Repo Rate Holding Steady: RBI's Strategy for Economic Resilience 🧾

Monday, July 31st, 2023

Good Morning ☕

Reserve Bank of India (RBI) is about to unleash some monetary magic! Get ready for the next quirky episode of the Monetary Policy Committee (MPC) meeting in August, where the repo rate is expected to perform a jaw-dropping act of staying unchanged at 6.5%, according to the experts! Ta-da! 🎩

The pause in rate hikes is set to work wonders for sectors like real estate and infrastructure. Expect them to receive a dose of monetary fairy dust, bringing smiles to their faces as they dance to the tune of economic growth.

Important News of the Day

1. RBI likely to keep repo rate unchanged during next MPC in August: Experts

The Reserve Bank of India (RBI) is expected to keep the repo rate unchanged at 6.5% during the next Monetary Policy Committee (MPC) meeting in August, according to experts. The MPC unanimously voted to keep the repo rate unchanged at 6.5% during the previous meeting in April. The RBI Governor, Shaktikanta Das, has stated that the central bank is ready to act should the situation warrant it. The pause in rate hikes is expected to benefit sectors such as real estate and infrastructure.

2. Mizoram begins collection of biometric details of Myanmar nationals

The Mizoram government has started collecting biometric details of Myanmar nationals living in the state, following an instruction from the Ministry of Home Affairs (MHA) to capture the biographic and biometric details of illegal immigrants. The MHA had issued a similar directive to Manipur in June, and the state had started a campaign to collect biometric data of "illegal immigrants" from Myanmar in July. The move comes amid a surge in refugees and illegal immigrants from Myanmar due to the ongoing political turmoil in the country.

3. PM to flag off metro trains, inaugurate several projects in Pune

Prime Minister Narendra Modi will inaugurate a waste-to-energy plant, flag off metro stretches, and hand over Pradhan Mantri Awas Yojana (PMAY) houses in Pune on August 1. The waste-to-energy plant aims to generate electricity by utilizing about 2.5 lakh metric tonnes of waste annually. During his visit, the Prime Minister will lay the foundation stone for approximately 1,190 PMAY houses to be constructed by Pimpri Chinchwad Municipal Corporation (PCMC) and over 6,400 houses to be constructed by the Maharashtra Housing and Area Development Authority (MHADA) .

4. Railways increased safety spending 2.5-fold in past decade

The Indian Railways has increased its safety spending 2.5-fold in the past decade, with a total safety expenditure of INR 1,78,012 crore in the last nine years. The Railways has seen a continuous increase in capital expenditure in the last four years, with a budget estimate of INR 2.5 lakh crore in FY23, up by around 29%. In Budget 2023, Finance Minister Nirmala Sitharaman announced a capital outlay of INR 2.4 lakh crore for Indian Railways, the highest ever, which will be utilized for railway tracks, electrification, and station facilities, among others.

5. Nearly 96,000 companies have voluntarily wound up in the past five years

According to data from the Ministry of Corporate Affairs, nearly 96,000 companies in India have voluntarily wound up in the past five years. This trend is attributed to the government's crackdown on shell companies and stricter enforcement of regulations. The number of companies that have wound up voluntarily has increased from 14,000 in 2016-17 to 23,000 in 2020-21. The majority of these companies were in the manufacturing, trading, and services sectors. The trend is expected to continue as the government continues to tighten regulations and increase scrutiny of companies.

Entrepreneur of the Day👨‍💼

At just 13 years old, Tilak Mehta, the founder of Papers N Parcels, is already making waves in the logistics industry. Hailing from the suburban part of Mumbai and studying in 8th grade like any typical teenager, Tilak's inspiration for his venture came from observing the challenges his father faced with commuting and traveling. This led him to create Papers N Parcels, a logistics company dedicated to same-day delivery of small parcels and documents within Mumbai city.

With a dream in his heart and determination in his eyes, Tilak worked hard to make Papers N Parcels a reality. The company employs over 200 people and collaborates with more than 300 Dabbawala partners, who handle last-mile delivery for the startup. These partnerships not only brought efficiency to the courier service but also provided additional sources of income for the Dabbawalas. Papers N Parcels charges competitive rates for their services, making it an attractive choice for individuals and businesses alike.

