Endeavor Careers Choicest Blogs: Weekly Current Affairs: April 2022, Week 01

Welcome to the Endeavor Editors’ Weekly Current Affairs Choicest Blog series. Get a weekly roundup – of news from business, economy, markets, policy, and more. A quick capsule format news summary and update to keep you abreast with all the latest current affairs.

1) International News and Global Economy

Russian attacks on Ukraine civilians must be probed as War Crimes: UK

As evidence mounts of “appalling acts” in the Ukrainian towns of Irpin and Bucha, Russia’s attacks on civilians must be investigated as war crimes, Britain’s foreign minister said. Foreign Secretary Liz Truss said in a statement that the government is seeing “increasing evidence of appalling acts by the invading forces in towns such as Irpin and Bucha”, close to Kyiv. AFP reporters saw at least 20 bodies, all in civilian clothing, strewn across a single street in Bucha on Saturday. Truss said that Russian troops’ “indiscriminate attacks against innocent civilians during Russia’s illegal and unjustified invasion of Ukraine must be investigated as war crimes”.

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What are war crimes and has Russia committed them?

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Missiles hit Ukraine refinery, ‘critical infrastructure’ near Odessa

Russian attacks have destroyed an oil refinery in Ukraine’s central Poltava region and struck “critical infrastructure”, most likely a fuel depot, near the port city of Odessa, local officials said on Sunday. Odessa, on the Black Sea coast, is a key Black Seaport and the main base for Ukraine’s navy. It has been a focus for Russian forces because if taken, it would allow Moscow to build a land corridor to Transnistria, a Russian-speaking breakaway province of Moldova that hosts Russian troops. Mr. Dmytro Lunin, governor of the Poltava region, said on television that the Kremenchug oil refinery had been destroyed in a rocket attack on Saturday. Kremenchug is 350km northeast of Odessa.

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Odesa braces for a Russian invasion

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Sri Lanka imposes state of emergency amid protests

A nationwide state of emergency has been declared in Sri Lanka, a day after protests outside the president’s house turned violent. Protesters stormed barricades and have been accused of setting vehicles ablaze near President Gotabaya Rajapaksa’s private residence. The military has since been deployed and now has the power to arrest suspects without warrants. Sri Lanka is in the midst of a major economic crisis. It is caused in part by a lack of foreign currency, which is used to pay for fuel imports. Faced with power cuts lasting half a day or more, and a lack of fuel and essential food and medicines, public anger has reached a new high in the island nation of 22 million.

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Sri Lanka Crisis: Sri Lanka declares state of Emergency after unrest over Economic Crisis

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Explained: Sri Lanka economic crisis and India’s $2.5 billion lines of credit

Sri Lanka faces its worst economic crisis in decades. The Mahinda Rajapaksa government is struggling to pay for essential imports after a 70 percent drop in foreign exchange reserves over two years triggered a currency devaluation. Fuel is in short supply, prices of food and essential goods have increased and protests have broken out as the government preps for talks with the International Monetary Fund amid concerns over its ability to pay $4 billion in foreign debts this year, including a $1 billion international sovereign bond that matures in July. India has already extended a $1 billion line of credit to help Sri Lanka buy fuel, food, and medicine. This week Colombo sought an additional $1.5 billion, the governor of that country’s central bank told Reuters. In addition, a $500 million credit has been extended for a shipment of 40,000 tonnes of diesel to tide over the severe fuel shortage in that country. India has also extended a $400 million currency swap and deferred payment of $515.2 million to the Asian Clearing Union (ACU) by two months.

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Yemen warring parties agree on a two-month truce – UN

A two-month truce has been agreed by warring parties in Yemen, the UN says. It is the first nationwide truce agreed upon since 2016 in a war that has killed nearly 400,000 people, according to UN estimates. About 60% died from hunger, lack of healthcare, and unsafe water. The deal between the Saudi-led coalition and Iran-backed Houthi rebels – which can be extended if both agree – is scheduled to come into effect at 16:00 GMT on Saturday. Saturday is the first day of the Muslim holy month of Ramadan for many Muslims. US President Joe Biden hailed the UN-brokered truce as a long-awaited “reprieve for the Yemeni people”.

