<img src="https://api-discussion.policharcha.com/1697711883190" alt="Google to manufacture Pixel phones in India, joining Apple & Foxconn in the manufacturing push" style="float:none;height: auto;width: auto"/>

In a significant move towards bolstering local production, Google announced its plans to manufacture Pixel phones in India. The initiative will kick off with the production of Pixel 8, slated to hit the market in 2024. Rick Osterloh, Head of Devices at Google, revealed the company's intention to partner with global manufacturers in India to establish manufacturing facilities.
Osterloh emphasised the significance of this step, stating, "It's an early step towards expanding our production here to meet the local demand for Pixel devices. And even more importantly, it's a huge step forward in Google's commitment to Make in India." The announcement took place in the presence of Telecom Minister Ashwini Vaishnaw, highlighting the collaboration's official endorsement.
Google's decision aligns with the growing trend of major technology companies investing in local manufacturing in India. Apple Inc. and Foxconn, among others, have already initiated the production of mobile devices within the country. In September, Apple disclosed its plans to launch the iPhone 15, manufactured in India, further cementing India's position as a vital manufacturing hub.
This move by Apple signifies its strategic shift, embracing a ‘China+1’ approach. By producing iPhones in India, Apple aims to bridge the gap between its India operations and its primary manufacturing bases in China. The move also underscores India's rising production capabilities and showcases the country's potential in the global tech manufacturing landscape.
Additionally, Taiwan-based Foxconn, the world's largest contract manufacturer of electronics, has significantly expanded its footprint in India. The company has invested in manufacturing facilities in the southern part of the country, diversifying its production away from China.
Foxconn already operates an iPhone factory in the state of Tamil Nadu, providing employment to 40,000 people. Young Liu, Chairman and CEO of Hon Hai Technology Group (Foxconn), affirmed India's importance in their future manufacturing plans, reinforcing India's growing significance as a manufacturing destination.
India's push for self-reliance (Atmanirbharta) has transformed the country into the world's second-largest mobile phone manufacturer after China. This shift underscores India's potential as a manufacturing powerhouse, drawing substantial investments from global technology giants like Google, Apple, and Foxconn. With each new initiative, India's position in the global tech manufacturing sector continues to strengthen, paving the way for increased economic growth and job opportunities within the country.

Google to manufacture Pixel phones in India, joining Apple & Foxconn in the manufacturing push

<img src="https://api-discussion.policharcha.com/1697576128229" alt="RBI slaps heavy penalties on Kotak Mahindra & ICICI Bank for regulatory violations" style="float:none;height: auto;width: auto"/>

In a stern move aimed at enforcing regulatory compliance, the Reserve Bank of India (RBI) imposed significant penalties on Kotak Mahindra Bank and ICICI Bank. The RBI fined Kotak Mahindra Bank Rs 3.95 crore and ICICI Bank Rs 12.19 crore for various non-compliance issues.
Kotak Mahindra Bank faced penalties for multiple infractions, including the failure to conduct an annual review or due diligence of its service provider. Additionally, the bank was criticised for violating contact hours with customers and charging interest from the disbursement due date rather than the actual disbursement date, which contravenes the terms of sanction.
ICICI Bank, on the other hand, was penalised for extending loans to companies where two of its directors sat on the board. The bank also engaged in marketing and selling non-financial products and displayed negligence in reporting frauds to the RBI within the prescribed timeline.
The RBI, in its statement, highlighted the specific violations that led to these penalties. For ICICI Bank, the penalties were imposed for contraventions related to the Banking Regulation Act, 1949, and non-compliance with RBI directions on loans and advances, financial services, and fraud classification and reporting. Kotak Mahindra Bank faced penalties for non-compliance with official directions on managing risks, code of conduct in outsourcing financial services, recovery agents engaged by banks, customer service, and statutory and other restrictions on loans and advances.
It is essential to note that these penalties are centred around regulatory compliance issues and do not pass judgment on the legitimacy of any transactions or arrangements made by the banks with their customers. The RBI's actions underscore its commitment to upholding banking regulations and ensuring that financial institutions adhere to prescribed guidelines and standards.
This move serves as a reminder to banks and financial institutions about the critical importance of compliance with regulatory norms. The RBI's proactive stance reinforces the integrity of the banking sector and fosters trust among consumers.

RBI slaps heavy penalties on Kotak Mahindra & ICICI Bank for regulatory violations

<img src="https://api-discussion.policharcha.com/1696536418206" alt="India's automotive industry poised to generate extra $400 bn by 2035: Report" style="float:none;height: auto;width: auto"/>

