Issue: 1297
·
Forex kitty jumps $14.14 billion to $707 billion in one of
the biggest weekly expansions.
·
Adani Group discusses nuclear, clean energy and Rs.80,000
crore projects with Odisha government.
·
Union Minister of Communications Shri Jyotiraditya M. Scindia
Inaugurates First-Ever Drone Delivery of Tiranga by India Post.
·
Government Removes 12-Minute Advertisement Duration Cap for
Television Channels.
·
Vishwakarma 2.0 set for September 17 launch with bigger
credit push.
The Great Transshipment
Scam: US report names India in alleged China tariff-evasion network: India is among over 40 countries accused by
Washington of helping China circumvent higher US tariffs by allowing Chinese
goods to be illegally rerouted through their territories before entering the
American market. Responding to allegations made against India in a recent White
House report titled 'The Great Transshipment Scam’, the Ministry of External
Affairs said that India had its own robust laws and customs procedures and
violations are dealt with in accordance with law.
(Business Line)
India’s exports diversify
towards Asian, emerging markets in Q1: India’s merchandise exports
are showing signs of greater geographical diversification, with shipments to
the Asean bloc and North East Asia (NEA) registering strong growth in the first
quarter of 2026-27, led by a sharp increase in exports to Singapore and China. Exports
to Singapore more than doubled to $6.52 billion during April-June 2026-27 from
$3.24 billion in the year-ago period, per government data. Exports to China
also recorded a sharp increase, rising nearly 27 per cent to $5.59 billion from
$4.39 billion. The strong performance in these markets contributed to a broader
shift towards Asian and emerging markets, officials highlighted.
(Business Line)
Wholesale inflation
moderates to 9.78% in July: Wholesale inflation based the
Wholesale Price Index (WPI) dropped a tad to 9.78 per cent in July, as against
9.87 per cent in June, the government reported on Friday. This is the first
time that inflation has dropped month-on-month under the government’s WPI-based
inflation data with the new 2022-23 base year. Inflation rates for major
groups, namely, Primary Articles, Fuel and Power, and Manufactured Products
stood at 8.52 per cent, 20.05 per cent, and 8.29 per cent, respectively in
July, compared to 7 per cent, 27.41 per cent, and 7.48 per cent, respectively
in June.
(Business Line)
RBI to close FX swap for
overseas deposits earlier than planned, inflows top $50 billion: The Reserve Bank of India
(RBI) has decided to close its discounted forex swap facility for banks a month
earlier than planned, after the scheme attracted strong foreign exchange
inflows through deposits raised from non-resident Indians (NRIs). Under
the revised timeline, banks can now use the zero-cost hedging facility for
overseas foreign currency deposits raised up to August 31. The earlier deadline
was September 30, according to an RBI statement issued on Friday. The forex
swap facility was part of a series of measures announced by the central bank in
June to strengthen India’s balance of payments and encourage foreign exchange
inflows.
(Moneycontrol)
ICICI Bank seeks to raise
$1.45-billion loan from a BofA-led consortium: ICICI Bank is seeking a
substantial $1.45 billion loan from a banking consortium. Bank of America is
leading the syndicate, which includes several international banks. This
four-year loan aims to attract leveraged investors to the FCNR-B deposit
program. The Reserve Bank of India is absorbing currency hedging costs for
these deposits. Funds will support overseas clients making foreign currency
deposits with the bank.
(Economic Times)
Indians opt for higher life
insurance cover as average premium rises 43%: Average life insurance
premiums rose significantly between FY2021 and FY2025. Policyholders are
increasingly choosing higher sum assured amounts for their policies. The
proportion of policies with low cover levels has notably declined. Higher value
sum assured categories have gained considerable market share. This trend
indicates a growing commitment to financial security among policyholders.
(Economic Times)
Allahabad HC orders banks
to freeze only disputed amount in cybercrime cases: The Allahabad High Court has ruled against the
imposition of blanket debit freezes in cybercrime cases, emphasizing that such
measures must be proportionate to the suspected proceeds of crime. Banks are
directed to unfreeze accounts beyond the disputed transaction sum, and
investigators are now required to furnish specific details when seeking a lien.
This ensures that enforcement actions remain just and within legal frameworks.
(Economic Times)
Parliamentary panel seeks
penalties for banks hosting multiple mule accounts: A parliamentary committee suggests penalizing
banks for mule accounts and KYC lapses. It also highlighted delays in merchant
discount rates impacting payment providers' investments. The government is
exploring a self-reliant revenue model for UPI's financial sustainability.
Amendments allow charges on UPI and other digital payment modes. This aims to
address a significant funding gap impacting infrastructure development.
(Economic Times)
India opens nuclear sector
to proven foreign technology under strict regulatory oversight: India has proposed a tightly supervised approval
regime for private nuclear projects, opening the door to foreign reactor
technologies with proven overseas track records while allowing regulators to
stop projects at critical stages of development. The draft rules and regulations released late on
Friday offer the clearest indication yet since India announced an amended law
to open its nuclear sector to private and foreign investors, while not ceding
regulatory control. According to the rules, foreign reactor designs with proven
overseas operating records would be eligible and developers would face
extensive safety reviews throughout a project's lifetime, with regulators
empowered to halt progress at key milestones ranging from construction to fuel loading.
