock market remains upbeat about growth prospects; Sensex up 7 pc till Dec from March 2019: Survey

Mumbai, Feb 6 () Following are the highlights of RBI's sixth bi-monthly monetary policy statement, 2019-20: * Policy rate kept unchanged at 5.15 pc * GDP growth for 2020-21 fiscal pegged at 6 pc * Upward bias expected in overall food prices on account of vegetables, pulses * Accommodative stance to revive growth maintained; inflation to remain elevated in short-run * Retail inflation projection revised upwards to 6.5 pc for January-March quarter * Breakout of Coronavirus may impact tourist arrivals, global trade * Rationalisation of personal income tax rates in the 2020-21 Budget to support domestic demand * Need for adjustment in interest rates on small saving schemes outlined * Pricing of loans by banks for the medium enterprises to be linked to an external benchmark effective April 1 * Time for restructuring of GST-registered MSME loans extended till December 2020, from March 2020 at present * Revised regulations for housing finance companies to be issued * RBI to periodically publish a composite 'Digital Payments Index' (DPI) from July 2020 to capture the extent of digitisation of payments * Framework for a Self-Regulatory Organisation (SRO) for digital payments to be issued * Pan India Cheque Truncation System (CTS) to be made operational by September * Extension of date of commencement of commercial operations of project loans for commercial real estate, delayed for reasons beyond the control of promoters, by one year, allowed * Crude prices likely to remain volatile * Foreign exchange reserves stood at USD 471.4 billion on February 4, 2020 * Net FDI rose to USD 24.4 billion in April-November 2019, against USD 21.2 billion a year ago * Net foreign portfolio investment (FPI) stood at USD 8.6 billion in 2010-20 (till February 4) as against net outflows of USD 14.2 billion in the year ago period * All six members of Monetary Policy Committee vote in favour of maintaining status quo on interest rate * Next meeting of the MPC scheduled during March 31, April 1 and 3, 2020. JD ANSANS

Highlights of RBI's sixth bi-monthly monetary policy statement for 2019-20

Economy not in trouble; green shoots visible:FMNew Delhi, Feb 11 () Finance Minister NirmalaSitharaman on Tuesday said the economy is not in trouble andgreen shoots are visible with the country moving towards a USD5 trillion economy.Listing initiatives taken by the government, she said,increasing Foreign Direct Investment (FDI), rise in factoryoutput and over Rs 1 lakh crore GST collection in the pastthree months are indications of green shoots in the economy."There are seven important indicators which show thatthere are green shoots in the economy...economy is not introuble," she said while replying to a debate on the UnionBudget in Lok Sabha. Referring to visible indicators of green shoots, theFinance Minister said the forex reserve is at an all time highand the stock market is upbeat."Global sentiment is in favour of India. Foreigninvestors continue to show confidence in India and that is whythe country has attracted a net FDI of USD 24.4 billion inApril-November 2019-20 as against USD 21.2 billion in the sameperiod the previous year," she said.Net Foreign Portfolio Investment (FPI) in April-November2019-20 was positive at USD 12.6 billion as against USD 8.7billion in the same period last fiscal.She further said the gross GST (Goods and Services Tax)revenue collected in January 2020 grew at 12 per cent while inNovember 2019, it was 6 per cent."So there is a steady growth and therefore negativegrowth, which it showed in September and October, has beencorrected and we are on a positive growth trajectory and thiswill obviously bring in greater and newer investments to theeconomy and it will also reduce the business cost," she addedThere are seven green shoots based on which the economynow very clearly moving forward, she added.The Finance Minister said the government's focus is onfour engines of growth which include private investment,private consumption, public investment and exports.With regard to public investment, she said, thegovernment in December announced a National InfrastructurePipeline.It envisages investment of Rs 103 lakh crore forinfrastructure development across the country in the next fouryears (till 2024-25), she said.To boost consumption, the government has increased theMinimum Support Price of all mandated Rabi and Kharif cropsfor 2019-20.The Minister also took a dig at Congress leader PChidambaram while referring to the fiscal deficit numbersduring the UPA regime.The fiscal deficit was higher "when the economy wasmanaged by competent doctors," she quipped.Chidambaram on Monday said in the Rajya Sabha that the"economy was perilously close to collapse and was beingattended by incompetent doctors."Sitharaman in Budget raised fiscal deficit target to 3.8per cent of the GDP from 3.3 per cent pegged earlier for 2019-20 due to revenue shortage.The government has used 'escape clause' under the FiscalResponsibility and Budget Management (FRBM) Act which providesit leeway for relaxation of fiscal deficit roadmap during timeof stress.Replying to the opposition charge of the governmentovershooting fiscal deficit target prescribed in FiscalResponsibility and Budget Management (FRBM) Act, she said theNarendra Modi government has always respected FRBM Act everyyear and kept the discipline of FRBM Act.Referring to various initiatives to boost consumption,she said government has increased Minimum Support Price,introduced pension scheme for traders, lowered GST ratesabolished Dividend Distribution Tax and corporate tax. RRJTR DP CSDV DV

