Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

The <keyword id="6355302" type="General" weightage="80" keywordseo="rupee" source="Orion">rupee</keyword> has been weakening against the US dollar since the beginning of the year and hit a lifetime low this week. While the <a href="https://www.businessinsider.in/finance/news/rupee-at-80-heres-how-a-falling-rupee-could-impact-indias-current-account-deficit/articleshow/92897064.cms">octogenarian currency</a> has disheartened many Indian students preparing to fly abroad, the Indian textile industry might be lining up bigger stacks of clothes to ship out abroad. <div type="image" title="Indian exports will benefit from Rupee depreciation" msid="93040000" hostid="261" caption="&amp;lt;p&amp;gt;Indian exports will benefit from Rupee depreciation&amp;lt;/p&amp;gt;"></div> As per the Ministry of Commerce and Industry, the<a href="https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1839164#:~:text=INDIA'S%20MERCHANDISE%20TRADE%3A%20Preliminary%20Data,32.49%20billion%20in%20June%202021."> export of readymade</a> garments (RMG) of all textiles contributed 3.80% to the country’s total merchandise export in April-June 2022. India’s RMG <keyword id="35090" type="General" weightage="20" keywordseo="Exports" source="Orion">exports</keyword> were worth $1449.3 million in June 2022, against export of $1003.3 million in June 2021, reporting growth of 44.67%. Overall, Indian merchants will earn more for the same orders as the rupee falls because they get more rupees for every dollar earned. India has achieved a monthly value of merchandise export in June 2022 amounting to $37.94 billion, an increase of 16.78% over %32.49 billion in June 2021. <div type="image" title="India’s top exports in 2022" msid="93040029" hostid="261" caption="&amp;lt;p&amp;gt;India&amp;#8217;s top exports in 2022 &amp;lt;/p&amp;gt;"></div> What does India export and how do exporters benefit from a stronger dollar? Apart from textile, engineering goods, petroleum products, gems and jewellery, chemicals were the top five commodities exported from India. These merchants would now gain a competitive advantage due to the sharp decline in the rupee. Simply put, Indian exporters will benefit from a stronger dollar as their income is in US dollars and expenditure is in rupees, which means they gain when exchanging the USD to INR to pay salaries and rents. <div type="image" title="Exports of Top 10 Major Commodity Groups in India in June 2022" msid="93040044" hostid="261" caption="&amp;lt;p&amp;gt;Exports of Top 10 Major Commodity Groups in India in June 2022&amp;lt;/p&amp;gt;"></div> The gap in India’s trade deficit might tighten afterall India runs a trade <a href="https://www.businessinsider.in/finance/news/why-and-which-countries-would-want-to-trade-with-india-in-rupees/articleshow/92856587.cms">deficit</a> – which means that it <keyword id="35091" type="General" weightage="20" keywordseo="imports" source="Orion">imports</keyword> more than it exports. India’s imports exceeded exports by over $87 billion (about ₹6.87 lakh crore) in 2021-22. The weakening of the rupee makes exports more viable but imports become more <keyword id="6359333" type="General" weightage="20" keywordseo="expensive" source="Orion">expensive</keyword> in rupees. Non essential imports will be discouraged to prevent a further outflow of dollars from the country. This, in turn, would improve the deficit that India runs. Typically India’s trade deficit is compensated by capital flows but with FPI selling, there is further pressure on the rupee. India is the world’s second-biggest consumer of gold. In a bid to reduce demand for the yellow metal, India raised its basic import duty on gold to 15% from 10.75% earlier this month. On top of that, RBI’s latest decision to<a href="https://www.businessinsider.in/finance/news/why-and-which-countries-would-want-to-trade-with-india-in-rupees/articleshow/92856587.cms"> allow international trade </a>in rupees is expected to reduce the pressure on India’s forex reserves. Bidding war on the docks? Indian merchants will have to prepare for a tough bidding war. They will have to compete with exporters of other countries like Philippines and Thailand, whose currencies have declined more than the rupee against the greenback and their exports have been on an upward trend. <div type="image" title="Indian exporters in a bidding war with currencies that have declined more than the Rupee against the Dollar" msid="93040088" hostid="261" caption="&amp;lt;p&amp;gt;Indian exporters in a bidding war with currencies that have declined more than the Rupee against the Dollar&amp;lt;/p&amp;gt;"></div> Neighbouring country China is the world’s <a href="https://worldpopulationreview.com/country-rankings/exports-by-country">largest </a>exporter. In 2021, China <a href="https://economictimes.indiatimes.com/news/international/business/chinas-trade-surplus-surges-to-record-676-4b-in-2021/articleshow/88890056.cms">exported </a>an estimated $3.3 trillion in 2021 trillion worth of goods and services, primarily electronic equipment and machinery such as broadcast equipment, computers, integrated circuits, office machine parts, and telephones. China also had a $73-billion trade <a href="https://www.businessinsider.in/finance/news/why-and-which-countries-would-want-to-trade-with-india-in-rupees/articleshow/92856587.cms">surplus </a>with India in 2021-22 – that is, Indian imports from China exceeded its <a href="https://www.businessinsider.in/finance/news/why-and-which-countries-would-want-to-trade-with-india-in-rupees/articleshow/92856587.cms">exports </a>to China by $73 billion. As the Chinese currency yuan also <a href="https://theprint.in/world/chinese-yuan-weakens-to-6-7071-against-dollar/1023534/">dropped </a>and given that the country enjoys a dominant position in international export markets, India would see increased pricing competition. With a weaker rupee, foreign education could get more expensive While rupee’s value deprecation is good news for merchants, India’s students who are planning to study abroad might have to restructure your budget. Students will have to shell out more rupees for every dollar they spend. Simply put, you will have to spend over 21% more in terms of rupee to buy the same number of dollars. If you budgeted ₹20 lakh for your education abroad, you will now have to increase it to ₹24.2 lakh. International travel now more expensive After the lockdown, the travel sentiment has been high among consumers. As the rupee loses value against the US dollar, your plans to travel abroad will burn a deeper hole in your pocket – like everything, paying for your purchases in foreign currency, more so the US dollar, is now more expensive than ever before. Here's a short video <div type="image" title="The falling Rupee and its impact on travel and foreign education" msid="93040134" hostid="261" caption="&amp;lt;p&amp;gt;The falling Rupee and its impact on travel and foreign education&amp;lt;/p&amp;gt;"></div>

