Economy Basics - Balance of Payment, Foreign Investment, Chinese FDI New PN3 Rules, IDP Model #UPSC

1) 👩🏻‍🏫 Join Unacademy for UPSC Prep- https://unacademy.com/goal/upsc-civil-services-examination-ias-preparation/KSCGY/subscribe?plan_type=plus&referral_code=mrunal.org

2) 📡 This Sat Night 9PM, I’ll be a free live-streaming Economy Annual Win26 Lecture#4 on Unacademy. URL https://unacademy.com/class/mrunals-win26-economy-pill3ab-international-trade-bop/K4NW03KL

TIMESTAMPS:
00:00 Intro
02:35 BoP Basics
03:13 Current vs Capital
06:00 FPI Hot Money
07:39 FDI Explained Flipkart
14:42 Repatriation of Profits
16:56 Outward FDI & IDP
22:47 FDI Sectoral Limits
23:38 Govt Approval
26:31 Press Note 3 China FDI
27:32 New Amendment
28:40 Connector Economy
29:35 Previous Year MCQ
DESCRIPTION:
Dr. Mrunal Patel (UPSC Educator, Economy Subject Expert) explains India's 2026 FDI policy changes with theory from Economic Survey 2025-26. Useful for UPSC CSE, SSC-CGL, State PSC, Banking, IBPS, RBI Grade B, CAPF, CDS, ACIO, APFC.

BoP records all monetary transactions between a country and the world. RBI maintains India's BoP; IMF coordinates globally. Current Account = goods, services, primary income, remittances. Capital Account = FDI, FPI, ECB, sovereign debt, foreign deposits.

FPI is below-10-percent investment with no management intent — hot money that exits during global shocks. FDI is 10 percent or more with board-level control and tech transfer (example: Walmart in Flipkart). Net FDI = inflows minus repatriation. India's Net FDI turned negative in Sept-Dec 2025 (Trump tariff war), pushing rupee to 94 per dollar.

IDP Model maps net outward investment across development stages. Outward FDI rises as economies develop (example: Tata in Jaguar Land Rover). Economic Survey 2025-26 uses this to explain India's FDI data.

FDI prohibited in tobacco, casinos, lottery, real estate. Approval needed for public sector banks, news TV (49 percent), multi-brand retail (51 percent). Defence: 74 percent automatic. E-commerce: 100 percent automatic. Above Rs 5,000 crore needs CCEA clearance.

Press Note 3 (2020): mandatory approval for FDI from Land Border Countries. March 2026 amendment: electronics, machinery, rare earth proposals cleared in 60 days if Indian residents retain majority. Reason: Net FDI negative, PLI underperformed, China wants factory relocation to avoid US tariffs.

Connector Economy: nations like Indonesia and Vietnam balance ties with both US and China, benefiting from FDI and trade on both sides. India is advised to adopt this approach. Free question booklets on Unacademy. Prep at Mrunal.org.

TAGS:
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Видео Economy Basics - Balance of Payment, Foreign Investment, Chinese FDI New PN3 Rules, IDP Model #UPSC канала Mrunal Patel Unacademy