India's automotive sector stands on the brink of a transformative era, with the potential to generate an additional $400 billion in revenues by 2035, according to a comprehensive report by consultancy firm Arthur D Little.
Presently the fourth-largest automotive market globally, valued at $250 billion, India is primed to escalate to a staggering $600 billion by 2035.
The report outlines strategic avenues for the country to emerge as a $1 trillion export powerhouse and a leader in global electric vehicle manufacturing and automotive software research and development.
India's strength lies in its strategic positioning as an alternative to China, aligned with the global industry's China-plus-one policy. By focusing on enhancing its global competitiveness, India can leverage this advantageous position, specifically in manufacturing electric vehicles, and establish its dominance in cutting-edge automotive software research and development.
Key to this potential growth is achieving manufacturing excellence at scale, putting India on par with global automotive hubs like Japan, Germany, and South Korea, which annually generate over $500 billion in revenue.
While India's automotive exports primarily cater to emerging markets, the report underscores the need for aligning manufacturing standards with those of developed economies. Recent safety and emission regulations have narrowed the gap, bridging the divide between the local automotive industry and more established counterparts.
“We are seeing a number of Indian original equipment manufacturers (OEMs) like Mahindra &amp; Mahindra, Tata Motors, and Ola Electric having aspirations of being a global player. We talk about Tesla and BYD when we consider companies pioneering EVs globally. In 2035, we will also be talking of 2-3 Indian firms having achieved a similar feat," Barnik Maitra, managing partner, South Asia and India, for American consulting firm Arthur D Little, said.
Crucially, India is poised as the most significant China-plus-one alternative, attracting interest from global OEMs.
Despite intense competition, the report emphasises that India's thriving domestic market remains a robust base for expansion.
“Middle Eastern nations are heavily transforming their industries. The auto sector is one of their target sectors and they are trying to attract foreign investments. India must know there is limited funds and countries like Saudi are willing to put a lot of government funds to foster the sector. That said, there is huge interest in investing in India and it does not need to lure investments with government cost," Andreas Schlosser, partner and global automotive leader, Arthur D Little, said.
To fully capitalise on this potential, the report suggests global players should deepen their presence in India, focusing on manufacturing, sourcing, and software development.
Moreover, the report highlights the transformative potential for Indian companies. With the global automotive industry undergoing significant disruptions, Indian companies have the opportunity to evolve into global champions, extending their influence internationally.
This transformative period demands collaboration, innovation, and strategic investments, making India's automotive industry a pivotal player in shaping the future of mobility on a global scale. As the world shifts towards sustainable and technologically advanced transportation, India stands poised to lead the way, promising a future marked by innovation, excellence, and economic growth.

India's automotive industry poised to generate extra $400 bn by 2035: Report

<img src="https://api-discussion.policharcha.com/1696533758539" alt="RBI's UDGAM Portal expands, facilitating access to billions in unclaimed deposits" style="float:none;height: auto;width: auto"/>

In a significant move toward financial inclusivity, the Reserve Bank of India (RBI) has announced the expansion of the UDGAM (Unclaimed Deposits - Gateway to Access Information) portal.
On September 28, the search facility on UDGAM was extended to 30 banks, covering approximately 90% of unclaimed deposits in the Depositor Education and Awareness (DEA) Fund. This development marks a crucial step in reuniting account holders with their long-forgotten funds.
The initiative, launched by the RBI in August 2023, introduced a centralised web portal, UDGAM, aiming to simplify the process of locating and claiming unclaimed deposits across various banks. Initially, the portal provided search options for seven major banks, including State Bank of India (SBI), Punjab National Bank (PNB), Central Bank of India, Dhanlaxmi Bank, South Indian Bank, DBS Bank India, and Citibank.
Yogesh Dayal, Chief General Manager at RBI, highlighted the phased approach to make the search facility available for all banks, stating, " The search facility was initially made available on the portal for seven banks and it was intimated to public that the search facility for remaining banks on the portal would be made available in a phased manner by October 15, 2023."
The need for such a portal arose from the mounting volume of unclaimed deposits, prompting the RBI to initiate awareness campaigns, emphasising the importance of addressing this issue.
As of February 2023, public sector banks (PSBs) had transferred approximately ₹35,000 crore in unclaimed deposits to the RBI. These funds primarily belonged to accounts that had remained inactive for a period of ten years or more.
SBI led the chart with unclaimed deposits worth ₹8,086 crore, followed by PNB with ₹5,340 crore, Canara Bank with ₹4,558 crore, and Bank of Baroda with ₹3,904 crore.
When an account remains dormant for a decade, the deposited funds are transferred to the 'Depositor Education and Awareness' (DEA) Fund managed by the RBI, with the aim of raising public awareness about financial matters.
The development and implementation of the UDGAM portal involved collaboration between Reserve Bank Information Technology Pvt Ltd (ReBIT), Indian Financial Technology &amp; Allied Services (IFTAS), and several participating banks. By centralising the search process for unclaimed deposits, the RBI's UDGAM portal stands as a testament to India's commitment to financial transparency, empowering individuals to reclaim their financial assets and bolstering the nation's overall economic resilience.

RBI's UDGAM portal expands, facilitating access to billions in unclaimed deposits

<img src="https://api-discussion.policharcha.com/1695999379069" alt="India's foreign exchange reserves decline to USD 590.702 billion" style="float:none;height: auto;width: auto"/>
India's foreign exchange reserves witnessed a further decline, dropping by USD 2.335 billion to USD 590.702 billion for the week ending September 22, as reported by the Reserve Bank of India (RBI) on Friday.
In the preceding week, the reserves had decreased by USD 867 million to USD 593.037 billion. This recent dip follows a significant peak reached in October 2021 when India's foreign exchange reserves soared to an all-time high of USD 645 billion.
The decline in reserves can be attributed to the central bank's efforts to stabilise the rupee amidst challenges arising from global developments since the previous year.
The major component of India's reserves, the foreign currency assets, contracted by USD 2.552 billion to USD 523.363 billion for the week ending September 22, as indicated in the Weekly Statistical Supplement released by the RBI.
These foreign currency assets account for various currencies, including the euro, pound, and yen, and their value is influenced by fluctuations in exchange rates.
Gold reserves, however, saw a slight increase, rising by USD 307 million to USD 44.307 billion during the same period, according to the RBI.
Additionally, the Special Drawing Rights (SDRs) experienced a decline of USD 79 million, falling to USD 18.012 billion. India's reserve position with the International Monetary Fund (IMF) also witnessed a decrease of USD 11 million, reaching USD 5.019 billion in the reporting week, as indicated in the data provided by the apex bank.
The country's fluctuating foreign exchange reserves highlight the challenges faced in managing economic stability amidst global uncertainties. Analysts and policymakers continue to monitor these developments closely, aiming to ensure a balanced approach to safeguarding India's economic resilience.

