A milestone for India: $1 Trillion in Foreign Direct Investment (FDI) since April 2000. This sounds like a win for India's economy, but what does it really mean? Where is the FDI coming from and where is it going? And most importantly, is it enough to meet the needs of a growing economy like India’s? To understand this better, let’s take a step back and look at how foreign investments in India have evolved over time.

Before independence in 1947, foreign investments were heavily focused on industries like tea, railways, and mining. These investments were designed to serve colonial interests, benefiting the British far more than India.

A recent report from the World Bank has revealed a troubling trend: the poorest countries in the world are struggling to climb the economic ladder. In simple terms, they’re stuck while others continue to move ahead.

But what does this really mean, and why should we care? 🧵👇 Countries around the world are grouped based on income levels—basically, how much the average person earns in a year. The poorest of these are called low-income countries where people often survive on less than $3 a day. That’s just enough to cover the basics like food and shelter.

Countries like Ethiopia, Madagascar, Yemen, Afghanistan, and the Democratic Republic of Congo are examples of low-income nations. Right now, there are 26 countries in the world still in this category.

The US Federal Reserve cut interest rates by 0.25% on Wednesday, bringing it down to a range of 4.25% to 4.5%.

But here’s the twist—this wasn’t a typical rate cut. It’s being described as one of the most cautious, or even hesitant, rate cuts we’ve seen. Let’s break down what this means.🧵👇 Before diving in, let’s quickly go over the basics for anyone new to how this works. The Fed controls something called the federal funds rate. This is the interest rate banks use when borrowing money from each other.

If we got a rupee every time someone in the media or a stock analyst talked about ITC possibly demerging its hotel business over the past decade, we'd probably be crorepatis by now. That’s how much this event has been anticipated and talked about in recent corporate history—probably second only to the much-hyped HDFC and HDFC Bank merger, which also wrapped up recently.

So, why are we bringing this up now?

Because on 17th December, ITC finally got all the approvals to demerge its hotel business, effective 1st January 2025. It’s about three months later than ITC’s initial estimate back in August 2023, but hey, better late than never!

Imagine this: there’s a war, a natural disaster, or even just a power outage in a small village in the middle of nowhere. The local internet is down—fiber cables, cell towers, everything.

But somehow, people still get online. They check the news, call for help, and send messages.

How? A signal from space. This is what Starlink makes possible. Thousands of small satellites orbiting the Earth send fast internet down to anyone with a dish about the size of a pizza box.

No cables, no big infrastructure—just a clear view of the sky and an internet connection that works almost anywhere.

When banks give out loans, they know not everyone will pay them back. Some loans can go bad; when that happens, they’re called Non-Performing Assets (NPAs).

Banks have been lending money long enough to understand the chances of this happening. So, they plan ahead. How? By setting aside a portion of their profits to cover these losses. It’s just a way of being financially prepared.

Even though these bad loans show up on the bank’s balance sheet, they’re ready for the worst-case scenario—when it’s clear that the borrower isn’t going to pay.

In this story, we’ll dive into what’s being called the worst housing affordability crisis in over a decade. From London to Mumbai, housing markets are at a critical juncture.

Let’s break down what’s happening globally and here at home in India. Housing is a topic worth discussing because the International Monetary Fund (IMF) recently published a series of perspectives on housing markets around the world in its Finance and Development magazine.

These insights were fascinating, so we’ve summarized them for you.

What do Oyo Hotels, Chennai Super Kings, the National Stock Exchange, and Bira91 have in common? At first glance, not much—hospitality, cricket, stock markets, and beer seem like a mixed bag.

But here’s the twist: they’re all public companies whose shares are hot commodities in the unlisted securities market.

Now, what exactly are unlisted shares, you wonder? To understand this, let’s dive into the basics of business ownership.

LG Electronics, a Korean company, is planning to list its Indian subsidiary.

They’re looking to raise around ₹15,000 crores through a 100% Offer for Sale (OFS). This means LG’s parent company in Korea will sell part of its stake in the Indian business and keep the money.

None of the funds from this sale will go to LG India itself. LG India is one of the most well-known names in home appliances and consumer electronics. If you own a washing machine or microwave, there’s a good chance it has LG’s logo on it.

The IPO documents provide an interesting look into how LG operates and give us valuable insights into the overall industry.

We’ve gone through all 456 pages so you don’t have to. Let’s start with the basics.

It’s December—the time of year when global research firms start sharing their predictions and outlooks for the upcoming year.

Let's explore some interesting trends analysts are forecasting for 2025.🧵👇 Despite recent signs of slowing growth, India is expected to remain the fastest-growing major economy in 2025, with a projected GDP growth rate of 6.8%.

Image: Cambridge Associates

The Reserve Bank of India (RBI) just wrapped up its latest Monetary Policy Committee (MPC) meeting, and here’s what came out of it: - The repo rate, the interest rate at which the RBI lends money to commercial banks, stays at 6.5%.

