PM Modi Says Best Time to Invest in India: Focus on Manufacturing and Semiconductors

PM Modi Declares Now the Best Time to Invest in India: Focus on Manufacturing and Technology

Prime Minister Narendra Modi issued a strong call to global investors on Wednesday, declaring that the current period represents the optimal time to invest, innovate, and manufacture in India. Speaking at the India Mobile Congress (IMC) 2025, the Prime Minister highlighted India's expanding opportunities across manufacturing, technology, and digital infrastructure sectors, positioning the nation as a key player in addressing global challenges.

India Ready to Fill Global Supply Chain Gaps

The Prime Minister emphasized India's strategic position to address disruptions in global supply chains. He asserted that any bottlenecks in international supply networks present opportunities for India to step forward and provide effective solutions.

This positioning aligns with global trends toward supply chain diversification, with companies worldwide seeking alternatives to concentrated manufacturing bases. India's demographic advantages, improving infrastructure, and business-friendly policies make it an attractive option for companies looking to derisk their operations.

Ambitious Semiconductor Manufacturing Plans

In a significant announcement regarding India's semiconductor ambitions, PM Modi revealed that the government is actively working on establishing 10 semiconductor manufacturing units across the country. This initiative represents a major push to strengthen India's capabilities in this critical technology sector.

The semiconductor industry has become strategically important globally, with nations recognizing the risks of dependence on limited manufacturing locations. India's entry into large-scale semiconductor production could position it as a vital link in global technology supply chains.

The Prime Minister also encouraged continued development in chipsets and other mobile components, recognizing these as essential building blocks for India's technology ecosystem and digital economy.

India as a Global Data Hub

PM Modi highlighted India's potential to become a worldwide data hub, supported by robust digital connectivity and remarkably affordable data costs. He noted that in India, 1GB of data costs as little as a cup of tea—a testament to the country's achievement in democratizing internet access.

As global data generation continues its exponential growth, the Prime Minister underscored that storage security and data sovereignty will become increasingly critical considerations. India's strong digital infrastructure, combined with cost advantages, positions it uniquely to serve data storage and processing needs.

Digital Connectivity as Essential Infrastructure

The Prime Minister stressed that digital connectivity has evolved from being a privilege or luxury into an absolute necessity in today's interconnected world. This recognition reflects India's commitment to ensuring universal digital access as fundamental infrastructure rather than optional amenity.

India's digital transformation over the past decade has been remarkable, with initiatives expanding internet penetration, digital payments, and online services to hundreds of millions of citizens previously excluded from the digital economy.

Investor-Friendly Business Environment

PM Modi attributed India's attractiveness as an investment destination to several key factors:

• Democratic Framework: Stable political system providing predictability
• Welcoming Approach: Government policies encouraging foreign investment
• Ease of Doing Business: Continuous reforms reducing regulatory burdens
• Modern Legal Framework: Updated laws supporting digital transformation

These elements combine to create an environment where investors can operate with confidence, knowing their investments are protected and supported by progressive policies.

Decade of Legal and Regulatory Modernization

Reflecting on the past ten years, the Prime Minister highlighted the importance of modernizing India's legal framework to support rapid digital and technological transformation. This modernization has involved:

• Updating outdated regulations that hindered innovation
• Creating new frameworks for emerging technologies
• Streamlining approval processes
• Establishing clear guidelines for digital businesses
• Protecting intellectual property rights

This comprehensive approach to legal reform demonstrates recognition that technology advancement requires corresponding evolution in regulatory structures.

Critical Role of Startups and Innovation

The Prime Minister emphasized that India's innovators and industries carry significant responsibility in driving the country's technological advancement. He specifically highlighted the pivotal role startups will play in:

• Driving economic growth
• Fostering innovation across sectors
• Enhancing global competitiveness
• Creating employment opportunities
• Developing indigenous technologies

India's startup ecosystem has flourished in recent years, producing numerous unicorns and attracting substantial venture capital investment. This momentum is expected to accelerate with continued government support and improving business conditions.