India's foreign exchange reserves decline to USD 590.702 billion

<img src="https://api-discussion.policharcha.com/1695997781796" alt="Union Home Minister Amit Shah highlights India's economic transformation – From policy paralysis to global prosperity" style="float:none;height: auto;width: auto"/>

In a noteworthy address at the 118th Annual Session of the Chamber of Commerce and Industry, Union Home Minister Amit Shah highlighted India's remarkable progress over the last nine years, attributing it to decisive policies, political stability, and effective teamwork within the federal structure.
Shah contrasted this period of stability with the preceding decade, describing it as a time when the nation was "shaken" by political instability from 2004 to 2014.
The last nine years have seen the result of performance. The country's economy has also got a new direction under Prime Minister Narendra Modi, Shah stated, underscoring India's economic growth. He pointed out that the GDP had surged from USD 2.03 trillion to USD 3.75 trillion, almost doubling during this period. Per capita income also rose significantly, reaching Rs 1.80 lakh from Rs 68,000 in 2013-14.
Shah praised PM Modi's transformative initiatives across various sectors, especially highlighting the successful organisation of the G20 Summit. He noted that these efforts had infused new energy not only into trade and industries, but also into every sector of the country, creating a sense of momentum.
"India's Moment" has become a topic of discussion worldwide, Shah noted, with India being recognised as a vibrant global player. He emphasised India's appeal as a destination for companies looking to relocate, citing the country's young workforce, democratic system, teamwork, and clear policy formulation under Modi's leadership.
Shah also discussed the Production Linked Incentive Scheme, which has realised the dream of "Make in India" in 14 sectors within the country. He stressed that the next 25 years are crucial for India's trade and industries and called for Indian companies to expand globally.
Shah also emphasised the need for strengthening both small and large industries, advocating for a robust network and support from organisations like PHDCCI.
Additionally, Shah highlighted the impact of the new education policy introduced by the Modi government, foreseeing India becoming a premier global destination for students in the next decade. He concluded his address by stressing the importance of continuing on this trajectory of growth and progress.

Union HM Shah highlights India's economic transformation – From policy paralysis to global prosperity

<img src="https://api-discussion.policharcha.com/1695819710848" alt="Afghanistan's currency leads global performance despite economic challenges" style="float:none;height: auto;width: auto"/>

Afghanistan's Afghani has surprisingly emerged as the top-performing global currency for the September quarter, according to Bloomberg's data analysis. During this period, the Afghani's value has soared by 9%, a surge attributed to increased humanitarian aid and heightened trade with neighbouring Asian nations.
In an effort to assert control over their currency, the Taliban regime has introduced various measures, such as banning the use of US dollars and Pakistani rupees in local transactions. They have also imposed strict restrictions on the outflow of US dollars and have criminalised online currency trading, threatening offenders with imprisonment.
However, despite this currency success, Afghanistan continues to grapple with widespread poverty and a troubling human rights record. While the Afghani has gained 14% in value over the past year, it currently ranks third in global currency performance, trailing behind the currencies of Colombia and Sri Lanka.
A recent World Bank report underscores Afghanistan's isolation from the global financial system due to international sanctions. The report paints a grim picture, citing high unemployment rates, two-thirds of households struggling to meet basic needs, and a shift from inflation to deflation in the country.
In an effort to alleviate economic hardships, the United Nations has been dispatching regular shipments of US dollars, totalling up to $40 million, to support impoverished Afghans since the end of 2021. Currently, money changers, locally known as "sarraf," play a crucial role in facilitating foreign currency exchanges. They operate stalls in markets and establish businesses across the nation.
The open-air market of Sarai Shahzada in Kabul serves as the de facto financial centre of Afghanistan, where tens of millions of dollars are exchanged daily. According to the central bank, there are currently no trading restrictions in place. Due to financial sanctions, nearly all remittances to Afghanistan now rely on the Hawala money transfer system, upon which sarrafs heavily depend.
The United Nations estimates that Afghanistan requires approximately $3.2 billion in assistance for this year, but only $1.1 billion has been provided, as reported by the international organisation's financial tracking agency. Last year, the United Nations allocated roughly $4 billion to address the critical hunger threat faced by 41 million people in Afghanistan.

Afghanistan's currency leads global performance despite economic challenges

<img src="https://api-discussion.policharcha.com/1695750544191" alt="Govt announces ₹6.55 lakh crore borrowing plan for second half of FY24" style="float:none;height: auto;width: auto"/>

