India's 5G Revolution Takes Off! 🛫

Good Morning!

By 2028, it seems like India will have more 5G subscribers than there are people who have ever tried to assemble a piece of IKEA furniture. With 700 million 5G subscribers on the horizon, it won't be long before India becomes the land of lightning-fast internet and a whole lot of cat videos. Get ready, India, because the future is looking pretty darn speedy!

1. India's forex reserves rise by $2.35 billion to reach at $596 billion

India's foreign exchange reserves increased by $2.35 billion to reach $596.098 billion in the week ending June 16, 2023, according to the Reserve Bank of India's latest data. All components except gold reserves witnessed a sharp increase on a week-on-week basis, with foreign currency assets (FCA) outperforming the overall kitty, rising by $2.578 billion to $527.651 billion. Meanwhile, Ericsson Mobility Report projects that India's 5G user base will reach 700 million by the end of 2028, representing a significant 57% share of all mobile subscriptions. However, the Carbon Border Adjustment Mechanism (CBAM) framework will impact India's 15-40% of steel exports to Europe.

2. India to have 700 Mn 5G Subscribers by 2028-end

According to the Ericsson Mobility Report, India is expected to have 700 million 5G subscribers by the end of 2028, compared to the 10 million recorded at the close of 2022. The report attributes this growth to factors such as fast-growing 5G network availability across cities, attractive 5G pricing, and the growing availability of 5G smartphones. Presently, the Indian market is dominated by 4G subscriptions, which stood at 820 million at the end of 2022, but it is predicted that this figure will decline to 500 million by the end of 2028. Conversely, the total number of mobile subscriptions is anticipated to surge to 1.2 billion during the same period, and smartphone subscriptions in India as a percentage of total mobile subscriptions are expected to grow to 93% in 2028 from 76% in 2022.

3. India joins Artemis Accords, to launch ISRO-NASA space mission to ISS in 2024

India has decided to join the Artemis Accord, a United States-led international agreement on civil space exploration. This announcement comes alongside plans for a joint mission between NASA and the Indian Space Research Organisation (ISRO) to the International Space Station next year. The Artemis Accords, launched in October 2020, provide a framework for guiding space exploration and promoting sustainable use. With India's participation, the number of countries signing the accord increases to 25 as of May 2023.

4. Terrorist incidents drop by 70% in past nine years: Amit Shah

According to Amit Shah, India's Union Home Minister, terrorist incidents have decreased by 70% in the past nine years. During the previous government, there were 7,327 terrorist incidents in 10 years in which 2,056 civilians were killed, while the number of incidents reduced to 509 in 2021. Shah said terrorism is a curse for any civilized society, and India has suffered the greatest pain from this curse. The incidents of left-wing extremism violence have also reduced by 70% to 509 in 2021 compared to 1,738 in 2011.

5. New tariff norms to help consumers save on electricity bills

New tariff norms in India are expected to help consumers save on electricity bills. The new norms will allow consumers to take advantage of lower rates during off-peak hours, which will incentivize them to shift their energy usage to those times. This will help reduce the overall demand for electricity during peak hours and reduce the strain on the grid. The California Energy Commission has also adopted updates to the state's load management standards that will give consumers more control over their energy usage and help them save money by shifting usage to times of cheaper or abundant electricity.

6. Oil heads for weekly decline after BoE rate hike adds to global growth concerns

Oil prices are heading for a weekly decline due to concerns about global growth and rising supplies. Brent crude futures fell 3.9% to $71.84 a barrel, their lowest since December 2021, while West Texas Intermediate crude fell 4.4% to $67.12 a barrel, their lowest since March. Goldman Sachs cut its oil price forecasts, citing higher-than-expected supplies later this year and through 2024. The US Federal Reserve is set to meet later this week. OPEC and IEA outlooks are due on Tuesday. The historic oil price fluctuation during the Covid-19 pandemic has been caused by several factors, including the breakdown of the agreement between Russia and OPEC, lower demand for oil in Europe and China, and steady supply of oil from OPEC.