SIMPLY PUT: A weak rupee will be a bonanza for India’s exporters

<ul><li>The US dollar is expected to get stronger as fears of inflation increase.</li><li>This has led to nervousness in the Indian market but Indian IT stocks are resilient in the face of uncertainty.</li><li>Indian IT behemoths like <keyword id="43217" type="CITY" weightage="20" keywordseo="Tech-Mahindra">Tech Mahindra</keyword> and HCL Technologies are among the best performing stocks today.</li></ul>Indian markets are nervous as the dollar looks ready to gain back its strength, but IT services stocks, which export software services — like <keyword id="6357585" type="COMPANY" weightage="20" keywordseo="tata-consultancy-services">Tata Consultancy Services</keyword> (TCS), HCL Technologies, Wipro, Infosys and Tech Mahindra — are holding strong. Change in the share price of the top 5 Indian IT services companies: <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Change in share price </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tech Mahindra </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.37% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HCL Technologies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.39% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.13% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Wipro </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.19% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.21% </td></tr></tbody></table>Source: NSE, Nifty50 — at closing prices on March 15 Tech Mahindra is the best performing stock among its IT peers. One of the reasons is its <a href="https://www.businessinsider.in/business/corporates/news/tech-mahindra-continues-momentum-on-healthcare-and-life-science-with-70-acquisition-of-perigord/articleshow/81505794.cms">latest acquisition</a> — Hyderabad-based Perigord. Tech Mahindra has bought up 70% stake to acquire the leading supplier of consultancy and labelling artwork solutions to the global pharmaceutical industry. But the cumulatively strength of the industry to stay in the green has more to do with the hopes of a stronger dollar. Like India, the US is currently caught in the conundrum of chasing growth and rising prices. Investors in the US and Europe are on an earning streak, parking their funds in government securities at near-zero interest rates and making even more in emerging markets like India. But these low interest rates are not likely to last forever. The <keyword id="84979" type="ORGANIZATION" weightage="20" keywordseo="European-Central-Bank">European Central Bank</keyword> (ECB) already announced last week that it would start purchasing bonds at a ‘significantly higher pace’ over the next three months in an attempt to get ahead of any potential inflation pressures in the coming months. The flip side of getting a big stimulus US President Joe Biden just signed the country’s $1.9 trillion stimulus package into law and is hoping that will help drive growth. But, where there is growth, there is also inflation. In order to counter the inflation, the central bank needs to step in and increase the interest rates. <div type="image" title="Copy of india&amp;#39;s economic growth" msid="81511559" hostid="261" caption="&amp;lt;p&amp;gt;US Consumer Price Index&amp;lt;/p&amp;gt;"></div> If the Federal Reserve increases interest rates, a stronger dollar would be to the benefit of IT services companies that earn mostly in foreign currency. Tata Consultancy Services (TCS), for instance, earns more than half of its revenue in dollars as an exporter of software services. The odds of an interest rate hike in the US are rising The US Federal Reserve’s Chair <a href="https://www.hindustantimes.com/world-news/despite-us-economic-recovery-federal-reserve-firm-on-keeping-interest-rates-low-101615696984892-amp.html">Jerome Powell</a> has been clear that if it comes to choosing between growth and inflation, the goal is to see more people back at work. “Today, we’re still a long way from our goals of maximum employment and inflation averaging 2% over time,” he said during the Wall Street Journal Jobs Summit on March 4. While the Fed is positive that it won’t need to step in and adjust interest rates before 2023, some feel that may be too optimistic a point of view. “Very low interest rates, which have held down debt service costs, will eventually rise despite the Federal Reserve’s commitment to an extended period of extremely accommodative monetary policy,” said global agency <a href="https://www.fitchratings.com/research/sovereigns/us-stimulus-will-boost-growth-at-cost-of-higher-deficits-debt-09-03-2021">Fitch Ratings. </a> This is supported by the fact that Fed Funds Futures — where investors can purchase funds in advance at prices they expect to see in the future — are beginning to signal that the US’ central bank could begin increasing rates in 2022. According to DataTrek co-founder <a href="https://www.businessinsider.in/stock-market/news/us-stocks-are-on-the-verge-of-a-correction-as-interest-rates-begin-to-rise-datatrek-says/articleshow/81094483.cms">Nicholas Colas</a>, the odds of the Federal Reserve shifting its policy stance next year has gone from 2% to anywhere between 5% to 10%. That doesn’t necessarily mean that inflation is on the move, but the trend is “clearly not our friend.” “This means inflation is likely to be a risk well into 2022. I suspect it might even be high enough that the Fed will be seriously considering rate hikes by early 2022,” said <a href="https://www.marketwatch.com/story/bond-investors-will-have-a-stormy-2021-and-the-fed-might-consider-hiking-rates-by-early-2022-but-hyperinflation-nope-11614610084">Cullen Roche</a>, founder of the Orcam Financial Group. Good news of Indian IT services’ companies The rate hike in the US may lead to outflow of dollars from India, and make the rupee weaker, which will, in turn make imported commodities like crude oil more expensive and thereby, hurt a whole lot of businesses. Only for select companies like the software exporters, a stronger dollar will lead to better earnings in rupee terms. And hence, the odds of a rate hike in the US rise, so will the prospects for companies like TCS, HCL Tech, Infosys, Wipro and Tech Mahindra. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Operating profit margin sensitivity to 1% change in USD/INR </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25-30 bps </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25-30 bps </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Wipro </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25-30 bps </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HCL Tech </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20 bps </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tech Mahindra </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15-20 bps </td></tr></tbody></table>Source: Goldman Sachs SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/bank-employees-in-india-on-strike-today-and-tomorrow-but-mobile-and-net-banking-services-are-working/articleshow/81505273.cms">Bank employees on strike today and tomorrow — ATMs, net and mobile banking likely to be the only relief</a> <a href="https://www.businessinsider.in/tech/news/indias-personal-data-protection-law-versus-europes-gdpr/articleshow/81504058.cms">Being GDPR compliant doesn't necessarily make companies ready for India's upcoming data protection laws</a> <a href="https://www.businessinsider.in/business/startups/news/stripe-the-most-valued-startup-in-the-us-to-offer-payment-services-to-indias-merchants-after-its-latest-fundraise/articleshow/81504106.cms">Stripe, the most valued startup in the US, to offer payment services to India’s merchants after its latest fundraise</a>

