Foreign Investment

CONTEXT: Foreign Investments in Real Estate Sector were down by 30% in FY23.

About ➔ Example: HSBC bank investing in

indian markets on behalf of Tom
Cruise and Cristiano Ronaldo
➔ securities that can be easily bought
or sold.
➔ Quick return orientation
➔ Volatility inducing

FDI

➔ Foreign Direct Investment.

➔ MNCs, large institutions, or venture
capital firms. Strategic Interest
➔ more favourable, long-term
investment
➔ Active Involvement in Operations and
Decision Making
➔ Methods
◆ joint venture.
◆ merger and acquisition.
◆ subsidiary company.
➔ Example: in 2018, Walmart acquired a
77% stake in Flipkart as an FDI
investment.
➔ Example: Canada's pension fund
investment board contributed Rs.
1,200 crores (US$ 160.49 million) in the
FPI and FII IPOs of several Indian companies,
including One97 Communications
(Paytm), Zomato, FSN E-Commerce
➔ Foreign Portfolio Investment and
Ventures (Nykaa), and PB Fintech.
Foreign Institutional Investment
➔ stocks, bonds and other assets
available on exchanges. Financial
gain and Short term Returns.
➔ investment banks, financial
institution, private equity players
➔ Passive Involvement
➔ generating return for their Client
 Applications of AI

CONTEXT: The BCG AI Radar report suggests that 85% of the companies plan to
increase spending on AI and GenAI.

What is Artificial Intelligence:

● field of science
concerned with building
computers and
machines that can
reason, learn, and act in
a way that would
normally require human
intelligence

Applications of AI :
1. Healthcare: medical
diagnosis, treatment planning,
drug development, and
personalized medicine.
2. Education: AI-powered
chatbots and virtual
assistants provide
personalized learning
experiences to students. Ways Forward
3. Finance: fraud detection,
● Ethical Guidelines
credit scoring, and investment
analysis. ● Standards and Certifications
4. Marketing and Advertising: ● Risk Assessment
customer profiling, market
segmentation, and targeted
● Adequate rules and laws.
advertising. ● Public Education and Engagement.
5. Transportation: optimize
traffic flow, improve road
safety, and develop
autonomous vehicles.
6. Agriculture: crop
monitoring, yield prediction,
and precision farming.