Opportunities Across Multiple Sectors

PM Modi outlined abundant opportunities across several key sectors:

Manufacturing

India's manufacturing sector is positioned for significant expansion, with initiatives like Make in India creating favorable conditions for domestic and foreign manufacturers. The sector benefits from large domestic markets, improving infrastructure, and competitive labor costs.

Electronics

The electronics manufacturing sector has witnessed rapid growth, with India becoming a major production hub for smartphones, components, and consumer electronics. Government incentives and quality workforce make this sector particularly attractive for investment.

Semiconductors

With planned semiconductor fabrication units and component manufacturing facilities, India is positioning itself as a significant player in this critical technology sector that underpins modern electronics and computing.

Self-Reliant India Vision

The Prime Minister stressed that India is accelerating reforms, making this the ideal time for investment, innovation, and building a strong, self-reliant nation. The vision of self-reliance doesn't imply isolation but rather:

• Developing indigenous capabilities
• Reducing critical dependencies
• Strengthening domestic supply chains
• Fostering innovation and R&D
• Creating globally competitive industries

Global Technology Leadership Aspirations

PM Modi expressed confidence that India possesses ample opportunities and energy to lead in the global technology landscape. This ambition is supported by:

• Large Talent Pool: Millions of engineers and technology professionals
• Growing Domestic Market: Over a billion potential consumers
• Digital Infrastructure: Extensive connectivity and digital public platforms
• Innovation Ecosystem: Thriving startup culture and research institutions
• Government Support: Proactive policies and incentive programs

Strategic Timing for Investment

The Prime Minister's message emphasizes that current conditions create a unique window of opportunity for investors. Several factors support this timing:

• Ongoing regulatory reforms reducing barriers
• Infrastructure development improving logistics and connectivity
• Growing consumer market with rising purchasing power
• Government commitment to business-friendly policies
• Global supply chain restructuring creating new opportunities
• Technology adoption accelerating across sectors

Implications for Investors

For domestic and international investors, the Prime Minister's remarks signal several important considerations:

• Policy Stability: Continued government support for investment and innovation
• Sectoral Opportunities: Specific focus areas with government backing
• Long-term Commitment: India's technology ambitions span multiple years
• Collaborative Approach: Openness to partnerships and knowledge transfer

Challenges and Considerations

While the investment climate is positive, potential investors should also consider:

• Infrastructure development is ongoing in many regions
• Regulatory complexity still exists in certain sectors
• Competition from other emerging markets
• Need for patient capital in some technology sectors
• Skills development requirements for advanced manufacturing

Looking Forward

The Prime Minister's remarks at IMC 2025 reinforce India's commitment to becoming a global technology and manufacturing powerhouse. With concrete plans for semiconductor manufacturing, continued digital infrastructure development, and ongoing regulatory reforms, India is positioning itself as an indispensable partner in the global technology ecosystem.

For investors seeking exposure to one of the world's fastest-growing major economies, with particular strength in technology and manufacturing sectors, the message is clear: India offers substantial opportunities backed by government commitment and improving business conditions.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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LG Electronics India IPO: Record $50 Billion in Bids, 54x Oversubscribed

LG Electronics India IPO Draws Record $50 Billion in Bids, Most Subscribed in Nearly Two Decades

LG Electronics' Indian subsidiary has achieved a remarkable milestone, with its $1.3 billion maiden share sale attracting bids worth approximately $50 billion, making it the most subscribed billion-dollar IPO in India in nearly two decades. The overwhelming response underscores the robust appetite for quality consumer electronics stocks in India's red-hot IPO market.

Historic Subscription Numbers

The share sale, which closed on Thursday, drew bids worth 4.43 trillion rupees ($49.9 billion) at the top end of its price band of 1,080 to 1,140 rupees per share. Exchange data revealed that LG Electronics India received bids for 3.85 billion shares, representing a staggering 54.02 times oversubscription of the shares on offer.

