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Rupee appreciated 7 paise to 84.22 against the US dollar in morning trade on Tuesday, on a sharp rebound in domestic equities amid improved investor risk appetite. Forex traders said the <keyword id="21663515" type="General" weightage="20" keywordseo="MSCI-equity-index" source="keywords">MSCI equity index</keyword> rebalancing significantly boosted sentiment for Indian equity markets as <keyword id="19932515" type="General" weightage="20" keywordseo="foreign-institutional-investors" source="keywords">foreign institutional investors</keyword> broke a 40-session streak of net selling by purchasing Rs 9,947 crores on Monday, lending robust support to the rupee. Moreover, the win by the incumbent government in Maharashtra, further fueled investor confidence in economic stability, sparking a rally in equity markets. At the interbank foreign exchange, the rupee opened at 84.27 and moved in a tight range and touched an early high of 84.22 against the greenback, registering a gain of 7 paise over its previous close. On Monday, the rupee appreciated 12 paise to close at 84.29 against US dollar. "While Donald Trump's aggressive trade policies loom large, the rupee's outlook remains cautiously optimistic. The <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="261" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword>'s projection of a GDP growth rebound to 7.6 per cent in Q3 has infused fresh confidence in India's economic trajectory. Additionally, a surge in capital inflows is likely to provide robust support," CR Forex Advisors MD Amit Pabari said. Pabari further said that the RBI's vigilant stance will be critical in managing volatility, with interventions likely at key levels to maintain stability. "Given the factors, the USDINR pair appears to face resistance around the 84.50 level, with expectations of trading within a range of 83.80 to 84.50, leaning toward a downside bias," he said. On the global front, US Treasury Secretary nominee Scott Bessent's fiscal deficit reduction agenda capped US Treasury yields, Pabari said. The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading higher by 0.28 per cent at 107.11. Brent crude, the global oil benchmark, rose by 0.33 per cent to USD 73.25 per barrel in futures trade. In the domestic equity market, the 30-share equity benchmark Sensex jumped 167.76 points or 0.21 per cent to 80,277.61 points in early trade, while Nifty jumped 55.80 points or 0.23 per cent to 24,277.70 points. Foreign Institutional Investors (FIIs) turned net buyers in the capital markets on Monday, purchasing shares worth Rs 9,947.55 crore, according to exchange data. SEE ALSO:<a href="https://www.businessinsider.in/tech/mobile/news/oneplus-open-oxygenos-15-update-now-rolling-out-with-flux-themes-improved-ai-features-and-more/articleshow/115657313.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/oneplus-open-oxygenos-15-update-now-rolling-out-with-flux-themes-improved-ai-features-and-more/articleshow/115657313.cms" target="_blank">OnePlus Open OxygenOS 15 update now rolling out with Flux Themes, improved AI features and more</a><a href="https://www.businessinsider.in/tech/news/microsofts-ai-powered-recall-feature-is-now-rolling-out-to-copilot-pcs/articleshow/115654136.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/microsofts-ai-powered-recall-feature-is-now-rolling-out-to-copilot-pcs/articleshow/115654136.cms" target="_blank">Microsoft’s AI-powered Recall feature is now rolling out to Copilot+ PCs</a><a href="https://www.businessinsider.in/business/telecom/news/jio-airtel-and-vi-lost-nearly-11-million-subscribers-in-september-2024/articleshow/115565541.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/telecom/news/jio-airtel-and-vi-lost-nearly-11-million-subscribers-in-september-2024/articleshow/115565541.cms" target="_blank">Jio, Airtel and Vi lost nearly 11 million subscribers in September 2024</a>

