Through the Voluntary Retention Route (VRR), Foreign Portfolio Investments (FPIs) have recently increased significantly in the Indian debt market. As more international investors become aware of the potential of Indian debt products, this trend is picking up steam. By giving FPIs a longer, more stable investment horizon, the Reserve Bank of India (RBI) hopes to lessen the volatility that comes with short-term investments through the implementation of the VRR framework. What is the Voluntary Retention Route? The RBI introduced the VRR in March 2019 as a calculated move to draw more reliable international capital into the Indian debt market. In…
Author: saakshie.gurav
saakshie.gurav
I am Saakshie Gurav, a student from Narsee Monjee College of Commerce and Economics pursuing my Bachelor's in Economics. Throughout my academic journey, I have developed a keen interest in the role that international relations, forex, policy, and geopolitics play in shaping international dynamics within the global economy. As an Economics and Finance enthusiast, I have actively engaged in research and contributed to various publications, exploring complex issues that influence global markets.
The Indian general elections of 2024 are rapidly approaching, and the financial community is keeping a careful eye on the possible results. Nomura analysts believe that a win by the Bharatiya Janata Party (BJP), led by Narendra Modi, would have a big effect on foreign portfolio investments (FPI) in India and would even result in large weekly inflows. This article explores the effects of a BJP victory on FPI, the potential exodus in the event that the BJP loses, and the larger economic environment impacting these forecasts. FPI Inflows and Election Outcomes Nomura predicts that foreign portfolio investors will return…
Reliance Industries, India’s largest private sector company, has struck a one-year deal with Russia’s Rosneft to buy at least 3 million barrels of oil in rubles per month, Reuters reports. The term deal with Rosneft also assists with privately run Reliance to obtain oil at discounted rates during a period when members of the OPEC+ group are expected to aggrandize voluntary supply cuts beyond this June. In accordance with the term deal, Russia will buy two cargoes of approximately one million barrels of Urals crude oil, with an open option to further buy four more per month at a discount…
A unified front emerges amidst the surge of China’s inexpensive exports that threaten to overwhelm international markets. France’s Finance Minister Bruno Le Maire, alongside his Group of Seven (G7) counterparts, raises alarm about the dangers posed. Le Maire’s urgent warning extends to the United States, the European Union, and the entire global economic landscape, emphasizing the need for coordinated global action to address this urgent issue. Stepping Up Regulations Against China The G7 finance ministers, convening in Stresa, Italy, released a sharp statement, singling out China for its overcapacity and pledging to counteract “harmful practices” with actions aimed at maintaining…