India attracts $ 22.5 billion in FDI in April-June 2021

India attracted foreign direct investment (FDI) inflows of $ 22.53 billion in the first three months of the fiscal year starting April 1, about 90 percent more than the April-June period of last year, the government said.

India’s automotive industry accounted for 27% of total FDI inflows, becoming the brightest sector in Asia’s third-largest economy, followed by software and hardware and service sectors which accounted for 17% and 11% entrances. respectively, the Commerce Ministry said in a statement on Saturday, Reuters reports.

“The measures taken by the government on the front of FDI policy reforms, investment facilitation and ease of doing business have led to an increase in FDI inflows into the country,” the statement added.

Indian Prime Minister Narendra Modi’s administration slashed corporate tax rates to entice manufacturers and boost private investment, introduced new farm laws and passed labor reforms to make hiring and firing easier workers.

Foreign portfolio investors (REITs) have made a net investment of Rs 50.01 billion so far in August in Indian stocks, according to NSDL data.

REITs made a comeback after a net outflow of Rs 113.08 billion in July. With the August investments, the REIT’s net investment in the equity segment in 2021 now stands at Rs 540.37 billion.

Shrikant Chouhan, Executive Vice President of Technical Equity Research at Kotak Securities, said: “REITs have been net buyers of Indian stocks in August 2021 to date. REIT flows are expected to be volatile, given the FOMC meeting minutes suggesting an increased likelihood of a decline. “

“The tapering is expected to have a substantial impact on global stock markets,” he said.

The Indian government recently announced that India will monetize Rs 6 trillion ($ 81 billion) in state assets over the next four years under a plan announced earlier in the 2021/2022 budget. to boost infrastructure spending and boost economic growth in Asia’s third-largest economy.

The government aims to hand over already-built assets such as gas pipelines, roads, stations and warehouses, among others, to the private sector for operation under a long-term lease, Amitabh Kant said. , chief executive of the government think tank NITI Aayog, at a press conference.

“The strategic objective of the program is to unlock the value of investments in brownfield public sector assets by tapping into long-term and institutional patient capital which can then be used for other public investments. “

India’s foreign exchange reserves fell $ 2.470 billion in the week ended August 20.

According to the Reserve Bank of India (RBI) Weekly Statistical Supplement, reserves declined to $ 616.895 billion from $ 619.365 billion reported for the week ended August 13.

India’s foreign exchange reserves include foreign exchange assets (FCA), gold reserves, special drawing rights (SDRs), and the country’s reserve position with the International Monetary Fund (IMF).

On a weekly basis, the FCAs, the largest component of foreign exchange reserves, edged down $ 3.365 billion to $ 573.009 billion.

However, the value of the country’s gold reserves increased by $ 913 million to reach $ 37.249 billion. On the other hand, the value of SDR fell by $ 3 million to $ 1.541 billion. In addition, the country’s reserve position with the IMF declined by $ 15 million to $ 5.096 billion.

Separately, Indian stocks were largely unchanged on Friday, as bank stocks fell as investors watched Federal Reserve Chairman Jerome Powell’s speech for clues about the central bank’s timetable for reducing its asset purchase program.

Future Files New Case Against Amazon: India’s Future Retail filed a new case against with the Supreme Court on Saturday as part of its latest attempt to get clearance for its sale of 3 retail assets, $ 4 billion, which the American company disputed.

The Supreme Court dealt Future a heavy blow this month by declaring an interim ruling by a Singapore arbitrator in October 2020 that suspended its deal with Reliance Industries – following Amazon’s complaint – was valid in India.

The highest court had also said that Future could not appeal the decision of a lower court against him. The retailer is now asking the highest court to hear the challenge, people familiar with the matter said.

In its 6,000-plus-page dossier, Future argued that if the deal with Reliance was not made, it would cause “unimaginable” damage to the group, including possible job losses for 35,575 employees, and would endanger around 280 billion rupees. ($ 3.81 billion) in bank loans and debentures.

“It is extremely urgent to hear this petition,” future lawyer Yugandhara Pawar Jha said in the Supreme Court case, which is not public. Reuters saw the file.

Amazon and Future spokespeople did not respond to requests for comment on Saturday.

Amazon has been in conflict with Future for months and accuses the Indian company of violating contracts when it sold its retail assets to market leader Reliance last year. Future denies any wrongdoing.

The outcome of the fight between two of the world’s richest men, Amazon’s Jeff Bezos and Reliance’s Mukesh Ambani, is seen as reshaping India’s pandemic-stricken shopping industry and deciding whether Amazon can blunt the dominance of Reliance in the country’s nearly trillion dollar retail market.

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