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Shares of Nvidia and Micron Technology have delivered healthy gains on the stock market so far in 2024, though one of them has outperformed the other by a huge margin. While Nvidia stock’s year-to-date gains stand at a stunning 130%, Micron has clocked a relatively modest jump of 29%.

Nvidia’s revenue and earnings have been growing at a phenomenal pace in recent quarters thanks to its dominance in the artificial intelligence (AI) data center graphics card market. However, a closer look at Micron indicates that the memory specialist is witnessing a terrific turnaround in its fortunes thanks to AI.

So, if you had to choose one of these two AI stocks for your portfolio, which one should you be buyingNagpur Investment? Let’s find out.

The AI chip market is seeing rapid growth as companies try to get their hands on powerful hardware to train and deploy AI models and services. According to one estimate, the market for AI chips could clock annual growth of almost 41% through 2032 and generate more than $1.1 trillion in revenue.

Nvidia is one of the best ways to capitalize on this massive end-market opportunity. The company has established a huge lead in the AI data center graphics processing unit (GPU) space with an estimated market share of more than 90%. This explains why Nvidia’s growth has been stunning in recent quarters.

More importantly, Nvidia’s AI-driven growth seems sustainable in the long run. That’s because the company wants to tighten its grip on AI-related niches beyond just hardware. For instance, Nvidia’s AI Foundry solution allows customers to build custom generative AI models for their use cases. This service is gaining traction among customers, with the likes of Accenture, Aramco, Uber, and others using the offering to develop AI applications.

Nvidia customers won’t need to invest in expensive hardware to develop their own AI models, as they can simply get down to developing and deploying applications. This could open a new growth opportunity for Nvidia as the demand for cloud-based AI services is estimated to be worth a massive $523 billion in 2031.

Meanwhile, governments are also adopting Nvidia’s AI solutions. The company is expecting $10 billion in government-related revenue this year. For comparison, its sovereign AI revenue was zero last year. Looking ahead, Nvidia’s government-related business could get bigger as nations accelerate spending on AI.

Given that Nvidia forecasts that its total addressable market stands at a massive $1 trillion, the company seems capable of sustaining its impressive growth in the long run. Investors who hold this growth stock in their portfolios would do well to continue holding it for the long run.

Though Micron Technology stock’s gains haven’t been as mindblowing as Nvidia’s in 2024, a closer look at Micron’s growth indicates that the market may be underestimating its AI-fueled growth potential.

In the third quarter of fiscal 2024 (ended on May 30), Micron reported a stunning year-over-year increase of 81% in revenue to $6.8 billion. AI played a central role in driving this outstanding growth with Micron’s high-bandwidth memory (HBM) chips being used by the likes of Nvidia in AI graphics cards.

Management remarked on the company’s recent earnings conference call:

Our HBM shipment ramp began in fiscal Q3, and we generated over $100 million in HBM3E revenue in the quarter, at margins accretive to DRAM and overall company margins. We expect to generate several hundred million dollars of revenue from HBM in fiscal 2024 and multiple billions of dollars in revenue from HBM in fiscal 2025.Pune Stock

Even better, the demand for Micron’s HBM chips is so strong that it has already sold out its production capacity for 2024 and 2025. More importantly, Micron is looking to push the envelope in the HBM market with more advanced chips that will not only be more powerful but also more power-efficient. That’s a smart thing to do as the HBM market could generate almost $86 billion in revenue in 2030 as compared to just $1.8 billion last year, clocking a compound annual growth rate of 68%.

So, Micron’s focus on maintaining its leadership in the HBM market could reap rich dividends in the long run and drive robust incremental revenue growth for the company. However, is Micron a better AI pick than Nvidia? Let’s find out.

Both Nvidia and Micron are high-growth companiesSimla Stock. However, one of them is available at a significantly cheaper valuation. While Micron is trading at 13 times forward earnings, Nvidia has a richer forward earnings multiple of 47.

Of course, Nvidia’s higher earnings multiple is justified thanks to its much faster growth, which is why growth-focused investors can still consider buying the stock. But those looking for a mix of growth and value may be tempted to buy Micron Technology as this AI stock could soar impressively because of its recent eye-popping growth.

