Overseas investors make close to $100 billion from India investments
Overseas investors took back home a record $97.7 billion as their profits (dividend, interest income, etc) from their investments in debt, equity and other fixed income instruments in FY25, compared with $87.5 billion in FY24, Reserve Bank of India (RBI) data showed.
Besides foreign direct investments (
FDI
) in Indian firms, which yielded dividends and profit income for overseas shareholders, they also made money in Indian debt investments. Last year saw higher inflows in Indian debt instruments as local debt was included in the JPMorgan bond index.
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'The income earnings have been supported by gross FDI inflows that continued to rise in FY25, besides FPI inflows into the bond index' said Gaura Sengupta, chief economist at
IDFC First Bank
. 'Debt investments performed well as domestic bond yields were lower.'
Although the RBI data did not give the source of dividend and profits, a sizable portion of private equity exits comprising dividend and profits was reflected in the investment income.
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To be sure, the nation brought back home 33% higher profits, amounting to $45 billion. This was largely due to the RBI earning 37% higher returns through deployment of foreign exchange reserves. Income from reserves deployment amounted to $21.7 billion in FY25, compared with $15.8 billion in the previous year, RBI data showed.
This has helped rein in the deficit in the investment income in the current account. The deficit in investment income was lower at $52.6 billion in FY25, compared with a deficit of $53.6 billion in the previous year.
'Mirroring trends in overall two-way foreign investment flows last year, repatriation of dividend and interest income by
foreign investors
was offset by an increase in Indian companies setting out more investments in overseas markets, which likely resulted in a jump in inward flow of related income' said Radhika Rao, executive director, DBS Bank. 'These dynamics are likely to make the investment income segment better balanced, under the current account, compared to being a consistent drag in the past.'
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First Post
9 minutes ago
- First Post
From code to combat: AI-driven drones rewrite battle rules from Op Spider Web to Operation Sindoor
In an insightful conversation with Firstpost, Sai Pattabiram, Founder and CEO of an Indian drone manufacturer company, Zuppa, explained the significance of drones in modern warfare and the challenges that come with it. read more In the span of just a few months, the world witnessed three innovative military operations that changed the dynamics of modern warfare. These missions were: Operation Spider Web, Operation Rising Lion and Operation Sindoor. All these military operations had one thing in common: the use of autonomous drones where AI plays a key role in their trajectories and the actual work of the drones. While the technology has made the war games a level playing field, it has also raised numerous security concerns. In an insightful conversation with Firstpost, Sai Pattabiram, founder and CEO of an Indian drone manufacturer company, Zuppa, explained the significance of drones in modern warfare and the challenges that come with it. STORY CONTINUES BELOW THIS AD Zuppa is a Chennai-based drone manufacturer and seller to the Indian army. Its drones took part in Operation Sindoor India, launched to target nine terror camps in Pakistan and Pakistan-occupied Kashmir (PoK) following the Pahalgam terror attack. Pattabiram explained the tech that makes these drones so vital for various services. 'One needs to understand that a drone is unmanned because an embedded electronic motherboard known as the autopilot has replaced the Human pilot,' he said. 'This autopilot consists of both hardware and software layers that enable a user to use it much like a mobile phone or a laptop. This is called the Cyber Physical Stack of the drone, as shown below: Pattabiram mentioned that it is the electronic layer where the automation and AI drone technology are usually built. 'The evolution of drone tech in terms of deployment that has been witnessed across conflicts globally, from Operation Sindoor to Operation Spider Web and everything in between, has been in these layers,' Pattabiram told Firstpost. 'The technology life cycle of innovation happening in this layer has dropped significantly to 8 – 10 weeks. Thus, indicating an innovation in drone use happening every 2-3 months. Much of this evolution that has been witnessed today has been in these layers,' he said. Pattabiram emphasised that the future of drone technology will be its ability to adapt quickly. STORY CONTINUES BELOW THIS AD From delivering groceries to delivering bombs In the span of just a few years, there has been an evolution in how drones are being used. From delivering items one purchased online to dropping bombs and turning into suicide bombers. While speaking on the evolution of the use of drones, Pattabiram emphasised that the dual-use technology can deliver anything, be it food or bombs. 'Initially, drones' dual-use technology was not given enough care across the world, not only in India. Nobody looked at it as a dual-use technology. They all looked at it as separate military applications and separate civilian applications,' he told Firstpost. However, Pattabiram also pointed out how these drones can be used by terrorists, raising a security concern. 'Civilians, military and terrorists can use the same thing for three very different purposes. Like a farmer can use a drone for spraying pesticides or nutrients. The military could use it to use a drone to ship material from point A to point B, and the terrorists could use it as a kamikaze mode or even as a bomb dropping,' he said. 