The US dollar is expected to get stronger⁠ — that's good news for Indian IT services but not for many others

<ul><li>The market value of Indian shares fell sharply since the latest Union Budget, which proposed additional tax on super rich investors.</li><li>The total loss of market value of shares from July 5 until August 23 is pegged at ₹ 14.7 trillion whereas the expected tax revenue from the additional surcharge was a mere ₹14 billion.</li><li>Finance Minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> rolled back the surcharge on Friday to stem the market meltdown and revive investments.</li></ul>Whether it is while buying a car or a house, or while making choosing a stock or a mutual fund over another, or even while asking someone out for a date-- weighing the likely risks against the potential reward would seem like a matter of instinct. However, India's Finance Minister Nirmala Sitharaman, or her team, particularly any person who recommended the additional surcharge on super-rich investors, seemed to have beat his or her own instinct. The damage was borne by investors as stocks in both the Bombay Stock Exchange (BSE) and the National Stock Exchange (<keyword id="6354646" type="UNKNOWN" weightage="20" keywordseo="nse">NSE</keyword>)-- including the Sensex and the Nifty-- went tumbling over the next 49 days. And the rupee became the <a href="https://www.hindustantimes.com/business-news/the-impact-of-rupee-fall-on-you/story-aV83jz1OaFm2Hw5uAPHdcI.html" data-type="tilCustomLink" target="_blank">worst performing currency in Asia</a> in August. The latest budget for the financial year ending March 2020 imposed an additional tax on the profit made from shares by the country's super rich and foreign portfolio investors (FPI) got caught in the crossfire. The subsequent anger and market sell-off has wiped off billions of rupees in share market wealth since then as foreign investors rushed for the exit. Most foreign portfolio investors in India operate as non-corporate entities such as trusts and associations, which are taxed like individuals and therefore the additional tax would fall on them. Foreign investors folded many of their investments and pulled money out in hordes-- nearly ₹22.5 billion since the budget day. The value of shares in the India fell by a whopping ₹14.7 trillion from July 5 to August 23. However, on Friday (August 23), when Sitharaman decided to rollback the levy on investors, the Revenue Secretary, Ajay Bhushan Pandey, revealed that the withdrawal will cost the government just ₹14 billion. SEE ALSO: 
 