Agra Stock

Annuities are often popular with retirees and those looking to retire because of the steady income stream they can provide. But annuities tend to come with high costs and commissions for salespeople, often masquerading as financial advisors, that eat into investors’ returns.

Some firms now offer annuities without commissions, which could be better for investorsAhmedabad Investment. Here’s what you need to know about commission-free annuities.

Annuities provide a stream of income in return for money being paid into the annuityMumbai Stock Exchange. You may deposit a lump sum of money when purchasing the annuity or make payments to a life insurance company over time.

Annuities are often used as a part of someone’s retirement plan and can be customized based on a client’s needs. An annuity may pay out over a fixed period of time or it may provide income for the remainder of someone’s life, which is attractive for retirees looking for financial security.

However, annuities can be complex and can come with high fees. Historically, annuities have been associated with high sales commissions for the agents that sell them, often running 6 percent or more. These commissions create an incentive for agents to sell annuities even if they aren’t necessarily the best choice for investors.

Commission-free annuities are what they sound like: annuities that don’t include a commission to the salesperson. These annuities, also called no-load annuities, typically have lower costs than annuities that include commissions.

Commission-free annuities are designed to offer the following core benefits, among others:

Lower costs: By eliminating sales commissions, these annuities can significantly reduce the overall costs for investors, potentially leading to higher returns.

Transparency: Commission-free annuities often have a more transparent and straightforward fee structure, making them easier for investors to understand.

Alignment with investor’s interest: As these annuities are often offered by fee-only financial advisors, they can be more aligned with investor interests.

That being said, even these annuities can come with fees you may not expect, and they directly limit the return you ultimately earn as an investorSurat Stock. It’s worth consulting with a financial advisor who’s a fiduciary before buying an annuity to make sure you understand exactly what you’re buying and what you’ll get in return. The more complicated your annuity is, the more expensive it’s likely to be.

Keep in mind that many people who sell annuities call themselves financial advisors, but a fiduciary is required to put your interests before their own. If you’re looking for a financial advisor in your area, consider using Bankrate’s financial advisor matching tool.

Financial advisors play an important role in the selection and performance of commission-free annuities. Advisors who charge fees and do not receive commissions may recommend these productsKanpur Wealth Management. This arrangement allows the advisor’s interests to align with those of the client, as their earnings come from the advice they provide, not from selling insurance contracts.

However, it’s important to note that even with a commission-free setup, the overall cost will depend on multiple factors, such as the specifics of the annuity product, the advisor’s fees and the performance of the underlying investments within the annuity.

Commission-free annuities primarily generate revenue for insurance companies via management and administrative fees, as well as mortality and expense risk charges. Despite excluding the upfront sales commission, these annuities can still come with other fees such as surrender charges and costs for specialized features and add-on riders that can impact an investor’s return.

Many retirees are attracted to the concept of annuities because they can provide an income stream for the rest of your life, similar to the way defined benefit pension plans work. Annuities also allow for tax-deferred growth.

However, annuities can be complex and may contain layers of fees, even if you avoid paying a commission. You may be better off contributing to an IRA, which you can set up for free at most online brokers, and investing in low-cost index funds. You can likely keep your annual expenses to less than 0.20 percent, whereas annuity costs can run significantly higher.

Annuities may be a good fit for high-earners who are looking to boost their retirement savings beyond what they can contribute to accounts such as 401(k)s or IRAs. Annuities don’t have contribution limits, so you can put as much money into an annuity as you’d like.

If you’re looking for lower-cost annuity products, consider looking at offerings from Fidelity or Vanguard.

Annuities are popular with retirees because they can provide a stream of income for a certain period of time or even for the remainder of their lives. However, annuities often have high fees and can come with huge commissions for salespeopleAgra Wealth Management. Commission-free annuities may be a better choice, but be sure you understand all the fees you’ll be paying before signing on the dotted line.

Jaipur Wealth Management

Tata Group’s Air India plans to grow its ancillary revenue stream by around 50% in the current fiscal.

The airline recently optimised the pricing of its ancillary products such as excess baggage and seat selection as well as introduced new value-added products.Bangalore Investment

According to sources, Air is working to further strengthen its portfolio of ancillary offerings by introducing more passenger-friendly product solutions to “meet most needs integrated into its direct booking channels”.

