Indian Monetary and Trade Policy News | Economy News - Economic Times
India's central bank has eased foreign exchange regulations to promote the rupee and other currencies in cross-border transactions. Indian exporters can now open foreign currency accounts overseas to settle trades, and non-residents can open rupee accounts for transactions with Indians. Additionally, non-residents can use these balances for foreign investments, including non-debt instruments.
The union cabinet, led by Prime Minister Narendra Modi, approved the creation of the eighth Central Pay Commission to revise the salaries and pensions of government employees, set to be established by 2026. This decision ends speculation of discontinuing the pay commission system. The seventh commission's term concludes in December 2025.
8th Pay Commission: The cabinet led by Prime Minister Narendra Modi has approved the formation of the eighth central pay commission, to be implemented likely by 2026. Union Minister Ashwini Vaishnaw announced that details, including member information, would be disclosed later. The seventh pay commission's recommendations are already in effect, with the new commission expected to review salary, allowances, and pensions adjustments.
India Budget: The Union Budget 2025 is eagerly anticipated, with significant expectations from the banking and financial sectors. Key proposals include adjusting tax rates for foreign banks, abolishing Securities Transaction Tax (STT), extending tax benefits to NBFCs, and enhancing tax incentives for GIFT-IFSC. These changes aim to support India's economic growth and ease of doing business.
Indian Railways faces urgent safety concerns following recent deadly mishaps. The 2025 budget may increase railway funding by 15-20% for modernisation and safety upgrades like the Kavach system. However, the lack of sector-specific announcements in the 2024-25 Budget caused stock declines. Investments in signalling, staffing, and infrastructure are critical to ensuring safety.
An India-centric US business advocacy group has proposed significant reforms to the tax regime ahead of India's 2025-26 Union Budget. Recommendations focus on simplifying the tax structure, providing incentives for greenfield manufacturing, and enhancing India's position as a global financial hub to attract investments and foster economic growth.
Indian Railways may see a 15-20% rise in capital expenditure for FY26, boosting its allocation to over ₹3 lakh crore. The 2025-26 budget, to be presented by Nirmala Sitharaman, will focus on modernizing stations, launching contemporary trains, and decongesting tracks. Significant support is expected for the bullet train project and Vande Sleeper train operations.
ICRA stated that the Union Budget 2025-26 will prioritize capital expenditure with a 12-13% increase, while also focusing on fiscal consolidation, job creation, tax relief for individuals, and boosting manufacturing. The fiscal deficit is planned to decrease to 4.5% of GDP by FY26.
USISPF seeks simplification of India's tax structure to reduce industry compliance burden, including tax deduction at source. Recommendations for the upcoming budget include extending concessional rates for greenfield manufacturing, reducing the compliance burden, and introducing a 15% tax for maintenance firms. Proposals also aim to position GIFT City as a global financial hub with various tax exemptions.
The Department for Promotion of Industry and Internal Trade (DPIIT) consulted with pension funds, PE, and VCs to boost FDI. Key issues discussed included FDI in e-commerce for export, easing press note 3, and revising single-brand retail policies. Major sectors attracting FDI include services, IT, telecom, and pharmaceuticals, with investments rising 45% year-on-year to USD 29.79 billion in April-September.
India is developing an SOP for coordination among agencies to ensure accuracy of trade data, following major import data revisions. A committee has been established to create a robust mechanism for consistent data publication. The commerce ministry is also enhancing data insights with AI support.
a conference on Future of Jobs-Shaping Tomorrow's Workforce, jointly organised by the Confederation of Indian Industry (CII) and the ministry of labour and employment on Wednesday, labour and employment minister Mansukh Mandaviya called for synergy in thought and action between the government and industry as we aim to make India a developed nation by 2047.
The government has begun interviewing candidates for the Reserve Bank of India's new deputy governor just weeks before an important interest rate decision. The candidates include notable economists such as Poonam Gupta and Chetan Ghate. The final decision will be made by Prime Minister Narendra Modi and Home Minister Amit Shah. The new deputy governor will replace Michael Patra.
Union Budget 2025: The US-India Tax Forum has proposed recommendations for the Union Budget 2025-26. These include simplifying tax structures, enhancing foreign investment incentives, and supporting sectors like renewable energy and healthcare. The aim is to attract new investments, simplify compliance, and position India as a global economic leader. The proposals also suggest measures for transforming GIFT City into a financial hub.
The Reserve Bank of India, under new Governor Sanjay Malhotra, is loosening its tight control over the rupee, aligning it with regional currencies while still intervening to prevent excessive volatility. This shift aims to bolster exports and prioritize inflation control amid global economic challenges.
India Budget: Finance Minister Nirmala Sitharaman's upcoming budget presentation is crucial amidst India's economic challenges. The economy slowed to 5.4% growth in Q2, with falling wages, slackening investments, and high inflation. However, HSBC and RBI reports forecast recovery with strong domestic demand, improved agricultural growth, and robust public investments.
Load More...