 
 
 
 
 <div type="Article" hostid="261" msid="70806717" title="The higher tax on India's super rich continues-- only the capital gains are exempt" mstype="2" mssubtype="0"></div>













 "Tax rates for FPIs will come down by up to 7%, back to the pre-budget levels, and this removes the anomaly created by the Budget 2019,” Rajesh Gandhi, a partner at Deloitte India, told the Economic Times. But the damage had already been done. The rupee has fallen to its lowest level since December 2018 and much of it has to do with foreign investors pulling out dollars in haste. A weaker rupee would mean India will have to pay more for crude oil and that in turn will increases prices of other essential items. And India imports over 80% of all the crude oil it needs. SEE ALSO: 
 
 
 
 
 
 <div type="Article" hostid="261" msid="70652166" title="The Indian rupee is falling fast-- and there are both winners and losers" mstype="2" mssubtype="0"></div>













 It may be argued that not all the loss in market value is due to the surcharge. Donald Trump's trade war with China had a role to play too. However, that has been unravelling for many months now and the risks were palpable. Pushing investors, who were already risk averse, to pay more tax was entirely avoidable. SEE ALSO: <a href="https://www.businessinsider.in/markets/economy/fm-to-provide-public-sector-banks-with-rs-70000-crore/articleshow/70806189.cms" data-type="tilCustomLink" target="_blank">Indian government to make loans easier and cheaper with a ₹70,000 crore gift to banks</a> <a href="https://www.businessinsider.in/politics/policy/nirmala-sitharam-address-on-india-economic-stimulus-live-updates-and-highlights/articleshow/70804926.cms" data-type="tilCustomLink" target="_blank">India unveils economic stimulus-- from homes to cars to banks to infrastructure to equity markets</a>

India lost ₹15 trillion trying to make ₹14 billion from tax surcharge on investors

<ul><li>Both Sensex and Nifty gave up the initial gains as <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> delivered her budget speech.</li><li>The Benchmark index gave up the morning gains and fell to the day's low, down over 400 points by 1:30 pm. </li><li>The tax on the country's super rich has dampened sentiment in India's equity markets.</li></ul>Finance Minister Nirmala Sitharaman's first budget for the Narendra Modi government's second term cut down the tax on 99% of all firms in the country, proposed to infuse fresh money into the banks, helped assuage a lot of fears around the solvency of some good shadow banks, helped small taxpayers with sops on home loans and promised to make room for corporate borrowing in India by taking a part of the government borrowing abroad. All of these lifted the market's spirits but it all came crashing down as soon as she proposed more tax on the country's super rich. The impact on people earning ₹2 crore to ₹5 crore a year will be 3% and 7% on those earning more than ₹ 7 crore. Market fears this will further worsen the exodus of millionaires from India into tax havens. More money supply Banking stocks jumped as Sitharaman announced fresh capital infusion plan for PSU banks of ₹70,000 crore. She also proposed to take away the regulation housing finance companies from the National Housing Board, and hand it over to the RBI in the wake of the recent crisis. The Finance Minister also proposed to improve the liquidity in the market and reduce the panic with the following measure. "For purchase of high-rated pooled assets up to ₹100,000 crore, government will give PSU banks one-time partial guarantee for loss up to 10%, Sitharaman said. Sitharaman has proposed that government will borrow money abroad in foreign currency because India's sovereign debt to GDP ratio is among the lowest in the world, less than 5% of GDP. When the government borrow from banks in India, as it has done so far, it reduces the amount available for other businesses. When the borrowing is high, it increases the lending rates for the private enterprise. Now, if government takes part of its loans abroad, it will reduce the pressure liquidity in the domestic market. Lesser corporate tax Budget has also proposed 25% corporate tax on companies with revenue up to ₹400 crore, up from the earlier threshold of ₹250 crore. To tackle the rising corporate debt, the FM said that stock exchanges should allow AA rated bonds as collateral. She also called for regulators to come together. "There should be inter-operability between Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) which will allow retail investors to invest in treasury bills," Sitharaman said in her speech. Railways infrastructure boost In a big boost to railway stocks, the government has proposed to open up the crucial railway sector to private partnerships to fast-track infrastructure development. Sitharaman also promised to start a railway station modernisation programme this year. FM says Central government's land parcels across the country can be used to develop affordable housing and public infrastructure. They can be used in the form of joint development and provide concessions. She also announced pension benefits to retail traders. with annual turnover less than ₹1. 5 crore. SEE ALSO: <a href="https://www.businessinsider.in/budget/income-tax-bank-recap-air-india-and-5g-spectrum-sale-in-finance-minister-nirmala-sitharamans-first-budget-speech/articleshow/70081328.cms" data-type="tilCustomLink" target="_blank">Income tax , bank recap, Air India, and 5G spectrum sale are some things to watch out for in Finance Minister Nirmala Sitharaman's first budget speech</a> <a href="https://www.businessinsider.in/defence-budget-2019-20indias-defence-budget-has-nearly-doubled-in-5-years/articleshow/70037360.cms" data-type="tilCustomLink" target="_blank">India’s defence budget has nearly doubled in 5 years but the money is not enough to upgrade the weapons</a> <a href="https://www.businessinsider.in/niti-aayog-wants-education-budget-to-increase-further/articleshow/69941463.cms" data-type="tilCustomLink" target="_blank">India’s education budget has improved over the years — but it’s still too low</a> <a href="https://www.businessinsider.in/health-budget-2019-india-might-increase-spending-on-healthcare-but-that-may-not-be-enough/articleshow/69956156.cms" data-type="tilCustomLink" target="_blank">India might increase spending on healthcare but that may not be enough</a>