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U.N., U.S. welcome Yemen truce amid Saudi talks

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Pakistan National Assembly dissolved, elections within 90 days: 10 updates

Pakistan Minister of State for Information and Broadcasting Farrukh Habib said that fresh elections in the country will be held within 90 days. Pakistan President Arif Alvi today dissolved the National Assembly on the advice of PM Khan, minutes after the embattled leader of the ruling party advised him to call for fresh elections. Prime Minister Khan, who had effectively lost a majority in the 342-member National Assembly, earlier made a brief address to the nation after a stormy parliament session was adjourned by Deputy Speaker Qasim Suri. Khan lost his majority in parliament after allies quit his coalition government and he suffered a spate of defections within his Pakistan Tehreek-e-Insaf party. The opposition blames Khan for failing to revive the economy and crackdown on corruption. He has said, without citing evidence, that the move to oust him was orchestrated by the United States, a claim Washington denies.

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No-Trust Motion Dismissed – A Lifeline for Imran Khan?

Pakistan Prime Minister Imran Khan, in a rapid turn of events today, asked the President to dissolve the national assembly and announced fresh polls after the last-minute dismissal of the no-trust motion. The opposition said it is going to court.

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Biden spurs record emergency oil release in ‘moment of peril’ for world

President Joe Biden on Thursday launched the largest release ever from the U.S. emergency oil reserve and challenged oil companies to drill more in an attempt to bring down gasoline prices that have soared during Russia’s war with Ukraine. The announcement comes as part of a broad effort by Biden to tackle raging inflation that has hurt U.S. consumers and threatens Biden’s fellow Democrats as they seek to maintain control of Congress in the November elections. Starting in May, the United States will release 1 million barrels per day (bpd) of crude oil for six months from the Strategic Petroleum Reserve (SPR), he said. “This is a moment of consequence and peril for the world, and pain at the pump for American families,” Biden said at an event at the White House.

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Biden authorizes the release of One million barrels of oil from the Strategic Reserve Per Day

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New Covid Variant XE Found In UK, More Transmissible Than Omicron: WHO

A new Covid variant has been found in the UK, the World Health Organisation said in its latest report. The new mutant, called XE, maybe more transmissible than any strain of COVID-19, the health body said. XE is a “recombinant” which is a mutation of BA’1 and BA.2 Omicron strains. Recombinant mutations emerge when a patient is infected by multiple variants of Covid. The variants mix up their genetic material during replication and form a new mutation, UK experts said in a paper published in British Medical Journal. The World Health Organisation said that the new mutation XE appears to be 10 percent more transmissible than the BA.2 sub-variant of Omicron.

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2) India

India, Australia ink economic cooperation and trade pact to boost ties

India and Australia have signed an economic cooperation and trade agreement under which Canberra would provide duty-free access in its market for over 95 percent of Indian goods such as textiles, leather, jewelry, and sports products. The India-Australia Economic Cooperation and Trade Agreement was inked by Commerce and Industry Minister Piyush Goyal and Australian Minister for Trade, Tourism and Investment Dan Tehan in a virtual ceremony, in the presence of Prime Minister Narendra Modi and his Australian counterpart Scott Morrison. The agreement will help in taking bilateral trade from USD 27 billion to USD 45-50 billion in the next five years, Goyal said. Australia is offering zero-duty access to India for about 96.4 percent of exports (by value) from day one. This covers many products which currently attract 4-5 percent customs duty in Australia. Australia is offering zero-duty access to India for about 96.4 percent of exports (by value) from day one.

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PM Modi, Morrison scale up ties outside QUAD; Historic India-Aus trade deal to hurt China

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The burden on farms, water to escalate with ethanol

The Indian government recently claimed that it has achieved 9.45 percent ethanol blending with petrol, a practice that contributes to lower emissions and other environmental benefits. At this pace, the country is likely to reach a target of 10 percent ethanol blending by November 2022, the end of the ethanol supply year (ESY). The government is also confident of achieving its 2025 target of 20 percent blending of ethanol in petrol, that’s stated in the National Biofuel Policy 2018. India’s biofuel policy aims to reduce the country’s crude oil import bill, cut down emissions and move towards cleaner fuel. On March 25, the government told the parliament that 11 states/union territories have achieved the target of 10 percent blending. According to the data, the states which already exceeded the 10 percent blending targets include Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Maharashtra, Punjab, Telangana, Uttar Pradesh, and Daman & Diu & Nagar Haveli.

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What is ethanol-blended petrol & how will it impact India’s fuel import bill?

