India exempts Saudi Arabia's wealth fund from investment cap rules to boost capital inflows
India has agreed to exempt Saudi Arabia's Public Investment Fund (PIF) from certain foreign portfolio investment (FPI) rules in a move aimed at attracting long-term capital and deepening financial engagement with the Gulf nation, two sources familiar with the matter said.
The exemption comes amid ongoing efforts by both countries to strengthen economic ties, following Prime Minister Narendra Modi's visit to Saudi Arabia in April. During the visit, both sides committed to promoting investment in sectors such as energy, infrastructure, and pharmaceuticals.
The rules in question limit foreign ownership by clubbing investments from various sovereign entities under a single 10% cap in a listed Indian company.
This had constrained the PIF and its subsidiaries from making independent investments in India.
'The requirement to club investment from different sovereign entities together limits the ability of the Saudi fund and its subsidiaries to invest independently,' said one of the sources, who declined to be named, reported Reuters.
The exemption granted to the Saudi fund will allow its different arms to invest separately, giving them greater flexibility in deploying capital in Indian equity markets without breaching regulatory thresholds, the source added.
The PIF, which manages assets worth approximately $925 billion globally, currently has a limited exposure to Indian markets. According to its website, its India investments include $1.5 billion in Jio Platforms and $1.3 billion in Reliance Retail.
India, the world's third-largest oil importer, is seeking long-term capital from energy-rich Gulf nations, while Saudi Arabia is looking to broaden its global footprint through investments in high-growth markets as part of its Vision 2030 economic diversification strategy.
To accelerate these goals, a high-level task force was set up in 2024 to fast-track Saudi Arabia's plans to invest $100 billion in India.
'The progress made by this Task Force in areas such as taxation was also a major breakthrough for greater cooperation in the future,' a joint statement issued in April said.
'The two sides affirmed their desire to complete negotiations on the BIT at the earliest.'
Recent reports also indicated that the Indian government is exploring additional tax relief measures for the PIF to encourage greater investment in infrastructure and energy sectors.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
31 minutes ago
- Economic Times
As Trump attacks universities, U.S. researchers flock to Max Planck Society — here's all about EU's top institute
Many U.S. scientists are now applying to Germany's Max Planck Society because they feel unsure about the future of research in the U.S. under Trump. The society saw a big jump in U.S. job applications this year. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads FAQs Many U.S. researchers are applying for jobs in Europe because of uncertainty under President Donald Trump's rule. The Max Planck Society in Germany, one of Europe's best research groups, got 3 times more applications from the U.S. than last year. Trump's government made sudden changes in research funding and tried to ban international students from Harvard, as per Reuters reports.A judge has blocked that student ban for now, but the situation still looks risky. Some top U.S. professors, like historian Timothy Snyder, are already leaving. He quit Yale and moved to Canada. The Max Planck Society got 81 applications from U.S. scientists this spring, last year they only got 25, as per special call was for young women scientists who want to start their own labs. Applications from other parts of the world stayed the same, so the jump is clearly from the U.S. Almost half the U.S. applications came from just five places, Harvard, Stanford, MIT, the National Institutes of Health, and the University of California, as per Max Planck Society has 84 research centers, 25,000 staff, and a budget of over 2 billion euros. It has also won 39 Nobel Prizes, showing it's on par with top U.S. institutions. The Society planned to hire 12 scientists, but may increase it to 20 if the candidates are good enough. European research groups are also getting ready to welcome more U.S. researchers. Cramer just visited the U.S. and said scientists there are scared about the future of science. He said the big question is, 'How do we stop losing smart people because of all this chaos?'The goal now is to give them a safe place in Europe to continue their research. Trump's team removed Harvard's right to accept international students, and told current foreign students they must switch schools or leave the U.S. The U.S. government might also expand these rules to more universities soon, as per Reuters new leaders are planning a '1,000 brains' program to bring more researchers and grow science in Europe. But some universities in Europe may face budget problems because of the the effects of the U.S. education crisis are being felt everywhere. Olschowski said Harvard and top U.S. schools are the global standard, and now that standard is being damaged, as per they are worried about research cuts and new rules in the a top German research group with many Nobel Prizes and strong labs.