In a financial update, the Indian government unveiled its borrowing plan for the second half of the fiscal year 2023-24 amounting to ₹6.55 lakh crore. This borrowing will be accomplished through the issuance of dated securities, which play a vital role in meeting the government's fiscal deficit targets.
The Indian government relies heavily on market borrowings to bridge the fiscal deficit gap, and this announcement sheds light on its borrowing strategy for the latter part of the fiscal year. It is important to note that the government had previously projected gross market borrowing of ₹15.43 lakh crore for the entire fiscal year 2023-24.
As per the statement released by the finance ministry, the government has made the following decisions regarding its borrowing plan:-
<ins>Sovereign Green Bonds (SGrBs)</ins>: The government will raise ₹6.55 lakh crore through dated securities, which includes ₹20,000 crore through the issuance of Sovereign Green Bonds. Sovereign Green Bonds are a notable financial instrument aimed at funding environmentally sustainable projects.
Longer Duration Securities: In response to market demand for longer duration securities, the government will issue a 50-year security for the first time. This decision reflects the government's commitment to diversifying its borrowing portfolio.
<ins>Auctions and Maturity Profiles</ins>: The gross market borrowing of ₹6.55 lakh crore will be spread across various maturities, ranging from 3 to 50 years. The government plans to conduct 20 weekly auctions to complete this borrowing program. The distribution of borrowing across different maturities is as follows – 3 years (6.11%), 5 years (11.45%), 7 years (9.16%), 10 years (22.90%), 14 years (15.27%), 30 years (12.21%), 40 years (18.32%), and 50 years (4.58%).
<ins>Switching of Securities</ins>: The government will continue to execute the switching of securities to manage its redemption profile effectively. Out of the budgeted ₹1,00,000 crore for switch operations, ₹51,597 crore has already been conducted, with the remaining amount set to be completed in the second half of the fiscal year.
<ins>Greenshoe Option</ins>: The government will exercise the greenshoe option to retain an additional subscription of up to ₹2,000 crore against each of the securities indicated in the auction notification. A greenshoe option is a provision grants the underwriter the right to sell more shares than originally planned. This allows for flexibility in responding to market demand.
<ins>Treasury Bills Issuance</ins>: In the third quarter (Q3) of FY 2023-24, the government plans to issue Treasury Bills amounting to ₹24,000 crore, with a net borrowing of ₹(-)52,000 crore during the quarter. These Treasury Bills will be issued in various tenures, including 91 days, 182 days, and 364 days.
<ins>Ways and Means Advances (WMA) Limit</ins>: To address temporary mismatches in government accounts, the Reserve Bank of India has set the Ways and Means Advances (WMA) limit for the second half (H2) of FY 2023-24 at ₹50,000 crore.
This borrowing plan provides insights into the government's financial strategy for the coming months and its efforts to manage fiscal requirements efficiently. Market participants and investors will closely monitor these developments to assess their impact on the financial markets and the broader economy.

Govt announces ₹6.55 lakh crore borrowing plan for second half of FY24

<img src="https://api-discussion.policharcha.com/1695741925247" alt="Dream11 challenges record breaking Rs 40k cr tax demand in HC" style="float:none;height: auto;width: auto"/>

In a significant development, Dream11, a leading player in India's fantasy gaming sector, has taken legal action to contest a staggering INR 40,000 Crores ($5.4 billion) goods and services tax (GST) demand from Indian tax authorities.
This move comes in response to a show cause notice accusing the company of evading GST and failing to pay the 28% GST on the nominal value of bets. If confirmed, this would represent the largest-ever claim in the history of indirect taxation in India.
<ins>Background</ins>
Dream11, backed by Harsh Jain and part of Dream Sports, has followed in the footsteps of Gameskraft, another gaming company that faced a similar tax dispute. Gameskraft was served with an INR 21,000 Crores ($2.8 billion) show cause notice from the Directorate General of GST Intelligence (DGGI) for alleged indirect tax evasion on a betting amount totalling INR 77,000 Crores ($10.4 billion) for the period from 2017 to June 2022. Gameskraft challenged the notice in court, setting a precedent that could affect approximately 40 gaming companies, including Dream11.
<ins>Dream11's Response</ins>
Dream11, being the market leader in India's fantasy gaming sector, with a valuation exceeding $8 billion, and a user base of over 180 million individuals, has opted to contest the massive GST demand. The company, in its writ petition filed in the Bombay High Court, argues that its platform involves <a href="https://policharcha.com/article/social/213f170e-25e9-4a10-97b7-0402812a9bfa/game-of-chance-or-game-of-skill-how-gambling-is-regulated-in-india" target="_blank">games of skill</a> and should attract a lower tax rate, which should be applied to its earnings from platform fees rather than the prize pool. The case is expected to be closely watched, as its outcome could have significant implications for the broader gaming industry.
<ins>Impact of GST Changes</ins>
Earlier this year, the GST Council decided to impose a 28% GST rate on the entire nominal value for real-money gaming transactions, a move that had a substantial impact on the gaming sector in India. This decision marked a considerable challenge for companies operating in this space.
Dream11's legal battle against the massive GST demand is set to unfold in the Bombay High Court in the coming days, with potential ramifications for the entire gaming industry in India.

Dream11 challenges record breaking Rs 40k cr tax demand in HC

<img src="https://api-discussion.policharcha.com/1695413139444" alt=""Inclusion of Indian government bonds in JP Morgan index expected to boost investor base & potentially strengthen rupee: CEA" style="float:none;height: auto;width: auto"/>

The inclusion of Indian Government bonds into JP Morgan's benchmark emerging market index from June 2024 is expected to have far-reaching implications, according to Chief Economic Advisor V Anantha Nageswaran. He anticipates that this move will broaden the investor base and potentially lead to the appreciation of the Indian rupee.
JP Morgan, a global financial firm, recently announced its plan to gradually incorporate Indian government bonds (G-Secs) into its benchmark index over a ten-month period, starting from June, 2024. This phased approach will result in a one percent increase in the index weight of these bonds.
Nageswaran highlighted that the inclusion of Indian government bonds in the JP Morgan index would expand the pool of investors interested in these securities. Additionally, it could alleviate the pressure on Indian financial institutions, which have traditionally been among the largest purchasers of government bonds. With a broader investor base, these institutions could redirect their funds towards more productive purposes, such as lending to the private sector, businesses, and individuals.
In response to a query about the potential impact on the Indian rupee's exchange rate, Nageswaran drew parallels to the period between 2003 and 2008 when India experienced a surge in capital inflows. He suggested that there might be a tendency for the rupee to appreciate, given the anticipated demand from investors seeking Indian government securities as part of the index inclusion.
This development aligns with Finance Minister Nirmala Sitharaman's announcement in the 2020-21 Budget speech, which aimed to open certain specified categories of government securities to non-resident investors. These securities, once listed on the indices, would no longer have lock-in requirements. The Indian government has addressed various issues, including taxation concerns, in preparation for this long-awaited move.