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India-Nepal sign four pacts to expand cooperation, vow to strengthen bilateral ties

Prime Minister Narendra Modi and his Nepalese counterpart Sher Bahadur Deuba inaugurated a cross-border railway network, a power transmission line, and launched India’s RuPay payment card in Nepal after they held wide-ranging talks. The two sides also inked four pacts to expand cooperation in areas of railways and energy while vowing to further broad-base cooperation in a range of areas. Nepal is important for India in the context of its overall strategic interests in the region, and the leaders of the two countries have often noted the age-old “Roti Beti” relationship.

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ITC sees a 3-fold rise in India wheat exports to 21 mt in FY23

ITC, India’s largest wheat exporter, expects a threefold increase in the country’s wheat exports in FY23 and the domestic prices to reign at a higher level round the year. ITC’s estimate of wheat export is higher than the government and trade estimate by over 40%. ITC is the largest buyer of Indian wheat after the Food Corporation of India (FCI). While the industry and the government have projected wheat exports to be around 12-15 million tonnes in FY 23, ITC is optimistic about much higher exports. Indian wheat is discounted by $50 compared to Canadian or Ukrainian wheat. “Therefore, the demand for Indian grain is more, adding to India’s advantage. India has already committed 2-2.5MT for the first quarter of the current crop year for exports,” said Rai, divisional chief executive, agribusiness, ITC. India has traditionally exported wheat majorly to Bangladesh, Oman, Qatar, Sri Lanka, and other Middle Eastern countries. “However, with the Russia-Ukraine war disrupting the global wheat supply chain, India is looking to gain markets that traditionally imported wheat from Russia and Ukraine. These countries include Nigeria, Turkey, Egypt, Vietnam, Tanzania, Morocco, etc,” he said.

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Can India become a wheat exporting superpower?

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Unemployment rate decreasing in India: CMIE

The unemployment rate in the country is decreasing with the economy slowly returning to normal, according to CMIE data. The Centre for Monitoring Indian Economy’s monthly time series data revealed that the overall unemployment rate in India was 8.10 percent in February 2022, which fell to 7.6 percent in March. On April 2, the ratio further dropped to 7.5 percent, with the urban unemployment rate at 8.5 percent and rural at 7.1 percent. Retired professor of economics at Indian Statistical Institute Abhirup Sarkar said that though the overall unemployment rate is falling, it is still high for a “poor” country like India. The decrease in the ratio shows that the economy is getting back on track after being hit by Covid-19 for two years, he said.

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GST collections hit an all-time high of Rs 1.42 lakh crore

Marking a new high since its rollout in July 2017, gross collections of Goods and Services Tax (GST) rose to Rs 1.42 lakh crore in March, for sales in February, according to data released by the Union Finance Ministry on Friday — a 14.7 percent rise from March 2021 and a 45.6 percent spike from March 2020. The sharp surge has come on the back of anti-evasion measures, “especially action against fake billers”, and a pick-up in economic activity. The average monthly gross GST collections for FY22 now stand at Rs 1.23 lakh crore, which is 30.5 percent higher than the monthly average seen in the previous fiscal. The impact of Covid was visible from the drop in GST revenue at a monthly average of Rs 94,733 crore in 2020-21, which was 9.5 percent lower than the monthly average of Rs 1.04 lakh crore in the pre-Covid period of 2019-20.

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3) Economy

India on the cusp of major economic recovery; talks of stagflation ‘overhyped’: Niti Aayog VC Rajiv Kumar

India is on the cusp of a major economic recovery and talks of possible stagflation are “overhyped” as a strong economic foundation is being laid with the reforms carried out by the government over the last seven years, Niti Aayog Vice Chairman Rajiv Kumar said on Sunday. Notwithstanding economic uncertainties triggered by the Russia-Ukraine war that is also impacting global supply chains, Kumar asserted that it was quite clear from all accounts that India will remain the fastest-growing economy in the world. Asia’s third-largest economy is projected to grow 8.9 percent in 2021-22, according to recent government data. The Reserve Bank of India (RBI) has pegged the economic growth rate for 2022-23 at 7.8 percent.

