Recent Current Affairs related to FDI

Tata Capital Ltd (TCL) has signed an MoU with Japan-based Resona Bank, the core banking subsidiary of Resona Holdings, to assist Japanese companies in exploring and accessing financial solutions and business opportunities in India.

Bank of America Corporation (BofA) has entered into a Joint Venture (JV) agreement with Jio Financial Services Ltd (JFSL). Under the JV, BofA will acquire up to a 49.9% stake in Jio Credit Ltd (JCL).

The Tamil Nadu government has signed 4 MoUs with leading global companies to facilitate the establishment of Global Capability Centres (GCCs), Research & Development (R&D) centres, and a manufacturing facility.

As part of these agreements, the state government has also signed an MoU with the University of Western Australia (UWA) to establish its India campus in Velachery, Chennai, with an investment of ₹125 crore.

According to provisional data released by the RBI, India's outward Foreign Direct Investment (FDI) declined by 47.9% year-on-year (Y-o-Y) to $3 billion in June 2026, compared to $5.74 billion in June 2025.

The decline was observed across all three components of outward FDI commitments: equity, debt, and guarantees. In June 2026, equity commitments stood at $738 million, debt at $469.87 million, and guarantees at $1.78 billion. The largest FDI equity commitments were recorded by ONGC Videsh Rovuma Ltd (OVRL), followed by Lenskart and GFCL EV products.

UK-based Aviva Plc has acquired the remaining 26% stake in Aviva Life Insurance Company India Ltd (Aviva India) from its Joint Venture (JV) partner, Dabur Invest Corp. (DIC).

With this, Aviva Plc has become the first foreign insurer to fully own its life insurance business in India.

According to the "2026 World Investment Report: International Investment in a Turbulent Era" released by the UN Trade and Development (UNCTAD), India is ranked 11th globally as an FDI recipient, with inflows surging by 44% to $38.89 billion in 2025.

In terms of FDI outflows, India is ranked 18th, with outflows increasing by 47% to $35.66 billion. Global foreign direct investment (FDI) inflows increased by 6% to $1.6 trillion in 2025.

The USA remained the world's largest FDI destination with $277 billion, followed by Singapore and Hong Kong. The USA was also the world's largest source of FDI with a total outflow of $263 billion, followed by Japan, China, Luxembourg, and Hong Kong.

Adani Enterprises Ltd (AEL) and International Resources Holding (IRH), a part of the International Holding Company (IHC) group, have signed an MoU with the Odisha government on setting up an integrated greenfield aluminium project with an investment of $11.5 billion (₹1.08 lakh crore).

Japan-based SoftBank Group has divested a 3.25% stake in Lenskart Solutions through its affiliate SoftBank Vision Fund II (SVF II) Lightbulb (Cayman) Ltd. The transaction was executed through the sale of 5.65 crore shares.

Prudential plc, a UK-based insurer and asset manager, has announced plans to acquire a 75% stake in Bharti Life Insurance Company Ltd for an initial value of ₹3,500 crore ($389 million).

Under the transaction, the company will buy a 60% stake from Bharti Life Ventures Pvt Ltd and the remaining 15% stake from funds managed by 360 ONE Asset Management.

The USA-based Liberty Mutual Insurance Company (LMIC) has increased its stake in Liberty General Insurance (LGI) from 55.4% to 74%. LGI is a joint venture (JV) between the Liberty Mutual Group (LMG) and Enam Securities, with the latter holding the remaining 26% stake.

This expansion strengthens the presence of the company in the insurance sector of India, facilitated by the approval of 100% Foreign Direct Investment (FDI) in the industry by the Government of India (GoI).

According to a report titled “Economic and Social Survey of Asia and Pacific 2026: Socioeconomic Prosperity Amid the Transition to an Environmentally Sustainable Economy” released by the UN Economic and Social Commission for Asia and the Pacific (ESCAP), the economy of India is projected to grow at 6.4% in Calendar Year 2026 (CY26) and 6.6% in CY27.

The inflation of India is expected to reach 4.4% in CY26 and 4.3% in CY27. The growth rate of the South and South-West Asia region is estimated at 5.4% in CY25, which is an increase from 5.2% in CY24. During the first three quarters of CY26, India attracted the largest share of greenfield Foreign Direct Investment (FDI) worth $50 billion. It is followed by Australia, Republic of Korea, and Kazakhstan.

The Maharashtra government has signed an MoU with the Vietnam based Vingroup to explore strategic investments across multiple sectors in the state. The proposed investment is worth $6.5 billion (₹54,000 crore) and will be executed over a period of 2 years.