Rupee rises 7 paise to 84.22 against US dollar in early trade

<keyword id="19896956" type="General" weightage="100" keywordseo="Swiggy" source="keywords" meta.keywordsubtype="org" meta.entityname="Swiggy" meta.hostid="261" meta.entityid="Swiggy">Swiggy</keyword>’s stock market debut has been awaited for a long time and recent reports suggest that the Bengaluru-based company is expected to raise more than USD 1 billion through its IPO. Reports also suggest that the company might soon file its draft red herring prospectus (DRHP) with the <keyword id="19901204" type="General" weightage="20" keywordseo="Securities-and-Exchange-Board-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Securities and Exchange Board of India" meta.hostid="261" meta.entityid="Securities and Exchange Board of India">Securities and Exchange Board of India</keyword> (Sebi), potentially launching its IPO as early as this week. Meanwhile, Swiggy has been busy implementing several notable changes across its operations, probably to gear up for its IPO. From changing leadership to expanding Instamart’s reach, let us take a look some changes implemented by Swiggy in the last few months. <h2>Leadership overhaul </h2> One of the most significant shifts has been at <keyword id="19939135" type="General" weightage="20" keywordseo="Swiggy-Instamart" source="keywords">Swiggy Instamart</keyword>, the company's quick commerce arm. Swiggy appointed <keyword id="22954620" type="General" weightage="20" keywordseo="Amitesh-Jha" source="keywords">Amitesh Jha</keyword>, a seasoned executive from Flipkart, as the new CEO of Instamart last month. This move marks the third leadership change for Instamart in just 18 months. As part of this transition, Phani Kishan, the outgoing head of Instamart, was announced to take on a broader role within Swiggy, overseeing the Central Growth unit and working closely with co-founder Sriharsha Majety on new initiatives. <h2>Expanding Instamart’s reach </h2> Swiggy Instamart has also been on an expansion spree, recently launching in 11 new cities across India, including Rajkot, Thrissur, and Kanpur. This expansion marks a strategic push into Tier 2 and 3 cities, broadening its customer base beyond metropolitan areas. The platform, which offers delivery of daily essentials in just 10 minutes, also said in a press release that it has seen encouraging results in these new locations. In Mangalore, for example, a new store achieved 1,000 orders in a single day faster than many larger cities. This localised approach, featuring partnerships with regional vendors, has enhanced Instamart’s appeal and efficiency in serving diverse customer needs. "Users across India already recognise the convenience Swiggy provides," Amitesh Jha said in a press release and added, "The enthusiastic demand from smaller towns and cities has been incredibly encouraging. Our expansion into these new locations marks a significant milestone, allowing even more people to experience the ease of having thousands of products—from everyday essentials to electronics and toys—delivered in just 10 minutes from both national and local brands." <h2>Changes in management </h2> Swiggy has also made notable changes in its management team recently. Himavant Srikrishna Kurnala, previously with Reliance Retail’s JioMart, was appointed as the head of product for Instamart earlier this year. His appointment is part of a broader strategy to strengthen the team ahead of the IPO. Other key hires include Mayank Rajvaidya, who has been named vice president of fruits and vegetables, and Manu Sasidharan, who joined as associate vice president of the FMCG category. These additions come in the wake of several high-profile departures from the company, signalling a recalibration of Swiggy’s leadership structure. <h2>Policy changes for restaurant partners </h2> Swiggy’s founder recently revealed that the decade-old startup partners with over 3 lakh restaurants today. And thus, when a policy change decision was announced that impacted restaurant partners directly, it made headlines. In a move to standardise its service fees, Swiggy extended its gross value service fee policy to restaurants in non-metro areas. This change, effective from August 14, involves charging a service fee on the gross value of orders, including GST and packaging fees. This adjustment was expected to lead to an increased commission for restaurant partners in smaller towns and cities. The policy shift aligns with the fees already applicable to restaurants in larger urban areas and reflects Swiggy’s efforts to streamline its revenue model. <h2>Converting into a public limited company </h2> To facilitate its upcoming IPO, Swiggy also transitioned from a private limited company to a public limited company. Earlier this year, Swiggy updated its name to <keyword id="23191546" type="General" weightage="20" keywordseo="swiggy-limited" source="keywords">Swiggy Limited</keyword>, removing the term 'Private' to better align with its public offering aspirations. This strategic move was intended to prepare the company for public investment and enhance its market presence. As Swiggy readies itself for its IPO, these changes underscore the company's commitment to growth, innovation, and adaptability. The upcoming listing marks a significant milestone in Swiggy’s journey, reflecting its ongoing evolution and strategic realignment in the competitive food delivery landscape.