The tax on super rich makes Nirmala Sitharaman's budget a bitter one for the market

<ul><li>US dollar is likely to get weaker in the coming months, may hit 66 to the rupee by June</li><li>The US-China trade war is likely to slow down global economy, including US</li><li>For those buying dollars in exchange of rupees, there are other factors at play too</li></ul> If you are looking to buy US dollars either as an investment or for a travel plan in the future, wait for a while. The greenback is likely to weaken in the coming months. That's the call from an ICICI Bank as well as Malaysia-based Maybank. "Appetite for the US dollar is expected to wane from a cyclical perspective as growth in the US economy slows," a report from ICICI Bank said. As the economic growth slows, the market's confidence in a country's currency weakens, hurting its value. 
 
 
 






 One of the biggest factor for a possible slowdown in US economy is the ongoing trade tussle with China. Both have levied additional tariffs on goods exported from the other country. In December, both countries agreed to hold off on new tariffs for 90 days and negotiate peace. The deadline for a deal is March 1. "There are signs a trade deal could very well happen between the US and China during the 90-day ceasefire period. However, we believe they can only reach a weak deal," the Maybank report said. However, the fall in the value of the dollar may not be much because the trade war between US and China is hurting economies across the world. "There has been a simultaneous weakening in non-US growth relative to expectations," the ICICI Bank report said adding that, "The downtrend in the US dollar has been somewhat more modest than we previously expected." For Indians, there will be other factors, too, at play. The price of crude oil can alone derail all calculations for the world's fastest growing economy. India imports nearly 80% of all the crude oil it needs, and a spike in prices would mean it has to pay more dollars to get the same amount of oil in the international market. This would weaken the rupee. The government's handling of finances also affects the exchange rate. Reckless expense to appease voters in an election year will also the hurt the currency. Foreign fund flows also determine the demand for a currency. If foreigners bring in more dollars to invest in stocks or bonds, the currency will appreciate faster. For example, today (February 5), rupee gained for the first time in three days as investors from abroad made a bet of ₹4.2 billion. The net impact of these factors will decide how much stronger the rupee gets against the American currency in the coming weeks. Here's an estimate from Maybank. 
 
 
 <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed" data-src="visualisation/214887"></div>
]]></cdata></div>





 SEE ALSO: <a href="https://www.businessinsider.in/donald-trumps-trade-war-with-china-may-help-indias-exports-says-the-united-nations-report/articleshow/67850842.cms" data-type="tilCustomLink" target="_blank">Donald Trump's trade war with China may be good for India's exports, says UN</a> <a href="https://www.businessinsider.in/next-global-recession-may-be-just-two-years-awayand-india-should-be-worried/articleshow/67535452.cms" data-type="tilCustomLink" target="_blank">Next global recession may be just two years away— and India should be worried</a> <a href="https://www.businessinsider.in/sale-one-of-indias-oldest-battery-brands-eveready-for-500-million/articleshow/67482195.cms" data-type="tilCustomLink" target="_blank">A 100-year old successfu Indian brand is up for sale at about $500 million</a>

Looking to buy US dollars? Wait for a while

New Delhi, Jan 10: Following are the top business stories of 10th January 2019, Friday. Infosys Q3 net up 23.7% at Rs 4466 cr; raises FY20 revenue outlook to 10-10.5%: Country's second-largest IT services major Infosys on Friday reported a 23.7 per cent rise in consolidated net profit at Rs 4,466 crore for the December quarter. 
 SIAM
2019 witnesses worst-ever decline in auto sales: The automobile industry recorded its worst-ever sales decline in two decades in 2019, with an unprecedented slowdown hampering vehicle offtake across segments, according to industry body SIAM. Industrial production grows 1.8 pc in Nov: The industrial output grew 1.8 per cent in November, turning positive after three months of contraction, on account of growth in the manufacturing sector, showed government data on Friday.
 Rupee logs 4th straight gains, spurts 27 paise against USD: The Indian rupee continued its winning run for fourth session in a row, soaring 27 paise to settle at 70.94 to the US dollar as softening crude oil prices lifted forex market sentiments.
 Markets remain upbeat as Mideast tensions recede; earnings in focus: Equity markets closed in the green for the second straight day on Friday as investors looked beyond geopolitical turbulence and wagered on a positive start to the earnings season.
 Trai's latest tariff order to stifle content creation, hit growth: In an unprecedented move, top honchos from fiercely competitive TV broadcast industry on Friday came together against regulator Trai's new tariff order on Friday, saying pricing caps on channels will stifle content creation, impact jobs and pull down growth. Yes Bank independent director Uttam Agarwal resigns: Yes Bank's independent director Uttam Prakash Agarwal has resigned citing "serious concerns" on "deteriorating practices" and the state of affairs at the private sector lender.

