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Pitching for foreign investments, PM Modi says India will soon be 5th largest economy

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Pitching for foreign investments, PM Modi says India will soon be 5th largest economy

Making a strong pitch for foreign investments, Prime Minister Narendra Modi on Tuesday said his government has worked towards creating a stable business environment and removed arbitrariness in decision-making.

Speaking at the India-Korea Business Summit, he said India is one of the most open economies in the world and is ready to do business with the world.

“We seek positivity in day-to-day transactions. We are widening areas of trust rather than digging into doubts. This represents a complete change of the government’s mindset,” he said.

India, he said, is already the third-largest economy in terms of purchasing power. “Very soon, we will become the world’s fifth-largest economy by nominal GDP. We are also the fastest-growing major economy in the world today,” he said.

“We are also a country with the one of the largest start-up eco-system,” he added.

Stating that the government is on a de-regulation and de-licensing drive, Modi said validity period of industrial licences has been increased from three years to fifteen years and more. He said the Industrial licensing regime for defence production has been liberalized greatly. Nearly 65 percent to 70 percent of the items previously under licensing can now be produced without a license.

In FDI, India is one of the most open countries now and most of the sectors of its economy are open for FDI. “More than 90 percent approvals have been put on automatic route. There is practically no requirement of Government approval for investments in manufacturing sector except for Defence sector. Incorporating a company along with allotment of statutory numbers is now just a one day affair,” said Modi.

“If you see around the globe, there are very few countries where you have three important factors of the economy together. They are democracy, demography, and demand. In India, we have all the three together,” he said.

To the Korean businessmen, he said India is now ready for business and promised to do whatever is required to “promote and protect” their investment.

He noted that India’s trade with South Korea crossed 20 billion dollars last year, for the first time in six years. “Over 500 Korean companies are operating in India too. In fact, many of your products are house-hold names in India. However, South Korea ranks only 16th in FDI Equity inflows to India,” he said, adding, “India offers a lot of potential for the Korean Investors with its huge market and enabling policy environment.”

He listed the steps taken towards this, mentioning GST as one ‘historic’ step in this direction.

He said with unique ID and mobile phone penetration, India is fast moving towards becoming a Digital Economy.

“On the global platform. India has climbed 42 places in the World Bank’s Ease of Doing Business Index in the last three years. We moved up 19 places on the Logistics Performance Index of 2016 of World Bank. We have improved 31 places in last two years in the Global Competitiveness Index of the World Economic Forum. We have also moved up twenty one places on the Global Innovation Index of WIPO in two years. We are among the top 10 FDI destinations listed by UNCTAD,” said Modi.

“Our vision is to create a globally competitive industry and services base equipped with skill, speed and scale. Therefore, we are continuously working to improve our investment climate,” said Modi.

He laid stress on investments to promote the manufacturing sector “in a big way to create jobs for our youth”.

“For this purpose, we have launched a campaign called “Make in India”. This includes bringing our industrial infrastructure, policies and practices to best global standards and to convert India into a global manufacturing hub. This initiative has been well supplemented by programmes like ‘Digital India’ and ‘Skill India’. Cleaner and greener development and Zero defect Zero effect manufacturing is another commitment,” said the PM.

He spoke of the huge potential for cooperation in sectors like IT, car manufacturing, ship-building, housing, smart cities, railway stations, water, transportation, railways, sea ports, energy including renewables, IT infrastructure and services, electronics, to say “are all very promising sectors in my country”.

“Our partnership has immense potential to promote regional growth, development, stability and prosperity in Asia,” said Modi.

Pointing out that India a huge and emerging market, Modi said, “It can also be a bridge for Korean business to penetrate the Middle East and African markets.”

He said that after his Korea visit, a dedicated team was established for Korean Investments in India – “Korea Plus” was formed in June 2016. Envisaged as the first reference point for Korean Investors in India, Korea Plus has facilitated more than 100 Korean Investors in a short span of about two years, said Modi, concluding, “This shows our commitment towards welcoming Korean people and companies; ideas and investments.”

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Google announces country-specific domain names for its search page

This transition to a centralised domain may help Google optimise AI performance in delivering relevant search results.

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In a significant move aimed at unifying its search experience, Google has announced plans to phase out country-level domain names, such as google.ng for Nigeria and google.com.br for Brazil. Instead, the tech giant will redirect users globally to a standardised domain, google.com. This decision aligns with Google’s ongoing effort to enhance search functionality and accessibility, building on the improvement in local search capabilities introduced in 2017.

In a recent blog post, Google explained that it will begin redirecting traffic from these country code top-level domains (ccTLDs) to google.com. This transition will be implemented gradually over the coming months. Users may be prompted to adjust their search preferences during this process, as the company works to streamline the user experience.

“Historically, our approach to delivering localised search results relied on ccTLDs,” Google stated. “However, our capability to offer localised experiences has evolved significantly, making these distinctions unnecessary.” The company reassured users that the core functionality of its search platform will remain unchanged and that compliance with various national regulations will continue.

This initiative reflects Google’s commitment to improving how search results are tailored to individual users without the need for separate country-specific domains. While the official rationale emphasises enhancing global user experience, some industry experts speculate that the change may also be motivated by a desire to better integrate artificial intelligence (AI) into search results, potentially leading to reduced operational costs.

Google employs AI Overviews, a tool designed to aggregate information from a broad range of online sources to provide concise responses to user inquiries. This transition to a centralised domain may help Google optimise AI performance in delivering relevant search results.