Swiggy is preparing for its IPO soon: A look at some recent changes in the company

<ul class="summary-list"><li>Donald Trump made a $1 billion fundraising pitch to oil executives, The Washington Post reported.</li><li>Trump promises to dismantle Biden's environmental policies if reelected.</li></ul>Former President Donald Trump recently hosted a high-stakes dinner at his Mar-a-Lago Club, where he boldly pitched to top oil executives, The <a target="_blank" href="https://www.washingtonpost.com/politics/2024/05/09/trump-oil-industry-campaign-money/">Washington Post</a> reports. Last month, he asked for a $1 billion contribution to his reelection campaign, and in return, he pledged to dismantle President Joe Biden's environmental policies that have been a thorn in the side of the fossil fuel industry.Trump's forward approach came as reports suggested the size of his <a target="_blank" href="https://www.reuters.com/world/us/bidens-campaign-war-chest-exceeds-trumps-before-major-fundraising-event-2024-03-28/">reelection campaign war chest</a> lags behind his Democratic opponent. Meanwhile, the former president, who is facing <a target="_blank" href="https://www.businessinsider.com/donald-trump-key-cases-civil-criminal-investigations-lawsuits-updates-2022-7">88 criminal counts</a>, indicted in four separate prosecutions, has been spending <a target="_blank" href="https://www.theguardian.com/us-news/2024/feb/17/donald-trump-legal-fees-how-will-he-pay">millions on legal fees</a> and drawing on <a target="_blank" href="https://www.brennancenter.org/our-work/research-reports/trumps-use-campaign-funds-pay-legal-bills">campaign funds</a> to pay his lawyers.A billion dollars would dramatically exceed Biden's fundraising. In March, the president's campaign said it had<a target="_blank" class="editor-rtfLink" href="https://www.politico.com/news/2024/04/16/biden-campaign-spending-quadrupled-march-00152429"> $192 million in the bank</a>.Anonymous sources with knowledge of the meeting with two dozen oil bosses told the Post that Trump assured them of immediate action to reverse Biden's environmental regulations and prevent the enactment of new ones.The transactional campaign promise indicates what a second Trump presidency would mean for the White House's environmental agenda. <div type="image" title="oil spill" height="3648" width="5472" msid="110056491" hostid="261" sizebytes="676896"></div>While Biden has positioned the climate crisis as an existential threat and championed aggressive environmental regulations, Trump has dismissed it as a hoax and systematically dismantled environmental protections during his tenure.Since taking office in 2021, Biden has swiftly reversed many of Trump's environmental actions, including blocking future oil drilling in the Alaskan Arctic. Within his first month at the helm, Biden began unraveling Trump's oil legacy, revoking a key permit for the controversial Keystone XL pipeline, directing the EPA to revamp regulations for methane emissions, and introducing more ambitious fuel-efficiency standards, <a target="_blank" href="https://www.businessinsider.com/how-president-biden-is-unraveling-trump-oil-legacy-2021-1">BI's Benji Jones reported</a>.However, despite oil industry grievances over Biden's policies, the US has experienced record oil production, leading to substantial profits for major energy companies like ExxonMobil and Chevron, said The Post.At the Mar-a-Lago dinner, Trump promised a "deal" that would be a boon for the oil giants, vowing to expedite permits for new liquefied natural gas (LNG) exports and auction off more drilling leases in the Gulf of Mexico, said The PostWhile some in the industry initially favored alternative Republican contenders, Trump's steadfast commitment to pro-oil policies has garnered reluctant support.<a target="_blank" href="https://www.theguardian.com/us-news/2024/jan/18/trump-republican-rivals-climate-crisis">Trump's "drill, baby, drill" </a>mantra and promises of deregulation continue to resonate within the oil patch, contrasting starkly with Biden's green-energy agenda. In January, Trump, in a Fox News town hall on the eve of the Iowa primary, said, "We have more liquid gold under our feet; energy, oil, and gas than any other country in the world," and called clean energy a "new scam business."Oil execs are disillusioned by Biden's failure to defend their industry's interests despite spending $400 million to lobby the administration last year, the sources told the Post.As the campaign trail heats up, Trump's message to the oil industry remains clear: support him, and he'll deliver on their demands.

