Putin Eyes Modi's 'Make in India' Blueprint for Russia!

Saturday, July 1^st 2023

Good Morning ☕

It seems like Putin is giving a big thumbs-up to Modi's "Make in India" campaign! Who knew that friendship and manufacturing prowess could go hand in hand? Maybe we'll soon see Putin in a traditional Indian outfit, enthusiastically promoting "Make in Russia" while dancing to Bollywood music. The world of diplomacy just got a little more quirky and colorful!

1. ‘PM Modi big friend of Russia’: President Putin's big praise

Russian President Vladimir Putin has praised Indian Prime Minister Narendra Modi and his "Make in India" campaign, calling him a "big friend" of Russia. Putin credited India's leadership for creating an effective model to develop local manufacturing capabilities and attract foreign investors. He also expressed his desire to emulate the "Make in India" campaign in Russia. The two leaders have maintained a close relationship, with Putin visiting India in 2018 and Modi visiting Russia in 2019. The praise comes as India and Russia celebrate the 75th anniversary of diplomatic relations between the two countries.

2. Small savings schemes interest rates hiked by 30 bps for July-September quarter

The interest rates on small savings schemes in India have been increased by 30 basis points for the July-September quarter, according to the finance ministry. The rates for these schemes, which are reviewed every quarter by the government, now range from 4.0 percent to 8.2 percent. This is the second time this year that the interest rates on small savings schemes have been raised, with rates having been increased by up to 70 basis points for the June quarter.

3. Centre to release 50,000 tonnes of tur to curb soaring prices

The Indian government has announced that it will release 50,000 tonnes of tur, a type of lentil, from its buffer stock to help curb the soaring prices of the commodity. The move comes after the prices of tur, which is a staple food in many parts of India, have risen sharply due to a supply shortage caused by heavy rains and floods in some parts of the country. The government has also urged states to take action against hoarding and black marketing of essential commodities to help stabilize prices.

4. India's fiscal deficit narrows to ₹2.10 lakh crore during April-May

India's fiscal deficit for the first two months of the current financial year was INR 2.10 lakh crore, accounting for 11.8% of the full-year target of INR 17.87 lakh crore, according to data released by the Controller General of Accounts. The fiscal deficit in the same period last year was 12.3% of the target. The government's tax revenue jumped sharply last month due to the far larger than expected dividend transferred by the Reserve Bank of India. The finance minister has pegged the fiscal deficit for the current financial year at 5.9% and proposed to bring it down to 4.5% by 2025-26.

5. GST has been a gamechanger for India’s economy

The Goods and Services Tax (GST) has been a game changer for the Indian economy, according to an opinion piece in Livemint. The GST has created a common Indian market, reduced the cascading effect of tax on the cost of goods and services, and simplified the tax system. The GST has also helped to create a unified common national market for India, giving a boost to foreign investment and the "Make in India" campaign. The GST is a modern tax reform that is helpful in growth and development of the Indian economy.

6. Xi Jinping to attend SCO's virtual summit hosted by India

Chinese President Xi Jinping will attend the virtual summit of the Shanghai Cooperation Organisation (SCO) hosted by India on July 4, according to the Chinese Foreign Ministry. The SCO is a political and security union of countries spanning much of Eurasia, including China, India, and Russia. The summit will be held in a virtual format due to the COVID-19 pandemic. India is the chair nation of this year's summit of the SCO Council of Heads of State, and Kazakhstan will take over the presidency of the SCO after the July summit.

7. Nithin Kamath blames VCs, founders for governance issues in Indian startups

Nithin Kamath, co-founder of online broking firm Zerodha, has pointed out that the root cause of corporate governance issues in Indian startups is the overestimation of the size of the Indian market by founders and venture capitalists (VCs). Kamath believes that while founders will be blamed, the VC ecosystem is equally to blamey. He warns that such issues coming to light in Indian startups will only increase with time. Kamath's comments come amid increasing scrutiny of Indian startups and their governance practices.

8. RBI’s financial stability report masks the malaise in Indian banking

The Karnataka High Court has dismissed Twitter's plea challenging the blocking orders of the Ministry of Electronics and Information Technology, which had asked the social media giant to remove some tweets and accounts. The court imposed a fine of Rs 50 lakh on Twitter citing its conduct and refused its request to stay the operation of the order. Twitter had moved the Karnataka HC in June last year calling the orders arbitrary and against freedom of speech and expression. The government had written to Twitter asking it to comply with the orders by July 4, 2022, saying it would otherwise lose its legal shield as an intermediary.

9. Twitter plea challenging Centre's blocking orders dismissed by Karnataka HC

The Karnataka High Court has dismissed Twitter's plea challenging the blocking orders of the Ministry of Electronics and Information Technology, which had asked the social media giant to remove some tweets and accounts. The court imposed a fine of Rs 50 lakh on Twitter citing its conduct and refused its request to stay the operation of the order. Twitter had moved the Karnataka HC in June last year calling the orders arbitrary and against freedom of speech and expression. The government had written to Twitter asking it to comply with the orders by July 4, 2022, saying it would otherwise lose its legal shield as an intermediary.

10. Potential Impact of India's Uniform Civil Code on Hindu Undivided Family Taxation

The Uniform Civil Code (UCC), which could be tabled in India's upcoming Monsoon Session of Parliament, is causing concern among tax and investment experts due to its potential impact on income tax laws and succession plans. The most notable change would be the impact on the Hindu Undivided Family (HUF) and its associated tax benefits. The HUF, a concept dating back to the Income Tax Act of 1922, has unique tax rules, including separate tax exemption limits and various tax breaks. The UCC's implementation could abolish the HUF concept, necessitating amendments to the Income Tax Act, altering the rights of individuals in regards to ancestral property and potentially affecting millions of Hindu families. However, the government's definitive stance on this issue is not yet clear.

World News 🌎

• Forex reserves decline by $2.9 bn to $593.19 bn as of 23 June

• Hong Kong’s Crypto Hail Mary Is Risky Business

• China's $3 trillion ‘hidden’ currency reserves, a risk to the global economy

• Taiwan maintains surveillance on 9 Chinese military aircraft across country

• South Korea has earned the right to be more assertive, says a former foreign minister

• SCO 2023: Pakistan PM Shehbaz Sharif to attend virtual summit on 4 July

• The conflict in Ukraine risks inflaming the Sino-American rivalry

• China’s rulers play the law-and-order card, and lose

• World Bank approves $1.5 billion loan for Ukraine's economic recovery

• France Protest: President Emmanuel Macron to hold emergency meeting amid unrests