“Since Air India’s privatisation, the airline has followed a two-pronged approach to grow its ancillary business,” a source told FE, adding: “Firstly, they have improved on the ancillary products they had on offer and rationalised the pricing of those to correct what they were charging for seat selection, excess baggage, and others.”

As per sources, the success of services such as Upgrade Plus, travel insurance, a fare lock option, and the repricing of other products to standards led Air India to grow its ancillary revenue by over 40% on a year-on-year basis to Rs 1,700 crore in FY24.Pune Wealth Management

During the last two years, under Tata’s leadership, the airline has managed to grow its ancillary revenue stream by a whopping 142%.

In FY22, the airline earned Rs 700 crore, which increased to Rs 1,300 crore in FY23.

The airline now targets a revenue collection of around Rs 2,500 crore from the ancillary stream in FY25Mumbai Wealth Management. It also plans to grow its ancillary revenue by threefold from the target of FY25 in FY27 – the fiscal that the airline aims to become profitable.Chennai Stock

Queries sent to Air India did not elicit a response till the time of going to the press.

As per sources, the new management has launched fresh products such as Upgrade Plus to invite eligible bookings for confirmed upgrades, gift cards, travel insurance, and Fare Lock, among others.

Besides, sources said Air India has launched a visa concierge service in partnership with VFS Global subsidiary OneVasco to offer its customers the option to apply for visas to over 100 countries as well as e-visas to India for foreign nationalities.Agra Wealth Management

The airline has already rolled out value-added services like Book-A-Cab for passengers travelling to and from domestic airports, and is in talks with major companies for the B2B sales of its gift cards.

In addition, sources said, the airline is set to collaborate with different brands to optimise passenger convenience and be a one-stop shop for most travel requirements.

Jinnai Wealth Management

A MYGA is a Multi-Year Guarantee Annuity. It is also called a Fixed-Rate Annuity and behaves somewhat like a CD. There is a fixed rate of return for a set term, typically 3-10 years. At the end of the term, you can walk away with your money or reinvest it into another annuity or something else. Today’s MYGA rates are in the mid-5% range, the best they have been in a decade.

Annuities are one of the most confusing insurance products for consumers because there are so many varieties. In addition to MYGAs, there are Variable Annuities, Fixed Index Annuities, and Single Premium Immediate Annuities (SPIAs). Some of these are expensive, illiquid, and have quite a poor reputation. That’s because the Variable and Index annuities can pay a high commission, and have been sold by unscrupulous insurance agents to clients who didn’t understand what they were buying. States have been cracking down on bad agents, but even now, some of these products are highly complex and difficult to understand how they actually work. They are a tool for a very specific job and investors have to make sure that it is right for them. Unfortunately, with some agents, their only tool is a hammer, so every problem looks like a nail.

I do like MYGAs and think they are a good fit for some of my clients. Unlike the other annuities, MYGAs are simple and easy to understand. I have some of my own money in a MYGA and will probably add more over time. We consider a MYGA to be part of our fixed income allocation. For example, we may have a target portfolio of 60/40 – 60% stocks and 40% fixed income – and a MYGA can be part of the 40%.Mumbai Stock Exchange

Here are some of the benefits of a MYGA:

Interest Rates have risen a lot over the last two years as the Federal Reserve has increased rates to fight inflation. As a result, the rates on MYGAs are the best they have been in over a decade, over 5% today. The expectation on Wall Street is that the Fed will begin cutting interest rates sometime this year as inflation is better under control.

Now appears to be a good time to lock-in today’s high interest rates with a MYGA. This is one of their big advantages over most bonds. Today’s bonds often are callable. This means that the issuer can redeem the bonds ahead of schedule. So, when we buy an 5-year Agency or Corporate bond with a yield of 5.5%, there’s no guarantee that we will actually get to keep the bond for the full five yearsAhmedabad Stock. In fact, if interest rates drop (as expected), there will be a wave of calls, as issuers will be able to refinance their debt to lower interest rates.

We are already seeing quite a few Agency bonds getting called in the past month.