Infosys Q3 net profit up 23.7% and 6 other top business stories of 10th January 2019

<ul><li>As foreign investors in Indian share market pull out money thick and fast, the Narendra Modi government is in damage control mode.</li><li>Prime Minister's office has reportedly asked Finance Minister Nirmala Sitharaman to exempt the additional levy on profits made by foreign investors between April 1 and July 5.</li><li>This may reduce the burden on investors by a third, according to the report.</li><li>The surcharge had led to a sharp fall in stocks wiping out billions in market capitalisation.</li></ul>The latest budget for the financial year ending March 2020 imposed an additional tax on the country's super rich and foreign portfolio investors (FPIs) got caught in the crossfire. The subsequent anger and market sell-off has wiped off billions of rupees in share market wealth in just about a month as foreign investors rushed for the exit. Most foreign portfolio investors in India operate as non-corporate entities such as trusts and associations, which are taxed like individuals and therefore the additional tax would fall on them. However, now the Prime Minister's office has reportedly stepped in. The Finance Ministry under Nirmala Sitharaman has been asked to quickly review the tax proposal on FPIs and come out with a solution that reduces the impact of new taxation on these institutional investors, according to a report by IANS, a news agency. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed" data-src="visualisation/573294"></div>
]]></cdata></div>

























































































































































































































































 On the table is a proposal to exempt all income generated by FPIs till the presentation of the Union Budget on July 5 from the surcharge. To be specific, all profits made between April 1 and July 5 this year may not face the additional tax if the proposal is accepted. This will reduce the impact of the new taxation by almost a third, the report estimated. Sources said that the ministry may announce the changes this week after the monetary policy review by Reserve Bank of India (RBI) on August 7. On its part, the RBI is expected by experts to reduce the policy rates by 25 basis points to improve liquidity in the market and kickstart the investment cycle by the private sector. However, if the government misses the opportunity to get the proposal approved before the ongoing Parliament session ends, it will either have to wait for the next session in November or pass an ordinance. SEE ALSO: <a href="https://www.businessinsider.in/politics/policy/rahul-bajaj-adi-godrej-and-big-investors-cry-against-modis-budget-and-policies/articleshow/70450878.cms" data-type="tilCustomLink" target="_blank">Narendra Modi has a new problem – big corporates and moneybags are angry</a>

Foreign investors in India may get some relief from tax surcharge after Prime Minister's intervention

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><a href="http://www.investing.com/">Investing.com</a></div></div></div>Good morning!The Indian rupee has tumbled following weekend news that the head of the central bank, Raghuram Rajan, will not be seeking another term. The currency is weaker by 0.4% at 67.330 per dollar as of 7:33 a.m. ET.Rajan is an extremely respected figure on the global stage, and is <a href="https://next.ft.com/content/303263ae-35dc-11e6-9a05-82a9b15a8ee7">credited with restoring</a> the India's macroeconomic stability - so his departure has some investors feeling a bit unsettled.As for the rest of the world, here's the scoreboard:<ul><li>The Nigerian naira <a href="http://www.businessinsider.com/nigerian-naira-crashes-after-government-removes-peg-2016-6">collapsed</a> on Monday after the Central Bank of Nigeria removed the currency peg to the dollar. The naira is down 30.8% at 260.525 against the greenback. The plan to devalue the currency was <a href="http://uk.businessinsider.com/nigeria-devalue-naria-2016-6">announced last week</a> - and although this should help Nigeria's economy in the long run, things could get ugly in the near-term.</li><li>The British pound is stronger by 1.9% at 1.4626 against the dollar after several weekend polls suggested that the campaign to leave the EU could be losing momentum. A poll for the Mail on Sunday by Survation gave the <a href="http://uk.businessinsider.com/r-uks-in-camp-takes-3-point-lead-after-lawmaker-killed-poll-2016-6">In campaign 45% against 42% for Out</a>; a poll for the Sunday Times by YouGov had Remain at <a href="http://www.thetimes.co.uk/past-six-days/2016-06-19/news/no-turning-back-warns-cameron-pptvdnvxj">44% to Leave's 43%</a>; and an <a href="http://www.theguardian.com/politics/2016/jun/18/eu-referendum-britain-voting-campaign-jo-cox">Opinium poll for the Observer put the two sides both at 44%.</a></li><li>The Japanese yen is down by 0.4% at 104.56 after the <a href="http://www.businessinsider.com.au/japanese-exports-tumbled-in-may-particularly-to-china-2016-6?_ga=1.94835423.2138067290.1456773988">latest trade data released</a> by the Ministry of Finance showed the value of exports fell 11.3% year-over-year in May as the stronger yen made goods less attractive. Exports to Japan's largest customer, China, plunged 14.9% YoY while shipments to the US sank 10.7% YoY.</li><li>The US dollar index is weaker by 0.5% at 93.69 ahead of a light data week. </li></ul> <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/japan-ice-wall-radiation-fukushima-2016-3">Japan has built a massive ice wall around Fukushima</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="03MjRoMjE6LtKlgUpVz53ErsOsPmRJ-T" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

