Despite recent foreign portfolio outflows, India's long-term investment prospects remain strong, but the return of capital hinges on global financial conditions, relative valuations, and the country's ability to attract sustained foreign investment, according to foreign bankers at the Business Standard BFSI Insight Summit.
US missions across West Asia have issued a security alert advising American nationals to "exercise heightened vigilance" due to Houthi attacks against Saudi Arabia and the potential for Iran and its allies to target US interests. The advisory warns of potential travel disruptions and escalating hostilities, linking the Houthi actions to Iran's regional network and the ongoing US-Iran conflict.
'India is vulnerable to the West Asia crisis in three ways: Energy costs, the business Indian companies conduct in the region, and remittances from the Indian diaspora.'
Prime Minister Narendra Modi hosted Iranian President Masoud Pezeshkian in New Delhi for talks focusing on the West Asia situation, bilateral relations, and BRICS cooperation. The meeting, Pezeshkian's first visit to India as president, comes amidst heightened tensions in West Asia due to new US sanctions on Iran and concerns over global oil supplies from the Strait of Hormuz. Both leaders emphasised regional stability and economic resilience.
The Indian rupee has achieved its longest winning streak in nearly eight years, appreciating for eight consecutive sessions to close at a six-week high. This rally is attributed to strategic central bank interventions, healthy foreign capital inflows linked to the Jio Platforms IPO, and profit-taking in the US dollar.
'India needs to create eight-nine million jobs annually to absorb the growth in the working-age population.' 'Failure to create productive jobs could squander the demographic advantage that we enjoy right now.'
The fiscal consolidation path and Rs 1 trillion stabilisation fund provide room to absorb mild shocks, but sustained oil-price increases pose risks.
Cortex DC, a company of The Chatterjee Group (TCG), announced its entry into the data centre market with plans to develop 2 GW of AI-ready capacity across India over the next seven years. The initiative aims to meet the growing demand for high-performance computing, targeting hyperscalers, cloud service providers, and advanced AI workloads with a focus on speed, scale, and sustainable power.
Finance Minister Nirmala Sitharaman stated that the Reserve Bank of India (RBI) will persist in its efforts to prevent excessive volatility in the rupee, which has significantly depreciated against the US dollar due to global uncertainties, despite India's strong macro-economic fundamentals.
The Reserve Bank of India's Monetary Policy Committee (MPC) has indicated that rate cuts are improbable in the near term, with headline inflation projected to reach 6 per cent in the third quarter. Minutes from the October meeting reveal growing concerns among members about inflation spreading beyond food and fuel, leading to a shift in policy stance towards calibrated tightening.
IndiGo and Air India Group will progressively shift flights from Mumbai's Chhatrapati Shivaji Maharaj International Airport (CSMIA) to the newly built Navi Mumbai International Airport (NMIA) starting from December. This phased transition, expected to complete by the 2027 summer aviation season, aims to ease capacity constraints at CSMIA, facilitate its Terminal 1 redevelopment, and establish a dual-airport system for Mumbai, enhancing connectivity and future growth.
That means making it easier to invest, protecting investors through predictable rules, and avoiding policy reversals after investments have been made, notes Rajeswari Sengupta.
The Reserve Bank of India's recent measures, including a dedicated dollar window for state-run oil marketing companies and tightened foreign exchange derivative rules, are expected to provide near-term relief to the rupee's depreciation, but market participants believe global factors and balance of payment dynamics will continue to exert pressure in the medium term.
India's real estate sector recorded an unprecedented $9.5 billion in capital inflows during Q3 2026, primarily driven by foreign investors' strong interest in data centres, according to a CBRE Group report.
Indian IT stocks have experienced their most significant weekly surge in 18 years, with the Nifty IT index climbing 11.72 per cent, as a global sell-off in AI-linked equities redirected investor attention towards India's IT services sector. This shift aligns with a JP Morgan report identifying India as a 'natural AI hedge' due to its large, liquid market and strong domestic institutional investor base.
The Reserve Bank of India's Monetary Policy Committee (MPC) has commenced its three-day meeting, with a majority of economists and bankers anticipating a 25 basis point rate hike to counter escalating inflation risks, particularly from West Asia conflicts.
Given the current friction in ties, such a visit looks unlikely at this juncture.
India's Goods and Services Tax (GST) receipts, after accounting for refunds, surged by 18.1 per cent annually to approximately 1.77 trillion in September, marking its fastest growth in six months. This increase was primarily driven by a significant rise in tax revenue from imports, which grew 26 per cent annually.
India's bid to host the 2038 Asian Games will not be decided before 2028, as the Olympic Council of Asia (OCA) has revealed that five other countries are also vying for the same edition.
Jio Platforms (JPL) is preparing a capex-light strategy to commercially launch 6G services in the early 2030s through software upgrades, rather than fresh infrastructure investments, according to Akash Ambani, managing director of JPL.
