The Reserve Bank of India (RBI) reported that India's foreign exchange reserves climbed by $4.54 billion to $674.66 billion as of August 16. This increase comes after a $4.8 billion decline, which reduced reserves to $670.12 billion in the week ending August 9. The RBI's Weekly Statistical Supplement revealed that foreign currency assets (FCAs), the largest component of forex reserves, increased by $3.61 billion to $591.57 billion. These assets are priced in dollars and account for the impact of non-US currency appreciation or depreciation, such as the euro, pound, and yen. Gold reserve
India's Securities and Exchange Board (SEBI) plans to enhance the sustainable finance framework in the securities market by launching new ESG-labeled instruments. The proposed framework comprises sustainable securitised debt instruments, sometimes known as "green securitisation," to diversify investment possibilities for sustainable financing. According to SEBI's consultation document, issuers may soon raise funds using social bonds, sustainable bonds, and sustainability-linked bonds, in addition to existing green debt securities. This shift is likely to direct more financing towards initi
The cabinet approved the IndiaAI mission in March, and now the government is seeking proposals to recruit AI service providers for the project. The mission's value is Rs 10,372 crore. The initiative is looking for data centres and cloud providers to supply cutting-edge artificial intelligence computing resources, such as storage, accelerators, GPUs, and TPUs, to organisations in the academic, startup, and government sectors. Competitive rates will be decided through a bidding procedure, and these services will be offered at those rates. The Digital India Corporation is leading the charge u
The Indian government has announced a $10 billion investment under the Semicon India Program, which aims to strengthen the country's semiconductor and display manufacturing ecosystem. This approach is consistent with the Aatmanirbhar Bharat goal and would position India as a major player in the global semiconductor market, which is expected to reach $110 billion by 2030. The initiative provides a 50% reduction in project costs for semiconductor and displays fabrication facilities, including compound semiconductor and Outsourced Semiconductor Assembly and Test (OSAT) facilities. These incen
On August 2, India's foreign exchange reserves reached a record high of $675 billion, Reserve Bank of India Governor Shaktikanta Das revealed on Thursday. This is a considerable increase from the previous high of $670.857 billion on July 19, as well as from $667.386 billion on July 26. Das stated that the country's external sector is strong, with improvements in key metrics, and that he is confident in achieving external finance requirements comfortably. The RBI Governor stated that foreign portfolio investors have become net purchasers in the domestic market since June 2024, with net infl
Traders in India's derivative market anticipate a hike in the foreign investment limit for overnight index swaps (OIS) during the central bank's monetary policy review on Thursday. As of August 6, foreign investors had used 96% of the existing ₹3.5 billion ($41.70 million) limit. "Various representations have been made to the RBI because utilisation has remained high for a long time," said a Treasury head of a foreign bank. During talks with the RBI, bank treasury executives have urged hiking the ceiling to ₹4.5 billion or deleting it entirely, despite no clear industry approach. The R
On October 14, the UK government will host an international investment summit to attract global investors and boost economic growth. Up to 300 business executives will gather at the event, which Prime Minister Keir Starmer is hosting to promote the UK as a top investment location. Business and Trade Secretary Jonathan Reynolds will pitch the United Kingdom as a reliable commercial partner devoted to long-term economic progress. With a recent landslide victory, the Labour Party under Starmer is aiming for an annual economic growth rate of about 2.5%, which is comparable to pre-financial cri
The UK government, under the leadership of Prime Minister Keir Starmer, has new housing goals to build 1.5 million houses by the next election. Deputy Prime Minister Angela Rayner announced plans to expand the annual aim from 300,000 to 370,000 homes. Despite criticism, Rayner insisted that these measures are necessary for the country's growth. Rayner indicated that less than 200,000 homes are expected to be completed this year, emphasising the previous government's inadequacies. The government intends to consult on an overhaul of the National Planning Policy Framework, with amendments exp
Foreign banks have purchased more than $16 billion in Indian bonds this year, breaking the previous record set in 2023 in only seven months, according to official statistics. The Indian banking system's liquidity surplus reached a nearly one-year high this month, driving up demand for bonds. Foreign investors' continuous buying has reduced the burden on domestic banks to absorb the bond supply. Foreign banks and portfolio investors prioritise short-term bonds, resulting in lower rates and a steeper yield curve. According to CCIL data, foreign banks have purchased bonds worth 1.37 trilli
Parliament informed on Tuesday that the government earned ₹98,681 crore from the long-term capital gains (LTCG) tax on listed securities in 2022–23, a 15% increase from the previous fiscal year. Pankaj Chaudhary, Minister of State for Finance, revealed in the Rajya Sabha that the LTCG tax on shares and units of equity-oriented mutual funds, imposed in April 2018 at a 10% rate with an exemption for profits up to ₹1 lakh annually, has consistently grown. The government collected ₹86,075 crore in 2021-22, compared to ₹38,589 crore in 2020-21, ₹26,008 crore in 2019-20, and ₹29