The Indian rupee is tumbling

<ul><li><keyword id="10387" type="COMPANY" weightage="20" keywordseo="Microsoft">Microsoft</keyword>’s <keyword id="4759833" type="PERSON" weightage="20" keywordseo="Seeing-AI">Seeing AI</keyword> app can now recognise Indian currency and narrate the denomination back to the users. </li><li>The <keyword id="91748" type="ORGANIZATION" weightage="20" keywordseo="Indian-rupee">Indian rupee</keyword> is the fifth currency to be integrated with the app.</li><li>But, it should be noted, that though the app can be accessed in 56 countries, it’s only available on the <keyword id="75489" type="ORGANIZATION" weightage="20" keywordseo="IOS">iOS</keyword> App Store. </li></ul> Microsoft’s <a href="https://news.microsoft.com/en-in/features/seeing-ai-indian-currency-recognition/">latest</a> innovation adds an image recognition and narration feature to the Seeing <keyword id="6355999" type="UNKNOWN" weightage="20" keywordseo="ai">AI</keyword> app to help visually impaired users in <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword>. The app already had support for Euros, British pounds, US dollars and Canadian dollars, but now the Indian rupee has been added to the list. And yes, that includes the newer denominations issued after demonetisation took place. The only catch is that it’s only available on the App Store for iOS users. Considering that <a href="https://www.statista.com/statistics/262157/market-share-held-by-mobile-operating-systems-in-india/">most</a> of the people in India are on Android, absence from the Play Store poses an accessibility issue. But, isn’t there already an app for that? <a href="https://itunes.apple.com/in/app/nantmobile-money-reader/id417476558?mt=8">NantMobile</a> Money Reader, another app exclusive to the iOS platform, also has the skills to recognise currency and narrate the denomination back to the user. It has a more expansive scope supporting 21 different currencies, including the Indian rupee, as well as voice over support in 17 languages. Formerly known as LookTel, NantMobile Money Reader may give users the ability to recognise multiple currencies but Seeing AI can do more than just currencies, and that’s where Microsoft’s <a href="http://blindnotalone.com/reviewing-eyenote-vs-money-reader-vs-seeingai-to-recognize-us-notes/">advantage</a> lies. It can be said that its multifunctional aspects provide an impetus to daily life integration. User preference, at the end of the day, will depend on user requirements. According to the company, currency notes pose are especially difficult to recognise because they come in varied sizes. Generally, people who are visually impaired fold the notes in different shapes in order to recognise them. But, they still need help determining the denomination of the note in order to know which shape to fold it in. (Image source: <a href="https://news.microsoft.com/en-in/features/seeing-ai-indian-currency-recognition/" data-type="tilCustomLink">Microsoft News Center India</a>)

Microsoft’s Seeing AI app adds Indian currency note recognition to its trove

<ul><li>Foreign investors had pulled out billions from India's equity market ever since the tax surcharge was announced in the latest budget.</li><li>The Narendra Modi government also announced a slew of measures including tax reforms to revive a sluggish economy.</li><li><keyword id="7706673" type="UNKNOWN" weightage="20" keywordseo="finance-minister-nirmala-sitharaman">Finance Minister Nirmala Sitharaman</keyword> and her team addressed a press conference to restore the faith in the economy and the government.</li><li>Reform is a continuous process, she said in her opening remarks.</li></ul>In a bid to restore the faith in the Indian economy and the Narendra Modi government, Finance Minister Nirmala Sitharaman assured the investors that the government respects wealth creators and declared that the surcharge on foreign and domestic equity investors has been rolled back. The benefit of the rollback is not available to the high net worth individuals. They will continue to pay the additional surcharge. However, the Finance Minister said that the government will review the decision in 2022, the seventy-fifth year of Indian independence. The latest budget for the financial year ending March 2020 imposed an additional tax on the country's super rich and foreign portfolio investors (FPIs) got caught in the crossfire. The subsequent anger and market sell-off has wiped off billions of rupees in share market wealth since then as foreign investors rushed for the exit. Most foreign portfolio investors in India operate as non-corporate entities such as trusts and associations, which are taxed like individuals and therefore the additional tax would fall on them. The government will lose ₹1,400 crore by rolling back the additional surcharge imposed in the latest budget. For now, the capital gains on trading of shares by foreign and domestic investors will be exempt but the country's super rich will continue to pay the additional levy on their total taxable incomes. SEE ALSO: <a href="https://www.businessinsider.in/politics/policy/nirmala-sitharam-address-on-india-economic-stimulus-live-updates-and-highlights/articleshow/70804926.cms" data-type="tilCustomLink" target="_blank">India unveils economic stimulus-- from homes to cars to banks to infrastructure to equity markets</a>