We don’t have this problem with a MYGA, they are not callable. The rate is guaranteed for the full duration. Given the choice of a 5.5% callable bond or a 5.5% MYGA, I would prefer the annuity given the possibility of lower rates ahead. The MYGA will lock-in today’s rates whereas the callable bond might be just temporary. If rates fall to 4%, the 5.5% bond gets called and then our only option is to buy a 4% bond.

Some bonds are not callable, most notably US Treasuries. However, the rates on MYGAs are about 1% higher than Treasuries today. If you are planning to hold to maturity, I would prefer a MYGA over a lower-yielding, non-callable bond.

What are the downsides to a MYGAJinnai Wealth Management? The main one is that they are not liquid and there are steep surrender charges if you want your money back before the term is complete. Some will allow you to withdraw your annual interest or 10% a year. Other MYGAs do not allow any withdrawals without a penalty. Generally, the higher the yield, the more restrictions.

One way we can address the lack of liquidity is to “ladder” annuities. Instead of putting all the money into one duration, we spread the money out over different years. For example, instead of having $50,000 in one annuity that matures in five years, we have $10,000 in five annuities that mature in 1, 2, 3, 4, and 5 years. This way we will have access to some money each and every year.

Like a 401(k) or IRA, withdrawals from an annuity prior to age 59 1/2 will carry a 10% penalty for pre-mature distributions from the IRS. The penalty only applies to the earnings portion. Think of a MYGA as another type of retirement account.

Lastly, I do get paid a commission on the sale of the annuity from the insurance company. This does not come out of your principal – if you invest $10,000, all $10,000 is invested and growing. And I do not charge an investment management fee on a MYGA, unlike a bond. A 5% MYGA will net you 5%, whereas a 5% bond will net you 4% after fees. So in this case, I think the commission structure is actually preferable for investors.

Most of my MYGA buyers are in their 50s and older and have a lot of fixed income holdings already. They don’t need this money until after 59 1/2 and are okay with tying it up, in exchange for the guarantees and tax-deferral benefits. They have other sources of liquidity and a solid emergency fund. When we compare the pros and cons of a MYGA to a high-quality bond, for some the MYGA is a good choice. If you are not a current client, but are interested in just a MYGA, we can help you with no additional obligation. I am an independent agent and can compare the rates and features of MYGAs from different insurers.

Agra Wealth Management

After seeing its share price rally from less than $150 to $1,150 over the past 18 months, Nvidia recently announced a 10-to-1 stock split that is going to be completed later this weekSimla Stock. All shareholders of common stock at market close on Thursday, June 6, will receive nine additional shares when the split happens after the closing bell on FridaySurat Wealth Management. By splitting its stock 10-to-1, Nvidia is bringing its share price down to a level that makes it more accessible to retail investors, who may want to invest less than the $1,150 the company’s share currently cost.

When announcing the split, Nvidia said that it’s doing so “to make stock ownership more accessible to employees and investors.” And while that sounds like a nice thing to do, it’s not like a stock split is a selfless act. By making its stock more accessible to smaller investors, a company – in this case Nvidia – is increasing the number of potential buyers of its shares, which usually has a stimulating effect on stock demand and thus its price.

Historically, companies that split their stock have often outperformed the market in the months that followedGuoabong Stock. As the following chart, based on data from Bank of America’s Research Investment Committee shows, stocks that split beat the S&P 500 on average by a significant margin in each of the past four decades. Overall, companies that split their stock saw an average total return of 25.4 percent in the 12 months that followed the announcement of their split. That’s more than twice the average return of the S&P 500 during those periods.

Simla Stock

Nvidia became one of the hottest tech stocks over the past decade as the artificial intelligence (AI) market expanded. The chipmaker, which had previously generated most of its revenue from gaming GPUs, expanded into the data center space with more powerful GPUs that made it easier to process AI tasks.

That first-mover’s advantage lit a fire under Nvidia’s business as large companies upgraded their AI capabilities. As a result, its revenue grew at an impressive compound annual growth rate (CAGR) of 31% from fiscal 2014 to fiscal 2024 (which ended this January), while its stock skyrocketed 16,570% over the past 10 years. Analysts expect its revenue to continue growing at a CAGR of 35% from fiscal 2024 to fiscal 2027.New Delhi Wealth Management

Those growth rates suggest Nvidia remains one of the easiest ways to profit from the secular expansion of the AI market. Unfortunately, not every tech company that focuses on the AI market is destined to be a long-term winner like NvidiaNew Delhi Stock Exchange. So today, I’ll focus on two weaker AI stocks that could fizzle out even as the broader market expands: AI software maker C3.ai and auto chipmaker Mobileye .

