India and UAE Agree to Trade in Rupees and Dirhams!

Wednesday, July 26^th , 2023

Good Morning ☕

Hold on to your dirhams and rupees because India and the United Arab Emirates (UAE) are teaming up for a currency extravaganza! That's right, they've just signed a super cool Memorandum of Understanding (MoU) to make trade between them even more awesome.

So what's the deal? Well, they're setting up a snazzy Local Currency Settlement System (LCSS) to make it a breeze to use their own currencies, rupees for India and dirhams for the UAE. No more playing hide-and-seek with those pesky US dollars, folks! 💸 The LCSS is the magic potion to slash transaction costs and wave goodbye to those annoying currency risks.

Important News of the Day

1. Rupee use in trade transaction with UAE to reduce MSMEs’ conversion costs: Piyush Goyal

India and the United Arab Emirates (UAE) have signed a Memorandum of Understanding (MoU) to settle bilateral trade in rupees and dirhams, respectively. The agreement will establish a Local Currency Settlement System (LCSS) to promote the use of the two currencies. The move is expected to reduce transaction costs and currency risks associated with the use of third-party currencies such as the US dollar. The LCSS is expected to be operational soon, and the two countries are also working on interlinking payment and messaging systems to facilitate the trade. The announcement was made during Indian Prime Minister Narendra Modi's visit to the UAE.

2. India's GDP growth to drop in coming months, IMF projects 6.1% growth in FY24

The International Monetary Fund (IMF) has raised its growth forecast for India's gross domestic product (GDP) for the fiscal year 2023-24. The IMF now projects a GDP growth of 6.1%, up from the previous forecast of 5.9% . This upward revision is attributed to India's strong growth momentum. The IMF's revised forecast indicates a positive outlook for India's economy in the coming months.

3. India's outstanding external debt up at $624.65 billion in FY23

India's outstanding gross external debt rose to $624.65 billion at the end of the financial year 2022-23, according to provisional figures. This marks an increase from the $613.1 billion reported at the end of December 2022. However, the external debt declined by $2.3 billion in the second quarter of 2022-23, down to $610.5 billion from end-June 2022. The US dollar-denominated debt remained the largest component of India's external debt, with a share of 55.5% at end-September 2022, followed by the Indian rupee.

4. Indian technical textiles market to soar to $50 billion in next 5 years

India's technical textile industry is expected to grow at a CAGR of 16% to reach $50 billion by 2025. The Indian Ministry of Textiles has allocated $3.89 million for 15 research and development projects aimed at growing the South Asian technical textiles industry. The Indian technical textile market is projected to reach $40-50 billion in the next five years. The government is working on expanding the technical textile market to $50 billion by 2024. The Indian technical textile industry can aim to reach $200 billion market by 2047. The global technical textiles market is around $260 billion and is expected to increase to $325 billion by 2025.

5. India requires 1.32 mn EV charging stations by 2030: CII report

According to a recent report by the Confederation of Indian Industry (CII), India needs to install over 400,000 EV chargers annually to meet the target of 1.32 million EV chargers by 2030. The report also states that India is forecasted to be home to 102 million EVs by 2030. The development of EV charging infrastructure is further incentivized by the support provided through government reforms along with continual engagement by the private sector, creating new economic opportunities along the value chains for EV charging. The government of India has released revised guidelines and standards for charging infrastructure in 2022.

Entrepreneur of the Day👨‍💼

In a world where technological advancements are transforming every aspect of our lives, some innovations stand out for their potential to change the face of healthcare. One such success story is Rajat Jain, the visionary founder of Sunfox Technologies, who has brought to life the groundbreaking 'Spandan' - a portable ECG device that has taken the medical world by storm. Touted as one of the most effective business proposals in Shark Tank India, 'Spandan' has captured the hearts of millions and promises to revolutionize heart health.

'Spandan,' showcased in Shark Tank India Season 1 Episode 24, is a portable ECG device designed to detect electrocardiograph signals, providing users with real-time reports of their heartbeats. Affordable and innovative, this Dehradun-born startup has taken its first steps towards making India healthier. Operating under the umbrella of Sunfox Technologies, 'Spandan' has found its niche in the personal wellness sector, effectively detecting key anomalies in heart rhythms. Leveraging artificial intelligence and cutting-edge technology, the device offers instant self-monitoring with Intelli-ECG Technology, making it an ECG-on-smartphone breakthrough.