'So this dual-use nature of drones is what is now turning out to be a kind of revolution for most of the people in the security apparatus or the security organisations. And this all started primarily with Ukraine using FPV drones.' STORY CONTINUES BELOW THIS AD Zuppa's Kamikaze Micro Drone Ajeet Mini. Image Source: Zuppa 'Now, FPV drones today are known as kamikaze drones. Today we know it as drones which can damage lethally, which can deliver lethal blows, like Operation Spider that happened recently. But FPV drones were never intended to be this,' he explained. 'FPV drones were racing drones. There is an FPV racing league and Ukraine and Russia, both countries, that practically use FPV, flyers, people who do drone racing to fly these drones into war. Drones as Dual-use technology weren't expected and weren't something people thought of,' he added. Ukraine Operation Spider Web: The concerns & opportunities On June 1, 2025, Russia was rocked by a drone attack on its key military infrastructure. Ukraine eventually announced that after over one and a half years of planning, they had conducted what they called 'Operation Spider Web'. In the mission, Ukraine used a whopping 117 drones to strike the Russian airfield. What was shocking was the fact that the strikes were conducted 600 kilometres away from the battleline and 1,000 kilometres away from the Ukrainian border. While speaking to Firstpost, Pattabiram noted that this was the 'first time we saw the use of the remote operational capabilities of the drone.' He also mentioned how Elon Musk's Starlink played a crucial role in the operation. 'While Kamikaze drones themselves haven't changed much since their first use in the Ukraine-Russia war, it's their evolution in terms of deployment that has been changing modern warfare. Like Operation Spider Web was a very innovative use of Kamikaze drones way inside enemy lines,' he said. STORY CONTINUES BELOW THIS AD Ukraine's Security Chief Briefs President Zelenskyy on Operation Spider's Web. Image: X/@ZelenskyyUa However, he also stated that the 'true impact of Operation Spider Web is not only on Russia, but it is on the entire global security ecosystem, given the scale and asymmetry of damage it has inflicted in terms of cost and operational preparedness'. 'This operation has galvanised the former Indian Army Chief to state that the Entire Country is now a battlefield thanks to the scale of this operation,' he said. Not something new Another point on which Pattabiram emphasised was the fact that 'such a kind of operation has not happened in India. 'In India, if you see, we have had the Jammu air base attack in 2021. Which again was possibly by a locally operated drone. Possibly even locally assembled using locally available material. Means material within India,' he said. 'So the Operation Spider Web has woken up the security apparatus across the world. This Operation is going to change the way people look at drones. The way people operate drones in war as well,' he said. Open source code and the risks of hijacks One of the key aspects of the Operation Spider Web is the fact that Ukraine used open-source codes to develop the drones that ultimately struck the Russian airfield. However, if the easily available codes fall into the wrong hands, the impact would be detrimental. While raising concerns over the matter, Pattabiram recalled the hijacking of an Indian drone back in August 2024. 'The drone was taken over on the 23rd of August 2024 by Pakistan, and it's not like that was the first time it's happened, it's happened before as well. A lot of this can be directly attributed to the use of open source code,' he said. STORY CONTINUES BELOW THIS AD SBU chief Lt. Gen. Vasyl Maliuk is standing beside a schematic map of the operation. @SBUkr 'The code layer of a drone is where the vulnerability of hacking or the vulnerability of misuse lies. The code can be downloaded from GitHub, and it can be used, and the commands can be directly given to the drone to hack. So, considering this open-source code is a major risk from a security perspective,' he explained. The need for a regulatory framework When asked how the risk can be tackled, Pattabiram suggested innovative ideas. 'The key is that there is a lot of learning that is possible from the telecom sector. Chinese phones that were sold here without IMEI numbers. Which meant there was no traceability of the phone. So they could be misused for various things, and nobody knows where it is. Now, today the drone is in the same status. Despite the civilian drone regulation having been in place since 1921. For the last 4 years, nobody knows where a drone is operating or who is operating,' he averred. 'So, considering this, DGCA has a digital sky on which you can register a drone. But there is something beyond the online portal on which you register, and you get one thing called a UIN number. So the regulatory framework has a very simple thing to be done, i.e. using the telecom as a learning point.' 'So all they need to do is completely stop the import of autopilots and then introduce SIM cards into every autopilot in India. So that every SIM card has an IMEI number. And it has an IMEI number, which is your subscriber number. This way, you can trace the drone from the telecom network to where it is. Who is operating it, and the moment you have got the IMEI number, and you have done a KYC for it, you know who owns the drone,' he said. STORY CONTINUES BELOW THIS AD When it comes to imported autopilots, Pattabiram said that those drones need to be controlled. 