Trump asked top oil execs for $1 billion campaign cash in exchange for environmental policy rollbacks, report says

<ul class="summary-list"><li>Target recently updated its website to call out "suspected fraud or abuse" of its return policy.</li><li>While the rules haven't changed, the clarification sets the company up to enforce them more strictly.</li></ul>Sometimes it's not enough to read between the lines. More and more, you have to spell it out.In the case of Target, the days of testing the legal and ethical limits of the company's return policy may be numbered.In a recent update to its website, Target now says it "reserves the right to deny returns, refunds and exchanges including but not limited to prevent fraud, suspected fraud or abuse."Not only is the phrasing new (<a target="_blank" href="https://www.businessinsider.com/target-one-year-returns-policy-explained-20230-5">Business Insider has closely covered Target's return policy over the years</a>), but neither the word "fraud" nor "abuse" appears in an archived version of the company's return policy from one month ago.A Target spokesperson told BI that while the communication of this point is new, the policy itself hasn't changed, including the one-year backing of all private-label products.Still, while the rules may not be new, the clarification sets the company up to potentially enforce them more strictly and consistently.Return fraud is indeed a concerning problem for retailers across the industry, with the National Retail Federation <a target="_blank" href="https://cdn.nrf.com/sites/default/files/2024-01/Customer_Returns_Report_2023_Final.pdf">estimating</a> $101 billion in related losses last year.But the abuse side of the coin has a more uniquely Bullseye dimension: the trend of shoppers returning piles of worn out Cat &amp; Jack kids' clothes for cash. As one of <a target="_blank" href="https://www.businessinsider.com/target-cat-and-jack-kids-apparel-millions-of-items-annually-2024-3">Target's most popular store brands</a> (selling more than $3 billion per year), Cat &amp; Jack products are backed by a one-year satisfaction guarantee, which some customers push to its conceptual limits.Users on the <a target="_blank" href="https://www.reddit.com/r/Target/comments/1fk13g1/return_policy_right_to_decline/">r/Target</a> subreddit welcomed the new language, saying it will help service desk employees in dealing with difficult customers.Indeed, a popular euphemism for dirty and destroyed apparel is "well-loved," and grass-stained T-shirts and pants with blown-out knees from a year on the playground don't exactly suggest defective merch."These are people admitting on social media that they were actually quite satisfied, but they are just finding a loophole in this return policy," H Squared Research chief retail analyst Hitha Herzog previously told BI. "If the return policy allows you to do that, I guess you can. But ethically, should you? I wouldn't."Now, with this latest update, Target seems to be saying, "Please don't."If you are a Target worker who wants to share your perspective, please <a target="_blank" href="mailto:dreuter@businessinsider.com">contact Dominick via email</a> or text/call/Signal at 646.768.4750. Responses will be kept confidential, and Business Insider strongly recommends using a personal email and a non-work device when reaching out.

Target wants you to know it can deny your return if it suspects you're abusing its policy

