Global & Indian Finance Weekly Roundup (Week 28, July 7–13, 2025): Market Moves, Policy Shifts & Economic Signals

The second week of July was a week of furious financial activity in international and Indian economies. As America doubled up on resource self-reliance and markets reached new highs, signals from European central banks and record investment in coal indicated contrary trends. India, however, showed economic strength, with healthcare regulation and infrastructure finance reform making headlines.

For finance students and investment banking professionals studying for an investment banking course, these newsflash updates reflect the developments in real time, which impact macroeconomic planning, financial models, and market mood. In this summary, we bring you the week’s most critical global financial news and why it matters.

Global Finance Highlights

1. Pentagon Pledge of $400 Million to U.S. Rare-Earth Strategy

Image source: Straight Arrow News

In a dramatic strategic shift, the US Defense Department invested $400 million in MP Materials, a leading U.S. producer of rare earths. The move is designed to reduce America’s dependence on Chinese imports of rare-earth elements essential to the production of defense technology, electric vehicles, semiconductors, and renewable energy components.

Currently, China supplies more than 80% of rare-earth elements worldwide. As tensions in geopolitics continue to increase, particularly within and around the Taiwan Strait and South China Sea, Pentagon investment is focused on securing strategic supply chains along with enhancing industrial capability based in the United States.

As an investment policy, it represents the path to strategic reshoring and national-security-minded financing. It also represents the confluence of financial policy and industrial policy, a subject for which students of policy-guided finance or comparative economics ought to be especially interested.

2. Coal Financing Continues Despite Climate Pledges

Despite the huge global commitments to reducing carbon emissions, coal financing has seen an unexpected surge. According to Axios and the Times of India, international banks and institutions financed approximately $130 billion in coal projects in 2024, more than $123 billion in 2023.

China holds the leadership position in coal financing, investing a whopping $248 billion in coal activity post-2022. It is contradictory to the increasing phenomenon of ESG investing and does portend very critical questions around the sincerity of net-zero aspirations.

For students of finance or analysts learning about sustainability finance or taking a financial modeling course, such figures indicate the shortfall between short-term finance behavior and long-term climate goals. Such an understanding can help in building healthy valuation models and providing regulatory risk estimates.

3. Bank of England Sounds Warning on Financial Stability as Global Risks Rise

Image source: CNBC

The recent Bank of England Financial Stability Report painted a bleak picture of the UK economy’s potential dangers. Number ones on the list included rising geopolitical tensions, leveraged private equity sponsors, and overvalued asset prices in international markets.

Highlights of the report are:

• Unstable investor confidence owing to changing trading blocs
• Weak leveraged loan markets
• Threats of sudden Eurozone interest rate movement

BoE warning is a seal of approval of higher prudence in European economies, particularly at a time when the U.S. markets appear stronger. For foreign investors and students of finance, the warning is a reminder of how rapidly sentiment can reverse based on policy changes or external shocks.

India Finance Roundup

1. RBI Governor Reassures Parliament: Economy Stable, ₹2,000 Notes Still Legal

India’s financial confidence received a boost this week when RBI Governor Sanjay Malhotra briefed the parliamentary panel on the state of the economy. He reaffirmed that India remains resilient amid global turbulence and clarified that ₹2,000 notes, though withdrawn from active circulation, continue to be legal tender.

This reassurance comes amid rising scrutiny over monetary policy transparency and the central bank’s handling of liquidity. While the ₹2,000 note was largely phased out in 2023, public confusion persisted. Malhotra’s statement helped settle concerns and showed the RBI’s commitment to financial clarity and institutional trust.

For future central bankers or economists, especially those training in macroeconomic forecasting or policy analysis, this serves as a relevant case of institutional communication during transitions.

2. Government Plans Oversight on Health Insurance Claims Portal

Image source: The Indian Express

To curb healthcare cost inflation, which reached 13% in 2025 (compared to a global average of 10%), the Indian government plans to bring its digital health insurance claims platform under stricter oversight. As reported by Reuters, the IRDAI (Insurance Regulatory and Development Authority of India) and the Finance Ministry will jointly monitor the portal’s framework and processes.

