💰️ India hits $1T in FDI

Good morning. It feels like winter is finally here. Stay cozy ❄️ ☕️ 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 💰️ India hits $1T in FDI

• 🤝 India calls for diplomatic restraint amid Iran-Israel tensions

• 🗞️ Bite-sized summaries

  • 💲 The age of Crypto

  • 🫂 TikTok creators look to diversify

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian stock markets ended lower on Friday, snapping a five-day winning streak. The decline came after the RBI kept the repo rate unchanged at 6.5%. Auto, Metal, FMCG, and Telecom sectors gained, while IT and Media declined.

🌍️ International

• Markets closed mixed on Friday. The S&P 500 set a new record, while the Dow Jones Industrial Average fell slightly. The Nasdaq climbed to a record high. The market reacted to a stronger-than-expected jobs report, which indicated robust hiring but also an increase in the unemployment rate.

FOREIGN DOMESTIC INVESTMENT

💰️ India hits $1T in FDI

India achieved a historic milestone, surpassing $1T in cumulative foreign direct investment (FDI) inflows from April 2000 to September 2024.

Here’s the TL;DR:

• Key contributors have shaped the journey to this landmark figure, with Mauritius, Singapore, and the United States leading the pack, accounting for nearly 60% of total FDI.

• These investments have flowed predominantly into high-growth sectors such as services, software, telecommunications, manufacturing, and pharmaceuticals—areas that underline India’s transition into a hub of innovation and industrial excellence.

• Much of the momentum has come in the last decade, following sweeping reforms introduced after 2014. Policies designed to simplify regulations, such as automatic approval for most sectors, have helped attract a remarkable $667.4B in inflows over the past ten years—a 119% increase compared to the previous decade.

• Strategic initiatives like the Production-Linked Incentive (PLI) schemes and significant infrastructure investments have further enhanced India’s appeal to global investors.

Looking ahead: Experts remain optimistic about India’s FDI prospects, despite global economic uncertainties. Technology and manufacturing are poised to benefit from sustained private equity interest and the stability offered by India's macroeconomic framework. These investments will continue to play a pivotal role in fueling infrastructure development, creating jobs, and driving technological advancements.

As India builds on this momentum, its position as a preferred global investment destination is firmly cemented. With ongoing reforms and a commitment to fostering a business-friendly environment, the country is well-placed to attract even greater FDI inflows, ensuring sustained economic resilience and innovation in the years to come.

Read more: Economic Times

EXTERNAL AFFAIRS

🤝 India calls for diplomatic restraint amid Iran-Israel tensions

At the Manama Dialogue in Bahrain, External Affairs Minister S. Jaishankar emphasised India's active role in addressing West Asian security challenges, including the fraught relationship between Iran and Israel.

Highlighting India’s diplomatic efforts, Jaishankar noted that regional tensions, particularly maritime security disruptions in the Red Sea, directly impact global trade and India's economic interests.

Key Highlights:

• Diplomatic Efforts: India maintains regular communication with Iran and Israel, urging restraint to prevent escalation. The unresolved tensions between the two nations remain a critical concern for regional stability.

• Maritime Security: Disruptions in the Red Sea, driven by escalating conflicts, have increased shipping and insurance costs globally. India, with its strategic naval presence in the Gulf of Aden and Northern Arabian Sea, has responded to multiple incidents, escorting over 250 ships and rescuing 120 crew members in the past year.

• Strategic Collaboration: India actively participates in international security operations, including the US-led "Operation Prosperity Guardian," aimed at mitigating threats in the southern Red Sea.

Jaishankar underscored West Asia's importance for India, given the country’s growing economy and rising trade volume. With India aiming to double its $4T economy by the decade's end, securing maritime routes and regional stability is paramount.

India also plans to expand bilateral naval exercises with Gulf countries, Israel, Greece, and Egypt, strengthening ties and bolstering cooperative security measures.

Amidst heightened geopolitical volatility, India's sustained diplomatic and strategic efforts aim to maintain peace and safeguard its economic and trade interests in the region.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

💲 The age of Crypto - US President-elect Donald Trump announced David Sacks as White House "AI & Crypto Czar" and Paul Atkins as SEC Chair, signaling a pro-crypto shift. Crypto leaders welcomed the appointments, hoping they end Biden-era crackdowns and boost innovation. However, analysts expressed concerns about potential policy conflicts and unclear leadership roles. Sacks, a crypto advocate with no policymaking experience, and Atkins, a seasoned regulator, have not clarified their stance on key issues like token classification. Bitcoin surged past $100,000 following the news, reflecting market optimism. Critics worry about investor risks, while proponents foresee balanced regulation enhancing U.S. financial leadership.

🫂 TikTok creators look to diversify - A federal appeals court upheld a law requiring TikTok's Chinese owner, ByteDance, to divest its U.S. operations by January 19, or face a potential ban. This sparked concerns among TikTok creators, who urged followers to connect with them on Instagram, YouTube, and other platforms. With 170 million U.S. users, TikTok has become a major hub for creators and businesses, but fears of data privacy issues have led to increasing scrutiny. While some creators worry about losing their platforms, others, like TikTok Shop consultant Sarah Jannetti, are waiting for more concrete developments before making changes.

HEADLINES

🧑‍🍳 What else is cookin’?

What’s happening in India (and around the world 🌍️)

• SpiceJet reduced its workforce significantly in FY24.

• Air India Express-AIX Connect merger will drive long-term sustainable profitability: MD Aloke Singh.

• Electronics component makers seek Rs 72,500 cr financial package to cut reliance on imports.

• Planning to buy a car in 2025? You'll have to pay more as auto majors hike prices.

• India has no interest in weakening US Dollar: Jaishankar responds to Trump's threat to BRICS nations.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• NDTV Indian Of The Year 2024: Rajkummar Rao, Ananya Panday's amongst winner.

• Pushpa 2 box office collection day 3: Film becomes the fastest Indian movie to cross ₹500 Cr. mark (globally).

• L.A. Film Critics Association full winners list here.

• Reacher Season 3 - official teaser out now.