In response to higher-than-expected tax revenue and a record surplus transfer from the Reserve Bank of India (RBI), the Indian government is considering an 8-10% increase in <keyword id="20018917" type="General" weightage="20" keywordseo="capital-expenditure" source="keywords">capital expenditure</keyword> (capex) for the fiscal year 2025, according to Pantomath Group's quarterly report, "Market Kaleidoscope: Quarterly Market Insights." This adjustment could raise the capex from the previously allocated Rs 11.11 lakh crore, aiming to bolster infrastructure and economic growth. This fiscal boost comes as India reaches a historic financial milestone. The total market capitalization of all stocks listed on the Bombay Stock Exchange (<keyword id="19895774" type="General" weightage="20" keywordseo="BSE" source="keywords">BSE</keyword>) briefly surpassed $5 trillion for the first time, placing India among global giants such as the US, China, Japan, and Hong Kong. India's primary market is set for a dynamic period, with 55 companies planning to raise over Rs 68,000 crore through Initial Public Offerings (IPOs). The first half of FY2025 has already seen 35 mainboard IPOs, collectively raising around Rs 32,000 crore with an average subscription rate of 61 times. The Indian market maintained a positive outlook in the first quarter of FY2025, driven by strong Q4FY24 earnings, favorable economic data, and positive global cues. Despite early June volatility following the 2024 <keyword id="19895394" type="General" weightage="20" keywordseo="lok-sabha" source="keywords">Lok Sabha</keyword> election results, market sentiment improved with the BJP securing 272 seats and a total of 292 seats for the NDA with allied support. This political stability under Prime Minister Narendra Modi's leadership is expected to promote long-term economic growth, with a focus on infrastructure, electric mobility, startup support, power distribution, digital privacy, and healthcare initiatives. Corporate India's performance in the March quarter of FY2024 met expectations, showing double-digit growth in net profit and single-digit revenue increases. Non-lending companies experienced moderate operating margin expansion due to favorable commodity prices and cost controls. The peaking interest rates and continuity of <keyword id="19978691" type="General" weightage="20" keywordseo="government-policies" source="keywords">government policies</keyword> are anticipated to support healthy corporate growth in FY2025. <h2>Growth to continue</h2>The government's push for increased <keyword id="20068449" type="General" weightage="20" keywordseo="ethanol-production" source="keywords">ethanol production</keyword> targets a 20% blending by 2026, benefiting ethanol-heavy sugar companies and promoting biofuel goals. The real estate market is projected to grow significantly, requiring Rs 14 lakh crore in debt financing from 2024 to 2026. This growth will positively impact the banking and financial sectors. Major telecom operators have raised tariffs post-election, potentially improving sector financials and paving the way for sector re-rating. Major cement players are expanding through acquisitions, with an expected 6-7% compounded growth and market dominance by the top five players by March 2025. FMCG Companies expect recovery in rural business due to factors like a normal monsoon, robust crop yields, and government measures, maintaining robust rural demand. The potential roll-out of the FAME 3 Scheme to support <keyword id="19963112" type="General" weightage="20" keywordseo="electric-vehicle-sales" source="keywords">electric vehicle sales</keyword> is anticipated, with a budgetary allocation of around Rs 10,000 crore. Sectors such as auto, cement, defence, railways, consumer durables, energy, and banking are expected to outperform. Lagging sectors like IT and specialty chemicals offer value-buying opportunities at lower levels. The structural bull market for Indian equity is supported by strong domestic fundamentals and government reforms, with a positive medium- to long-term market outlook. Globally, the US market showed resilience, except for the Dow Jones. The Federal Reserve maintained interest rates at 5.25-5.50%, awaiting inflation to move towards the 2% target before considering rate cuts. The US GDP grew at 1.4% annually in Q1 2024, with mixed economic indicators highlighting both strengths and challenges. The Indian <keyword id="19926041" type="General" weightage="20" keywordseo="IPO-market" source="keywords">IPO market</keyword> has seen significant growth, with a surge in companies seeking to list shares and a rise in capital raised. The first half of 2025 saw strong retail investor participation, reflecting confidence in India's growth prospects. Mahavir Lunawat, Managing Director, Pantomath Capital Advisors Private Limited, said, "Favourable market conditions, high liquidity, a conducive growth environment with stable interest rates, and benign inflation have facilitated a boom in the IPO market. The IPO market will experience a stronger pull post-budget. India is set to become the new equity funding frontier for global corporations." He further added. "We are on the brink of sustained, long-term momentum in the IPO market, with this year potentially becoming the best for IPOs. India's solid macroeconomic environment and promising growth prospects create an ideal backdrop for this vibrant IPO market. Additionally, there is robust participation from both domestic institutional investors and retail investors." With the Indian government's potential capex increase and the robust primary market activity, the <keyword id="19948184" type="General" weightage="100" keywordseo="Indian-economy" source="keywords">Indian economy</keyword> is poised for sustained growth. The upcoming period is expected to see heightened market activity, further IPOs, and economic stability, creating a conducive environment for investment and development.

India may boost FY25 capex by 8-10% amid surging revenues and record RBI surplus, says Market Kaleidoscope report