This extraordinary response makes it the most-subscribed large Indian offering since Reliance Power's legendary IPO in 2008, which drew approximately $80 billion in bids at current exchange rates, according to capital markets data provider PRIME Database.

Rapid Subscription Timeline

The IPO demonstrated exceptional investor enthusiasm from the outset, achieving full subscription within hours of its launch on Tuesday. By the closing time of 5:00 p.m. IST on Thursday, the offering had been oversubscribed more than 54 times, reflecting unprecedented demand across investor categories.

The shares are expected to make their trading debut on October 14, with market participants anticipating strong listing gains given the exceptional subscription numbers.

India's Third-Largest IPO of 2025

The LG Electronics India offering ranks as India's third-biggest IPO in 2025, trailing only two other major issues:

• Tata Capital: Closed with $2.9 billion in bids this week
• HDB Financial: Drew $19 billion in bids before its July debut
• LG Electronics India: Attracted $50 billion in bids

Despite being smaller in issue size, LG Electronics India's IPO generated significantly higher bid amounts, demonstrating extraordinary investor interest in the consumer electronics sector.

Category-Wise Subscription Details

The IPO saw overwhelming participation across all investor categories, with institutional investors leading the charge:

• Qualified Institutional Buyers: Subscribed 166.5 times their allotted quota
• Non-Institutional Investors: Subscribed 22.4 times
• Retail Investors: Subscribed 3.54 times

The institutional investor category's exceptional response reflects confidence from sophisticated market participants, including mutual funds, insurance companies, and foreign portfolio investors.

Factors Driving Strong Demand

Market analysts attribute the robust response to several key factors:

• Government Tax Cuts: Recent tax reductions are expected to boost consumer spending on electronics and appliances
• Strong Near-Term Growth Prospects: Favorable macroeconomic conditions support consumer durables demand
• Expected Listing Gains: Investors anticipate significant price appreciation upon listing
• Brand Recognition: LG's established market presence and reputation attract investor confidence
• Hot IPO Market: Positive sentiment in India's primary market encourages participation

Industry experts note that investors particularly favor LG Electronics India due to expectations of strong listing gains and robust growth prospects in the Indian consumer electronics market.

Anchor Investor Participation

Prior to the public offering, LG Electronics India raised $392 million from anchor investors, demonstrating strong institutional support. Notable anchor investors included:

• BlackRock: Leading global asset manager
• Singapore's Wealth Fund: Government of Singapore Investment Corporation
• Norway's Wealth Fund: Government Pension Fund Global

The participation of these prestigious global institutional investors provided strong validation for the offering and set a positive tone for the public subscription period.

Historical Context: India's Most Subscribed IPOs

LG Electronics India's offering joins an elite group of heavily subscribed Indian IPOs:

• Reliance Power (2008): Drew approximately $80 billion in bids, setting the benchmark
• Eternal (2021): Saw steep oversubscription during the post-pandemic IPO boom
• HDB Financial Services (2025): Earlier this year attracted $19 billion in bids
• LG Electronics India (2025): Now the second-most subscribed after Reliance Power

Company Profile and Market Position

LG Electronics India operates as the Indian subsidiary of South Korean electronics giant LG Electronics. The company has established a strong presence in India's consumer electronics and home appliances market, offering products across multiple categories including:

• Television and home entertainment systems
• Refrigerators and kitchen appliances
• Washing machines and air conditioners
• Smartphones and consumer electronics

The company's extensive distribution network, brand recognition, and product portfolio position it well to capitalize on India's growing middle class and increasing consumer spending on quality appliances.