Hindustan Times
35 minutes ago
- Hindustan Times
Hamas seeks changes in U.S. Gaza proposal; Witkoff calls response 'unacceptable'
CAIRO/JERUSALEM -Hamas said on Saturday it was seeking amendments to a U.S.-backed proposal for a temporary ceasefire with Israel in Gaza, but President Donald Trump's envoy rejected the group's response as "totally unacceptable." The Palestinian militant group said it was willing to release 10 living hostages and hand over the bodies of 18 dead in exchange for Palestinian prisoners in Israeli prisons. But Hamas reiterated demands for an end to the war and withdrawal of Israeli troops from Gaza, conditions Israel has rejected. A Hamas official described the group's response to the proposals from Trump's special Middle East envoy Steve Witkoff as "positive" but said it was seeking some amendments. The official did not elaborate on the changes being sought by the group. "This response aims to achieve a permanent ceasefire, a complete withdrawal from the Gaza Strip, and to ensure the flow of humanitarian aid to our people in the Strip," Hamas said in a statement. The proposals would see a 60-day truce and the exchange of 28 of the 58 hostages still held in Gaza for more than 1,200 Palestinian prisoners and detainees, along with the entry of humanitarian aid into the enclave. A Palestinian official familiar with the talks told Reuters that among amendments Hamas is seeking is the release of the hostages in three phases over the 60-day truce and more aid distribution in different areas. Hamas also wants guarantees the deal will lead to a permanent ceasefire, the official said. There was no immediate response from Israeli Prime Minister Benjamin Netanyahu's office to the Hamas statement. Israel has previously rejected Hamas' conditions, instead demanding the complete disarmament of the group and its dismantling as a military and governing force, along with the return of all 58 remaining hostages. Trump said on Friday he believed a ceasefire agreement was close after the latest proposals, and the White House said on Thursday that Israel had agreed to the terms. Saying he had received Hamas' response, Witkoff wrote in a posting on X: "It is totally unacceptable and only takes us backward. Hamas should accept the framework proposal we put forward as the basis for proximity talks, which we can begin immediately this coming week." On Saturday, the Israeli military said it had killed Mohammad Sinwar, Hamas' Gaza chief on May 13, confirming what Netanyahu said earlier this week. Sinwar, the younger brother of Yahya Sinwar, the group's deceased leader and mastermind of the October 2023 attack on Israel, was the target of an Israeli strike on a hospital in southern Gaza. Hamas has neither confirmed nor denied his death. The Israeli military, which relaunched its air and ground campaign in March following a two-month truce, said on Saturday it was continuing to hit targets in Gaza, including sniper posts and had killed what it said was the head of a Hamas weapons manufacturing site. The campaign has cleared large areas along the boundaries of the Gaza Strip, squeezing the population of more than 2 million into an ever narrower section along the coast and around the southern city of Khan Younis. Israel imposed a blockade on all supplies entering the enclave at the beginning of March in an effort to weaken Hamas and has found itself under increasing pressure from an international community shocked by the desperate humanitarian situation the blockade has created. On Saturday, aid groups said dozens of World Food Programme trucks carrying flour to Gaza bakeries had been hijacked by armed groups and subsequently looted by people desperate for food after weeks of mounting hunger. "After nearly 80 days of a total blockade, communities are starving and they are no longer willing to watch food pass them by," the WFP said in a statement. 'A MOCKERY' The incident was the latest in a series that has underscored the shaky security situation hampering the delivery of aid into Gaza, following the easing of a weeks-long Israeli blockade earlier this month. The United Nations said on Friday the situation in Gaza is the worst since the start of the war 19 months ago, with the entire population facing the risk of famine despite a resumption of limited aid deliveries earlier this month. "The aid that's being sent now makes a mockery of the mass tragedy unfolding under our watch," Philippe Lazzarini, head of the main U.N. relief organization for Palestinians, said in a message on X. Israel has been allowing a limited number of trucks from the World Food Programme and other international groups to bring flour to bakeries in Gaza but deliveries have been hampered by repeated incidents of looting. A separate system, run by a U.S.-backed group called the Gaza Humanitarian Foundation, has been delivering meals and food packages at three designated distribution sites. However, aid groups have refused to cooperate with the GHF, which they say is not neutral, and say the amount of aid allowed in falls far short of the needs of a population at risk of famine. Amjad Al-Shawa, head of an umbrella group representing Palestinian aid groups, said the dire situation was being exploited by armed groups which were attacking some of the aid convoys. He said hundreds more trucks were needed and accused Israel of a "systematic policy of starvation". Israel denies operating a policy of starvation and says it is facilitating aid deliveries, pointing to its endorsement of the new GHF distribution centres and its consent for other aid trucks to enter Gaza. Instead it accuses Hamas of stealing supplies intended for civilians and using them to entrench its hold on Gaza, which it had been running since 2007. Hamas denies looting supplies and has executed a number of suspected looters. Israel began its campaign in Gaza in response to the Hamas-led attack on communities in southern Israel on October 7, 2023, which killed 1,200 people, according to Israeli tallies, and saw 251 taken as hostages into Gaza. The campaign has laid waste large areas of the Gaza Strip, killing more than 54,000 Palestinians and destroying or damaging most of its buildings, leaving most of the population in makeshift shelters.
Time of India
an hour ago
- Time of India
HR experts push for new norms for current needs
Lucknow: The Lucknow chapter of the National HRD Network (NHRDN) organised its annual conclave on the theme 'New HR and its Challenges' here on Saturday. Addressing the gathering, director general of NHRDN, Dhananjay Singh said, "India's youth joining the workforce today will face different challenges when they grow old, as by 2050, half the population of India will be 55 plus years. " A key speaker, Sandeep Girotra discussed how the centre of gravity of the Indian economy was shifting from big metros to tier-2 cities, which created the need for tailored management practices. "It is important to improvise as per the needs of the new generation rather than sticking to the principles," he said. Dr Kavita Pathak emphasised that the definition of success also changes with time, while secretary of NHRD, Manisha Seth said periodic deliberations were necessary for growth. Representatives from leading organisations such as NTPC, Tata Motors, TCS, HCL Tech, DCM Shriram, Accenture, Ashok Leyland, Reliance Jio, Bajaj Energy, Hindalco, SBI and Ultratech Cement also attended the event. The event also saw representation from institutes and organisations such as CII, LMA and IIA, among others. TNN