Inclusion of Indian government bonds in JP Morgan index expected to boost investor base & potentially strengthen rupee, says CEA

<img src="https://api-discussion.policharcha.com/1695367138577" alt="SEBI eases rules for large corporations, extends advisers' compliance deadline" style="float:none;height: auto;width: auto"/>

SEBI on Thursday decided to provide flexibility in the framework for large corporations to meet financing needs through the issuance of debt securities, and extended the timeline for investment advisers to comply with enhanced qualification and experience requirements.
Additionally, the regulator will streamline the framework for credit of unclaimed amounts of investors in listed entities other than companies, REITS, and InvITs to the Investor Protection and Education Fund (IPEF) along with the process of refund from the IPEF.
Besides approving these proposals, SEBI board, at its meeting on Thursday, also discussed various trends in the securities market, including technological trends, as well as the regulator’s approach to proactively plan for the same going forward, according to a release.
The board has given its nod for providing flexibility in the framework for large corporates to meet their financing needs from the debt market through a few changes in the existing framework.
New Framework
Under the new framework, SEBI said that a higher monetary threshold would be specified for defining large corporations, thereby reducing the number of entities qualifying as large corporations.
Moreover, it has been decided to remove penalties on large corporations that are not able to raise a certain percentage of incremental borrowing from the debt market, and plans to introduce incentives and moderated disincentives.
In a bid to facilitate ease of compliance as well as ease of doing business, the board has decided to retain the requirement that compliance with the framework will be met over a contiguous block of three years.
Further, it has been decided to dispense with the requirement for large corporations to file a statement identifying itself as a large corporation and a statement regarding compliance with the framework.
As per the current rules, large corporations are those that need to have an outstanding long-term borrowing of at least Rs 100 crore, a credit rating of ‘AA and above’, and a target to finance themselves with long term borrowings (above one year).
To deepen the bond market, the regulator had mandated large corporates to meet one-fourth of their financing needs from the debt market.
As per the release, the board has also cleared a proposal to extend the timeline by two years till September 2025 for compliance with enhanced qualification and experience requirements for investment advisers.
Individual investment advisers, principal officers of non-individual investment advisers, and persons, who are with the investment advisers and associated with investment advice, are required to comply with enhanced qualification and experience requirements.
To further streamline the credit of unclaimed amounts and provide for claims of such unclaimed amounts, the board has approved amendments to rules about the IPEF, disclosure, Real Estate Investment Trusts (REITs), and Infrastructure Investment Trusts (InvITs).
This is aimed at prescribing a uniform process of a claim for such amounts in a streamlined manner for the ease and convenience of investors.
Also, SEBI said that investors may approach the debt-listed entity, REIT, and InvIT to claim their unclaimed amounts, thereby ensuring minimal disruptions in the claim process for investors.
Further, the amendments are aimed at creating a regulatory framework for the segregation of unclaimed amounts of investors in the IPEF facilitating the utilisation and processing of such amounts in the manner prescribed by the board.
The proposal for the transfer of unclaimed amounts lying in an escrow account for more than seven years, to the IPEF for debt-listed entities was approved by the SEBI board in its meeting in September 2022.
Similarly, the proposal to transfer the unclaimed or unpaid amounts to investors in REITs and InvITs to IPEF were approved by the regulator in its meeting in December 2022.
Accordingly, changes were made in the REITs and InvIT Regulations.

SEBI eases rules for large corporations, extends advisers' compliance deadline

<img src="https://api-discussion.policharcha.com/1695124016259" alt="India's Export Renaissance: Surging past $776 bn with robust growth strategies" style="float:none;height: auto;width: auto"/>

While many major economies across the globe continue to grapple with the lingering repercussions of the COVID-19 pandemic, the Indian economy presents a distinct narrative. India's exports have witnessed an unprecedented surge, reaching a remarkable $776 billion. This represents a substantial 36 percent increase from the $500 billion recorded merely two years ago. Notably, the nation's goods exports have experienced a remarkable ascent of nearly 53 percent over the past two years, rebounding from a low point of $292 billion during the fiscal year 2020-21. This remarkable turnaround can be largely attributed to the post-COVID resurgence in India's foreign trade.
Despite the persisting challenges in the global economic landscape, India has emerged as one of the world's fastest-growing economies in the previous fiscal year. Against the backdrop of a global economic slowdown, this robust growth trajectory stands as a testament to the resilience of the Indian economy. This exceptional growth story can be primarily attributed to three key factors.
<ins>Manufacturing exports – Key FTAs</ins>

<img src="https://api-discussion.policharcha.com/1695124064398" alt="India's Export Renaissance: Surging past $776 bn with robust growth strategies" style="float:none;height: auto;width: auto"/>

Goods exports are poised for a robust year-on-year growth of 10 percent, largely fuelled by the unwavering commitment of the Indian government. Various government-driven initiatives, including schemes aimed at promoting merchandise exports, duty exemptions, export promotion capital goods, and support for transportation and marketing, have played a pivotal role in propelling exports to new heights.
Furthermore, substantial government investments in infrastructure, logistics, and transportation have significantly streamlined the supply chain, enhancing the overall efficiency of the export sector. Complementary upskilling programs have further bolstered the competitiveness of Indian goods in the global market.
Key initiatives like the Production-Linked Incentive (PLI) scheme, which offers subsidies to companies scaling up their manufacturing operations in India instead of relying on imports, have gained prominence. Simultaneously, the adoption of the "China plus One" strategy by companies seeking to diversify their production and supply chain activities away from China has opened new avenues for India in sectors such as electronics and semiconductors.
Moreover, the government is proactively promoting exports through the signing of free trade agreements (FTAs) with various countries, thereby facilitating easier market access for Indian exporters. Over the past three years, India has successfully inked FTAs with countries including Japan, Australia, the United Arab Emirates, and Singapore, with ongoing negotiations underway with the United Kingdom. These strategic agreements are poised to further bolster India's export diversification efforts and global market presence.
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Also Read – <a href="https://policharcha.com/article/economy/23cb9311-0c8a-4511-950f-c0598d2ab36e/indias-jam-trinity-achieves-financial-inclusion-rate-in-six-years-saving-years-says-wb" target="_blank">India's JAM Trinity achieves 80% financial inclusion rate in six years</a>&nbsp;
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<ins>Service exports – Not just IT services</ins>