Overall, as Google implements this shift, users can expect a more unified search experience. While changes in browser addresses may occur, Google emphasises that the way search operates and its compliance with national laws will remain consistent. This strategic shift signifies Google’s ongoing efforts to adapt to the evolving digital landscape and user needs globally.

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In HUL vs HCL defamation case, Delhi HC orders take down of Lakme sunscreen ad disparaging Derma Co

Honasa, in its plea to the Delhi High Court, argued that HUL’s claims are misleading and disparage competitors, damaging their reputation. In retaliation, HUL filed a countersuit against Honasa in the Bombay High Court, escalating the corporate feud.

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A legal showdown between Honasa Consumer Ltd. (HCL), the parent company of Mamaearth, and Hindustan Unilever Ltd. (HUL), which owns Lakmé, reached the Delhi High Court this week, with both FMCG giants filing defamation lawsuits against each other. On Thursday, the court ordered HUL to pull its current Lakmé sunscreen advertisements, prompting the company to agree to revise its campaign by removing references to “online bestseller” and altering the depicted packaging colours.

The dispute centres on Lakmé’s recent “SPF Lie Detector Test” campaign, which HCL alleges unfairly targets its Derma Co. sunscreen by questioning the efficacy of rival products.

In the ads, HUL claims that some “online bestseller” sunscreens, marketed as SPF 50, provide protection closer to SPF 20, based on in-vivo testing data from the past decade. While no brands are explicitly named, visuals juxtaposing yellow bottles—resembling Derma Co.’s packaging—against Lakmé’s sparked Honasa’s ire.

Honasa, in its plea to the Delhi High Court, argued that HUL’s claims are misleading and disparage competitors, damaging their reputation. In retaliation, HUL filed a countersuit against Honasa in the Bombay High Court, escalating the corporate feud.

The controversy erupted when Ghazal Alagh, co-founder of Honasa, took to LinkedIn to criticise the FMCG sector’s lack of competitive drive, suggesting that legacy brands like HUL have grown complacent. Her comments were seen as a direct jab at Lakmé’s campaign, which challenges the SPF claims of newer sunscreen brands dominating online markets. “The industry needs fresh competition to shake things up,” Alagh wrote, igniting a public spat.

Lakmé’s campaign asserts that some top-selling sunscreens falsely claim in vivo testing—a method involving live organisms like humans or animals—while delivering subpar protection. In a social media statement, Lakmé doubled down, saying, “Certain online bestsellers advertise SPF 50, but their in-market samples test closer to SPF 20.”

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Sensex and Nifty jump nearly 2% as US suspends additional 26% tariffs on India until July 9

Foreign Institutional Investors (FIIs) had sold equities worth ₹4,358.02 crore on Wednesday, signaling caution, but Friday’s momentum suggested a shift in sentiment.

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Indian stock markets staged a robust rally on Friday, with the BSE Sensex skyrocketing 1,310.11 points, a 1.77% gain, to close at 75,157.26. The NSE Nifty followed suit, climbing 429.40 points or 1.92% to settle at 22,828.55, breaching the 22,900 mark during intra-day trading. The surge came on the heels of a White House announcement suspending additional tariffs on India for 90 days until July 9, offering a reprieve amid global trade tensions.

The US decision, detailed in recent executive orders, pauses levies that President Donald Trump had imposed on April 2, targeting India and roughly 60 other nations. Those duties threatened Indian exports ranging from steel to shrimp, raising concerns about competitiveness in the US, the world’s largest economy. The temporary suspension sparked optimism among Indian investors, propelling gains across major sectors.

Leading the charge among Sensex constituents were heavyweights like Tata Steel, Reliance Industries, Power Grid, NTPC, Kotak Mahindra Bank, and Adani Ports. However, not all stocks joined the rally—Asian Paints and Tata Consultancy Services lagged behind, unable to capitalize on the upbeat mood.

Vinod Nair, Head of Research at Geojit Investments Limited, attributed the market’s buoyancy to the tariff relief. “The unexpected pause on US tariffs provided a much-needed breather amid global uncertainties,” Nair noted. He added that while a major IT firm’s recent results fell short of expectations, its robust order book signaled potential growth in the latter half of FY26.

The Indian markets’ performance stood in stark contrast to global trends, where fears of a US-China tariff war cast a shadow. On Friday, China escalated its trade spat with the US, hiking tariffs on American imports to 125% in response to Washington’s 145% levies on Chinese goods.

Asian markets reflected the unease, with Tokyo’s Nikkei 225 plunging nearly 3% and South Korea’s Kospi slipping, though Shanghai’s SSE Composite and Hong Kong’s Hang Seng bucked the trend with gains. European markets traded lower, while US indices had closed sharply down on Thursday, with the Nasdaq tumbling 4.31%, the S&P 500 falling 3.46%, and the Dow Jones shedding 2.50%.

Back home, the rally followed a lackluster Wednesday, when the Sensex dipped 379.93 points to 73,847.15 and the Nifty fell 136.70 points to 22,399.15. Thursday’s market holiday for Shri Mahavir Jayanti gave investors a pause before Friday’s surge. Foreign Institutional Investors (FIIs) had sold equities worth ₹4,358.02 crore on Wednesday, signaling caution, but Friday’s momentum suggested a shift in sentiment.

Elsewhere, global oil prices edged up, with Brent crude rising 0.32% to $63.53 a barrel, reflecting ongoing volatility in commodity markets.

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