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After a dash for hot dollars, India dives deep for sticky money
The government appears to be shifting its focus from attracting short-term foreign capital to securing long-term foreign investment as it seeks to strengthen India’s external accounts.A reported proposal to raise the threshold for FDI projects requiring CCEA approval from ₹5,000 crore to ₹15,000 crore could ease approvals for large investors.
Government e-Marketplace (GeM) has recorded a Gross Merchandise Value of over Rs 1.55 lakh crore, up sharply from Rs 422 crore a decade ago, Commerce Minister Piyush Goyal said. As of August 7, cumulative GMV since inception crossed Rs 20 lakh crore, with 3.78 crore orders placed through the digital procurement platform.
UPI to remain free for users; nominal MDR may apply to select merchant transactions
Consumers will not face any charges for UPI payments. Most merchant transactions will also remain free of cost. Any future charges will apply to limited merchant transactions above a threshold. This move aims to ensure UPI's long-term sustainability and technological advancement. The government stated UPI will remain free for citizens.
India on track to exceed key fundraising goal on state-firm stake sales
India is poised to achieve its divestment aspirations this fiscal year, with enhanced momentum in stake sales and asset monetisation. Although increased fertiliser costs and fuel subsidies pose a challenge to public financial stability due to regional disputes, the country has already garnered over $5.5 billion from diverse stake sales.
RBI's FCNR(B) scheme attracts $41 billion, Jefferies says inflows may double to $80-100 billion
The Reserve Bank of India's deposit scheme has attracted significant foreign currency inflows. This scheme is expected to mobilize up to one hundred billion dollars by its closing date. These inflows are helping to stabilize the Indian rupee after a period of weakness. Additionally, tax-free government bonds are attracting foreign investment and improving capital flows.
RBI proposes new rules to standardise how lenders set interest rates
In a significant move, the Reserve Bank of India plans to establish uniform interest rate guidelines for all regulated entities. This initiative seeks to promote transparency and bring consistency among financial institutions. While the new regulations are not expected to cause major shifts in loan EMIs or integrate NBFCs into the external benchmark framework, they will standardize operational practices and reinforce consumer protection strategies.
RBI planning to put polymer bank notes in circulation from next financial year
The Reserve Bank of India plans to introduce polymer bank notes soon. It has already received government approval for field trials of new notes. These polymer notes will enhance durability for lower denomination currency, Guv Malhotra said.. Field trials will test performance in Indian climate and infrastructure conditions.
Plastic notes in India get a likely release date: Here's what RBI Governor said
Plastic currency notes may enter circulation at the start of next financial year. The Reserve Bank of India is targeting this rollout after completing field trials. These polymer notes will be introduced in ten and twenty rupee denominations. They are expected to be more durable and last significantly longer. Existing paper notes will continue to circulate alongside the new plastic ones.
Government moves closer to restoring MDR on UPI merchant payments
Parliamentary amendments propose restoring merchant discount rates on UPI payments. This move aims to encourage digital transactions by allowing banks to charge fees. The Reserve Bank of India will determine these charges on person-to-merchant payments. Payment platforms could see significant revenue generation from these new charges. This development follows UPI companies' struggles to build profitable payment businesses.
Rising ODI outflows signal growing global capabilities of Indian companies: Govt
Indian enterprises are stepping up their overseas investments, eyeing strategic assets and emerging markets. Foreign direct investment inflows soared past $94.84 billion in FY26, marking a clear escalation from prior fiscal periods. This rise in repatriations suggests a maturing investment framework and the robust scaling of various businesses. Furthermore, India has allocated nearly Rs 2.42 crore towards WTO dispute defense services.
Recent trend in net FDI inflows linked to increased investments by India, greater repatriation: Government
Net foreign direct investment has declined significantly in recent years. This trend is linked to increased overseas investments by Indian companies. Greater repatriation by foreign investors also contributes to this shift. Indian enterprises are expanding globally for strategic assets and new markets. This reflects a maturing investment ecosystem and strengthening domestic capital.
India's next billion dollars from abroad may depend on easier visas
India's record remittance boom faces a new long-term challenge as tighter immigration policies in developed economies threaten the pipeline of future migrants. While experts see no immediate risk to inflows, they warn that future growth could become increasingly dependent on visa regimes and skilled migration trends.
Auto PLI disbursals to reach Rs 4,000 crore in FY27
The government is set to release ₹4,000 crore this fiscal year under the Auto-PLI scheme, designed to stimulate production and investment among qualified companies. Notably, Bajaj Auto has already benefited, receiving ₹750 crore for meeting its incremental sales targets for fiscal year 2026. Substantial funds have been allocated to support this initiative, underscoring its significance.
Handicraft, ODOP items to get major exports boost from FDI in inventory-based e-comm: Official
New FDI rules permit inventory-based e-commerce solely for export purposes. This change will significantly boost shipments of Indian handicrafts and ODOP goods. MSME and artisan products will gain greater access to global markets. The government aims to facilitate increased exports through this policy amendment. This move is expected to enhance India's current e-commerce export figures.
GST collections stay on track, rise 15% in July
India's July GST collections surpassed ₹2.11 lakh crore, showing a 15.4% year-on-year increase. Import GST surged significantly, contributing to the overall robust revenue growth. Domestic consumption also showed resilience, reflecting steady household spending and industrial activity. Manufacturing states reported increased GST collections, despite higher refund payouts. Experts noted the import-driven growth warrants further examination of its underlying causes.