Daily News - Monday, 25 May 2026
U.S. Overtakes Mauritius as India’s 2nd Largest FDI Source (Economic Times)
The United States has overtaken Mauritius to become India’s second‑largest source of FDI, with equity inflows more than doubling to USD $11 billion (INR ₹915 billion) in FY25‑26, reflecting a shift away from tax‑friendly jurisdictions. Singapore retained the top spot, accounting for nearly one‑third of total inflows, while Japan saw sharp growth in financial services investments. Commerce Minister Piyush Goyal noted that American firms have committed USD $60 billion (INR ₹5 trillion) in recent months, underscoring rising U.S. interest in India’s market. Sectoral trends show computer hardware and software overtaking services, driven by data centre infrastructure, while food processing inflows rose fivefold and shipping surged nearly 30 times to USD $2 billion (INR ₹166 billion). Investments from the Cayman Islands also spiked from USD $371 million (INR ₹30.9 billion) to USD $2.1 billion (INR ₹174 billion), though officials said this was due to a few large deals. The government is working to strengthen domestic capabilities and reduce supply chain dependence, aligning FDI with India’s broader self‑reliance and securonomics pivot.
India Allocates 8,606 Tonnes of Raw Sugar Exports to US Under World Trade Organization (WTO) Tariff Rate Quota (TRQ) system (CNBC TV18)
The Commerce Ministry’s Directorate General of Foreign Trade (DGFT) has allocated 8,606 tonnes of raw sugar exports to the United States under the World Trade Organization (WTO) Tariff Rate Quota (TRQ) system. This allocation, announced on May 24, 2026, comes despite India’s broader ban on sugar exports until September 30, 2026, aimed at safeguarding domestic supply. The TRQ allows India to export specified quantities to the US at lower tariffs, ensuring compliance with WTO commitments. India’s sugar production in 2025‑26 is estimated at 29.3 million tonnes, while consumption is expected to exceed output for the second consecutive year, prompting restrictions. The DGFT clarified that shipments under TRQ are exempt from the ban, covering raw, white, and refined sugar categories. Industry bodies like the Indian Sugar Mills Association (ISMA) noted that such allocations help maintain India’s credibility in global trade while balancing domestic inflation concerns.
Reserve Bank of India Announces USD $5 Billion Dollar/INR Swap Auction (money control)
The Reserve Bank of India (RBI) announced a USD $5 billion (INR ₹415 billion) buy/sell swap auction to be held on May 26, 2026, aimed at injecting long-term liquidity into the banking system. The swap will have a three-year tenor, providing durable liquidity support at a time when the rupee has depreciated sharply against the U.S. dollar amid global uncertainties. This move follows RBI’s earlier interventions in the forex market, including capping authorised dealers’ net open INR positions at USD $100 million daily to curb speculation. The auction is structured as a simple buy/sell foreign exchange swap, where banks will sell dollars to RBI and simultaneously agree to repurchase them after three years. Analysts expect this to ease pressure on short‑term money markets, stabilise bond yields, and support credit growth. The RBI circular emphasized that the decision was taken after reviewing current and evolving liquidity conditions, underscoring its proactive stance in managing volatility.