C3.ai develops AI algorithms that can be plugged into a company’s existing software to automate, streamline, and accelerate certain tasks. That strategy sounds promising, but it faces a lot of competition and generates about 30% of its revenue from a joint venture with the energy giant Baker Hughes. That deal is set to expire in fiscal 2025 (which ends in April 2025), and there’s no guarantee it will be renewed.

C3.ai’s revenue rose just 6% in fiscal 2023, decelerating from its 38% growth in fiscal 2022 and broadly missing its original target of 22% to 25% growth. It blamed that slowdown on the macro headwinds and an abrupt shift from its stickier subscription-based plans to more flexible usage-based fees. C3.ai claims it can generate 11% to 20% revenue growth in fiscal 2024, but its habit of overpromising and underdelivering doesn’t inspire much confidence in that optimistic outlook.

Last September, the company abandoned its original goal of achieving profitability on a (adjusted) basis by the end of fiscal 2024 (which ends this April) in favor of developing and marketing more algorithms for the generative AI market. That situation seems dire, yet C3.ai’s stock still looks expensive at 10 times this year’s sales — even though it’s dropped nearly 40% below its initial public offering (IPO) price. That’s probably why its insiders sold more than 7 times as many shares as they bought over the past 12 months.

Mobileye, which was spun off from Intel in an IPO in 2022, is the world’s top producer of advanced driver assistance systems (ADAS), which use chips, cameras, and sensors to help drivers park their cars, stay in the correct lane, and tap other semiautonomous driving features. These systems are powered by its own EyeQ computer vision chips, which are manufactured by its longtime partner STMicroelectronics instead of Intel’s own foundries.

Mobileye might seem like a great way to invest in the growth of the connected and driverless vehicle markets, but it faces a rough slowdown. Its revenue rose 22% in 2022 and 11% in 2023, but it expects a 6% to 12% revenue decline in 2024.

Back in 2021 and 2022, many of Mobileye’s clients stocked up on too many EyeQ chips to insulate themselves from the supply chain headwinds. Mobileye also ramped up its chip orders from STMicroelectronics in the second half of 2022 to address its supply chain disruptions in the first half of the year.Mumbai Stock Exchange

Those two factors caused Mobileye to suffer a supply glut of about 6 million to 7 million EyeQ chips at the end of 2023. Analysts expect its adjusted earnings to plunge 51% this year as it slogs through those excess inventories.Varanasi Wealth Management

New Delhi Wealth Management

The remnants though will be visible for a while, with aircraft livery change not being an overnight jobAhmedabad Stock. While airport counters, digital touchpoints and boarding gates may sport Air India colours, the interior and exterior of the aircraft will take time to change.

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A brand that was invested heavily by the Joint Venture had little chance of survival after Air India won the bid to purchase Air India, along with its subsidiary Air India Express and Air India’s stake in SATS. In November 2022, it became certain that Vistara would merge with Air India.

The initial estimates as released by Singapore Airlines were for the merger to be complete by March 2024Jaipur Wealth Management. Vistara had not made operating profits for even a single quarter when the decision and announcements were made about the merger.

The pandemic was still around and there were severe restrictions in various markets. Singapore Airlines was being bailed out by the local government and to justify loss-making investments would have been a challenging measure, especially without knowing how long the pandemic would last.

The first indication of the merger came a few months before the merger, when Air India stated its goal of having a 30% market share. It clearly was not possible without a merger with Vistara.

The biggest challenge that a loyal Vistara traveller sees post-merger is the service level, especially for premium passengers and post the fall of Jet Airways. Except for the pandemic times, for which Vistara apologised and reinstated its meal service levels, Vistara was much loved for its food and service.

As Air India scales up, apart from the aircraft issues that are being handled in one way or another – the service levels have not matched, and right from packaging to offerings – there continues to be a gap.