'It should not be an open item. A drone autopilot cannot be imported under OGL or a general licence. There should be specific people who are allowed and authorised to import it based on licensing. And the second is that all autopilots need to have a SIM card on them. If this is done, then I think one can get rid of a lot of problems. The first drone war in South Asia: India-Pak conflict While the Indian and Pakistani military clashed with each other on numerous occasions, the conflict that erupted following the devastating Pahalgam attack saw drones taking the centre stage. 'Operation Sindoor was the first time a totally non-contact remote war played out in the subcontinent, with neither side crossing either the IB or the LOC. This was possible primarily on account of the deployment of remote technologies like drones and missiles,' Pattabiram said. 'Having said that, it is important to note the fact that the small drone war has been happening even before Operation Sindoor, with Pakistan violating lower-level Indian airspace over the past couple of years, every day by sending hundreds of drones to deliver drugs, small arms, explosives, etc. This war is interestingly continuing even after May 10th 2025.' A debate will take place in the Upper House of Parliament over India's Operation Sindoor. Representational Image 'The importance of addressing and building capabilities for this particular type of low intensity, dispersed, highly asymmetric war is one of the biggest learning's from Operation Sindoor. This is exactly the kind of warfare that is stretching out the Ukraine-Russia war for over three years now. The Israel-Iran war and the Israel-Houthi wars are other such conflicts that are stretching out. The result of such stretched-out, open-ended conflicts can be both costly and debilitating to the economies of the countries involved,' he said. STORY CONTINUES BELOW THIS AD Pattabiram emphasised that India needs to build capabilities and abilities to block enemy drones from coming to India. Mentioning how Pakistan often uses drones to send drugs within the Indian borders, he called for finding ways to neutralise these threats. A general view of a damaged portion of a building, after it was hit by an Indian strike, in Muridke near Lahore, Pakistan, May 7. Jain played a big part in Operation Sindoor. Reuters AI & Drones During the conversation with Firstpost, Pattabiram noted that AI automation is going to be the future of drones. 'The question of trying to operate them manually is not going to be feasible. The skill level required to fly this kind of FPV drone takes years for somebody to build into that kind of capability. Due to this, it is not scalable as well,' he said. 'It needs to be AI-based. It needs to have self-autonomous capabilities, which do not exist. But looks like many of the countries and many of the companies, including us, are also working along those lines in terms of autonomous AI and Machine learning is being infused into drones,' he asserted, emphasising that the integration of AI and drones is an 'unavoidable future'. So, the swarm drone concept is another concept that is going to be very, very strong going forward. The only thing that you will see grow going forward is the technology content, and the way the technology is used is going to start scaling very well,' he said. Operation Rising Lion: Are drone bases new sleeper cells? After Israel conducted Operation Rising Lion against Iran's nuclear facilities, it was revealed that Mossad had drone bases within Iranian territory. It was from these bases that they activated the drones and conducted the strikes on military and nuclear facilities in Iran. While talking about the operation, Pattabiram compared setting up drone bases within enemy territory to setting up sleeper cells or deploying terrorists on foreign land. 'It is more on the lines of a terrorist operation. So it is like you are having terrorists within the country, within the enemy country, and you are operating those sleeper cells,' he said. 'In some ways, it is very similar to a sleeper cell concept. And that is exactly what Ukraine and Israel, or Mossad, did. They have activated certain existing assets in terms of people within the other country. This is very, very similar to what has been happening in India. In terms of Pahalgam, or in terms of Patankot or in terms of Bombay, 26-11. Now, in the terrorist case it is human, in this case it is a drone. But the basic concept is the same,' he said. Pattabiram emphasised that the only way to counter these attacks would be the same way one works on counter terrorism measures. 'So it is a counter terrorism and counterinsurgency kind of scenario that has to be used for something like this. Now, one of the ways of figuring it out is controlling the availability of material to be able to activate these things. And the second is legitimacy in terms of seeing who is using this material, who is buying this material,' he explained. Are drones replacing battle tanks? Over the decades, the rules of warfare have evolved significantly. From the use of horses to battle tanks. Then missiles came into play, making countries target each other irrespective of the distance. However, the three operations that rocked the world in the span of a few weeks beg one question: Are drones replacing battle tanks? When Firstpost asked this question, Pattabiram said drones are being used for the first time as a 'de-escalatory asymmetric'. 'When a war moved from a horse to a tank, the tank was far more expensive than a horse. But still, people took it because it offered certain strong advantages over a horse. When it moved from propeller planes to jet planes, jet planes were far ahead of propeller planes in terms of capabilities. So even though it was higher in terms of cost, people adopted it because it delivered asymmetric impact to the forces,' he explained. When bombs evolved into missiles, a similar kind of asymmetry happened where the cost escalated, but the impact also escalated. But drones are the first time in the history of warfare where it has gone the other way around. Where the cost has reduced, but the impact has increased.' 