Trump’s BRICS Tariff Threats Pose Economic Risks for India
As Donald Trump gears up for a potential second term as US President, his protectionist trade policies are already causing significant concerns in the global economy. Trump has threatened to impose 100% tariffs on goods from the BRICS nations—Brazil, Russia, India, China, and South Africa—if they move forward with plans to drop the US dollar as their primary trading currency. This aggressive stance could have serious repercussions for India’s exports, especially in critical sectors like pharmaceuticals, textiles, and information technology. While India has not actively targeted the dollar, it has been exploring alternative settlement mechanisms to maintain efficient trade flows. Analysts warn that these tariffs could disrupt global trade and lead to higher import prices for US consumers.
Trump Appoints Indian-Origin Kash Patel as FBI Director
US President-elect Donald Trump has announced Kash Patel as the next Director of the Federal Bureau of Investigation (FBI), succeeding Christopher Wray. Patel, a long-time Trump loyalist, is known for his controversial role in Trump’s first term and his strong stance against the so-called “deep state”. His nomination has sparked significant debate, with supporters praising his commitment to reform and critics expressing concerns about his qualifications and potential impact on the FBI’s independence.
Upcoming Reforms: Banking Laws (Amendment) Bill, 2024 in Lok Sabha
Union Finance Minister Nirmala Sitharaman is poised to introduce the Banking Laws (Amendment) Bill, 2024 in the Lok Sabha on December 2, 2024. This bill aims to modernize and streamline the regulatory framework governing India’s banking sector by amending key legislation, including the Reserve Bank of India Act, 1934, the Banking Regulation Act, 1949, the State Bank of India Act, 1955, and the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980. The proposed amendments include altering the tenure of directors of cooperative banks, enhancing provisions for the settlement of unclaimed amounts, and redefining financial thresholds. These reforms are expected to improve bank governance, boost investor protection, and enhance the overall efficiency of the banking sector.
India Attracts Record FDI Inflows: USD 29.79 Billion in H1 FY 2024-25
India has seen a substantial surge in foreign direct investment (FDI) with inflows rising by 45% to USD 29.79 billion in the first half of FY 2024-25, up from USD 20.5 billion in the same period last year. This remarkable increase is driven by significant investments in sectors such as services, telecommunications, computer technology, and pharmaceuticals. Key sources of this growth include investments from Mauritius, Singapore, the United States, and the Netherlands. This influx of FDI underscores India’s growing appeal as a robust investment destination and is expected to boost economic growth and job creation across various sectors.
November 2024 GST Collection Climbs to ₹1.82 Trillion, Marking an 8.5% Increase
India’s Goods and Services Tax (GST) revenue saw an impressive 8.5% rise, reaching ₹1.82 lakh crore in November 2024, compared to ₹1.68 lakh crore in the same month last year. This growth is attributed to higher revenues from domestic transactions, which increased by 9.4%, and a 6% rise in revenues from imports. The breakdown of collections includes ₹34,141 crore from Central GST, ₹43,047 crore from State GST, ₹91,828 crore from Integrated GST, and ₹13,253 crore from cess. This steady increase underscores the robust economic activities and effective compliance measures.
Empowering Arunachal’s Rural Economy: Launch of ‘Mission Himveer’
The Government of Arunachal Pradesh has launched Mission Arun Himveer with the aim of enhancing market linkages for local agricultural and horticultural producers. In a significant move, the Arunachal Pradesh Agriculture Marketing Board (APAMB) signed a Memorandum of Understanding (MoU) with the Indo-Tibetan Border Police (ITBP), North East Frontier, to supply a variety of produce, including fruits, vegetables, meat, and poultry products, all sourced from local farmers, Self Help Groups (SHGs), Farmer Producer Organisations (FPOs), and farmer cooperatives. This initiative is designed to provide ready-made markets for produce from remote villages, stimulate the local economy, and tackle employment issues across the state.