The widows of ex-servicemen (ESM) play a crucial role in preserving the legacy of India’s armed forces. As of 31st December 2024, there are 7,40,766 widows of ex-servicemen across the country. To ensure their financial stability and well-being, the government periodically reviews and enhances support schemes covering pensions, education, employment, healthcare, and housing.

Financial Assistance for Widows of Ex-Servicemen

Family Pension and Dearness Relief

The primary form of financial assistance provided to widows is through a family pension, which is reviewed periodically based on recommendations from Pay Commissions. The pension amount also increases over time with the revision of Dearness Relief (DR), which is assessed regularly.

Key Grants and Their Recent Enhancements

Over the years, several grants have been revised to provide increased financial support.

Educational Support for Children of War Widows

Prime Minister’s Scholarship Scheme

Under this scheme, a total of 5,500 scholarships are provided annually to the children of ESM based on merit.

• Boys: ₹2,500 per month
• Girls: ₹3,000 per month

This financial assistance aims to support higher education and skill development for the wards of ex-servicemen.

Employment Opportunities for War Widows

The government provides employment opportunities for war widows based on their educational qualifications and eligibility.

Officer-Level Positions

War widows are given special provisions for officer selection in the Indian Army, including:

• Short Service Commission (SSC) Non-Technical Entry – One vacancy reserved for widows of defence personnel.
• Short Service Commission NCC Entry – Reserved seats for wards of battle casualties:
  • Seven vacancies for men
  • One vacancy for women

Additionally, widows of defence personnel can apply for SSC up to the age of 35 years under relaxed age criteria.

Enrolment in Women Military Police

War widows of armed forces personnel who lost their lives while in service are eligible to apply for enrolment in the Women Military Police, providing them with stable career opportunities.

Civil Defence Employment

The Department of Personnel and Training (DoP&T) has issued guidelines allowing the dependent family members of Defence Civilian Employees and Armed Forces Personnel to apply for Group ‘C’ direct recruitment posts under compassionate grounds.

Housing and Welfare Schemes for War Widows

Housing Quota in Army Welfare Housing Organisation (AWHO)

The Army Welfare Housing Organisation reserves 3% of the housing units in every project for widows of ex-servicemen, ensuring they have access to secure housing.

Rehabilitation and Vocational Training

To help widows achieve financial independence, vocational training schemes are available. Grants of up to ₹50,000 are provided for training programmes, allowing widows to upskill and seek employment or start small businesses.

Conclusion: Ongoing Government Initiatives

The government continues to review and revise welfare measures for war widows to enhance their financial and social security. These measures reflect the nation’s commitment to supporting the families of those who have served in the armed forces.

By implementing these schemes, the government ensures that the widows of ex-servicemen receive the recognition and assistance they deserve, enabling them to lead dignified and financially stable lives.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

India has a significant trade deficit with the United States, exceeding $43 billion between January and October 2024. The imbalance is particularly stark in the gems and jewellery sector. While the US imported $11.58 billion worth of these commodities from India, its exports to India stood at only $5.31 billion, creating a trade gap of $6.27 billion.

This imbalance has drawn attention due to US policies under President Donald Trump, who has threatened action against countries with large trade surpluses against the US. His administration has also imposed reciprocal tariffs that could further impact India’s exports.

GJEPC’s Proposed Trade Shift

The Gem and Jewellery Export Promotion Council (GJEPC) has recommended that India adjust its gold and silver import strategy to mitigate the trade imbalance. The proposal suggests that India partially shift gold bar imports from Switzerland to the US and silver bar imports from the UK to the US.

Gold Imports: Switzerland vs. the US

• Switzerland currently accounts for 35% of India’s gold imports, equivalent to 261.26 tonnes annually.
• The US contributes just 2.9% to India’s total gold imports.
• GJEPC suggests redirecting at least $6 billion worth of gold imports (approximately 65 tonnes) from Switzerland to the US.

Silver Imports: UK vs. the US

• The UK supplies 41.54% of India’s silver bar imports, while the US share is just 1.61%.
• GJEPC has proposed shifting about $4.15 billion worth of silver imports from the UK to the US.

By making these adjustments, India could potentially reduce its trade deficit with the US while maintaining its supply of precious metals.

The Role of Platinum in Trade Rebalancing

India imports $95.95 million worth of platinum bars annually, and the US has the largest share (16.43%). GJEPC has highlighted that platinum demand is increasing, making it another commodity where India could increase imports from the US to balance trade.

Tariff Reductions: A Step Towards Stability

In addition to shifting imports, GJEPC has proposed reducing import tariffs on gems and jewellery commodities to ensure that India’s exports to the US remain competitive in light of potential reciprocal tariffs.

Proposed Tariff Adjustments:

• Unworked and worked pearls: Reduce or eliminate the 5-10% tariff.
• Polished diamonds, precious and semi-precious stones: Lower tariff from 5% to 2.5%.
• Gold, platinum, and silver bars imported from the US: Reduce the 5% tariff by 1%.
• Gold, silver, platinum, and jewellery articles: Reduce the 20% duty by 3%.