<img src="https://api-discussion.policharcha.com/1695124103137" alt="India's Export Renaissance: Surging past $776 bn with robust growth strategies" style="float:none;height: auto;width: auto"/>

The dynamism of India's service exports is undeniably impressive, having witnessed a remarkable surge of 56.4 percent from its FY 2020-21 figures, when it stood at $206 billion. This resurgence in India's service exports marks the end of a lacklustre phase that persisted in the foreign trade sector for the preceding five years. Notably, this upward trajectory is anticipated to persist with a projected growth rate of 25 percent.
Crucially, the driving force behind this growth surge primarily lies in the rapid expansion of small services. These encompass a wide array of offerings such as digital marketing, web development, and Software as a Service (SaaS) products. India's services sector is characterised by a youthful, tech-savvy workforce, a plethora of highly qualified engineers, and widespread internet accessibility. These factors collectively form the bedrock of this remarkable growth story.
Leveraging its demographic advantages and technological prowess, the services sector has adeptly delivered top-notch services at competitive price points, further enhancing its stature as a global services hub.
While the IT services category quietly continues to expand, accounting for nearly 45 percent of the overall services exports, another noteworthy category has emerged as a significant growth driver. Business services, encompassing domains such as accounting, audit, quality assurance, research and development, management consulting, and the development of digital and artificial intelligence (AI) capabilities, now contribute a substantial 25 percent to the services exports landscape.
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Also Read – <a href="https://policharcha.com/article/economy/6904f930-8dab-4f06-907c-d2b78724eb04/indian-stock-market-outperforms-that-of-us-china-others-major-economies-report" target="_blank">Indian stock market outperforms that of US, China, others major economies: Report</a>&nbsp;
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<ins>Global Capability Centres - cost optimisation, process efficiency, and digital transformation</ins>

<img src="https://api-discussion.policharcha.com/1695124155290" alt="India's Export Renaissance: Surging past $776 bn with robust growth strategies" style="float:none;height: auto;width: auto"/>

Global capability centres, also known as GCCs or GICs, are offshore units of multinational corporations that operate across the globe.
The upsurge in business services exports can be largely attributed to the proliferation of Global Capability Centres (GCCs) or captive technology facilities, which are primarily established by major global financial institutions and multinational corporations within India. Presently, India boasts a network of 1,500 GCCs strategically dispersed across the country, employing a staggering 1.3 million individuals. In fact, a significant milestone has been achieved with India hosting 45 percent of the world's GCCs.
This segment's remarkable growth rate, nearly double that of software services, can be attributed to India's extensive talent pool, which offers skilled professionals at a relatively lower cost compared to global standards. India's transition from Shared Services Companies (SSCs) functioning primarily as cost centres to Centres of Excellence (COEs) and profit-oriented Global Capability Centres is a noteworthy transformation. These Global Business Services (GBS) models, often reporting to global Chief Experience Officers (CXOs), specialise in cost optimisation, process efficiency, and digital transformation. Additionally, Finance COEs play a pivotal role in audits and risk mitigation, harnessing India's skilled workforce and robust technology infrastructure to formulate strategies, assist with systems design, and even develop software from the ground up.
Consequently, SSCs, previously focused on transactional processes, have evolved into strategic hubs delivering substantial value. A joint report by Nasscom and research firm Zinnov predicts that India will welcome around 320 new GCCs by the fiscal year ending in 2025, propelling the market to a remarkable 33 percent growth, reaching $60 billion within the same period. With over 440 Finance Shared Services COEs and a workforce exceeding 700,000 based in Tier 1 and 2 cities, India has unquestionably become a global epicentre. This transformation underscores India's pivotal role as a nucleus for value creation and profit generation, a vital component for global enterprises.
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Also Read – <a href="https://policharcha.com/article/economy/3cd5bcb8-958b-4c37-9d4c-356cc804aac4/singapore-us-top-as-indias-outward-inward-fdi-destination-respectively" target="_blank">Singapore, US top as India’s outward &amp; inward FDI destination respectively</a>&nbsp;
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<ins>Still a long way to go</ins>
While India has undoubtedly made remarkable strides in its growth trajectory, it is essential to acknowledge that there is still a considerable distance to cover. One significant challenge lies in the comparatively higher infrastructure costs as a percentage of the total production cost in India, especially when compared to its international counterparts.
In the year 2022, China's merchandise exports accounted for a substantial 20 percent of its GDP, whereas India's stood at 11 percent. To bolster India's export prowess, a multifaceted approach is imperative, encompassing several critical aspects.
First and foremost, a substantial increase in infrastructure investment is paramount. This investment will not only reduce production costs, but also enhance the overall competitiveness of Indian exports. Simultaneously, addressing trade financing and working capital financing is essential. By streamlining and fortifying these financial aspects, businesses can ensure they have the necessary resources and flexibility to expand their export activities.
Furthermore, the efficiency of cross-border payments must be improved. Simplifying and expediting the payment process for international transactions will facilitate smoother trade operations and reduce unnecessary delays and costs. Additionally, enhancing trade documentation procedures is equally crucial, as it helps eliminate bureaucratic hurdles and ensures compliance with international standards.
In essence, a comprehensive strategy that encompasses infrastructure development, skilled workforce augmentation, efficient payment systems, robust financing mechanisms, and streamlined trade documentation is essential. Such an approach will provide the much-needed impetus to elevate India's exports to unprecedented heights. This, in turn, will foster economic growth and bolster India's position on the global stage in terms of competitiveness and trade.

