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October 5, 2026
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Financial stability requires targeted oversight and system-wide resilience against interconnected debt, leverage, cyber, technology, and cross-border shocks.
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WASH-focused social bond financing mobilises capital for safe water, sanitation and hygiene access in rural and underserved communities.
NABKISAN Finance Limited listed India's first social bond dedicated exclusively to water, sanitation and hygiene on the National Stock Exchange. The five-year issue raised Rs. 180 crore, carries an 8.10% coupon, matures in September 2031, and holds domestic AAA stable credit ratings. Proceeds are earmarked for safe water, sanitation and hygiene solutions in rural and underserved communities.
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Multistate GST registration enables normal taxpayers to submit common information once for simultaneous State and UT applications.
Multistate Registration enables normal taxpayers seeking GST registration under the same PAN in more than one State or Union Territory to apply simultaneously. A Master TRN is generated after selection of the intended jurisdictions and must be submitted with Common Registration Information. Individual TRNs are then generated for each selected jurisdiction, with common information auto-populated and editable. Applicants must provide principal and additional places of business, State-specific information, and Aadhaar authentication.
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International trade negotiations training addressed WTO rules, dispute settlement, sustainability, trade remedies, digital trade, and services.
Trade-negotiation capacity-building introduced foundational trade theory and the WTO framework, followed by instruction on treaty interpretation, trade data and dispute settlement. Specialised sessions addressed trade remedies, rules of origin, non-tariff measures, intellectual property rights, digital trade and services. It also considered labour, environmental and sustainability issues, including carbon border adjustment and deforestation requirements, within an increasingly complex global trade environment.
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Food security safeguards distinguish transparent public stockholding measures from coercive trade actions within multilateral trade cooperation.
India maintains public stockholding, procures food from small and marginal farmers, and may adopt temporary, transparent measures during harvest shortfalls to preserve food availability and affordability. These food-security measures are identified as recognised within the WTO framework. A distinction is advanced between legitimate food-security interventions and coercive trade actions used to exert pressure on other countries. G20 Trade Ministers reached consensus on a statement addressing the weaponization of food through coercive trade actions and committed to continued cooperation.
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Drug abuse prevention awareness promotes student education, peer outreach, and youth responsibility for a drug-free society.
Operation Jagriti promotes drug abuse and addiction awareness among students by addressing the harmful effects of substance use and practical prevention measures. Students are encouraged to avoid drugs, spread prevention awareness among peers and communities, and contribute responsibly to the Nasha Mukt Bharat objective of a drug-free India.
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Global trade distortions should be addressed through WTO-consistent, evidence-based anti-dumping and countervailing measures, without restricting developing countries' policy space for industrialisation. Most-Favoured-Nation treatment, consensus decision-making, special and differential treatment, and a two-tier dispute-settlement system remain central to multilateral trade governance. Imports produced using forced labour are prohibited, while border measures must rely on specific, verifiable evidence, observe due process and WTO rules, and avoid presumptions concerning entire countries, regions or sectors.
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Export-led market access for Makhana expands overseas buyer linkages, supports higher producer returns, and promotes European market diversification.
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FPO-led export market access links processed food producers with global buyers and strengthens agricultural value-chain participation.
APEDA facilitated an FPO-led export of frozen food products to Canada by Aterna Foods Producer Company Limited, with support under its Financial Assistance Scheme. The export included frozen vegetables, sweet corn, samosa and other processed food products. Market-linkage initiatives connect Farmer Producer Organisations and Farmer Producer Companies with exporters and global buyers, promoting export-oriented value chains and integrating agricultural produce with processing and international markets.
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RELIEF timeline extension preserves credit-insurance support and premium protection for exporters facing West Asia maritime disruptions.
Component II of the RELIEF intervention extends operational timelines for exporters affected by West Asia maritime-logistics disruptions. It encourages eligible exporters to obtain ECGC cover for upcoming shipments to specified regions with 95% risk coverage. Benefits apply to qualifying Stand Alone Policies and Whole Turnover Policies, covering full container load, less than container load, and reefer containers, but excluding energy shipments. Eligible exporters' insurance premium cannot increase beyond the pre-disruption level during the relevant period.
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RoDTEP duty remission continues for eligible exporters, preserving existing rates and value caps through the extended period.
RoDTEP Scheme continuation is extended until 31 December 2026 for exports made by Domestic Tariff Area units, Advance Authorisation holders, Special Economic Zone units and Export Oriented Units. The scheme remits embedded, un-rebated Central, State and local duties, taxes and levies borne on exported products. Existing RoDTEP rates and value caps remain unchanged throughout the extension.
October 3, 2026
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Wildlife trafficking enforcement targeted unlawful possession, transport and proposed sale of ivory, leopard skin, pangolins and tiger parts.
Illegal wildlife trafficking operations addressed alleged possession, transportation, and attempted sale of elephant ivory, leopard skin, live pangolins, and tiger parts. Possession without licence and trade in elephant ivory or ivory articles are prohibited under the Wild Life (Protection) Act, 1972. Leopards, pangolins, tigers, and their body parts receive Schedule I protection, while pangolins are also listed in CITES Appendix I, prohibiting international trade. Recovered wildlife articles, live animals, and vehicles were transferred or seized for action by forest and specialised wildlife enforcement agencies.
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Two-way airport smuggling: airport staff allegedly facilitated clandestine gold entry and illicit diamond export through transit and outbound passengers.
An alleged two-way smuggling arrangement involved airport staff receiving foreign-origin gold dust in wax capsules from transit passengers for clandestine removal into India and transferring diamonds to an outbound passenger for illicit export to Dubai. Seizure included 23 capsules of 24-carat foreign-origin gold dust in wax form and natural and lab-grown diamonds. The modus operandi used the same airport employee to facilitate import-side gold smuggling and export-side diamond smuggling.
October 3, 2026
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Seized narcotic-drug disposal prevents contraband re-entry through supervised destruction, lawful opium deposit, and environmentally safe incineration.
Authorised disposal of seized narcotic drugs under the Narcotic Drugs and Psychotropic Substances Act, 1985 involved destruction of 10,842.150 kg of contraband through an approved process supervised by the Drug Disposal Committee and attended by a pollution-control representative. Seized opium was separately deposited with the Government Opium and Alkaloid Works as part of the disposal process, aimed at preventing contraband from returning to illicit drug trafficking and ensuring environmentally safe incineration.
October 3, 2026
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International postal narcotics trafficking: hydroponic ganja concealed in cake pouches was seized under NDPS procedures.
Seizure under the relevant provisions of the Narcotic Drugs and Psychotropic Substances Act, 1985, covered hydroponic weed (ganja) recovered from an international parcel received from Thailand. The contraband was concealed in cake pouches placed among other packets and articles to camouflage its presence. Specific intelligence prompted examination, recovery, weighing and seizure following due legal procedure, with further investigation in progress.
October 3, 2026
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NDPS enforcement enabled opium and vehicle seizure, with arrest after an intelligence-led roadside interception operation.
Intelligence-based enforcement under the Narcotic Drugs and Psychotropic Substances Act, 1985, resulted in the interception of a motorcycle and recovery of 4.240 kg of opium. The opium and motorcycle used for transportation were seized after legal formalities, and one person was arrested. Investigation continues to trace the contraband's source and intended destination and identify other persons connected with the suspected trafficking network.