<ul class="summary-list"><li>Republican presidential nominee Donald Trump has said he wants a weaker dollar to boost US exports.</li><li>Economists and analysts say a weak dollar policy would be costly and politically difficult to implement.</li></ul>Republican presidential nominee Donald Trump has made it clear he would like a <a target="_blank" class="" href="https://www.politico.com/news/2024/04/15/devaluing-dollar-trump-trade-war-00152009">weaker dollar</a> to make American exports more competitive.But economists and analysts are flagging challenges to making the greenback weaker — especially if Trump wins a second term."It may see the US currency appreciate further as the dollar would probably rise on expectations that 2025 would deliver additional tax cuts, 'America-first' <a target="_blank" class="" href="https://www.businessinsider.com/where-does-trump-vance-stand-on-china-tariffs-inflation-taxes-2024-7">import tariffs,</a> and the potential for stricter <a target="_blank" class="" href="https://www.businessinsider.com/stagflation-recession-trump-policy-tariff-immigration-deportation-economy-outlook-jpmorgan-2024-7">immigration policy</a> to tighten the job market," Michael Strobaek, the global CIO at Swiss private bank Lombard Odier, wrote in a note on Monday.The <a target="_blank" class="" href="https://www.reuters.com/world/us/investors-react-shooting-trump-election-rally-2024-07-14/">US dollar</a> strengthened after the failed assassination of Trump on July 13, but fell slightly after <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/biden-withdrawal-us-presidential-election-trump-trade-uncertainty-markets-investing-2024-7">President Joe Biden</a> announced he was dropping out of the leadership race.The US Dollar Index — which measures the value of the greenback against a basket of six other currencies — has risen about 3% this year to date.<h2 id="bc06272b-321d-49e9-8464-ae8ae5adf22f">US dollar intervention could cost trillions</h2>Should Trump win the November presidential election, it would be very difficult for his administration to pursue a weak dollar policy — even if he wants to, Deutsche Bank analysts wrote in a note on Monday.Doing it alone would be extremely expensive for the US since an effective weak dollar policy would need either financial market intervention, capital controls, or "the erosion of Fed independence," the analysts wrote.The Deutsche Bank analysts estimate that weakening the dollar is a move that would cost far more than $2 trillion. They also said it's not realistic for the US to create a foreign currency reserve fund to boost the dollar."To start with, it would require the issuance of additional Treasury debt to fund foreign asset purchases," the German bank's analysts wrote. They added it would come up against the US domestic debt ceiling constraints and would be a fiscal burden for the federal government.Furthermore, "the optics of a Trump presidency buying foreign assets and losing tax-payer money in the process would not be politically palatable," they added.While the US could get trading partners to help intervene in the foreign exchange market, these partners may have "no money," per DB. Such an intervention also goes against the G7's commitment to market-determined exchange rates.<h2 id="1c619f7f-c35b-4445-8769-1912d6945e77">The US dollar is a haven currency that thrives on uncertainty</h2>The US dollar's status is special since it is the world's reserve currency of choice and a safe haven amid uncertainty.This means it's likely the currency would be boosted by even more unpredictability, such as what's happening in the US presidential campaign season now."Political uncertainties will continue to support demand for the dollar as a haven, possibly all the way through the Democratic Party's process for confirming Mr Biden's replacement at the 19-22 August National Convention," Strobaek of Lombard Odier wrote.There are also other trends worldwide that drive inflation — including de-globalization and de-carbonization — that would support the dollar, analysts at Macquarie Bank wrote in a note on Monday."To the extent that they cause growth to struggle more in the rest of the world than in the US (a reasonable assumption), they can also cause the USD to stay sturdy and strong even though the decade-long strength in the USD seems to be getting on in years," the Macquarie analysts added.

Trump wants a weaker dollar, but analysts say his policy direction points to just the opposite

