Prime Minister Narendra Modi urged the Indian industry to act decisively to leverage global opportunities, identifying India as a trusted partner. He announced missions to boost manufacturing and exports, emphasizing policy stability and an improved business environment, including significant compliance reductions and new initiatives for MSMEs.
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The IRS has started the 2025 tax filing season, advising early submission due to potential processing delays from staffing adjustments. Refund processing timelines include 21 days for electronic and eight weeks for paper filings, with the 'Where's My Refund' tool providing status updates.
Consumer complaints related to loans and advances rose 43%, representing 29% of the total grievances against RBI-regulated entities in FY24, according to the Reserve Bank's Integrated Ombudsman Scheme report. Overall complaints increased by 33%, with a notable rise in grievances related to mobile and internet banking and deposit accounts.
Following the RBI's rate cut, SBI has reduced its deposit rates by 10 basis points across select tenors, while keeping MCLR-linked lending rates unchanged. The EBLR, linked to the repo rate, has been reduced by 25 basis points, lowering home and personal loan interest rates. Other banks are expected to follow suit, with HDFC Bank already cutting savings account rates.
Gold and silver prices hit new record highs in India due to global market trends and economic concerns. Gold of 99.9% purity reached Rs 90,750 per 10 grams, while silver surged to Rs 1,02,500 per kg. The increase is driven by safe-haven demand, trade tensions, and expectations of US Federal Reserve monetary easing.
Foreign investors have withdrawn Rs 22,194 crore from Indian equities in January amid expectations of a weak earnings season, rising US dollar, and concerns over a potential tariff war. Additionally, factors such as slowing GDP growth, high inflation, and the record low level of the Indian rupee have contributed to this exodus.
Economic forecasters anticipate slower growth, higher unemployment, and faster inflation in the US, with increased chances of a recession. Indications of a slowdown emerge from business and consumer sentiment, although actual activity remains solid. President Trump remains firm on implementing tariffs despite market responses, raising concerns about the potential economic impact and possible effects on his approval ratings.
The Indian stock market closed higher, led by gains in financial and energy stocks following the RBI's $21 billion liquidity infusion and lower crude prices. The BSE Sensex and Nifty 50 both rose significantly. Positive global cues, particularly from a temporary tariff reprieve in the US, also bolstered investor sentiment.
IndusInd Bank faces a significant financial impact as it addresses discrepancies in its foreign exchange derivative portfolio, leading to overstated net interest income. The bank's credibility is questioned, prompting swift action to rectify financials and appoint a new successor to restore investor confidence.
Cryptocurrency trading is booming in smaller Indian cities, attracting investors under 35. Meme coins like Dogecoin and SHIB are gaining popularity despite high taxes. Global crypto markets surged after pro-crypto US President Trump's election and appointment of Paul Atkins to the SEC, boosting Bitcoin's market cap to $2 trillion.
The RBI will continue its currency market intervention strategy to manage excessive volatility and maintain macro-economic stability. The rupee hit a new low of 86.63 against the dollar amid speculation about a more flexible approach. Active interventions have used significant foreign exchange reserves since September to defend the Indian currency.