The higher tax on India's super rich continues-- only the capital gains are exempt

<ul><li>The total rain from south west monsoon has been 40% less than the average.</li><li>The deficit is as high as 56% in south India and farmers have been asked to avoid sowing for crops like rice that need a lot of water.</li><li>Central India comes a close second with a rain deficit of 41% until June 19.</li><li>The crisis in rural India may become a significant factor in the upcoming budget.</li></ul> India is already suffering from a severe water shortage in many parts of the country and the rain Gods have not been merciful yet. That would put pressure on the Narendra Modi government, particularly on Finance Minister Nirmala Sitharaman, ahead of the upcoming budget to ensure the rural distress in the country does not worsen any further. The total rain from south west monsoon has been 40% less than the average. The deficit is as high as 56% in the southern peninsula --Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, and Goa. The central parts of the country, states like Madhya Pradesh, Maharashtra and Chhatisgarh, come a close second with a rain deficit of 41% until June 19. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed" data-src="visualisation/437492"></div>
]]></cdata></div>

































































 The shortage is therefore the worst in the rice growing areas and therefore the farmers have either delayed or reduced the sowing of crops like rice, sugarcane and cotton, all of which need a lot of water, according to government data. This is part of the government's contingency plan in the 648 worst-hit districts of the country. What's worse, farmers have <a href="https://economictimes.indiatimes.com/industry/indl-goods/svs/chem-/-fertilisers/fertilisers-to-turn-10-costlier-as-potash-rates-rise/articleshow/69657956.cms" data-type="tilCustomLink" target="_blank">to pay up to 10% more for fertilisers</a> this sowing season, than what they paid last winter, thanks to a rise in global prices for potash due to stronger demand, the key raw material, and a weaker rupee. Tractor sales Expectations of a poor monsoon also affect the purchase of farm equipment like tractors. The impact has been visible already in the 15% fall in tractor sales in May compared to the same time last year. That's bad news for Mahindra and Mahindra, which makes nearly 31% of its revenue from tractors alone and things have been far from rosy for a while now. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed" data-src="visualisation/437509"></div>
]]></cdata></div>





















































 The gloomy expectations have been evident in the share price too, which has lost over 31% in the last one year. 
 
 
 
 
 
 
 
 
 
 
 <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed" data-src="visualisation/437550"></div>
]]></cdata></div>





















 All eyes are now on the budget, and both the country's millions of farmers as well as companies like M&amp;M hope for some sort of relief package that soften nature's blow on the rural economy. There are some encouraging signs with the President Ram Nath Kovind announcing a ₹25 trillion fund to protect the rural economy. The income guarantee scheme of ₹6,000 a year has been extended to the country's 145 million farmers. India has also appealed to China to lower tariffs on agricultural exports from India. Rural consumption has already slumped sharply and a poor monsoon may only worsen it. The government will have to think of other measures to support the economic recovery. SEE ALSO: <a href="https://www.businessinsider.in/there-is-a-lot-of-bad-news-that-modi-has-to-budget-for-this-year/articleshow/69635372.cms">There is a lot of bad news that Modi has to budget for this year</a> <a href="https://www.businessinsider.in/modi-government-sets-up-two-cabinet-panels-to-check-falling-gdp-employment/articleshow/69670523.cms">Modi government sets up two cabinet panels to check falling GDP, employment</a>

You Searched For "rupee latest news" and got 11 results

SIMPLY PUT: A weak rupee will be a bonanza for India’s exporters

The US dollar is expected to get stronger⁠ — that's good news for Indian IT services but not for many others

Prabhjote Gill

India lost ₹15 trillion trying to make ₹14 billion from tax surcharge on investors

Sriram Iyer

The tax on super rich makes Nirmala Sitharaman's budget a bitter one for the market

Sriram Iyer

Looking to buy US dollars? Wait for a while

Sriram Iyer

Infosys Q3 net profit up 23.7% and 6 other top business stories of 10th January 2019

PTI

Foreign investors in India may get some relief from tax surcharge after Prime Minister's intervention

Sriram Iyer

The Indian rupee is tumbling

Elena Holodny

Microsoft’s Seeing AI app adds Indian currency note recognition to its trove

Prabhjote Gill

The higher tax on India's super rich continues-- only the capital gains are exempt

Sriram Iyer

The shortfall in rains is the worst in South India and it will affect rice and oilseeds production as well as tractor sales

Sriram Iyer

Popular Keywords

Buying Guides