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Customs, DGFT & SEZ

Second Bi-monthly Monetary Policy Statement, 2016-17 By Dr. Raghuram G. Rajan, Governor

June 7, 2016

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Monetary and Liquidity Measures

On the basis of an assessment of the current and evolving macroeconomic situation, it has been decided to:

  • keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.5 per cent;
  • keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL); and
  • continue to provide liquidity as required but progressively lower the average ex ante liquidity deficit in the system from one per cent of NDTL to a position closer to neutrality.

Consequently, the reverse repo rate under the LAF will remain unchanged at 6.0 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 7.0 per cent.

Assessment

2. Since the first bi-monthly statement of April 2016, global growth is uneven and struggling to gain traction. World trade remains muted in an environment of weak demand. In the United States, growth was slow once again in Q1 because of contracting industrial activity and exports. Recent indicators of labour market activity have also weakened. In the Euro area, by contrast, Q1 GDP rose strongly on the back of robust consumer spending and recovering employment and business conditions. In Q2 so far, unemployment is falling, albeit slowly, and purchasing managers’ sentiment is upbeat. In Japan, growth surprised on the upside in Q1, with the economy escaping a technical recession, but industrial activity remains weak and deflationary pressures are building.

3. GDP growth slowed sequentially in China in Q1, with retail sales, industrial production and fixed investment showing signs of weakness in recent months amidst still rising levels of indebtedness among households and corporations. While macroeconomic stability is returning to some emerging market economies (EMEs), geo-political tensions and high volatility in financial markets impede the resumption of momentum, and the outlook remains challenging. The recent uptick in commodity prices is providing some relief to commodity exporters but political events could unsettle investor sentiment and consequently, capital flows could turn volatile again. For commodity importers, net terms of trade gains are moderating.

4. Global financial markets have recorded gains through Q2 of 2016, spurred by risk-on investor sentiment. Portfolio flows are returning, albeit hesitantly, to EME debt and equity markets. The firmness in crude prices that set in around mid-March has been supported in subsequent weeks by some temporary reductions in global supply. Gold prices remain elevated on safe haven demand. Other non-energy commodity prices remain stable with a hint of upside, while steel prices have firmed appreciably. Bond market yields across AEs have eased steadily, reflecting strong appetite in primary auctions in the face of the growing universe of negative yielding bonds. The US dollar continues to mirror changes in expectations of monetary policy action by the Fed. The yen and the euro have remained strong despite ultra-accommodative monetary policies. Among EMEs, some currencies are trading with an appreciating bias, with the biggest gains recorded by the currencies that had depreciated the most earlier.