The mastermind behind 'Spandan,' Rajat Jain, together with his skilled team including Nitin Chandola, Sabit Rawat, and Saurabh Badola, have successfully merged their technical prowess with a brilliant idea. Since their appearance on Shark Tank India, 'Spandan' has garnered widespread attention, catapulting Sunfox Technologies to unprecedented heights. With a staggering 99.7% accuracy rate, 'Spandan' has won the trust of countless users in India and beyond. The surge in demand has led to a remarkable 40x increase in revenue, as people across the country and internationally are now seeking to get their hands on this life-changing device.

Rajat Jain's journey from the Shark Tank stage to the thriving success of 'Spandan' serves as an inspiration to countless aspiring entrepreneurs. His dedication to transforming healthcare and making heart health accessible to all has redefined the landscape of medical technology. As the world embraces the marvel that is 'Spandan,' Rajat envisions a future where technology intertwines seamlessly with healthcare, saving lives and empowering individuals to take control of their well-being. With international queries pouring in for distribution and partnerships, the future looks bright for Rajat Jain and Sunfox Technologies, a testament to the power of innovation and unwavering determination in the face of challenges.

Breaking News: The Scoop You Can't Miss!

1. Database of 2.64 lakh cooperative societies mapped in phase-1: Amit Shah

The Indian government has completed the first phase of mapping a database of 2.63 lakh primary cooperative societies engaged in credit, dairy, and fisheries. The database is expected to be extended to cooperative societies of all other sectors by July this year. The Ministry of Cooperation has initiated the process of creating a National Cooperative Database with the National Cooperative Union of India (NCUI) to provide a single point of access to information on cooperatives of different sectors. The database would facilitate stakeholders in planning, formulation, and implementation of appropriate policies for the cooperative sector.

2. Oil marketing firms likely to hit ₹1 tn in operating profit this fiscal: Report

India's oil marketing companies (OMCs) are expected to experience a significant rebound in operating profit this financial year, with estimates projecting profits of Rs 1 trillion. This positive outlook comes from CRISIL Ratings. The Indian economy is also expected to see growth, with CRISIL Research predicting a 7% year-on-year increase in real GDP in fiscal 2023, reaching approximately Rs 157 trillion. This indicates a positive trend in the energy and consumer sectors in India. The rebound in OMC profits aligns with the overall growth trajectory of the Indian economy.

3. Three-fourth of ₹2000 currency notes in circulation have returned to banks: Govt

According to the Reserve Bank of India (RBI), 76% of the country's highest denomination 2000-rupee currency notes, worth 2.72 trillion rupees ($33.19 billion), have been returned since its decision to withdraw them from circulation. The RBI said in May it would withdraw these high-value notes, permitting their exchange or deposit until September 30. Data collected from major banks indicated that about 87% of the banknotes received by the lenders was in the form of deposits, while around 13% had been exchanged for other denominations. The 2000-rupee denominated notes were introduced in 2016 with the intention to replenish the Indian economy's currency in circulation after the government's shock move to demonetize the economy by scrapping high-value banknotes.

4. Cadbury maker to invest 1600 crore to expand Andhra plant

Cadbury India, a part of Mondelez International Inc, plans to invest Rs 1,600 crore (approximately $216 million) to expand its manufacturing plant in Andhra Pradesh, India. The investment is expected to create close to 1,600 direct jobs by 2020. The new facility will help meet the growing demand for Cadbury products and is part of Mondelez's larger plan to invest Rs 4,000 crore (approximately $540 million) in India over the next three years. The expansion will add capacity to the existing factories and enable the production of around 100,000 tonnes of Cadbury chocolates annually.

5. L&T board approves investment of ₹506 crore in L&T Energy Green Tech

Larsen & Toubro (L&T) board has approved an investment of INR 506 crore ($68 million) in L&T Energy Green Tech. The investment will be used to develop and commercialize renewable energy technology. This investment aligns with the global push for clean energy solutions and supports the Biden Administration's climate innovation agenda. L&T Infrastructure Finance has previously received investments for green bonds, further boosting solar financing in India. The funding from L&T will contribute to the development of clean energy technology and help in achieving net-zero emissions by 2050.

World News 🌎

• Thailand's Parliamentary vote to appoint PM postponed for third time

• Xi Jinping’s foreign minister ousted after month-long unexplained absence from public view

• Ukraine’s defense minister says attacks on Crimea will continue, predicts possible NATO entry next year

• $4.6 billion plant in South Africa will make ‘the fuel of the future’

• Chinese and Russian delegations to visit North Korea ahead Korean War anniversary

• Israel passed a bill to limit the Supreme Court’s power

• Protesters storm Swedish embassy in Iraq over Quran burning plan

• UN ‘very concerned’ over widespread violence by police during protests in Kenya

• Cambodia’s ruling party claims landslide win in one-sided election

• Russian recruited from prison describes horrors of trenches in Ukraine

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