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Energy transition, high metal prices among major challenges, says FM Sitharaman

Finance Minister Nirmala Sitharaman highlighted the cost of transitioning from fossil fuels to renewable energy to meet India’s climate change targets and the persistently high global metal prices as two major challenges that the country is facing. Speaking at the 17th India Business Leaders Awards 2022, Sitharaman highlighted that the recent spike in global natural gas prices has thrown a spanner in the works in the energy transition plans of many countries including India. Domestic natural gas prices have more than doubled from September owing to a staggering rise in global prices due to strong demand and challenges to supply caused by sanctions imposed on Russia, one of the world’s largest gas producers, following the country’s invasion of Ukraine in February. Besides the soaring prices of natural gas, Sitharaman also highlighted the challenges posed to the economy by persistently high base metal and sulfate prices, which are key intermediates in the country’s manufacturing and construction industry.

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Current account deficit jumps to $23 billion in Oct-Dec, highest in 9 years

India’s current account deficit widened to a massive $23 billion in October-December 2021 from $9.9 billion in July-September 2021 due to a higher merchandise import bill, data released by the Reserve Bank of India (RBI) on March 31 showed. The current account deficit in October-December 2020 was $2.2 billion. At $23 billion, the current account deficit for the last quarter of 2021 is the highest in nine years. The last time the current account deficit was higher was in the last quarter of 2012, RBI data showed. The sharp increase in the current account deficit in the last quarter was because of merchandise imports ballooning to $169.4 billion from $111.8 billion in July-September 2021, with rising global crude oil prices helping propel the import bill higher. This resulted in the highest-ever quarterly merchandise trade deficit of $60.4 billion.

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4) Markets, Banking, and Finance

Axis Bank to acquire Citibank’s India consumer business for $1.6 billion

Private lender Axis Bank will acquire Citibank’s India consumer business for $1.6 billion in an all-cash deal, Citigroup announced on March 30. The transaction comprises the sale of the consumer banking businesses of Citibank India, which include credit cards, retail banking, wealth management, and consumer loans, Citigroup said. “The transaction also includes the sale of the consumer business of Citi’s non-banking financial company, Citicorp Finance (India) Limited, comprising the asset-backed financing business, which includes commercial vehicle and construction equipment loans, as well as the personal loans portfolio,” it added. The deal, however, excludes Citi’s institutional client businesses in India, the statement clarified, adding that “Citi remains committed and focused on serving institutional clients in India and globally”.

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Axis-Citi Deal Done: Axis Bank CEO, Amitabh Chaudhary talks about the deal in detail

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Sebi bans mutual fund scheme launches till pool accounts are discontinued

The capital markets regulator Securities and Exchange Board of India (Sebi) has barred the launch of mutual fund schemes till at July 1. The markets watchdog had asked mutual fund houses to ensure that no distributor, online platform, stockbroker, or investment advisor pools investors’ money in a bank account and then transfers it to the fund house for purchasing units of schemes for those investors. This is to ensure that the money does not get misused. The regulator asked the mutual fund industry to implement this from April 1, 2022. AMFI had appealed to Sebi late last month for a postponement of the deadline since the broking and distribution industry was still in the middle of implementing the alternative mechanisms. While Sebi gave relief to the MF industry till July 1, it also made it clear in its letter to AMFI that since it had given “sufficient time” to mutual funds to implement its October 2021 order on pool accounts, and “wide consultations were held with all stakeholders, including AMFI, before issuing the circulars dated October 2021”.

For details visit here.

5) Business

Trouble mounts for Ola, Govt deputes high-level team to probe EV fires

CNBC-TV18 has reported that the Centre has deputed a team of independent experts to investigate the matter. Quoting sources, the report said, “The Centre has taken note of the incidents involving fires in electric vehicles; will probe them… deputing independent experts to investigate cases of EVs catching fire.” The report further stated that “Govt (will) look into how Ola Electric scooter and Okinawa’s electric bike caught fire. Both scooters had been tested and received type approvals before being launched in the market.” The investigation will cover a gamut of issues including –  if there was any manufacturing issue on the side of the company. The team will travel to the locations of the two incidents — Pune and Vellore — to ascertain the cause of the incidents. Buoyed by government subsidies, many EV players have popped up in the country. Most of these manufacturers are dependent on China for Lithium-ion batteries, which form the core of the scooter. In the event that these batteries are improperly manufactured or are damaged, electric vehicles tend to catch fire. Add to that, no quality control over batteries manufactured on foreign soil and a diluted manufacturing ecosystem back home has raised a host of questions about EV companies.