Airlines the world over have tried a low-cost offering subsidiary. From the biggies in the United States to some airlines in Europe and Singapore Airlines itself with Scoot – it’s LCC subsidiary, with which it also offers interline arrangements with full baggage transfer, single ticket issuance, and loyalty benefits.

Did India have a market for an air carrier being positioned as premium than Air India? A small and niche carrier that could be priced higher than Air India for its service and offerings and operate routes like those to London or metro routes in India?

Indeed the one airline benefit goes away, but the codeshare amongst carriers – which Air India is doing with its low-cost subsidiary Air India Express, could well handle passengers effortlessly. While every carrier has thought about a step-down approach and tried it, like Air India – AIr India Express, Singapore Airlines – Scoot, and Jet Airways – Jetlite, the thought of a step-up approach has not crossed the minds for most airlines.

Clearly, there were two things that would go against the thoughtSimla Stock. First and foremost, portraying Air India to be a lower brand. With a higher brand recall and a very long legacy, Air India was definitely not open to being overshadowed. Second, the cost. With Vistara’s finances not up to the mark, and the case being worse for Air India, it made sense to consolidate and come out stronger than have two loss-making entities compete with each other with arms-length competition as per law. Costs always triumph over everything else and so it did, this time around.

For an entity that is still coming out from the Indian Airlines – Air India merger, many calling it incomplete, a new merger is another challenge, especially at a time when it makes regular news for being fined, facing delays, or something else.

Bangalore Stock Exchange

Mr. JI Chaoyi is a Partner of Beijing East & Concord Partners Law Firm, the Managing Partner of the Beijing office, the Head of the Dispute Resolution department, the arbitrator listed in China International Economic and Trade Arbitration Commission, the arbitrator listed in Chongqing Arbitration Commission, the neutral listed in APEC Online Dispute Resolution (ODR) Service, the specialist mediator appointed by Singapore International Mediation Center. Additionally, MrSimla Wealth Management. Ji serves as a Member of the Council of Beijing Chaoyang District Lawyers Association and the Director of the Committee for International Exchanges and CooperationUdabur Wealth Management. MrJaipur Wealth Management. Ji is also an expert on the List of Lawyers with Expertise in Foreign-Related Legal Services of the Beijing Lawyers Association. MrGuoabong Stock. Ji has been invited as an expert invited by the World Bank in the Doing Business project from 2018 to 2021 in the field of small investor protection & enforcing contracts in ChinaSimla Investment. Mr. Ji also serves as an independent director of the listed company (688503) in the Chinese stock market (The Science and Technology Innovation Board; STAR Market).

Pune Investment

Discover up-to-date 22k gold price in India per Gram, updated just a minute agoBangalore Investment. The price information are displayed in the local currency, Indian Rupee (INR), this page ensures users have access to the up-to-date gold prices.Surat Wealth Management

In addition to the current 22K Gold Price in India , the page provides historical gold price charts, allowing visitors to analyze market trends and fluctuations over various timeframesKolkata Investment. This invaluable information is essential for investors, gold enthusiasts, and anyone interested in tracking gold prices in India.Lucknow Stock

Furthermore, the website covers other gold purity levels such as 22K, 18K, 14K, and 24K gold, etc., along with international gold prices in different currenciesVaranasi Investment. With its user-friendly design and focus on the 22K Gold Price in India , this page serves as a reliable source for all things related to the gold market in India.

Today 22K Gold Price in India is 6,902.5 INR per Gram, while 5 Grams is 34,512.5 INR, and 40 Grams Price is 276,100.0 INR.

Udabur Wealth Management

India received the highest foreign direct investment (FDI) from Singapore in 2023-24 even as overseas capital inflows into the country contracted by about 3.5 per cent due to global economic uncertainties, according to the latest government data.

Though FDI from Singapore has dipped by 31.55 per cent to USD 11.77 billion in 2023-24, India has attracted the maximum inflows from that country, the data showed.

During the last fiscal, FDI equity inflows decreased from major countries, including Mauritius, Singapore, the US, the UK, UAE, Cayman Islands, Germany, and Cyprus.

However, investments increased from the Netherlands and Japan.