'So, thereby enabling larger deployment of drones, covering larger areas and being cost-effective, they are a de-escalative asymmetry which delivers a higher impact,' he added. To support his assertion, Pattabiram gave an example of how to take down a tank with millions of dollars of Russian bombers, Ukraine just used $2,000 drones. 'So, where this also plays is now if somebody were to use missiles to stop drones, then you are stopping a $2000 drone with a $2 million missile. When it comes to that kind of equation, it can bleed a country,' he said. Can drones be a deterrent in war as nuclear weapons have been? When asked if drones can be given the same stature as nuclear weapons for deterrence in war, Pattabiram emphasised that while drones can be solid levellers, they are not deterrents and the impact is not as significant as a nuclear weapon. 'The drones are turning out to be more of irritants and more of psychological players, rather than being something like an impact player, like nuclear weapons,' Pattabiram said. 'Nuclear weapons have more of an impact as a deterrent. Whereas drones are turning out to be more than something, they start affecting people psychologically as well as people, keep irritating and chipping away.' 'So nuclear is something like, one hard bang. This is something that gives a thousand cuts. So, drones and nuclear weapons can't be compared to that extent; one is kind of destructive in one shot. So there is a difference between the two,' he concluded. While drones might not be as lethal as nuclear weapons, one thing remains clear: they will be at the centre stage of modern warfare.
Mint
9 minutes ago
- Mint
Will, trust or gift? Making sense of India's succession toolkit
In the ever-evolving world of startups and traditional family-run businesses, one quiet but crucial question shapes the future: Who's next? Succession planning isn't just the domain of large corporate boardrooms. It has everyday relevance—impacting families, their financial security, and intergenerational harmony. Succession planning involves more than deciding who inherits what. It's about protecting wealth, avoiding conflict, and ensuring a smooth transfer of responsibility and ownership. Several legal instruments can help with this: wills, gifts, trusts, Hindu Undivided Families (HUFs), and family arrangements. Here's a look at how each works—and where each may fall short. Also read: Thinking legacy: Startup founders take to trusts, estate planning to protect assets, plan succession Will A Will is a legal document that specifies how a person's assets will be distributed after their death. It's easy to execute, allows one to appoint an executor to manage the process, and under Indian tax law, assets passed on via a will are tax-free for inheritors. But there's a catch. Wills can be challenged in court, potentially leading to long-drawn disputes. Obtaining a probate (legal validation of a will) can be expensive and time-consuming. Additionally, people often fail to update their will in line with changing family dynamics or asset holdings. Also read: Company Outsider: Titan's succession planning ensures continuity and evokes confidence Gift A gift lets you transfer assets—movable or immovable—while you're alive, using a registered gift deed. Some states even offer concessional stamp duty on gifts made to relatives. However, gifting comes with irreversible consequences. You lose control over the asset once it's gifted, and it may leave you with fewer resources in the future. There's also less room to alter your succession plan later. Gifts are tax-free only if made to specified relatives under the Income-tax Act. Trust A trust allows assets to be transferred to a legally protected structure. You (the settlor) choose who will manage it (the trustee) and who benefits from it (the beneficiaries). This can ensure continuity of control and protect assets—especially when beneficiaries are minors, differently-abled, or unable to manage wealth. Trusts can also consolidate family holdings and shield assets from legal claims. But creating and maintaining a trust can be expensive. Once assets are moved to an irrevocable trust, the original owner loses control. Also, many trusts are taxed at the maximum marginal rate (>30%), eliminating potential tax advantages. HUF: India's family-centric tax entity A Hindu Undivided Family (HUF) is a separate legal entity, typically headed by the eldest member (Karta), though women can now also be Karta. Members include all lineal descendants. It can own and manage property, financial assets, and is taxed independently of its members. While it allows for family-centric wealth management and succession, it comes with limitations. Assets contributed to an HUF cannot be withdrawn except through complete partition, which requires unanimous consent—potentially triggering intra-family conflict. HUFs are applicable only to Hindu, Sikh, Jain, or Buddhist families and require meticulous compliance in terms of bookkeeping and tax filings. Also read: Indian pharma's young blood takes over as drug dynasties crack the succession code Final word Succession planning is not just about passing on property—it's about passing on purpose, structure, and peace of mind. Whether you choose a will, a trust, or create an HUF, each tool has its use and limitations. With thoughtful planning, families can ensure their values and assets transition smoothly—building not just wealth, but resilience and unity for future generations. Vinayak Varadray Bhat is a chartered accountant and associate at Bansi S. Mehta & Co, Chartered Accountants.