(Moneycontrol)
India's data centre
capacity grows over four-fold to 1,575 MW since 2020: India’s installed data centre capacity has
more than quadrupled since 2020 to around 1,575 megawatts (MW), as the country
expands its digital infrastructure to support the growing adoption of
artificial intelligence (AI), according to the Ministry of Electronics and
Information Technology. Installed data centre capacity has increased from 375
MW in 2020 to about 1,575 MW currently, representing a more than four-fold
increase over the period, the Ministry said.
(Business Line)
CAD widens moderately in
Q1, $8-billion drawn down from reserves: India’s Balance of Payments (BoP) slipped into
an $8.1 billion deficit in the April-June quarter, with both current and
capital account positions worsening, data released by the Reserve Bank of India
(RBI) on Friday showed. In contrast, the corresponding quarter in the previous
year saw accretion of $4.5 billion to the foreign exchange reserves on a BoP
basis. The BoP was in a surplus of $2.9 billion in June, against a deficit of
$0.4 billion a year ago. However, concerns aren’t high, as capital accounts
have lately shown much strength, partly aided by the special FCNR window for
non-resident Indians. Forex reserves rose to a four-month high of $707 billion
as of August 7. The current account deficit (CAD) widened slightly
to $3.1 billion in the April-June quarter, as the war-driven spike in global
energy prices led to a sharp rise in the merchandise trade deficit. The CAD was
$2.9 billion in the year-ago quarter, while it was in a surplus of $7 billion
in January-March.
(Financial Express)
SEBI proposes digital
onboarding and portable KYC for overseas Indian investors: Market regulator Securities
and Exchange Board of India (SEBI) has proposed easing Know Your Client (KYC)
requirements for individual Persons Resident Outside India (PROIs), including
Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and foreign
nationals, to facilitate digital onboarding into the Indian securities market. As
per the consultation paper issued on Friday, SEBI has proposed allowing PROIs
residing in Financial Action Task Force (FATF)-compliant countries to complete
digital KYC without being physically present in India. Currently, digital
onboarding of non-resident clients requires their physical location to be in
India.
(Moneycontrol)
FinMin advises easing
procedures for selection of project consultants: In order to break the dominance of a small
group of companies in the award of government contract for consultancy
services, the Finance Ministry has issued an office memorandum regarding
prescription of qualification and evaluation criteria in the procurement of
such services. Sanjeev Sanyal, Member of the Economic Advisory Council to the
Prime Minister (EAC-PM), highlighted that the qualification criteria for
government contracts should be commensurate to the project. “Till now, it was common
for eligibility to be restricted through unnecessarily high turnover and
payroll requirements that could only be met by a tiny club. This levels the
playing field for Indian consultancies and new entrants,” he explained.
(Business Line)
FinMin asks govt entities
against setting high turnover, payroll criteria in GeM consultancy tenders: The Finance Ministry has advised central
government entities procuring consultancy services through the GeM portal
against prescribing excessively high turnover and payroll requirements, saying
such criteria could unnecessarily restrict competition. In an office
memorandum, the Department of Expenditure said that procurement agencies should
ensure that the prescribed minimum staff strength in a tender is commensurate
with the manpower required for the satisfactory execution of the consultancy
assignment.
(Business Line)
NEOLIBERALISM
· Neoliberalism
refers to a policy model that emphasizes private enterprise and shifts economic
control from government to the private sector. Influenced by leaders like
Margaret Thatcher and Ronald Reagan, it advocates for lesser government
intervention, focusing on free-market capitalism and fiscal austerity.
· Understanding
neoliberalism involves looking at its policies, such as privatization and
deregulation, which impact economies and societies worldwide.
RBI KEY RATES
Repo
Rate: 5.25%
SDF:
5.00%
MSF
/Bank Rate: 5.50%
CRR:
3.00%
SLR:
18.00%
FOREX RATES (RBI REF. RATE)
INR
/ 1 USD : 95.4263
INR
/ 1 GBP : 128.8344
INR
/ 1 EUR : 110.1305
INR
/100 JPY: 59.3900
EQUITY INDEX
Sensex:
78009.25 (-70.71)
NIFTY:
24366.00 (-29.85)
Bnk NIFTY: 57491.10 (-144.15)
Historical
events: 15 August holds special significance as
India’s Independence Day, marking the end of British rule and India’s
independence on 15 August 1947. On 15 August
1945, Japan announced its surrender in World War II, following the atomic
bombings of Hiroshima and Nagasaki, effectively ending the war in the Pacific.
South Korea celebrates National Liberation Day (Gwangbokjeol) on 15 August,
commemorating its liberation from Japanese colonial rule in 1945.
Liechtenstein’s National Day is also observed on 15 August, combining a national
celebration with the Feast of the Assumption.
****WISHING A HAPPY INDEPENDENCE DAY****
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