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Ola, Okinawa, PureEV e-scooters catch fire | How safe are EV batteries?

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Rs 1,000 crore bogus expenses detected in I-T raid on Hero Motocorp; stock slides 7%

The shares of automobile major Hero Motocorp slipped by over seven percent on March 29, as the market reacted adversely to the reports which claimed that the Income Tax Department detected bogus expenses to the tune of Rs 1,000 crore made by the company. Reacting to the reports, Hero Motocorp said the speculations are baseless. “We categorically deny the speculative press reports,” it said, adding that the bogus expense allegations are “not borne out of any document served on us or our internal documents”. “We will inform exchanges once I-T Department concludes its findings,” it further noted.

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6) Technology

The Crypto industry expects growth to lose an edge in FY23

Retail investors and crypto trading exchanges are bracing for sluggish growth as the new tax regime governing virtual digital assets (VDAs) comes into effect from Friday, April 1. Retail investors also squared off their positions to set off any losses they may have incurred during the previous financial year, industry executives told ET. The Finance Bill 2022, which comes into effect on April 1, also requires traders to pay a flat 30% tax on gains made on VDAs. Further, unlike in other asset classes, retail investors will not be able to set off losses incurred against crypto coins, claim expenses or acquisition costs, or benefit from a reduced slab for long-term capital gains under the new tax regime. Crypto entrepreneurs are of the view that if the tax laws do not allow expenses to be deducted, it will discourage organized trading, leading to a reduction of liquidity in the market, and stunting the growth of India’s VDA ecosystem.

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Crypto Tax: Can Consumer protection & Tax compliance Co-Exist? Here’s What Abhinav Soomaney suggests

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UPI hits a new milestone of five billion transactions a month in March

As digital payments gain traction, in a first, unified payments interface (UPI) transactions in the country have breached the 5 billion mark in March, as per the latest data released by the National Payments Corporation of India (NPCI). NPCI, which operates UPI along with other payments infrastructures including Bharat Bill Payment System (BBPS), Aadhaar Enabled Payment System (AePS), among others said that total UPI transactions recorded stood at 5.04 billion (or 504 crores), for a total value of Rs 8.88 lakh crore, in March this year. The latest data released by NPCI is as of March 29, 2022. In comparison, total UPI transactions in February stood at 4.5 billion (or 452 crores), with a total value of Rs 8.26 lakh crore processed by the infrastructure. Usually, February witnesses a dip in overall UPI transactions, owing to a lesser number of days as compared to March.

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UPI Ecosystem: The Growth & How it boosted digital payments

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Cryptoverse: Buoyant Bitcoin helps market cruise past $2 trillion

As a bleak first quarter draws to a close, crypto seems to have the wind in its sails. It has pushed through the $2 trillion barriers and is proving surprisingly resilient amid global chaos. The total value of the cryptocurrency market rose above $2 trillion on Friday, according to analytics platform CoinMarketCap. To put that in context, the market briefly hit $3 trillion on Nov. 10, when Bitcoin reached $69,000. The meandering climb back above $2 trillion has been slow and has also been helped by a mushrooming in coins and tokens – the number CoinMarketCap counts have risen by almost 5,000 since November to stand at 18,511 cryptocurrencies. Bitcoin’s market capitalization has reached $902 billion, but it still has a ways to go to reclaim the $1 trillion it commanded in November. While still the dominant crypto, its market share has also fallen gradually from as much as 70% of the total capitalization in early 2021 to 42% now.

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7) Politics

Explained: Bhagwant Mann’s resolution to transfer Chandigarh to Punjab and the old war over the capital

“Will fight for claim over Chandigarh,” Punjab chief minister Bhagwant Mann had said last week after Union Home Minister Amit Shah announced that central services rules will be implemented for all employees in Chandigarh. Mann has stuck to his word. The newly inducted CM moved a resolution during a special session of the Vidhan Sabha on Friday, demanding an immediate transfer of Chandigarh to Punjab. What does this mean for the state? And what’s the age-old fight over Chandigarh all about?

