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Hindustan Times
3 days ago
- Business
- Hindustan Times
Benefits of economic integration between India and Sri Lanka
This brief examines the importance of economic integration between India and Sri Lanka in fostering both nations' growth as well as regional stability. Their deep cultural, historical, and geographic ties support an evolving economic relationship driven by trade, investment, and connectivity. As Sri Lanka's largest trading partner and investor, India plays a pivotal role in its economic recovery, particularly following Sri Lanka's recent economic crisis. The brief highlights the mutual benefits of integration: Sri Lanka can access India's large and expanding market, attract Foreign Direct Investment (FDI), and leverage India's cost-effective energy solutions. India, for its part, can enhance its regional security, counter rival influences, and strengthen its strategic presence in the Indian Ocean region. Key opportunities include expanding trade agreements, investing in infrastructure and renewable energy ventures, and enhancing maritime connectivity. India and Sri Lanka, neighbouring countries in South Asia, share a unique economic relationship rooted in culture, geography, and history, and which has evolved over the decades. Their economic integration is crucial for both mutual growth and fostering regional cooperation within frameworks like the South Asian Association for Regional Cooperation (SAARC) and Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). This paper can be accessed here. This paper is authored by Talal Rafi, ORF, New Delhi.
The Print
3 days ago
- Business
- The Print
FDI inflows up 13 pc to USD 50 bn in 2024-25; decline 24.5 pc in Jan-Mar quarter
During the October-December quarter of 2024-25 also, the inflows were contracted by 5.6 per cent year-on-year to USD 10.9 billion due to global economic uncertainties. FDI inflows during January-March 2023-24 stood at USD 12.38 billion. These were USD 44.42 billion in the full 2023-24 fiscal. New Delhi, May 27 (PTI) Foreign direct investment in India fell 24.5 per cent year-on-year to USD 9.34 billion in the January-March quarter of 2024-25 but grew 13 per cent at USD 50 billion during the entire previous financial year, according to the government data released on Tuesday. Total FDI, which includes equity inflows, reinvested earnings and other capital, grew by 14 per cent to USD 81.04 billion during the last financial year. It is the highest in the last three years. The same stood at USD 71.3 billion in 2023-24. During 2024-25, Singapore emerged as the largest source of FDI with USD 14.94 billion inflows. It was followed by Mauritius (USD 3.73 billion against USD 8.34 billion), the US (USD 5.45 billion), the Netherlands (USD 4.62 billion), the UAE (USD 3.12 billion), Japan (USD 2.47 billion), Cyprus (USD 1.2 billion), UK (USD 795 million), Germany (USD 469 million), and Cayman Islands (USD 371 million). However, the data showed that when compared to 2023-24, the inflows had declined from the Netherlands, Japan, the UK, and Germany. Singapore accounts for 30 per cent share, Mauritius (17 per cent) and the US (11 per cent). Sectorally, inflows rose in services, trading, telecommunication, automobile, construction development, non-conventional energy and chemicals. However, it has contracted in computer software and hardware, construction (infrastructure activities), and pharmaceuticals. FDI in services has increased to USD 9.34 billion during 2024-25 as against USD 6.64 billion in 2023-24. As per the data, FDI inflows in non-conventional energy stood at USD 4 billion as against USD 3.76 billion in 2023-24. The data also showed that Maharashtra received the highest inflow of USD 19.6 billion during the last fiscal. It was followed by Karnataka (USD 6.61 billion), Delhi (USD 6 billion), Gujarat (about USD 5.7 billion), Tamil Nadu (USD 3.68 billion), Haryana (USD 3.14 billion), and Telangana (USD 2.99 billion). Maharashtra accounted for the highest share (39 per cent) of total FDI equity inflows, Karnataka (13 per cent) and Delhi (12 per cent). The government has put in place an investor-friendly Foreign Direct Investment (FDI) policy, under which most sectors are open for 100 per cent overseas inflows through the automatic route. 'This policy is reviewed on an ongoing basis to ensure that India remains an attractive and competitive investment destination,' the commerce and industry ministry said in a statement. It added that India is also becoming a hub for manufacturing FDI, which grew by 18 per cent in 2024-25 to USD 19.04 billion compared to USD 16.12 billion in 2023-24. Over the last eleven financial years (2014-25), India attracted FDI worth USD 748.78 billion, reflecting a 143 per cent increase over the previous eleven years (2003-14), which saw USD 308.38 billion in inflows. This constitutes nearly 70 per cent of the total USD 1,072.36 billion in FDI received over the past 25 years. Additionally, the number of source countries for FDI increased from 89 in 2013-14 to 112 in 2024-25, underscoring India's growing global appeal as an investment destination, it added. The government has undertaken reforms across multiple sectors to liberalise FDI norms. Between 2014 and 2019, significant reforms included increased FDI caps in Defence, Insurance, and Pension sectors, and liberalised policies for Construction, Civil Aviation, and Single Brand Retail Trading. From 2019 to 2024, notable measures included allowing 100 per cent FDI under the automatic route in coal mining, contract manufacturing, and insurance intermediaries. In 2025, the Union Budget proposed increasing the FDI limit from 74 per cent to 100 per cent for companies investing their entire premium within India. PTI RR SHW This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