India's gold and silver imports from its free trade agreement (FTA) partner UAE have skyrocketed 210 per cent to USD 10.7 billion in 2023-24 and there is a need to potentially revise the concessional customs duty rates under the pact to mitigate the arbitrage driving this surge, a report said on Monday. Economic think tank Global Trade Research Initiative (<keyword id="15910220" type="General" weightage="20" keywordseo="GTRI" source="Orion">GTRI</keyword>) said this sharp rise in gold and silver imports is primarily driven by import duty concessions granted by India to the UAE under the India-UAE Comprehensive Economic Partnership Agreement (CEPA). India allows 7 per cent tariffs or customs duty concessions on import of unlimited quantities of silver and a 1 per cent concession on 160 metric tonnes of gold. CEPA was signed in February 2022 and implemented in May 2022. Additionally, India facilitates gold and silver imports by allowing private firms to import from the UAE through the India International Bullion Exchange (IIBX) in Gift City. Previously, only authorised agencies could handle such imports, the report said. "While India's total imports from the UAE fell 9.8 per cent from USD 53.2 billion in FY23 to USD 48 billion in FY24, imports of gold and silver skyrocketed 210 per cent, from USD 3.5 billion to USD 10.7 billion," it said. "Import of all remaining products fell 25 per cent, from USD 49.7 billion in FY23 to USD 37.3 billion in FY24," it said. GTRI Founder Ajay Srivastava said the current import of gold and silver from the UAE is unsustainable as the UAE does not mine gold or silver or add sufficient value to imports. "High import duties in India on gold, silver, and jewellery at 15 per cent are at the root of the problem. Consider lowering tariffs to 5 per cent. This will cut large-scale smuggling and other misuse," Srivastava said. Trade in gold, silver, and diamonds has been prone to misuse due to their low volume but high value and high import duties in India. Low tariff imports of gold, silver only benefit few importers who keep all profits arising through tariff arbitrage and never pass it to consumers, he said. Srivastava suggested the government implement certain measures to help India balance its <keyword id="21681862" type="General" weightage="20" keywordseo="trade-policies" source="keywords">trade policies</keyword>, protect domestic revenue, and ensure fair competition in the import of precious metals and jewellery. It suggested reassessing and potentially revising the concessional duty rates under CEPA to mitigate the arbitrage driving the surge in imports of gold and silver. "At least, implement yearly import quotas (tariff rate quotas) for silver, similar to those for gold, to control the volume of imports and prevent revenue loss," it said, adding that India should rigorously verify the claimed value addition by Dubai-based refiners in gold and silver imports to ensure compliance with CEPA rules of origin. It also asked to tighten regulations around the India International Bullion Exchange (IIBX) at Gift City to control the volume and nature of <keyword id="22080399" type="General" weightage="20" keywordseo="precious-metal-imports" source="keywords">precious metal imports</keyword> and the exchange should not allow country-based exemptions. As increased imports contribute to a higher current account deficit and since gold and silver act more like financial instruments than regular trade items, India should avoid including them in any FTA. "India has granted <keyword id="20542001" type="General" weightage="20" keywordseo="tariff-concessions" source="keywords">tariff concessions</keyword> for these items in many FTAs and under the DFTP (duty-free tariff preference) scheme, so a comprehensive review is needed. India announced the scheme for LDCs (least developed countries) in 2008. Under this, India provides duty free/preferential market access on about 98.2 per cent of India's tariff lines (or product categories). Further, the report stated that silver imports from the UAE increased multifold to USD 1.74 billion in 2023-24 from a meagre USD 29.2 million in 2022-23 due to India charging an 8 per cent duty under the CEPA versus a 15 per cent duty from other countries. "The large 7 per cent tariff arbitrage resulted in a loss of revenue for India of Rs 1,010 crore in FY24. Revenue loss will increase as India has committed to make tariffs zero on unlimited quantities of silver from the UAE within next 8 years," it added. It said this trade is unusual because the UAE just imports large silver and gold bars, melt and convert these into silver grains and unwrought gold for exports. "A check with global refiners will show that value addition in such process is much less than 1 per cent as opposed to 3 per cent required under the FTA," it said. On gold bars, the report said India agreed to import 200 metric tons of gold annually from the UAE with a 1 per cent tariff concession and due to this gold imports rose 147.6 per cent from USD 3 billion in FY23 to USD 7.6 billion in FY24, causing India to lose Rs 635 crore in revenue in FY24. Similarly, India's jewellery imports have increased 187.6 per cent from USD 1.1 billion in FY23 to USD 3.3 billion in FY24, whereas these imports from the UAE have increased 290 per cent from USD 347 million in FY23 to USD 1.35 billion in the last fiscal.

You Searched For "Policy Exchange" and got 7 results

Rupee rises 7 paise to 84.22 against US dollar in early trade

PTI

Swiggy is preparing for its IPO soon: A look at some recent changes in the company

Divyanshi Sharma

Trump asked top oil execs for $1 billion campaign cash in exchange for environmental policy rollbacks, report says

Rebecca Rommen

Target wants you to know it can deny your return if it suspects you're abusing its policy

Dominick Reuter

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Gold, silver import from UAE surged 210% in 2023-24; Need duty revision in FTA: GTRI

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