Arvind's Newsletter

1.India’s FDI inflows jump 47.8% to $16.17 billion in April-June FY25 driven by services, telecom, pharma sectors

Foreign direct investment (FDI) in India jumped 47.8 per cent to $16.17 billion in April-June this fiscal on healthy inflows in services, computer, telecom and pharma sectors, according to government data. FDI inflows were at $10.94 billion in April-June 2023-24.

Total FDI, which includes equity inflows, reinvested earnings and other capital, grew by 28 per cent to $22.49 billion during the first quarter of this fiscal from $17.56 billion in April-June 2023-24, the Department for Promotion of Industry and Internal Trade (DPIIT) data showed.

The data also showed that Maharashtra received the highest inflow of $8.48 billion during the first quarter of this last fiscal year. It was followed by Karnataka ($2.28 billion), Telangana ($1.08 billion), and Gujarat ($1.02 billion). FDI inflows declined in Delhi and Rajasthan compared to the year-ago period.

2.Cabinet approves Kaynes chip assembly, packaging unit worth Rs 3,307 crore

The Union Cabinet on Monday approved India's fifth semiconductor facility, to be established by Kaynes Technology in Sanand, Gujarat.

This assembly, testing, marking, and packaging (ATMP) unit will involve a total investment of Rs 3,307 crore and have the capacity to produce 6.3 million chips per day.

Majority of chips produced in the plant will be used in power-related equipment for train sets, automobiles, and home appliances, said the minister. 

It comes after the Micron, Tata, and CG Power facility in Gujarat and another project by the Tatas in Assam that were approved earlier. 

3.We want to build best housing finance firm of future: Sanjeev Bajaj

Speaking to Mint, Bajaj Finserv chairman Sanjeev Bajaj said that the housing finance company is focussed on building a business similar to HDFC that is focussed on excellence and scale. The IPO is the first from the group after a gap of 31 years.

Bajaj also said that they will have to reduce stake in the housing finance company in a phased manner over the next 3 years to meet Securities and Exchange Board of India's (Sebi) regulatory requirement of capping the promoter's stake at 75%. However, he said that a call will be taken after the IPO, which will see Bajaj Finance's 100% stake in the HFC getting diluted by nearly 11%. 

4.France’s Total pursues Adani ties with new solar investment

French oil and gas major TotalEnergies has struck a new deal with a green energy division of Indian billionaire Gautam Adani’s conglomerate and will invest $444mn in a joint portfolio of solar power projects.

Total is one of the non-Indian companies that has visibly pursued collaborations with the Adani Group since the conglomerate faced corporate fraud allegations last year from US short seller Hindenburg Research. The Indian group has vigorously denied the claims.

Total said it was forging a new joint venture with Adani Green Energy Limited, an Adani subsidiary in which it already has a 19.75 per cent stake. The two sides will hold 50 per cent each of a 1.15 gigawatt portfolio of solar parks in the Gujarat region, enough to power a small city. AGEL will contribute assets and Total will provide funding for the JV’s development.

5.Nuclear power under resurgence -but can the projects be completed on time and without overruns

France’s latest nuclear power plant will start producing energy, and could be attached to the grid by the end of the year. Flamanville, the 57th French reactor, is 12 years behind schedule and 300% over budget after regulators demanded redesigns.But despite the project’s struggles, nuclear power is seeing a resurgence.

The French state power company EDF hopes to use the model to export overseas, and about 60 reactors are under construction worldwide, according to the World Nuclear Association, with many more planned and proposed.

Finland unveiled the world’s first deep-earth repository for nuclear waste, capable of storing used fuel for 100,000 years. It will open in 2026.

6.VW considers closing factories in Germany and cutting jobs reported Financial Times

The move comes after a savings programme launched last year has fallen short of several billions of euros, as the company has only been able to cut overheads by offering employees early retirement and voluntary redundancy packages due to agreements with its powerful works council.

The automaker is also reconsidering its pledge not to cut jobs until 2029, setting the stage for a major labor dispute that would be a blow to Chancellor Olaf Scholz’ fragile government, Bloomberg reported.

Germany is “falling further behind in terms of competitiveness.” VW’s CEO said, citing a tough economic environment and new players in Europe. The company predicted in March that sales would slow this year amid competition from Chinese EV makers. The German automaker is especially vulnerable since China accounts for about a third of its sales, Reuters reported.

7.Too timid to tell the boss you’ve had it? There’s a service for that; Wall Street Journal

In famously polite Japan, some workers hesitate to confront employers. So they outsource the task to ‘quitting agencies.’

“Yuta Sakamoto was exhausted from selling home-improvement projects, and from the boss’s demand that he help clean up at renovation sites on weekends. One day, he mustered his courage and declared it: he wanted to quit. But his boss warned him he would be ruining his future, and Sakamoto shrank back.

Then a friend proposed a solution. Sakamoto didn’t have to confront the boss again—he could hire someone to do it for him. After sending $200 and his case details to a quitting agency, he was finally a free man.

“I would have been mentally broken if I had continued," says Sakamoto, 24, who found a new job as a salesman at a printing firm.

A labor shortage in Japan means underpaid or overworked employees have other options nowadays. The problem: this famously polite country has a lot of timid people who hate confrontation. Some worry they’ll cause a disruption by leaving, or they dread the idea of co-workers gossiping about what just transpired in the boss’s office.

Enter a company called Exit. Toshiyuki Niino co-founded it to help people quit after experiencing his own difficulties leaving jobs. “Americans may be surprised, but I was too shy or too scared to say what I think," says Niino, 34. “Japanese are not educated to debate and express opinions."

8.Latest large Semaglutide Study shows wide ranging health benefits beyond weight-loss

One of the largest studies on the effect of a new class of weight-loss drugs on mortality found regular use of semaglutides reduces the risk of death from all causes by almost 20% for patients who are overweight or obese. The results are the latest to suggest the drugs may have wide-ranging health benefits beyond their traditional use in treating diabetes.

Semaglutides like Wegovy and Ozempic (functionally the same drug) act by mimicking a naturally produced hormone known as GLP-1. The molecule is produced in the gut and prompts the body to produce insulin while dampening cravings for food. 

The study administered the drug once a week to patients aged 45 and older. Compared to a placebo group, the recipients showed a 15% drop in cardiovascular death and a 23% drop in COVID-19-related death.