India's Export Renaissance: Surging past $776 bn with robust growth strategies

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In a significant development, Singapore has claimed the top spot as the largest beneficiary of outward direct investment (ODI) from Indian firms during the financial year 2023. According to data from a study conducted by the Reserve Bank of India (RBI), Singapore received a substantial sum of Rs 2.03 lakh crore, equivalent to approximately $24.48 billion USD, accounting for a remarkable 22.3 percent of India's total ODI for the year.
<ins>Rising ODI trends</ins>
The overall outward direct investment by Indian companies exhibited impressive growth, surging by 19.46 percent to reach Rs 9.11 lakh crore (approximately $109 billion USD) in FY2023. This figure represents a notable increase from the previous year's Rs 7.62 lakh crore, indicating a robust expansion in India's global investment footprint.
<ins>Key recipients of Indian ODI</ins>
While Singapore led the pack, the United States and the United Kingdom also secured substantial investments from India. The United States attracted Rs 1.24 lakh crore (13.6 percent share), while the United Kingdom received Rs 1.16 lakh crore (12.8 percent share) of Indian ODI during the fiscal year 2023. These three nations alone accounted for a substantial 48.7 percent of India's total outward direct investment.

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<ins>Tax friendly jurisdictions also among top recipients</ins>
Remarkably, three jurisdictions globally recognized for their favourable tax regimes found themselves among the top ten recipients of Indian ODI. Bermuda received Rs 12,582 crore ($1.51 billion USD), Jersey received Rs 11,661 crore ($1.40 billion USD), and Cyprus received Rs 9,985 crore ($1.20 billion USD), as per RBI data. Bermuda, in particular, stands out for its tax policies, imposing no taxes on profits, income, dividends, or capital gains, and having no limitations on profit accumulation or dividend distribution, according to a report by PwC.
Top Sources of Inward Foreign Direct Investment (FDI) into India
Shifting the focus from outward investment to India's inward FDI, the United States emerged as the largest source of foreign direct investment in India during FY2023. RBI data reveals that the United States contributed a substantial Rs 8.58 lakh crore ($103 billion USD) in FDI, accounting for 17.2 percent of the total share. Mauritius followed closely, with FDI worth Rs 7.43 lakh crore (14.9 percent share), and the United Kingdom contributed Rs 7.08 lakh crore to India's FDI inflow.
<ins>Overall FDI trends</ins>
The total foreign direct investment flowing into India in FY2023 reached a robust Rs 49.93 lakh crore, equivalent to approximately $601 billion USD, compared to Rs 46.72 lakh crore in the preceding year. Notable contributors to India's FDI included Singapore (Rs 6.59 lakh crore), Netherlands (Rs 5 lakh crore), and Japan (Rs 3.98 lakh crore). Of this total, Rs 47.75 lakh crore was in the form of equity, with the remainder comprising debt investments.
<ins>RBI's Annual Census on Foreign Liabilities and Assets (FLA)</ins>
This comprehensive data is sourced from the RBI's annual census on foreign liabilities and assets (FLA), which covers cross-border liabilities and assets of various entities, including companies, limited liability partnerships, alternative investment funds, and partnership firms. Out of the 38,689 entities that participated in the latest census round, 33,850 reported both inward and outward direct investment in their balance sheets as of end-March 2023.
<ins>Sectoral attraction and market value insights</ins>
Within India, the manufacturing sector continued to attract the largest share of FDI equity, both at market value and face value. Among services, the information &amp; communication and financial &amp; insurance sectors were the major recipients of FDI. Interestingly, over 97 percent of the responding DI entities were unlisted in March 2023, and they accounted for a significant portion of the FDI equity capital in India. Non-financial companies retained the majority of the FDI equity at face value, with the market value of FDI in unlisted firms surpassing that in listed companies, as per the RBI report.
In conclusion, Singapore's ascent as the primary recipient of Indian ODI and the United States' position as India's leading source of FDI underscore the increasingly dynamic nature of global investment flows involving India. These trends are indicative of the growing economic ties and opportunities on both ends of these investment channels.

Singapore, US top as India’s outward & inward FDI destination respectively

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India has enacted a five-year anti-dumping duty targeting specific types of Chinese steel, as per an official government notice. The move, according to Reuters, comes amid a 62% rise in steel imports from China to India between April and July, compared to the same timeframe last year. China sold 0.6 million metric tons to beat South Korea to become the biggest steel exporter to India.
Steel secretary Nagendra Nath Sinha stated earlier this week that the government was keeping a close eye on steel imports following apprehensions raised by the domestic industry about potential unfair trade practices by Chinese sellers. China predominantly exports cold-rolled coils or sheets to the Indian market.
While India has taken action, similar steps are being considered on the other side of the globe. The United States and the European Union, as per Bloomberg, are in negotiations to formulate new trade tariffs that would target excess steel output, particularly from China.
It was earlier reported on September 7 that the tariffs would largely zero in on imports that gain an unfair advantage from non-market practices. However, discussions about the exact scope of these tariffs and other countries that might be impacted are still underway.
These deliberations form a part of the Global Arrangement on Sustainable Steel and Aluminum, a framework that the EU and the Biden administration have been discussing since last year.
The goal is to resolve a longstanding dispute ignited when former US President Donald Trump initiated tariffs on metal imports from Europe, citing national security concerns. Both the US and the EU currently impose roughly a 25% tariff on a variety of steel imports as safeguard measures, Bloomberg reported.

