News Brief

Morning Brief: PLI 2.0 In The Works? Govt Weighs Next Steps; FPIs Pull Out Rs 1.12 Lakh Crore In Two Months; Adani Presses On With US Investment Plans Despite Probe; And More

Swarajya Staff

Mar 03, 2025, 08:55 AM | Updated 08:57 AM IST


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Catch up on the day’s must-read stories with Swarajya's roundup of the morning's headlines.

PLI 2.0 In The Works? Govt Weighs Next Steps

With the first phase of the Production-Linked Incentive (PLI) scheme showing progress, the government is exploring whether incentives should also consider factors like domestic value addition and exports. No final decision has been made yet, but discussions are ongoing at the inter-ministerial level. Since its launch in April 2020, the scheme has expanded to 14 sectors, attracting both OEMs and contract manufacturers. While it has boosted manufacturing, value addition remains limited to areas like PCB assembly, testing, and packaging. As policymakers plan for PLI 2.0, concerns remain over the low percentage of value addition across key sectors.

FPIs Pull Rs 1.12 Lakh Crore In Two Months

Foreign Portfolio Investors (FPIs) pulled Rs 34,574 crore from Indian equities in February, marking the second straight month of outflows after Rs 78,027 crore exited in January. In just two months, FPIs have withdrawn Rs 1,12,601 crore (around $13 billion), influenced by US President Trump’s tariff threats and China’s improving economic outlook. His proposed 10 per cent tariffs on Mexico, Canada, and China, set to take effect on March 4, have added to market uncertainty. Indian equity indices have declined in six of the last eight weeks, with investor wealth shrinking by nearly Rs 20 lakh crore. The Nifty50 has dropped 16 per cent from its September 2024 peak, closing at 22,124 on Friday.

Adani Pushes Ahead With US Investment Plans Despite Probe

Adani Group has revived plans for major US infrastructure investments, including nuclear power, utilities, and an East Coast port, following Donald Trump's election. Founder Gautam Adani faces bribery charges in the US, with prosecutors alleging he paid Indian officials to secure electricity deals. The US Securities and Exchange Commission sought assistance from Indian authorities last month in its probe into Gautam Adani and his nephew Sagar Adani over alleged securities fraud and a $265 million bribery scheme. The company has denied the allegations, calling them "baseless," and is waiting for legal clarity before proceeding. Previously, Adani explored US partnerships and petrochemical investments in Texas. After Trump's win, Adani announced a $10 billion investment in US energy and infrastructure, aiming to create 15,000 jobs.

Other Developments

India Inc’s Legal Bills Soar Past Rs 60,000 Crore

India Inc’s legal expenses are projected to exceed Rs 60,000 crore in FY25 due to rising compliance costs, digital transformation, and increased deal activity. Legal spending grew by 17 per cent in FY24, reaching Rs 52,568 crore, driven by higher dispute resolution and regulatory expenses. The top 50 companies alone accounted for Rs 21,389 crore of this expenditure, marking a 17.4 per cent rise. Law firms expect double-digit growth in legal spending to continue, with hiring surging to meet demand. This has intensified competition for senior lawyers, with firms aggressively poaching talent and balancing lateral and campus hires in a 60:40 ratio.

Zelensky Acknowledges US Support After Trump Clash

Days after his clash with US President Donald Trump, Ukrainian President Volodymyr Zelensky emphasised the importance of the US and expressed gratitude for its support. His remarks followed an incident where Trump and Vice President JD Vance criticised him at the White House for not showing enough appreciation and rejecting their proposed truce terms. Speaking after a summit in London, Zelensky reiterated that Ukraine values its partners' contributions, which help sustain its independence and security. He stressed that real peace requires real security guarantees, a stance supported by the UK, EU, Turkey, and the rest of Europe. The summit, hosted by UK Prime Minister Keir Starmer, was attended by leaders including Emmanuel Macron, Justin Trudeau, and Giorgia Meloni.

Bitcoin Surges As Trump Announces Crypto Reserve

Bitcoin surged over 20 per cent from last week’s lows after Donald Trump revealed plans for a US strategic reserve including bitcoin, ether, XRP, solana, and cardano. His announcement on Truth Social, tied to a January executive order, boosted sentiment after months of declines. The rally may continue ahead of Trump’s White House Crypto Summit on Friday, though broader market weakness poses risks. Bitcoin’s February drop of 17 per cent—its worst since June 2022—was driven by tech stock selloffs and fading optimism over Trump’s regulatory stance. While his presidency sparked hopes for a pro-crypto shift, concrete policy changes remain scarce.

From The States

Shinde And Fadnavis Brush Off Rift Rumours

Maharashtra Deputy Chief Minister Eknath Shinde denied any rift within the ruling Mahayuti alliance, saying everything was "thanda thanda, cool cool" between him, Chief Minister Devendra Fadnavis, and Ajit Pawar. His remarks followed his recent warning against taking him lightly, recalling how he had toppled the Uddhav Thackeray-led MVA government in 2022. At a joint press conference, Shinde dismissed speculation of a "cold war" within the alliance and accused critics of trying to create controversy. Rumors of tensions with Fadnavis surfaced after Shinde skipped a few meetings, allegedly upset over not becoming Chief Minister. However, he dismissed any discord, joking that a "Cold War" was impossible in the current heat, as Fadnavis smiled beside him.

INDI Alliance Struggles As State Rivalries Deepen

The INDI alliance is facing internal strains as state elections in Bengal, Kerala, and Punjab approach, with allies set to contest against each other. Congress sees no pressing need for an alliance meeting, though coordination in Parliament continues. Mamata Banerjee has announced that the TMC will fight alone in Bengal. INDI alliance partners like TMC, RJD, SP and Shiv Sena had supported Arvind Kejriwal's AAP over Congress in Delhi—where the BJP ultimately won. Similar tensions exist in Punjab, where Congress and AAP remain bitter rivals, and in Kerala, where Congress and the Left will go head-to-head. Once a united front in the Lok Sabha elections, the opposition alliance now struggles to maintain cohesion as political rivalries take precedence.

Punjab: 'Yeshu Yeshu' Pastor Faces Sexual Harassment Case

Punjab police have registered a sexual harassment case against Pastor Bajinder Singh, known for the viral 'Mera Yeshu Yeshu' video. A woman alleged that Singh took her number and began messaging her after she and her parents started visiting his church in Jalandhar in 2017. She claimed that from 2022, he made her sit alone and allegedly touched her inappropriately. Singh, who has a large following and endorsements from celebrities like Chunky Pandey and Aditya Pancholi, has been booked under IPC sections for sexual harassment, stalking, and criminal intimidation.

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