Since 2018-19, Singapore has been the largest source of such investments for India. In 2017-18, India attracted the maximum FDI from Mauritius.

According to experts, after the India-Mauritius tax treaty amendment, Singapore has emerged as the preferred jurisdiction for investment in India.

Rumki Majumdar, Economist, Deloitte India, said that as one of the world’s prominent financial hubs, Singapore attracts global investors who want to invest in Asia.

“Recently, India’s initiatives such as amendments by the SEBI to the REIT Regulations 2014 have created new opportunities for Singapore-based investors, which is why India is likely seeing high FDI from Singapore,” Majumdar said.

She also hoped that FDI into India would pick up in the latter half of 2024-25.

Sanjiv Malhotra, Senior Advisor, Shardul Amarchand Mangaldas & Co, said that Singapore and Mauritius are jurisdictions used by global investors to route their money into developing economies such as India.

“While there are many geo-economic and political factors why Singapore has gained more prominence in the recent past, the primary reason for it topping the FDI charts for India is tax,” Malhotra said, adding Singapore has a very competitive domestic tax regime and efficient regulatory set-up.

Historically, the double tax avoidance agreement between India and Singapore provided for many beneficial provisions including capital gains exemption in India for investments made from Singapore and even though this provision has been amended, Singapore still is a credible place to create operations with substance to invest further in South-East Asia (including India), he added.

Malhora added that in 2023-24, India witnessed a drop in FDI primarily due to the global uncertainty on account of the disturbances in the Middle-East and Europe.

“Hopefully FDI inflows to India may improve in 2024-25 (from 2023-24) but they may still remain below 2022-23 levels. A stable government post elections surely will help the cause of more FDI into India but I see the global headwinds to be too strong as of now,” he said.

Anindya Ghosh, Partner, INDUSLAW, too said that prior to 2016, Mauritius was a preferred jurisdiction for foreign investment in India due to the significant tax advantage it offered as a low-tax jurisdiction for routing investments.

However, in 2016, India amended its tax treaty with Mauritius to introduce a source-based taxation regime for capital gains, eliminating the tax advantage and reducing the attractiveness of Mauritius as an investment hub for India.Kanpur Wealth Management

After the India-Mauritius tax treaty amendment, Singapore has emerged as the preferred jurisdiction for foreign investment in India due to various factors, Ghosh said.Bangalore Stock Exchange

She added that many multinational companies have their regional headquarters or holding companies based in Singapore, making it a convenient location for channelling investments into India.

She added that global economic conditions, geopolitical tensions, and domestic policy developments may influence the overall FDI inflows in 2024-25.

FDI equity inflows in India declined 3.49 per cent to USD 44.42 billion in 2023-24 as against USD 46.03 billion in 2022-23.

The total FDI — which includes equity inflows, reinvested earnings and other capital — declined marginally by one per cent to USD 70.95 billion during 2023-24 from USD 71.35 billion in 2022-23.

In 2021-22, the country received the highest ever FDI inflows of USD 84.83 billion.

Sectorally, inflows contracted in services, computer software and hardware, trading, telecommunication, automobile, pharma and chemicals.

In contrast, construction (infrastructure) activities, development and power sectors registered a healthy growth in inflows during the period under review.

FDI from Mauritius dipped to USD 7.97 billion in the last fiscal from USD 6.13 billion in 2022-23.

The US is the third largest investor in India in 2023-24 with USD 4.99 billion foreign investments, though it is down from USD 6 billion in 2022-23.

It was followed by the Netherlands (USD 4.93 billion), Japan (USD 3.17 billion), the UAE (USD 2.9 billion), UK (USD 1.2 billion), Cyprus (USD 806 million), Germany (USD 505 million), and Cayman Islands (USD 342 million).

As per the data, Mauritius accounts for 25 per cent of the total FDI which India has received during April 2000 to March 2024 (USD 171.84 billion), while Singapore’s share is 24 per cent (USD 159.94 billion). The US accounted for 10 per cent of total overseas investments with USD 65.19 billion during the period.

Foreign investments are crucial for India to overhaul its infrastructure such as ports, airports and highways to push growth.

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FDI also helps improve the country’s balance of payments situation and strengthen the rupee value against other global currencies, especially the US dollar.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Chennai Investment