The Reserve Bank of India (RBI), in collaboration with the central government, has taken significant steps to promote cross-border transactions in Indian rupees (INR) and other local or national currencies. These measures aim to enhance the flexibility of foreign exchange management while fostering international trade and investment. Amendments to FEMA Guidelines Under the revised Foreign …
India’s foreign exchange reserves dropped by $8.71 billion to $625.87 billion as of week ending January 10, 2025, the Reserve Bank of India said on Friday. The reserves have been on a declining trend for the last few weeks. Weekly Decline in Forex Reserves The country’s forex reserves had dropped by $5.69 billion for the …
India’s booming solar, electric vehicle (EV), and electronics industries face significant disruptions as China imposes export restrictions on critical raw materials and machinery. This development, linked to geopolitical tensions and retaliatory trade policies, underscores the vulnerabilities in India’s supply chains and its heavy reliance on Chinese imports. China’s Export Curbs: A Strategic Move China has …
The Prime Minister of India has approved the establishment of the 8th Central Pay Commission, a pivotal step towards revising the salary structures, allowances, and pensions of central government employees and pensioners. This decision is anticipated to impact nearly 50 lakh central government employees, including defence personnel, and 65 lakh pensioners. Role and Scope of …
After the completion of Michael Debabrata Patra’s term, RBI reshuffled the portfolios of its deputy governors. M Rajeshwar Rao now heads the monetary policy department, with other departments reassigned among the governors. M Rajeshwar Rao Assumes Control of Monetary Policy The Reserve Bank of India has reorganised the responsibilities of its deputy governors following the …
India’s manufacturing sector, particularly industries reliant on Chinese imports such as electronics, solar panels and electric vehicles (EVs), is facing considerable challenges. Chinese authorities have significantly reduced exports of critical equipment necessary for production, a move believed to be aimed at hindering the growth of global companies in India such as Foxconn, BYD, and Lenovo. …
Starting January 16, 2025, the Reserve Bank of India will conduct daily Overnight Variable Rate Repo auctions to ease the liquidity deficit in the banking system. The first auction today was for ₹50,000 crore to address ongoing liquidity concerns. Overview of RBI’s Daily VRR Auctions The Reserve Bank of India (RBI) has announced a significant …
India’s goods exports recorded a marginal 1% contraction year-on-year in December, reaching just over $38 billion. In contrast, imports rose by 4.9% to nearly $60 billion, narrowing the merchandise trade deficit to $21.9 billion—a sharp decline from November’s record deficit of $31.8 billion. This moderation reflects positive shifts in certain trade parameters, despite underlying challenges. …
The outgoing U.S. administration recently announced sweeping sanctions against Russia’s oil trade, targeting 183 tankers, the majority of the so-called “shadow fleet” that has kept Russian oil flowing to global consumers, including India and China. The sanctions also affected Russian oil giants Gazprom Neft and Surgutneftegas, as well as insurance companies and other entities involved …
On January 16, 2025, the Indian rupee traded at 86.395 to the U.S. dollar, reaching an intra-day high of 86.462. The local currency had its best performance in over 7 months on Wednesday, bolstered by a narrower-than-expected merchandise trade deficit for December. However, the rupee continued to face pressure as it remained above the 86.50 …