This move aims to:

• Improve claim transparency
• Strengthen the bargaining power of insurers
• Ensure fair pricing from healthcare providers

For professionals or students pursuing a financial modeling course, this development offers a practical lens into cost analysis and risk modeling in the insurance and healthcare sectors, especially in high-inflation environments.

3. IIFL Home Finance Receives $100 Million from AIIB for Affordable Housing

The Asian Infrastructure Investment Bank (AIIB) sanctioned a $100 million loan to IIFL Home Finance, focusing on affordable housing initiatives for economically weaker sections.

This initiative aligns with India’s long-term housing goals and urban development objectives. It also strengthens the microfinance and housing finance sectors, which are vital for social equity and economic inclusion.

For students exploring impact finance or development economics, this funding model shows how international institutions are collaborating with Indian NBFCs to drive grassroots change.

4. India Diversifies Exports, Counters Trade Curbs with Structural Reforms

Image source: Economic Times

Finance Minister Nirmala Sitharaman outlined the government’s strategy to mitigate the impact of global trade restrictions. India is now actively diversifying its export markets while accelerating domestic structural reforms, including:

• Infrastructure investments
• Digital economy support
• Industrial modernization initiatives

This push supports the broader ambition of positioning India as a resilient, self-reliant economy and a credible alternative supply chain partner.

These reforms present a strong signal to both investors and financial strategists that India is moving beyond reactive trade measures to proactive economic positioning.

5. India Tops IMF’s List for Instant Payments with UPI

Image source: Fortune India

India has been named the global leader in instant retail payments by the International Monetary Fund, thanks to the phenomenal growth of the Unified Payments Interface (UPI). UPI now processes over 18 billion transactions monthly, far exceeding any other country.

This has significant implications:

• Strengthens India’s digital economy infrastructure
• Increases financial inclusion
• Reduces transaction costs for small businesses

UPI’s success is a direct example of how fintech can drive macroeconomic efficiency, a key area of analysis in both corporate finance and digital economics.

6. NIIF Raises $700 Million Toward $1 Billion Infrastructure Fund

The National Investment and Infrastructure Fund (NIIF) has successfully secured $700 million in commitments for its Private Markets Fund II, aimed at raising a total corpus of $1 billion. Backed by global institutions such as the New Development Bank and AIIB, the fund will be used for equity investments across Indian infrastructure sectors.

This represents a critical influx of patient capital into sectors like transport, logistics, energy, and renewables. It’s also a good signal to institutional investors that India’s infrastructure growth story remains attractive, despite global uncertainties.

7. Wholesale Inflation Rises to 0.8% in June

According to data from the Union Bank of India, India’s wholesale price index (WPI) inflation increased to 0.8% year-on-year in June, driven by spikes in fuel and food costs. Core inflation also showed signs of a mild uptick.

Implications:

• May affect the Reserve Bank of India’s stance on interest rates
• Could impact cost forecasting for key sectors, including FMCG, logistics, and energy

For learners in pricing analysis or inflation modeling, this data is central to building robust forecasting models in real-world scenarios.

8. Pune Scam: Six Finance Directors Booked for ₹1.6 Crore Fraud

In a cautionary tale from Maharashtra, six directors of a Pune-based finance company were booked for duping 11 investors of ₹1.6 crore. The scheme promised returns of 10% per month, a clear red flag, and was eventually exposed as a financial scam.

This highlights the persistent challenges in investor education and the need for stronger compliance mechanisms in the non-banking finance sector.

Such real-world examples are often studied in ethics and risk modules within advanced financial programs and serve as strong case material for those pursuing careers in financial auditing or forensic finance.

Conclusion

This week’s financial developments reflect the ever-evolving nature of the global economy. While the U.S. focused on securing strategic resources and European markets exhibited caution, India continued to build momentum through infrastructure investment, regulatory reforms, and digital payment dominance. The convergence of geopolitical, fiscal, and sector-specific trends serves as a reminder that modern finance is deeply interconnected.

For finance professionals, students, and analysts, staying ahead of such shifts isn’t optional, it’s essential. Understanding how policy changes translate into capital flows, how inflation impacts pricing models, or how fintech transforms traditional banking is critical to making informed decisions. If you’re looking to deepen your understanding of these dynamics, consider exploring a specialized financial modeling course to build real-world skills that match today’s fast-paced financial environment.

 
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