7. Inflation slowing down consumption, investment: RBI

According to the Reserve Bank of India's June bulletin, inflation is slowing down consumption and investment. Private consumption grew at 2.8% in the January-March quarter of FY23, while it grew 0.5% on a seasonally adjusted sequential basis after contracting 2% in the previous three months. The report suggests that bringing down inflation and stabilizing inflation expectations will help revive private capital expenditure.

8. India, UK regulators close to resolving clearing House impasse

The UK government has stated that Indian clearing houses overseen by the Reserve Bank of India meet its regulatory requirements, which may help resolve the ongoing impasse over allowing overseas regulators oversight over local counterparties. This change is a prerequisite for the Bank of England to recognize overseas counterparties. The move now paves the way for British banks like Barclays and Standard Chartered, with a significant presence in India, to continue trading in the South Asian nation using the Clearing Corp. of India platform. The British ruling would have kicked in from July.

9. UPI to account for 90% of retail digital transactions in next 5 yrs: RBI

According to a bulletin released by the Reserve Bank of India (RBI), Unified Payments Interface (UPI) is expected to account for 90% of retail digital transactions in India in the next five years. The RBI conducted a pilot survey on retail payment habits of individuals in six cities between December 2018 and January 2019, which indicated a widespread awareness about digital payments among respondents. The RBI has been working to ensure safe, secure, quick, and affordable e-payment options, with greater competition and customer confidence in the payment ecosystem of the country. The digital rupee, a retail digital currency, is set to launch on December 1, 2021, on a pilot basis.

10. India's steel exports to EU to come under pressure on CBAM framework: Icra

The Carbon Border Adjustment Mechanism (CBAM) framework, which the European Union (EU) is introducing from October 1, 2023, will impact India's 15-40% of steel exports to Europe, according to a report by rating agency Icra. The impact will be seen from the calendar year 2026 to 2034. India exports up to 3-5 million tonnes of finished steel to Europe every year, and the carbon footprint of Indian mills could pull down the profits of Indian steel exports to the EU by USD 60-165/MT between CY 2026 and CY2034. Europe has historically remained an important overseas destination for Indian steel mills, accounting for between 15-40% of India's annual steel exports.

11. India may reduce wheat import duty if needed, says FCI chairman

India may reduce wheat import duty if needed, according to the Chairman of the Food Corporation of India (FCI). The country is considering scrapping the 40% import duty on wheat and imposing stock holding limits on wheat to cool domestic prices. The landed cost of imported wheat is currently around Rs 33-34 per kg, while domestic prices are around Rs 23-24 per kg, making a duty cut less effective in cooling local prices. India last imported wheat in the 2017/18 financial year, and traders may start importing if the government removes the duty and international prices fall.

12. RBI imposes penalty on Axis Bank, J&K Bank, Bank of Maharashtra

The Reserve Bank of India (RBI) has imposed penalties on three banks for various violations. Axis Bank has been fined Rs 5 crore for contravention of certain provisions of directions issued by the RBI. Bank of Maharashtra has been fined Rs 2 crore for non-compliance with certain provisions of the Banking Regulation Act, 1949. Jammu & Kashmir Bank has been fined Rs 2.5 crore for non-compliance with certain provisions of the directions issued by the RBI.

World News🌎

• US Report Says No Direct Evidence Covid Came From China's Wuhan Lab

• Climate Protesters Aim To Put London To A Halt

• Meta To Block Canadian News In Response To Media Bill Approval

• Zambian President Hichilema's $6bn debt deal hailed as 'historic'

• UK inflation steady at 8.7% against predictions for modest fall

• Joe Biden and Narendra Modi hail 'defining' US-India partnership

• Greece boat disaster: 350 Pakistanis were on board, minister says

• Titanic director James Cameron accuses OceanGate of cutting corners