- The stance? Neutral—meaning no plans to raise or lower rates for now.

- The Cash Reserve Ratio (CRR), the portion of money banks must keep with the RBI, has been reduced by 0.5%. This move adds ₹1.16 lakh crore to the system.

Do you remember when the RBI governor warned about loans growing faster than deposits? It raised eyebrows across the financial world. But why is this such a big deal? Let’s rewind to uncover the story behind it.🧵👇 When COVID hit, everyone went into panic mode. People stopped spending—understandably so. But for a country like India, where 60% of our GDP comes from people buying stuff, this was a big deal. It slowed the economy down, fast.

Stock market can be full of contradictions. On one hand, the Indian stock market grows stronger every year, helping more and more people achieve their financial goals.

But on the other hand, it’s also a place where a lot of folks lose big money—and not just because of bad investments, but also to scams. We have seen it all— from pyramid schemes promising “double your money” returns every week, like the one that blew up in Assam recently, or scammers impersonating brands to trick people.

Sadly, we’ve seen this happen to some of our clients at Zerodha too.

As traders and investors, we rely on economic data to stay updated. While some numbers only matter to specific industries, big ones like inflation and GDP impact everyone, including policymakers.

That’s why this data needs to be accurate. Soon, there will be some big updates in how this information is calculated.

Why? The government is updating the base year for calculating GDP, changing it from 2011-12 to 2022-23.

What’s a base year?

Think of it as a starting point that helps us compare economic data over time. And it’s not just GDP that’s being updated—other key figures like inflation (CPI), factory output (IIP), wholesale prices (WPI), and producer prices (PPI) will also use the new base year.

On Friday, the Reserve Bank of India (RBI) held an auction for ₹5,000 crore worth of sovereign green bonds.

These bonds, backed by the government, are designed to show India’s commitment to sustainability while raising money for eco-friendly projects. They’re supposed to be safe investments that help fight climate change.

Sounds like a win-win, right? Well, not quite. The response was pretty underwhelming. Out of the ₹5,000 crore on offer, only ₹1,502 crore was sold, at a yield of 6.79%.

The remaining ₹3,498 crore had to be picked up by primary dealers—the underwriters who stepped in when buyers didn’t show up.

This raises some big questions.

The Eurozone has faced a tough few years, navigating energy crises, inflation, and geopolitical tensions.

Here's a breakdown of the challenges and what's ahead🧵👇 The Russian invasion of Ukraine in 2022 hit the Eurozone hard. Many countries relied on Russian energy, and disruptions sent prices soaring. Inflation reached record levels, impacting households and businesses alike.

Image: Eurostat

SEBI is making big changes in the SME IPO space.

The regulator has proposed a set of new rules to tighten how small and medium enterprises (SMEs) list on the stock exchange, raise money, and handle governance after going public. The focus is on stricter rules for the Offer for Sale (OFS) mechanism, better monitoring of how IPO funds are used, and stronger protections for investors.

The Adani Group, one of India’s biggest and most well-known conglomerates, is facing controversy again.

This time, the U.S. Department of Justice (DOJ) is raising questions.

They’re accusing top Adani executives—including Mr. Gautam Adani himself—of bribery, fraud, and obstructing justice. If these claims turn out to be true, it could seriously impact investor confidence and even harm India’s renewable energy goals.

Of course, these are still just allegations, and the legal process could take years to unfold. But it’s important to understand what’s happening.

So, let’s break it down step by step.

Imagine this: you're driving to work on an ordinary day when—BAM—you hit a pothole. Before you can catch your breath, you realize the road ahead is flooded, and to top it all off, there's a massive traffic jam.

Frustrated, you mutter a few curses at the city authorities.

Aren’t they supposed to fix these problems? But here’s the big question: why don’t things ever seem to get better?

Is it just incompetence, or could there be something else going on? Maybe—just maybe—the municipality doesn’t have enough money to fix these issues in the first place.

What’s the most essential tech in your life? Your smartphone? Laptop? Car?

Think deeper. Inside those devices lies the real powerhouse: semiconductors. These tiny chips run our modern world.

Here’s why they’re so important—and how they’re fueling the US-China tech rivalry.🧵👇 Semiconductors are the unsung heroes of technology. They power everything from smartphones to electric cars, AI systems, and even missile defense.

But today, they’ve become more than just tech components. They’re a key battleground in global politics.

Over the past month, several major Indian companies missed their earnings expectations, hinting at larger economic challenges.

In this thread, we’ll explore what key high-frequency economic indicators are revealing about India’s current economy🧵👇 Between May and September, auto sales struggled with weak demand. But October brought a festive cheer. two-wheeler sales shot up by over 36% compared to last year, while cars and SUVs saw a solid 33% jump.