India imposes five-year anti-dumping duty on Chinese steel amid surging imports

<img src="https://api-discussion.policharcha.com/1694503053789" alt="India's focus on indigenous defence tech highlighted by decreasing arms imports & record exports" style="float:none;height: auto;width: auto"/>

Major Sinha, the Lieutenant Governor of Jammu and Kashmir, underscored India's commitment to innovation and indigenous technology development in the defence sector. Speaking at the North-Tech Symposium-2023 held on the Jagti Campus of the Indian Institute of Technology (IIT) on the outskirts of Jammu, he highlighted the significant reduction in India's arms imports over the last few years and the record-high defence exports achieved in the previous financial year.
The Lieutenant Governor was joined at the event by Chief of Defence Staff (CDS) Gen Anil Chauhan, where they congratulated the Northern Command, the Society of Indian Defence Manufacturers (SIDM), and IIT Jammu for jointly hosting hundreds of industries and defence tech startups.
Major Sinha emphasised the historical significance of hosting the North-Tech Symposium's defence expo at IIT Jammu for the first time, characterising it as a proud moment for academia. The three-day event aims to showcase cutting-edge technological advancements in the Indian Army while fostering collaboration between the army, industry, and academia in the research, development, and innovation of defence technologies.
Furthermore, the Lieutenant Governor highlighted India's evolving role as a defence exporter and its increasing self-reliance in defence production. He credited Prime Minister Narendra Modi's leadership for propelling India towards self-reliance in defence.
Major Sinha emphasised India's achievements, including becoming a responsible space power and demonstrating strategic strength with the launch of INS Vikrant last year. He noted that India's arms imports have significantly decreased over the past 4-5 years, coinciding with a record-high in defence exports during the last financial year. These developments reflect India's unwavering commitment to innovation and the development of indigenous defence technology.
The Lieutenant Governor also mentioned the government's ambitious target of achieving 70 percent self-reliance in weaponry by 2027. This goal offers boundless opportunities for private industries, Micro, Small, and Medium Enterprises (MSMEs), and technology startups to contribute to the nation's defence capabilities.
India's steadfast progress in the defence sector, as highlighted by decreasing arms imports and increasing defence exports, reaffirms the Union government's dedication to bolstering innovation and indigenous technology development in the country.

India's focus on indigenous defence tech highlighted by decreasing arms imports & record exports

Main points -&nbsp;
<ol>
<li>India's Digital Payment Infrastructure (DPI), comprised of Jan dhan accounts, Aadhaar and mobile phones, has helped the country to achieve an 80% financial inclusion rate in just six years.</li>
<li>Without this initiative, India would achieved the same in 47 years.</li>
<li>Total value of UPI transactions in FY23 amounted to nearly 50% of India's nominal GDP.</li>
<li>A bank's average cost for customer onboarding has decreased from $23 to $0.1, mostly owing to robust digital infrastructure.</li>
<li>DBT program has enabled India to save $33 billion, equivalent to almost 1.14% of its GDP.</li>
<li>25% of adults held transaction accounts in 2008, today it is at 80%.</li>
<li>Due to Pradhan Mantri Jan Dhan Yojana, the number of accounts trippled from 147.2 million in March 2015 to 462 million by June 2022.</li>
<li>56% of the above mentioned accounts are owned by women.</li>
<li>DPIs have also streamlined Know Your Customer (KYC) procedures, leading to cost reductions, with banks utilizing e-KYC witnessing a drop in compliance costs from $0.12 to $0.06.</li>
</ol>

ICYMI - World Bank's report on financial inclusion in India.

Top global brokerage firm Morgan Stanley on Thursday upgraded Indian stocks to overweight rating and ranked India as the No. 1 market in its basket of Asian emerging markets, excluding Japan.
Beating the likes of Korea and UAE, India jumped 5 places in Morgan Stanley's list on the back of a structural uptrend, secular leadership, and relative valuations being less extreme than in October.

Point to note - MS upgrades India to overweight rating, and downgrades China to equal-weight rating

Read more <a href="https://economictimes.indiatimes.com/markets/stocks/news/india-upgraded-to-no-1-slot-in-morgan-stanleys-emerging-markets-list/articleshow/102374754.cms?from=mdr" target="_blank">here</a>&nbsp;&nbsp;

India upgraded to No.1 slot in Morgan Stanley's emerging markets list

<div>recently modi announced that India will be among the top three economies of world in his third term. what do think? can it happen?</div>

India top 3 economy in the coming years?

Yesterday I was reading how India has significantly increased toy manufacturing and exports. Earlier the toy market of India consisted mainly of Chinese toys.
I think toy industry has a huge potential to grow in the coming years.

The potential of Toy industry in India

India is trying to secure an exclusive EU tag for Basmati rice which will double its exports in the EU countries.
But pakistan is also involved as it says basmati rice also grow there.

Exclusive EU tag for Basmati rice

The SC has appointed a committee to see if the allegations on Adani Enterprises are true. Good step by SC and lets see what the committee comes up with&nbsp;

ICYMI - World Bank's report on financial inclusion in India.

India upgraded to No.1 slot in Morgan Stanley's emerging markets list

India top 3 economy in the coming years?

The potential of Toy industry in India

Exclusive EU tag for Basmati rice

So finally SC steps into the Adani issue