In a significant shift in India’s financial landscape, global financial institutions from the United Arab Emirates (UAE) and Japan are making substantial investments in Indian banks, capitalizing on the government’s relaxed restrictions on foreign shareholdings. Emirates NBD, Dubai’s largest lender, is poised to acquire a 60% stake in RBL Bank, a private Indian bank, for $3 billion, marking the largest cross-border acquisition in India’s financial sector. Earlier, Japan’s Sumitomo Mitsui Financial Group (SMFG) purchased a 24.2% stake in Yes Bank for $1.7 billion, becoming its largest shareholder. Meanwhile, Mitsubishi UFJ Financial Group (MUFG), Japan’s largest lender by assets, is finalizing deals to invest $4 billion in Indian financial institutions, including a 20% stake in Shriram Finance, a major credit solutions provider. These developments align with Indian Finance Minister Nirmala Sitharaman’s vision to create more ‘big banks.’ Foreign investments in India’s financial sector surged to $8 billion in 2025, up from $2.3 billion in the previous year. Concurrently, India and Israel are advancing a free trade agreement (FTA) to bolster economic and technological cooperation, with Israeli Prime Minister Benjamin Netanyahu emphasizing the strategic partnership. The UAE’s investments in India are also set to reach $100 billion across sectors, including a controversial mega-mall project in Kashmir. However, these moves have drawn criticism from activists, who accuse India of human rights violations in the region. The UAE’s financial networks have also been implicated in supporting militias in Sudan, raising ethical concerns. As global financial giants pivot towards India, the Reserve Bank of India’s easing of restrictions has further incentivized foreign investments in medium-sized banks.