A senior GJEPC executive noted that a 1% reduction in gold, platinum, and silver bar tariffs would align India with its trade agreements with the UAE, where duties are linked to tonnage imported.

Potential Impact on India’s Jewellery Industry

The GJEPC has clarified that reducing tariffs will not lead to an influx of foreign jewellery brands into India. Instead, it aims to create a more balanced trade relationship while ensuring that India’s gems and jewellery exports remain competitive in the global market.

Conclusion

The proposed strategies by GJEPC present a multi-pronged approach to addressing the US trade deficit with India’s gems and jewellery sector. By shifting gold and silver imports, reducing tariffs, and strategically aligning trade policies, India can work towards balancing trade with the US without disrupting domestic markets. However, whether these recommendations gain traction depends on government approval and the evolving global trade landscape.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

India witnessed a slowdown in Foreign Direct Investment (FDI) inflows in FY25, with total inflows dropping to $62.48 billion (April-December 2024) compared to $71.27 billion in FY24 and $71.35 billion in FY23. This decline suggests a more cautious stance from global investors, despite India’s ongoing policy reforms aimed at improving the investment climate.

However, within this broader trend, an exception has emerged—Russia’s FDI equity inflows into India surged more than threefold, reaching $18.45 million in FY25, compared to $5.16 million in FY24. This marks the highest inflow from Russia in 4 years, reflecting deepening economic cooperation between the 2 nations.

Foreign Investment Trends in India

 

 

(*April-December data)

Total FDI inflows in India include equity inflows, equity capital of unincorporated bodies, reinvested earnings, and other capital. The decline in FDI inflows suggests global investors are reassessing their exposure to India amidst global economic uncertainties, inflationary pressures, and shifting geopolitical dynamics.

Volatility in FPI Inflows: A Net Outflow in FY25

Foreign Portfolio Investment (FPI) inflows have also shown increased volatility. After registering a net inflow of $41.04 billion in FY24, the trend reversed in FY25, with a net outflow of $1.68 billion (as of March 5, 2025).

This shift indicates a cautious approach by foreign investors, potentially driven by concerns over global interest rate policies, currency fluctuations, and economic uncertainties.

Government Measures to Attract Foreign Investments

To maintain its appeal as a preferred investment destination, the Indian government has taken proactive steps to liberalise and streamline investment policies.

Key FDI Policy Reforms

India allows 100% FDI under the automatic route in most sectors, except for a few strategic industries. Recent FDI policy changes have targeted sectors such as:

• Defence
• Telecom
• E-commerce
• Civil Aviation
• Pharmaceuticals
• Insurance
• Digital Media
• Coal Mining

The government regularly reviews FDI policies to ensure that India remains a competitive investment hub globally.

Reforms to Facilitate Foreign Portfolio Investment (FPI)

To encourage foreign portfolio investments, several regulatory and procedural reforms have been introduced, including:

• Simplified onboarding and registration processes for FPIs
• Approval for FPIs to trade in Exchange-Traded Commodity Derivatives (ETCDs)
• Expanded participation of NRIs, OCIs, and Resident Indians in SEBI-registered FPIs
• Reclassification framework allowing FPI investments to convert into FDI under specific conditions

These initiatives align with the broader objective of enhancing ease of doing business in India and boosting capital inflows into the financial markets.

Conclusion

While India has experienced a decline in overall FDI and net outflows in FPI, policy measures continue to be directed towards attracting and sustaining foreign investments. Meanwhile, Russia’s sharp increase in FDI equity inflows highlights strengthening bilateral trade and investment ties. As India refines its investment framework, global investor sentiment and geopolitical factors will play a key role in shaping future FDI and FPI trends.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

The Securities and Exchange Board of India (SEBI) is poised to introduce a series of regulatory reforms at its first board meeting under newly-appointed Chairman Tuhin Kanta Pandey on March 24. These measures are expected to enhance the governance and transparency of market infrastructure institutions (MIIs), boost investor protection, and refine trading mechanisms.

The anticipated decisions include ensuring the independence of clearing corporations, introducing a close auction session in the cash market, and revising the appointment framework for public interest directors (PIDs) at MIIs. Additionally, SEBI is expected to extend the advance fee collection period for research analysts, introduce a SIM-binding mechanism to curb unauthorised transactions, and tighten disclosure norms for real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), according to reports. 

Ensuring Independence of Clearing Corporations

One of the key agenda items is the autonomy of clearing corporations (CCs). The dilution of stock exchanges’ shareholding in their respective clearing houses—the National Stock Exchange (NSE) and BSE—is expected to move forward. While maintaining some degree of shareholding is considered necessary, SEBI is likely to implement minimum and maximum shareholding thresholds for exchanges in CCs to prevent monopolistic control, according to a news report.