Market Sentiment and IPO Climate

The exceptional response to LG Electronics India's IPO reflects the broader strength of India's primary capital markets. The country has emerged as one of the most attractive destinations for initial public offerings globally, with:

• Strong domestic investor participation
• Increasing foreign institutional interest
• Favorable regulatory environment
• Robust economic growth supporting corporate expansion
• Deep liquidity in secondary markets

Growth Drivers for Consumer Electronics Sector

Several structural factors support positive growth prospects for LG Electronics India:

• Rising Disposable Incomes: Growing middle class with increasing purchasing power
• Urbanization Trends: Migration to cities driving appliance adoption
• Product Upgrades: Consumers replacing older appliances with premium models
• Smart Home Adoption: Increasing demand for connected and intelligent appliances
• Government Support: Tax cuts and policies supporting consumer spending

Valuation and Investment Considerations

While the extraordinary subscription numbers indicate strong market confidence, potential investors should consider:

• Premium Valuation: High subscription may lead to elevated listing prices
• Competitive Landscape: Intense competition in consumer electronics sector
• Economic Sensitivity: Consumer durables demand tied to economic cycles
• Market Volatility: Broader market conditions affect listing performance

Implications for India's IPO Market

LG Electronics India's success reinforces several positive trends in India's IPO market:

• Strong appetite for quality consumer-facing businesses
• Depth of domestic institutional investor base
• Growing retail investor participation in primary markets
• India's attractiveness as a listing destination for multinational subsidiaries

The offering's success may encourage other multinational companies to consider listing their Indian operations, providing investors with additional opportunities to participate in India's growth story through established brands.

Looking Ahead to Listing Day

Market participants will closely watch the October 14 listing for signals about:

• Extent of listing gains given massive oversubscription
• Post-listing price stability and trading volumes
• Investor sentiment toward consumer electronics stocks
• Implications for upcoming IPOs in similar sectors

The extraordinary subscription numbers suggest strong listing day performance is likely, though actual results will depend on overall market conditions and profit-booking by allotted investors.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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TCS Q2 FY26 Results: Net Profit at Rs 12,075 Crore, Revenue Up 2.39%

TCS Q2 FY26 Results: Net Profit Rises to Rs 12,075 Crore with Strong Sectoral Growth

Tata Consultancy Services, India's largest IT services organization, reported consolidated net profit of Rs 12,075 crore for the July-September quarter, marking a 1.4% year-on-year increase. The results were driven by comprehensive growth across sectors, particularly in Banking, Financial Services and Insurance (BFSI), which remains the company's largest revenue contributor.

Year-on-Year Financial Performance

The second quarter of fiscal year 2025-26 demonstrated steady growth compared to the corresponding period last year:

• Net Profit: Rs 12,075 crore vs Rs 11,909 crore (up 1.4%)
• Operational Revenues: Rs 65,799 crore vs Rs 64,259 crore (up 2.39%)
• Total Contract Value: $10 billion for Q2

These figures mark the beginning of the technology sector earnings season and set a benchmark for industry performance expectations.

Sequential Quarter Analysis

When compared to the previous quarter (Q1 FY26), the results showed mixed trends:

• Profit: Decreased 5.3% quarter-on-quarter
• Revenue: Grew 3.7% sequentially

The sequential profit decline reflects typical quarterly variations in the IT services business, including project completion cycles and margin fluctuations, while revenue growth indicates sustained business momentum.

Strategic Focus on AI Leadership

TCS CEO and Managing Director K Krithivasan expressed satisfaction with the quarterly performance while outlining the company's ambitious vision. The organization aims to become the foremost AI-led technology services provider, with comprehensive transformation initiatives spanning:

• Talent development and skill enhancement
• Infrastructure modernization
• Strategic partnerships and collaborations
• Customer value creation through AI solutions
• Development of advanced AI infrastructure

This strategic direction positions TCS to capitalize on the growing demand for artificial intelligence and machine learning services across global enterprises.