Time of India
9 minutes ago
- Time of India
The Economic Times and Dassault Systèmes India Launch ‘India Leadership Talks' to Accelerate Manufacturing Transformation
New Delhi, August 4, 2025: As India races toward its ambitious $5 trillion economy target, a critical question emerges: How can the manufacturing sector, currently contributing 17% to GDP, unlock its potential to drive the nation's economic transformation? The Economic Times Manufacturing and Dassault Systèmes India have joined hands to launch India Leadership Talks , a comprehensive 12-part video series featuring candid conversations with India's most influential manufacturing leaders, engineers, and policymakers who are reshaping the industrial landscape. This strategic content initiative goes beyond traditional industry discussions, delivering actionable insights on digital transformation, operational excellence, and sustainable growth strategies that are defining the future of Indian manufacturing. The series features in-depth conversations with proven industry transformers including Deepak NG (Dassault Systèmes India), Ganesh Mani (Ashok Leyland), Sachin Agrawal (VECV), Rajendra Petkar (Tata Motors), Prabodha Acharya (JSW Energy), Manoj Kumar (Crompton Greaves Consumer Electricals), Kartikeya Joshi (Uno Minda) and digital innovation pioneers from Dassault Systèmes India including Praveen Mysore, Ravikiran Pothukuchi, Vivek Salvi, Mohammed Azmathullah, and Tanuj Mittal. Each episode explores: Strategic approaches to navigating complex operational challengesDigital transformation implementation across manufacturing value chainsBuilding resilient, efficient, and inclusive manufacturing ecosystemsPersonal leadership journeys through industry disruptionReal-world applications of virtual twins, smart automation, and advanced collaboration technologies "India's manufacturing sector stands at a unique threshold where technology, talent, and ambition converge. India Leadership Talks provides a platform to learn from the boldest minds who are not just adapting to change, but setting new leadership standards. This series will serve as a lighthouse for India's manufacturing renaissance, inspiring actionable insights and collective progress as we empower India to achieve global manufacturing leadership," said Deepak NG, Managing Director, Dassault Systèmes India. " Manufacturing transformation isn't just about technology—it's about unleashing India's industrial potential to create millions of jobs, boost exports, and establish the nation as the world's most competitive production hub," said Amit Gupta, Business Head, Economic Times Verticals. "Our partnership with Dassault Systèmes brings together The Economic Times' deep industry insights with their cutting-edge manufacturing expertise and global perspective. India Leadership Talks represents our shared commitment to facilitating the high-impact conversations that will accelerate this transformation. By connecting visionary leaders with actionable strategies through this collaboration, we're not just documenting change—we're catalyzing it." The series will be available across The Economic Times' comprehensive digital ecosystem, featuring expert analysis, extended interviews, and in-depth editorial coverage. Episodes will roll out weekly starting August 7, accessible through ET's manufacturing vertical and social media channels. About Economic Times B2B is India's premier digital destination for news, insights, and analysis focused exclusively on the country's rapidly evolving B2B ecosystem. As one of the top five and fastest-growing B2B markets globally—contributing nearly 14–15% to India's GDP—the Indian B2B sector is a vital driver of economic growth, innovation, and global competitiveness. About Dassault Systemes Dassault Systèmes is a catalyst for human progress. Since 1981, the company has pioneered virtual worlds to improve real life for consumers, patients and citizens. With Dassault Systèmes' 3DEXPERIENCE platform, 350,000 customers of all sizes, in all industries, can collaborate, imagine and create sustainable innovations that drive meaningful impact. For more information, visit: Note: This article is a part of ETCIO's Brand Connect Initiative.