A structured divestment plan for exchange shareholding in CCs is also under consideration. As per a news report, “The shareholding of exchanges in CCs is expected to be divested through a scheme in the form of ‘offer for sale’, similar to the corporatisation and demutualisation scheme.”

Changes in the PID Appointment Process

SEBI is also set to introduce a revised framework for the appointment and reappointment of PIDs at MIIs. Of the two proposed models, the regulator is likely to retain the existing process, which does not require shareholder approval. Additionally, a high-level appointment committee is unlikely to be formed, as it could add unnecessary complexity to the selection process, a news report stated.

The new process may involve a two-stage shortlisting mechanism, where MIIs submit two candidates, with SEBI evaluating them before requiring further documentation. Furthermore, existing PIDs will not have an automatic right to reappointment, reinforcing the autonomy of MIIs’ governing boards, according to a news report.

Reforms in Angel Funds and Alternative Investment Funds (AIFs)

The SEBI board is expected to ratify changes in the angel fund framework, restricting participation to accredited investors while easing regulations for alternative investment funds (AIFs). Additionally, the definition of qualified institutional buyers (QIBs) may be broadened to include accredited investors and the 200-investor cap for private placement offers could be removed.

New Security Measures for Trading and Demat Accounts

To enhance security in trading and demat accounts, SEBI is expected to introduce a SIM-binding mechanism to prevent unauthorised transactions. This measure aims to curb fraudulent activities and protect investors by ensuring that transactions are linked to verified mobile numbers.

Tightening ESG Rating and Sustainability Standards

Another key area under review is the framework for ESG Rating Providers (ERPs). SEBI may provide additional clarity on the withdrawal of ratings and require detailed disclosure of rating rationales. The Business Responsibility and Sustainability Reporting (BRSR) framework is also likely to be reviewed to align with globally recognised environmental, social, and governance (ESG) norms.

Other Anticipated Reforms

• Cooling-off period for key managerial personnel (KMPs) and directors: SEBI may introduce a cooling-off period before KMPs and directors of an MII can join a competing MII, following consultation with industry stakeholders.
• Changes in risk monitoring for equity derivatives: Although discussions on revised gross and net position limits for intraday and end-of-day trading have been ongoing, a consensus has not been reached. These proposals are unlikely to be presented in this meeting.
• Budget review for FY 2025-26: The board will also review SEBI’s expenditure and budget allocation for the upcoming financial year.

Conclusion

SEBI’s first board meeting under Chairman Tuhin Kanta Pandey is expected to bring significant regulatory changes aimed at improving transparency, security, and efficiency in the financial markets. While major reforms in clearing corporations, PID appointments, and investor security are expected, certain risk monitoring proposals may remain under deliberation. Investors and market participants will closely watch the outcomes of this meeting, as they could have a lasting impact on India’s capital markets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Foreign Institutional Investors (FIIs) have been aggressively offloading Indian equities in 2025, with total outflows reaching $15.46 billion so far. This marks one of the most significant sell-offs in recent history, trailing only the $17.02 billion exodus in 2022. The sharp decline in FII participation has already wiped out $1.3 trillion in market value, raising concerns over the sustainability of current valuations and the impact of global macroeconomic shifts.

FII Equity Flows Over the Years

Data as of March 7, 2025. 

While the outflows may seem concerning, it is crucial to place them in the context of significant inflows over the past 5 years. Many global investors still view India as a long-term structural growth story, with high valuations being a necessary trade-off for strong economic expansion.

The Selling Spree Intensifies

The sell-off has gained momentum since October 2024, with FIIs withdrawing a staggering $28 billion during this period. January 2025 alone saw outflows of $8.42 billion, the highest in recent months.

FII Monthly Equity Flows

Several factors have contributed to this aggressive selling, including concerns over high valuations, global economic uncertainty, and potential interest rate movements in developed markets.

 

Data as of March 7, 2025. 

Large-Cap Sell-Off: FPI Stakes Hit Multi-Year Lows

The sharp sell-off has had a pronounced impact on large-cap stocks, with Foreign Portfolio Investor (FPI) holdings in NSE-listed firms and Nifty 50 companies dropping to multi-year lows.

• FPI stakes in NSE-listed companies fell to 17.4%, the lowest level in 13 years.
• FPI holdings in Nifty 50 stocks declined to 24.3%, the lowest in 12 years.

According to the NSE India Inc. Ownership Tracker for Q3 FY25, the value of FPI holdings in NSE-listed firms dropped 8.3% quarter-on-quarter (QoQ) to ₹75.8 lakh crore, marking the first decline in seven quarters. The report also highlights a shifting ownership pattern, with both FPIs and domestic promoters reducing their stakes.

What Lies Ahead for FII Investments in India?

Despite the recent sell-off, foreign investors continue to view India as a compelling long-term growth market. While near-term caution persists, many investors are likely to re-enter once valuations adjust to more attractive levels.

The current outflows reflect a rebalancing of global portfolios rather than a fundamental shift in sentiment towards India. As economic growth stabilises and external factors become clearer, FII inflows could see a revival in the coming quarters

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.