LS-BUD-LD FM

<ul><li>By 2022, all villages will have water, electricity and clean cooking facilities. </li><li>Additional deduction of up to ₹1,50,000 for interest paid on loans borrowed up to March 31, 2020 for purchase of an affordable house valued up to ₹45 lakh. </li><li>Enhance surcharge on individuals having taxable income from ₹2 crore to ₹5 crore and ₹5 crore and above so that effective tax rates for these two categories will increase by around 3 % and 7 % respectively. </li></ul>The Finance Minister Nirmala Sitharaman unveiled her maiden Budget covering aspects of startups, education, home loans, disinvestment and many others. Here are key announcements made by her, from her Budget speech. The Indian economy will grow to become a $3 trillion dollar economyin the current year. In Purchasing Power Parity terms, we are in fact, the third largest economy already, only next to China and the USA. Rail &amp; Land Railways should take up Public Private Partnership in Railways to unleash faster development and completion of tracks, rolling stock manufacturing and delivery of passenger freight services. Current (house) rental laws are archaic and do not address the relationship between the Lessor and the Lessee realistically and fairly. A Model Tenancy Law will also be finalized and circulated to the states. Large public infrastructure can be built on land parcels held by Central Ministries and Central Public Sector Enterprises all across the country. Through innovative instruments such as joint development and concession, public infrastructure and affordable housing will be taken up. Small businesses &amp; Artisans Government will create a payment platform for MSMEs to enable filing of bills and payment thereof on the platform itself. Pension benefits to about three crore retail traders and small shopkeepers whose annual turnover is less than ₹1.5 crore, is extended. The Scheme of Fund for Upgradation and Regeneration of Traditional Industries’ (SFURTI) envisions setting up 100 new clusters during 2019-20 which will aid 50,000 artisans. The Scheme contemplates to set up 80 Livelihood Business Incubators (LBIs) and 20 Technology Business Incubators (TBIs) in 2019-20 to develop 75,000 skilled entrepreneurs in agro-rural industry sectors. FDI &amp; Disinvestment The Government will examine suggestions of further opening up of FDI in aviation, media (animation, AVGC) and insurance sectors in consultation with all stakeholders. 100% Foreign Direct Investment (FDI) will be permitted for insurance intermediaries. Local sourcing norms will be eased for FDI in single brand retail sector. I propose to increase the statutory limit for foreign portfolio investors (FPI) investment in a company from 24% to sectoral foreign investment limit with option given to the concerned corporates to limit it to a lower threshold. FPIs will be permitted to subscribe to listed debt securities issued by ReITs and InvITs. The cumulative resources garnered through Infrastructure Investment Trusts (InvITs), Real Estate Investment Trusts (REITs) and toll operate transfers exceeded ₹24,000 crore. Government is setting an enhanced target of ₹1,05,000 crore of disinvestment receipts for the financial year 2019-20. It is right time to consider increasing minimum public shareholding in the listed companies. I have asked SEBI to consider raising the current threshold of 25% to 35%. I propose to initiate steps towards creating an electronic fund raising platform – a social stock exchange - under SEBI to list social enterprises. Rural Growth By 2022, I would like to assure the nation that every single rural family, except those who are unwilling to take the connection will have electricity and a clean cooking facility. In the second phase of Pradhan Mantri Awas Yojana –Gramin, 1.95 crore houses are proposed to be provided to the eligible beneficiaries. Pradhan Mantri Gram Sadak Yojana phase III will look to upgrade 1,25,000kms of roads over the next five years, with an estimated cost ofRs 80,250 crore. Water &amp; Sanitation Ensuring India’s water security and providing access to safe and adequate drinking water to all Indians is a priority of the Government. A new Mantralaya will look at the management of water resources. It will work to ensure Har Ghar Jal (piped water supply) to all rural households by 2024 under the Jal Jeevan Mission. More than 95% of cities also have been declared ODF. More than 45,000 public and community toilets across 1700 cities have been uploaded on Google maps, covering more than 53% of India’s urban population. Women &amp; Education An amount of₹400 crore has been provided under the head, “World Class Institutions”, for FY 2019-20, more than three times the revised estimates for the previous year. I propose to start a programme, ‘Study in India’, that will focus on bringing foreign students to study in our higher educational institutions For every verified women SHG self-help group member having a Jan Dhan Bank Account, an overdraft of 5,000 shall be allowed. One woman in every SHG will also be made eligible for a loan up to1 lakh under the MUDRA scheme. Banks &amp; NBFCs Public Sector Banks