Papers N Parcels stands out in the courier service industry due to its innovative approach and use of technology. The company's mobile application enables customers to place orders conveniently, and they even offer real-time updates on the status of deliveries, ensuring a smooth and safe experience for users. The startup's association with the famed Mumbai Dabbawalas has also contributed to its success and digital disruption in the logistics sector.

With dreams of capturing over 20% of the intra-city logistics market, Tilak Mehta aims to redefine traditional business models. His integrated approach, combining digital and marketing solutions, sets Papers N Parcels apart from its competitors. As India's youngest entrepreneur, Tilak is proving that age is just a number, and with determination and a vision, one can create a thriving business that meets the needs of customers while bringing innovation to the industry. With promising growth prospects and a turnover target of 100 crore INR by the end of 2020, Papers N Parcels is poised to leave an indelible mark on the logistics landscape.

Breaking News: The Scoop You Can't Miss!

1. About 80% of ₹2,000 notes back in banking system as of 30 June: FinMin

According to the Reserve Bank of India (RBI), 76% of the Rs 2,000 notes have been returned to banks till June 30, with 87% being deposited and 13% exchanged. The withdrawal of the Rs 2,000 notes from circulation was announced on May 19, 2023. The RBI has asked banks to provide deposit and/or exchange facilities for Rs 2,000 notes until September 30, 2023. The total value of these banknotes in circulation has declined from Rs 6.73 lakh crore at its peak of March 31, 2018, to Rs 3.62 lakh crore, constituting only 10.8% of Notes in Circulation on March 31, 2023.

2. SEBI bans Excel Realty N Infra, 4 others from securities mkt for up to 2 years

The Securities and Exchange Board of India (SEBI) has banned Excel Realty N Infra and four other entities from the securities market for up to two years. The ban is based on a complaint received by SEBI, which found that the entities had violated securities laws. The ban will prevent the entities from buying, selling, or dealing in securities in any manner.

3. ‘NASA-ISRO collaboration is a sign of times to come,’ says EAM S Jaishankar

Indian External Affairs Minister Dr. S. Jaishankar stated that India-US collaboration has extended to new initiatives and additional domains and can be expected to grow steadily. He made the remarks at the SemiconIndia Conference 2023. The collaboration is not limited to meeting domestic requirements but also includes critical and emerging technologies that will emerge as important metrics of power. The statement indicates that India and the US are expanding their cooperation beyond the existing domains and are exploring new areas of collaboration.

4. ISRO ‘going to have exciting missions’ in 2023, says Chairman Somanath

ISRO Chairman S. Somanath announced that the Indian Space Research Organisation (ISRO) will have several exciting missions in 2023, including the launch of the Chandrayaan-3 mission to the Moon on July 13. The Chandrayaan-3 mission is ready for launch, and the lift-off will take place on July 13. ISRO is India's space agency, involved in science, engineering, and technology to harvest the benefits of space research for the country.

5. Telangana govt to demolish Osmania Hospital buildings, including heritage block

The Telangana government has decided to demolish the buildings of Osmania Hospital, including its century-old heritage block. The government argues that the old building is unfit for a hospital and would compromise the quality of healthcare services. They have filed an affidavit in the High Court stating that the heritage structure is no longer suitable to provide modern medical facilities. The decision to demolish the hospital has sparked criticism and debate over the heritage value of the 114-year-old building. The government plans to construct a new building for the hospital.

World News 🌎

• Pakistan blast: 39 dead in bombing at political gathering; local leader killed

• Russia: Ten people killed, several injured in fierce storms, says ministry

• Saudi Arabia to host Ukrainian peace talks in August, India among top invitees

• Elon Musk's X social media platform reinstates Kanye West's account: Report

• US envoys for Afghanistan stress urgency of inclusive governance in Kabul

• Russian President Vladimir Putin reveals reason for not attending BRICS summit

• Donald Trump's $475 million 'big lie' defamation lawsuit against CNN dismissed

• Lithuania, Poland mull border closure as Wagner fighters gather in Belarus

• ISRO to launch Singapore's earth observation satellite on Sunday

• Pakistan businessman gifts India's Anju land, money for converting to Islam

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