Margin Improvement and Financial Stability

CFO Samir Seksaria highlighted margin improvements achieved through efficient execution combined with strategic investments. The company has maintained financial stability while simultaneously pursuing:

• Employee salary increases
• Capability development programs
• Partnership establishment initiatives
• Internal operational changes
• External strategic investments

This balanced approach demonstrates TCS's ability to invest in growth while maintaining profitability—a critical factor for long-term competitiveness.

Sectoral Performance Breakdown

Banking, Financial Services and Insurance (BFSI)

The BFSI sector remained the cornerstone of TCS's business, contributing 32.2% to total revenues:

• BFSI Revenue: Rs 25,717 crore
• Year-on-Year Growth: 8.12% (from Rs 23,785 crore in Q2 FY25)
• Annual Growth Rate: 1% overall for the sector

Strong BFSI performance reflects continued digital transformation investments by financial institutions globally, with TCS benefiting from long-standing client relationships and deep domain expertise.

Technology & Services

The Technology & Services vertical demonstrated the strongest growth trajectory, posting 2.8% year-on-year expansion. This performance indicates robust demand for technology modernization and digital transformation services.

Consumer Business

Consumer Business revenues showed healthy growth, rising to Rs 10,351 crore from Rs 10,025 crore year-on-year. This segment benefits from retail and consumer goods companies' ongoing digital initiatives.

Regional Performance Analysis

Geographic revenue distribution revealed varying growth patterns across regions:

• North America: Slight decline of 0.1%, reflecting market maturity and competitive pressures
• Latin America: Positive growth of 1.8%, indicating expanding market presence
• India: Decreased 33.3%, now representing 5.8% of total revenues (down from 8.9% year-on-year)

The North American performance requires attention given its traditional importance to Indian IT services companies, while Latin America's growth presents opportunities for diversification.

Strategic Expansion Initiatives

New AI and Data Center Subsidiary

TCS announced plans to establish a new subsidiary in India focused on AI and Sovereign Data Centres. The initiative includes a substantial 1 GW AI data center project, positioning the company to serve growing demand for AI computing infrastructure and data sovereignty requirements.

This investment aligns with global trends toward localized data processing and AI capability development, particularly as governments and enterprises prioritize data residency and security.

ListEngage Acquisition

TCS acquired US-based ListEngage for $72.80 million (excluding additional costs). The acquisition strengthens TCS's capabilities in:

• Salesforce Marketing Cloud solutions
• Customer Relationship Management (CRM)
• Data Cloud implementations
• Agentforce technology
• AI advisory services

This strategic acquisition enhances TCS's position in the Salesforce ecosystem, one of the fastest-growing segments in enterprise software.

Shareholder Returns

Demonstrating confidence in cash flow generation and financial stability, TCS declared a second interim dividend of Rs 11 per equity share. The dividend payment is scheduled for Tuesday, November 4, 2025, for shareholders registered by Wednesday, October 15, 2025.

This dividend declaration reflects the company's commitment to returning value to shareholders while maintaining adequate capital for growth investments.

Market Response

TCS shares closed at Rs 3,061.95 on BSE Thursday, gaining 1.16% ahead of the results announcement. The positive market response suggests investor confidence in the company's performance and strategic direction.

Key Takeaways for Investors

The Q2 results present several important insights:

• Steady Growth: Consistent year-on-year performance despite global uncertainties
• Strategic Positioning: Strong focus on AI and digital transformation aligns with market trends
• Sectoral Strength: Diversified revenue base with particular strength in BFSI
• Investment in Future: Significant initiatives in AI infrastructure and capability building
• Shareholder Value: Continued dividend payments demonstrate financial health

Outlook and Challenges

While TCS delivered satisfactory results, the company faces several ongoing challenges:

• North American market weakness requiring strategic response
• Intense competition in the IT services sector
• Need to accelerate AI capability development
• Margin pressure from wage increases and investments
• Currency fluctuations affecting international revenues

The company's strategic initiatives around AI leadership and infrastructure development position it to address these challenges while capitalizing on emerging opportunities in digital transformation and artificial intelligence.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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