Customer experience firm Fusion CX is significantly investing in AI-enabled services and data infrastructure, aiming to increase its share in total turnover to 25% within 12-18 months. The company, which reported a turnover of Rs 1,818.13 crore in FY26, is preparing for an IPO of Rs 800-1,000 crore in October, driven by organic growth, acquisitions, and its AI strategy.
'Elevated crude prices and unchanged domestic fuel prices would put pressure on the profitability and cash flows of OMCs.'
US Secretary of State Marco Rubio's visit to India this week underscores the complex dynamics of global energy policy, as Washington re-evaluates sanctions on Russian oil buyers amidst India's continued reliance on Russian crude.
Global payments solution major Mastercard has fully exited Indian fintech firm Pine Labs, selling its entire 4.31 per cent stake for Rs 933 crore through block deals on the BSE.
Iranian President Masoud Pezeshkian arrived in New Delhi for the BRICS summit, where he is scheduled to hold bilateral talks with Prime Minister Narendra Modi to enhance trade and strengthen overall relations. His visit is particularly significant given the heightened tensions in West Asia and recent US economic sanctions against Iran. Pezeshkian highlighted BRICS' role in fostering economic resilience and reducing dependence on the US dollar, while the summit itself aims to address global challenges and bolster collective resilience in critical sectors.
The Olympic Council of Asia has advised national bodies, including India, to limit their contingent sizes for the upcoming Asian Games in Aichi-Nagoya, Japan, due to the host nation's inability to accommodate more than 15,000 participants. This impacts support staff numbers, with India's contingent of 492 athletes requiring strict adherence to the 33% support staff cap. Organisers are implementing innovative accommodation solutions like container huts and a cruise ship.
An urban map of the largest cities in the world, by population, in the early 1700s looked almost empty by today's standards.
Indian startup funding plummeted by 43 per cent year-on-year to $7.81 billion between March 1 and June 15, 2026, largely due to the West Asia conflict, which has amplified global risk perceptions, tightened liquidity, and led to rupee depreciation, making global investors cautious.
The Indian corporate sector demonstrated strong credit quality in the first half of FY27, driven by robust balance sheets and healthy liquidity, despite facing risks from elevated crude prices, inflation, and global interest rates.
Indian stock markets experienced a significant downturn, with the Sensex plunging 1,124 points to a six-month low and the Nifty closing below 22,800, driven by surging crude oil prices, escalating geopolitical uncertainties, and weak global market trends.
After a significant 9.9% depreciation in FY26, the Indian rupee has shown comparative stability in the first half of FY27, depreciating by only 1.1%, attributed to regulatory interventions and measures to attract foreign capital, despite ongoing global pressures from rising crude oil prices and foreign investor outflows.
India's current account deficit could widen to 1.7 per cent of GDP, or about $71 billion, if crude oil prices stay above $90 a barrel for a significant part of the second half of FY27.
The Reserve Bank of India's 25-basis point increase in the repo rate to 5.5 per cent is expected to exert pressure on housing affordability and buyer sentiment, particularly affecting interest rate-sensitive segments and potentially moderating sales during the crucial festival season.
The Nomad Games, a biannual tournament of traditional nomadic sports, has drawn over 3,000 athletes from more than 100 countries to Kyrgyzstan, including many from Western nations keen to experience ancient Central Asian traditions like horseback archery and Kok Boru.
Non-resident Indians are increasingly investing in luxury homes in India, driven by geopolitical uncertainties, particularly the Iran war. This trend is observed across major cities like Mumbai, Bengaluru, and the National Capital Region, with developers noting a significant rise in NRI pre-sales. While some see it as a temporary shift, others believe India is becoming a stable, long-term investment destination for NRIs, especially those from West Asia.
The Indian IPO market recorded its highest monthly fundraising in September, with 34 mainboard companies raising 39,309 crore, despite a significant decline in the Nifty 50 index.
Accel's early investment in RentoMojo, a furniture and appliance rental platform, has paid off handsomely with the company's strong debut on the stock exchanges, listing nearly 19 per cent above its issue price after a significantly oversubscribed IPO.
India, through First Secretary Petal Gahlot, strongly criticised Pakistan at the UN General Assembly, labelling it a "puppet regime" and warning of consequences for its continued support of terrorism. This came after Pakistan Prime Minister Shehbaz Sharif raised the Kashmir issue and credited Donald Trump for intervening in a hypothetical 2025 conflict. India highlighted Pakistan's internal political issues, its history with Osama Bin Laden, and the human rights situation in Pakistan-occupied Kashmir, while also condemning its blasphemy laws and treatment of minorities.
The Indian rupee experienced its sharpest single-day decline in eight weeks, settling at 94.83 per dollar, primarily due to escalating crude oil prices and persistent risk-off sentiment driven by heightened geopolitical tensions and limited foreign inflows.
A senior Pakistani defence official, Lt Gen (retd) Mazhar Jamil, claimed that India's long-range missile development indicates ambitions to become a global nuclear power capable of threatening Western capitals, urging international attention to India's military modernisation. He also reiterated Pakistan's commitment to deterrence stability in South Asia.