India Gazette
4 days ago
- Business
- India Gazette
FDI inflow into India grows 14% in 2024-25: Commerce Ministry
New Delhi [India], May 27 (ANI): FDI flows into India increased 14 per cent to USD 81.04 billion in the recently concluded financial year 2024-25, the Commerce Ministry said in a statement Tuesday. Over the past decade, FDI inflows have seen a steady rise--from USD 36.05 billion in 2013-14 to USD 81.04 billion (provisional) in 2024-25. The central government has put in place an investor-friendly Foreign Direct Investment (FDI) policy, under which most sectors are open for 100 per cent FDI through the automatic route, the commerce ministry boasted. The FDI policy is reviewed on an ongoing basis to ensure that India remains an attractive and competitive investment destination, the commerce ministry statement added. Coming to 2024-25, the services sector emerged as the top recipient of FDI equity, attracting 19 per cent of total inflows, followed by computer software and hardware (16 per cent) and trading (8 per cent). FDI in the services sector rose by 40.77 per cent to USD 9.35 billion from USD 6.64 billion in the previous year. India is also becoming a hub for manufacturing FDI, which grew by 18 per cent in 2024-25, reaching USD 19.04 billion compared to USD 16.12 billion in 2023-24. Maharashtra accounted for the highest share (39 per cent) of total FDI equity inflows in 2024-25, followed by Karnataka (13 per cent) and Delhi (12 per cent). Among source countries, Singapore led with 30 per cent share, followed by Mauritius (17 per cent) and the United States (11 per cent). Over the last eleven financial years (2014-25), India attracted FDI worth USD 748.78 billion, reflecting a 143 per cent increase over the previous eleven years (2003-14), which saw USD 308.38 billion in inflows. This constitutes nearly 70 per cent of the total USD 1,072.36 billion in FDI received over the past 25 years. Additionally, the number of source countries for FDI increased from 89 in 2013-14 to 112 in 2024-25, said the commerce ministry. 'In the regulatory domain, the Government has undertaken transformative reforms across multiple sectors to liberalize FDI norms. Between 2014 and 2019, significant reforms included increased FDI caps in Defence, Insurance, and Pension sectors, and liberalised policies for Construction, Civil Aviation, and Single Brand Retail Trading,' the statement noted. From 2019 to 2024, notable measures included allowing 100 per cent FDI under the automatic route in coal mining, contract manufacturing, and insurance intermediaries. In 2025, the Union Budget proposed increasing the FDI limit from 74 per cent to 100 per cent for companies investing their entire premium within India. (ANI)
Time of India
4 days ago
- Business
- Time of India
India Records $81.04 bn FDI Inflow in FY25
Foreign Direct Investment inflows have seen a steady rise, from $36.05 billion in FY 2013-14 to$81.04 billion (provisional) in FY 2024-25, the Ministry of Commerce and Industry said on Tuesday. The has been a 14 per cent increase in FY 2024-25 from $71.28 billion that was reported in FY 2023-24, the ministry said. The services sector emerged as the top recipient of FDI equity in FY 2024–25, attracting 19 per cent of total inflows, followed by computer software and hardware (16 per cent) and trading ( per cent). by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Your IQ Is 140 If You Can Answer 10 Of These Questions Correctly IQ International Undo FDI into the services sector rose by 40.77 per cent to $9.35 billion from $6.64 billion in the previous year. There has also been a strong surge in manufacturing FDI, which grew by 18 per cent in FY 2024–25, reaching $19.04 billion compared to $16.12 billion in FY 2023–24. Live Events Maharashtra accounted for the highest share (39 per cent) of total FDI equity inflows in FY 2024–25, followed by Karnataka (13 per cent) and Delhi (12 per cent). Among source countries, Singapore led with 30 per cent share, followed by Mauritius (17 per cent) and the United States (11 per cent). Over the last eleven financial years (2014–25), India attracted FDI worth $748.78 billion, reflecting a 143 per increase, which saw USD 308.38 billion in inflows. This constitutes nearly 70 per cent of the total $1,072.36 billion in FDI received over the past 25 years, the Commerce Ministry said. Additionally, the number of source countries for FDI increased from 89 in FY 2013–14 to 112 in FY 2024–25. "In the regulatory domain, the Indian government has undertaken transformative reforms across multiple sectors to liberalize FDI norms. Between 2014 and 2019, significant reforms included increased FDI caps in Defence, Insurance, and Pension sectors, and liberalized policies for Construction, Civil Aviation, and Single Brand Retail Trading," a statement from the ministry said. "From 2019 to 2024, notable measures included allowing 100 per cent FDI under the automatic route in coal mining, contract manufacturing, and insurance intermediaries. In 2025, the Union Budget proposed increasing the FDI limit from 74% to 100% for companies investing their entire premium within India," it added.