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Organizational changes in Congress’s Goa unit signal generational shift, says senior party leader P Chidambaram

A day after the Congress revamped its Goa unit, senior party leader P Chidambaram on Friday said the organizational changes signal a generational shift and expressed confidence that the “young team” will win the people’s support. Congress president Sonia Gandhi on Thursday appointed young leader Amit Patkar as the president of the Goa Pradesh Congress Committee. He will be assisted by Yuri Alemao as the working president. Further, Gandhi appointed Michael Lobo as the Congress Legislature Party (CLP) leader in the Goa Assembly, while Sankalp Amonkar was made the deputy CLP leader and Carlos Ferreira its chief whip.

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Goa CM Pramod Sawant allocates portfolios; retains Home, Finance Ministry

Goa Chief Minister Dr. Pramod Sawant on Sunday allocated portfolios to his cabinet colleagues while retaining crucial Home and Finance departments with himself. The notification, allotting portfolios to all the Ministers who were sworn in recently in presence of Prime Minister Narendra Modi, was issued by an order in the name of the Governor of Goa by Under Secretary (GA) Shripad Arlekar. The Chief Minister will hold the charge of Home, Finance, Personnel, Vigilance, and Official languages departments in the state. BJP emerged as the single largest party in Goa, winning 20 seats in the 40-member state Assembly and reducing Congress to 11 seats.

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8) Sports

Jeff Bezos poised to clash with Mukesh Ambani over IPL telecast rights

Jeff Bezos and Mukesh Ambani, billionaires who have been battling for years in India, are headed for a ferocious new clash over rights to the country’s cricket matches. For the first time, the rights to broadcast matches on television and to stream them online will be sold separately, opening the door to Amazon.com Inc. and its Prime video service. Ambani’s Reliance Industries Ltd. is also determined to win, according to people familiar with the matter, as the companies fight for e-commerce supremacy in one of the world’s fastest-growing markets. What’s more, the cricket competition will take place live online over the course of two days, which means proxies for the two men will have to make minute-by-minute bids and counterbids in real-time. Imagine a Sotheby’s-style auction with Bezos and Ambani, worth about $275 billion and $100 billion respectively, bidding for a prize that only one can ultimately possess.

For details visit here.

Women’s WC Final: Alyssa Healy shines as Australia beat England to win record-extending 7th title

Australia produced yet another dominant performance on the day of the final to beat England by 71 runs, winning a record-extending seventh Women’s World Cup title in Christchurch. In a perfect campaign, Australia didn’t concede a single defeat as they finished at the top of the group stage, registered a one-sided victory in the semi-final against the West Indies, and enjoyed a magnificent outing in the final of the tournament as they cruised past the English side. Australia had already held the record for most WC title wins before the current edition, adding a seventh trophy to their cabinet on Sunday. Meg Lanning’s side also erased its 2017 World Cup disappointment when Australia was stunned in the semi-finals by India in England. The peerless Australians have now won three of the last five 50-over World Cups and own both the major global trophies, having claimed the T20 World Cup on home soil in 2020.

For details visit here.

9) Opinion

Ukraine War: Who will speak the truth to Putin?

Former Air Vice Marshal Sean Bell explains how the Ukrainian forces can take advantage of a lull in Russian troop movements to launch a counter offensive. And he supported comments from the head of GCHQ, who said it appears that Russia’s President Vladimir Putin “has massively misjudged the situation” and that his own military leaders are too afraid to tell him the truth.

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EXPLAINER: What would paying for natural gas in rubles mean?

Europe’s already high gas prices have gyrated since Russian President Vladimir Putin announced plans to have importers pay for Russian natural gas in rubles instead of dollars and euros. Russia getting paid for gas in their currency would at best help marginally in getting around financial sanctions, propping up the ruble’s value, or protecting the Russian economy, said Eswar Prasad, professor of trade policy at Cornell University and a former official at the International Monetary Fund. European governments and energy companies are rejecting the idea, saying gas import contracts specify the currency and that one side can’t change it overnight. They say they intend to keep paying in euros and dollars. More broadly, the Group of Seven major economies including Japan, the U.S., and Canada as well as Germany, France, Italy, and Britain have agreed to reject Moscow’s demand. The European Union’s energy commissioner also agreed, a G-7 statement said.

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European gas price surges as Russia demands only rubles for gas exports | DW News

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The russia-Ukraine war brings a flurry of key foreign leaders as the action moves around India

As India witnesses a flurry of foreign visits including the Japanese prime minister; Chinese, Russian, Mexican foreign ministers, and the US, Austrian, and European envoys, Shekhar Gupta analyses this increased flow of visits to trace what is happening in and around India in the midst of these visits.