are now proposed to be further provided ₹70,000 crore capital to boost credit for a strong impetus to the economy. For purchase of high-rated pooled assets of financially sound NBFCs, amounting to a total of Rupees one lakh crore during the current financial year, Government will provide one time six months' partial credit guarantee to Public Sector Banks for first loss of up to 10%. Reserve Bank of India (RBI) is the regulator for NBFCs.However, RBI has limited regulatory authority over NBFCs.Appropriate proposals for strengthening the regulatory authority of RBI over NBFCs are being placed in the Finance Bill. I am proposing to return the regulation authority over the housing finance sector from NHB to RBI. To facilitate on-shoring of international insurance transactions and to enable opening of branches by foreign reinsurers in the International Financial Services Centre, it is proposed to reduce Net Owned Fund requirement from₹ 5,000 crore to₹1,000 crore. India’s sovereign external debt to GDP is among the lowest globally at less than 5%. The Government would start raising a part of its gross borrowing programme in external markets in external currencies. Lowering Tax We continue with phased reduction in corporate tax rates. Currently, the lower rate of 25% is only applicable to companies having annual turnover up to ₹250 crore. I propose to widen this to include all companies having annual turnover up to ₹400 crore. This will cover 99.3% of the companies. Our government will provide additional income tax deduction of ₹1.5 lakh on the interest paid on loans taken to purchase electric vehicles. This amounts to a benefit of around ₹2.5 lakh over the loan period to the taxpayers who take loans to purchase electric vehicle. Interest paid on housing loans is allowed as a deduction to the extent of ₹2 lakh in respect of self-occupied property. I propose to allow an additional deduction of up to ₹1,50,000 for interest paid on loans borrowed up to March 31, 2020 for purchase of an affordable house valued up to₹45 lakh. This will translate into a benefit of around ₹7 lakh to the middle class home-buyers over their loan period of 15 years. Levying taxes I propose to levy tax deducted at source TDS of 2% on cash withdrawal exceeding ₹1 crore in a year from a bank account. Business establishments with annual turnover more than ₹50 crore shall offer such low cost digital modes of payment to their customers and no charges or Merchant Discount Rate shall be imposed on customers as well as merchants. I propose to enhance surcharge onindividualshaving taxable income from ₹2 crore to ₹5 crore and ₹5 crore and above so that effective tax rates for these two categories will increase by around 3 % and 7 % respectively. Duties Import of defence equipment that are not being manufactured in India are being exempted from basic customs duty. To encourage domestic publishing and printing industry, 5% custom duty is being imposed on imported books. I propose to increase Special Additional Excise duty and Road and Infrastructure Cess each by one Rupee a litre on petrol and diesel. It is also proposed to increase custom duty on gold and other precious metals from 10% to 12.5%. Nominal basic excise duty is being imposed on tobacco products and crude oil. Aadhar &amp; Startups I propose to consider issuing Aadhaar Card for Non-Resident Indians with Indian Passports after their arrival in India without waiting for 180 days. I propose to make PAN and Aadhaar interchangeable and allow those who do not have PAN to fileIncome Taxreturns by simply quoting their Aadhaar number andalso use it wherever they are required to quote PAN. To resolve the so-called ‘angel tax’ issue, the start-ups and their investors who file requisite declarations and provide information in their returns will not be subjected to any kind of scrutiny in respect ofvaluations of share premiums. <table style="border-width: initial; border-style: none;"></colgroup></colgroup><tbody></tbody></table>

You Searched For "FPI to FDI" and got 12 results

Mutual funds increase their stake in Paytm

ANI

After a terrible start to the year, India’s foreign investment inflows have finally rebounded

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Indian Cabinet Approves Raising FDI Cap In Defence To 49 Per Cent, Opens Up Railways

ET

Explained: Why Rupee is missing market and crude oil cues

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CBDT exempts startup investments from 21 nations including US, UK from angel tax

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India’s FX reserves and fiscal policies will lead the India growth story

Jio’s fundraising spree and fall in imports help India clock the first current account surplus in 17 years

PTI

Stock market remains upbeat about growth prospects; Sensex up 7 pc till Dec from March 2019: Survey

PTI

Highlights of RBI's sixth bi-monthly monetary policy statement for 2019-20

PTI

LS-BUD-LD FM

PTI

Union Budget 2019 Highlights: FM levies more tax on the Super-rich, while making home loans cheaper for the middle class

BI India Bureau

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