RTÉ News
5 days ago
- Business
- RTÉ News
Could Ireland weather a tariff and FDI shock?
An escalation in trade tariffs could lead to a slowdown in global and Irish growth this year and next, according to AIB's latest Economic Outlook Report. The forecast comes after Friday's announcement by US President Donald Trump of a 50% tariff on EU imports to the US, which he has since confirmed will come into effect on June 1. Each report has a theme in focus, and this one is "Could Ireland weather a tariff and Foreign Direct Investment (FDI) shock? – A balance sheet perspective". A timely question. It finds the Irish economy has built up resilience to withstand potential trade and FDI shocks in the short run. However, permanent tariffs or changes to the US tax code which would reduce Ireland's FDI attractiveness, would pose a greater longer-term challenge. The latter scenario would require diversifying Ireland's FDI and export base to non-US markets, a review of our industrial model, further fostering of indigenous enterprises, and a focus on boosting competitiveness. Irish modified domestic demand is forecast to grow by 2.3% this year, 2% in 2026 and 2.6% in 2027, according to the bank. Irish households are expected to pare back spending growth while some business sectors may delay planned investments, particularly those in export-orientated sectors. The report reveals recent consumer spending has been robust. Public and private sector balance sheets have low debt levels and high savings on aggregate. While economic risks are tilted to the downside, balance sheet resilience remains a mitigant. The report finds US tariffs and future US tax policy are the main downside risks to the Irish economy. Some exporting indigenous Irish sectors such as agri-food are exposed to US tariffs, but the key risk centres on Ireland's multinational-dominated sectors. These sectors, which account for around 12% of total employment, are responsible for 50% of GDP and around 80% of exports generated in the economy. There is a heightened risk of tariffs on the Irish pharma sector, which, along with technology services, dominates multinational sector output. According to the forecast, any negative spillovers from the multinational sector could hit domestic sector output and employment. However, the key medium-term risk to the Irish economy is the concentration of our taxation base in corporation and income taxes sourced from the multinational sector. The report forecasts continued growth in the labour market, but given the expected easing in economic growth, we expect a more modest expansion in employment. Following a 2.7% rise in 2024 we see employment growth slowing to 2% in 2025, 1.5% in 2016 and 1.8% in 2027. Although supply chain spillovers from the multinational sector to the domestic economy are significant, the employment footprint of the sector is relatively small, and generally focused on urban centres. AIB Chief Economist David McNamara said "The global macro backdrop has shifted considerably since our last Economic Outlook in Autumn 2024. The uncertainty created by the dramatic shift in US trade policy and the responses of other key trading blocs, is expected to dampen global growth in 2025 and 2026. "Given the globalised nature of the Irish economy, we expect significant volatility in GDP as exporters seek to get ahead of potential trade restrictions this year," Mr McNamara said. "For the domestic economy we expect a cooling in growth this year, as ongoing uncertainty dampens both consumer spending and business investment growth. Nonetheless, Ireland enters this period of uncertainty from a position of strength, with the economy growing at a robust pace in recent months, while both the public and private sectors have built up material financial buffers in recent years."