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Axis Bank to make significant gains from the Citi deal only from FY2025

Standard and Poor’s (S&P) has said Axis Bank’s acquisition of Citigroup Inc’s consumer banking portfolio in India will bring in significant profitability improvements only from FY2025 onwards. It will take time to complete the acquisition and integrate the assets. The acquisition is likely to be completed over the next 9 to 12 months, while full integration will take another 18 months, S&P said in a statement. The rating agency said the acquisition will strengthen Axis bank’s retail market position and diversify its revenue profile and is positive for its long-term profitability. Earnings will depend on Axis Bank’s ability to retain acquired customers and successfully cross-sell its products and services to them.

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Why Rajya Sabha is essential for Indian democracy and saving it is not mission impossible

Rajya Sabha helps institutionalize the principles of power-sharing between the Centre and states. When the ruling dispensation has a brute majority in the Lok Sabha, this house can soften its authoritarian streak. The Upper House of Parliament has, for long, kept the bicameral edifice of the country functioning and flourishing. Just like its distinctive three-tiered chamber, the Rajya Sabha has over the years seen some of the finest minds of India congregate and confabulate. But now as 13 Rajya Sabha seats went to elections, existential questions arise about the dilution of the Upper House and its continuing relevance. The larger issue is the perils of a single ruling party, like the BJP, dominating both Houses. The bicameral system has certain intrinsic benefits. The Rajya Sabha as the second and permanent Chamber is a revisionary house for laws and bills, offers checks and balances for greater executive accountability, and is a platform for diverse talent and expertise.

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What challenges does the new fiscal bring for the Indian economy?

The biggest question, as far as growth was concerned in 2021-22, was whether India’s GDP would regain pre-pandemic levels. GDP data for 2021-22 (to be sure, these are the second advance estimates) suggest that it will. With an expected growth rate of 8.9% in 2021-22, India’s GDP is likely to be 1.8% more than what it was in 2019-20. If regaining pre-pandemic levels was the biggest challenge for the Indian economy in 2021-22, its biggest challenge in 2022-23 is going to be to return to a high growth trajectory. As the new financial year begins, there is greater uncertainty on this question, not just because of the difference in the assessment of the economic situation at hand but also due to the ongoing geopolitical crisis which is fuelling a surge in global commodity prices, especially crude oil. In its February 2022 meeting, the Monetary Policy Committee (MPC) of the Reserve Bank of India projected GDP growth for 2022-23 to be 7.8%, with quarterly growth numbers being 17.2%, 7%, 4.3%, and 4.5%. The January 2022 update of IMF’s World Economic Outlook (WEO) projected India’s 2021-22 and 2022-23 growth rates to be 9%. Both RBI and IMF will come out with a fresh set of growth projections in April 2022.

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10) Weekly special

CoinSwitch Kuber’s Sarmad Nazki on the impact on the industry as new crypto tax rules kick in

Lesser number of people will come into the industry which will impact growth because we are still making profits but have to pay higher taxes. The overall returns may not be as attractive compared to other asset classes as they were before. So one would see some bit of reclassification of portfolios and money moving to other asset classes in the next five-six months,” says Sarmad Nazki, CFO, CoinSwitch Kuber. “Although TDS is applicable from July 1, I do not think any of those provisions today are practically implementable. For example, today the onus of payment of deduction of TDS is on the buyer but typically in exchange, the buyer never knows who the seller is and there is no clarity. There is TDS also on crypto to crypto swaps. But there is no clarity on how to value it and how you actually convert that transaction to Indian rupees.” he added.

For details visit here.

11) Did you know?

Why Luhansk and Donetsk are key to understanding the latest escalation in Ukraine?

The rebel-controlled territories, Luhansk and Donetsk, comprise a larger region called Donbas that borders Russia. The two territories have been led by pro-Russia separatists for nearly a decade. To understand why Luhansk and Donetsk are playing such a central role in the conflict’s most recent escalation, it’s worth going back to the popular uprising that kicked off the current unrest in Ukraine, which has been simmering since 2013.

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Why are Donetsk & Luhansk in Ukraine crucial for Russia?

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With that, we come to an end of our Weekly Current Affairs April 2022 -Week 1. Hope you have liked it. Write your feedback in the comments below and let us know if there is anything else you would like us to cover.

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