The Indian rupee fell to a record low against the US dollar, crossing the 85 mark for the first time. This drop was influenced by the US Federal Reserve's indication of fewer-than-expected future rate cuts. While the decline makes imports costlier and benefits NRI remittances, its impact on export competitiveness is debated.
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Niti Aayog CEO BVR Subrahmanyam emphasized that India must reduce tariffs for its own benefit, regardless of external pressures. He highlighted the need for India to prioritize openness to global markets and finalize trade agreements with major economies like the EU and UK. Deregulation at both central and state levels is also crucial for integrating into global supply chains.
A new Budget amendment necessitates suppliers to ensure buyers reverse input tax credits (ITC) before claiming adjustments when issuing a credit note. This change aims to prevent revenue leakage and double tax benefits. The amendment could face legal challenges as it imposes an additional burden on suppliers for the recipient's non-compliance.
India is a major contributor to applications for Riyadh Air, Saudi Arabia's upcoming second national carrier. Despite not announcing salary structures, the airline has received 14 lakh applications from 146 nationalities, with India among the largest sources. The carrier plans to start operations in a few months, focusing on Indian tourists and connecting flights from its Riyadh hub.
Stock markets in 2025 are set to be influenced by corporate earnings, FPI trends, and key economic indicators like GDP Growth and IIP. Expectations are high for IT major TCS's Q3 results, and the US National Security Adviser's visit to bolster strategic ties and technology advancements in India will be closely monitored.
Sunil Mittal of Bharti Group supports satellite connectivity for underserved rural areas using shared spectrum. He urges the regulator Trai and government to develop non-discriminatory policies for urban satellite connectivity, ensuring fair competition with terrestrial providers.
India's manufacturing sector saw its fastest growth in six months in January, driven by a sharp rise in new orders and record export growth. The PMI rose to 57.7, indicating strong sector health. Robust job creation and easing input cost pressures were also noted. Optimism among manufacturers suggests ongoing expansion and solid prospects for early 2025.
The Centre estimates Rs 47,000 crore from disinvestment and asset monetisation in the 2025-26 Budget. A new plan aims to plough back Rs 10 lakh crore into new projects. The first phase of monetisation had limited success, focusing on brownfield assets across various sectors.
SBI and HDFC Bank have started 2024 by enhancing deposit rates. SBI offers super senior citizens new benefits while HDFC has revised bulk deposit rates. SBI also introduces goal-oriented products like 'Har Ghar Lakhpati' to assist customers in achieving savings targets, with both banks setting higher competitive rates.
Tata Motors' shares have dropped 44%, losing Rs 1.9 lakh crore in market value. This decline is mainly due to weak demand for Jaguar Land Rover, especially in China, the UK, and the EU. Analysts suggest this correction could be a buying opportunity, urging long-term investors to consider potential recovery despite ongoing macroeconomic challenges.
India's foreign exchange reserves have seen a significant decline of USD 8.714 billion, dropping to USD 625.871 billion for the week ended January 10. The reduction is attributed to revaluation and the Reserve Bank of India's efforts to stabilize rupee fluctuations, with foreign currency assets reducing by USD 9.469 billion.