5. On the domestic front, the recently released provisional estimate of gross value added (GVA) for 2015-16 marginally scaled down the annual growth rate to 7.2 per cent, on a deceleration of services sector activity in relation to the advance estimates. There was, however, a sequential pickup in activity in Q4 in line with expectations. As regards the current financial year, the India Meteorological Department (IMD) has forecast an above-normal and well-distributed south west monsoon as El Nino wanes – albeit with a slightly delayed onset. Realisation of this prediction is critical for the outlook for agriculture since reservoir levels have been depleted to 17 per cent of capacity – 40 per cent lower than the level a year ago. Even though rabi procurement was lower in April-May 2016 than a year ago, mid-May food stocks at 58 million tonnes were almost three times the norm for Q1.

6. The index of industrial production decelerated in 2015-16, mainly pulled down by weak manufacturing in an environment of subdued investment demand and weak rural consumption. In May 2016, the manufacturing purchasing managers’ index (PMI) remained subdued on account of slowing output and export orders. However, except for natural gas and crude oil, the core sector registered strong growth in April 2016 on account of a seasonal pick-up in industries like electricity, also supported by a low base. There are signs that corporate performance is improving. Available information on Q4 earnings suggests double digit growth in EBITDA levels for non-financial corporates. The Reserve Bank’s latest rounds of forward looking surveys indicate an improvement in the overall business situation, driven by a pick-up in capacity utilisation and in order books – both domestic and external. These developments have improved the expectation of business conditions in the first half of 2016-17. Public investment, especially in roads and railways, is gaining strength, though the continuing weakness in private investment is of concern. Demand conditions are likely to improve going forward; consumer confidence is seen as rising on improving expectations of employment and spending, with rural demand aided by a stronger monsoon. Rising capacity utilisation should prompt private investment.

7. Some high frequency indicators for April point to a firming recovery, although it is still uneven. Leading the upturn are cargo traffic at major ports, automobile sales (especially two-wheelers and three-wheelers), commercial vehicle sales, passenger air and freight traffic, cement production and steel consumption. Abstracting from seasonal effects, this suggests that the expansion, especially in the service sector, is getting broad-based. On the other hand, railway freight traffic and passenger car sales have decelerated on sector-specific constraints. Purchasing managers in the services sector indicated slowing new business in May and subdued expectations of future activity.

8. The ebbing of inflation pressures for two consecutive months to March, after a period of steady rise, was interrupted once again in April. Retail inflation measured by the consumer price index (CPI) rose more sharply than expected due to a more-than-seasonal jump in food prices. Within the food group, inflation in respect of vegetables, fruits, sugar, meat and fish rose sizably from their prints in the previous month. Inflation in respect of pulses remained elevated; the recent decline in prices of pulses reversed, yielding a sharp increase in April. Production of pulses has fallen for the second consecutive year, according to the third advance estimates for 2015-16. There was also a firming of inflation relating to edible oils, spices and non-alcoholic beverages. Cereal inflation, however, remained subdued, reflecting supply management efforts that expanded offtake from food stocks. Inflation in respect of the fuel group eased mainly due to firewood and stronger deflation in respect of LPG prices. Reflecting these recent inflation dynamics, three-months-ahead inflation expectations of households moved up marginally in May.

9. CPI inflation excluding food and fuel edged up in April, driven by prices of petrol and diesel embedded in transport and communication. Clothing and footwear also registered moderate increases in inflation. Services inflation remained elevated on account of house rents, water charges, tuition fees and taxi/auto fares. Excluding petrol and diesel from this category, inflation was sticky and above 5 per cent. However, since growth in rural wages and corporate staff costs have been modest, cost-push factors may be subdued for the time being.

10. Despite the waning of liquidity pressures in early April, stronger-than-usual currency demand during the first two months of the financial year and build-up of cash balances by the Government from the second week of May tightened liquidity conditions from mid-May. In order to mitigate these pressures, the Reserve Bank injected liquidity through purchases under open market operations (OMOs) of ₹ 700 billion during April-May in pursuance of the revised liquidity management framework outlined in the April bi-monthly policy statement. Additionally, liquidity was injected through variable rate repos of various tenors, in addition to the regular 14-day term repos and overnight fixed rate repo and MSF. The average daily net liquidity injection through the liquidity adjustment facility (including MSF) declined from ₹ 1935 billion in March 2016 to ₹ 1030 billion during April-May and further to ₹ 120 billion in June (up to June 5, 2016). The weighted average call money rate (WACR) remained closely anchored to the policy rate within a narrower corridor of +/- 50 basis points around the policy repo rate. Volatility also declined significantly. Interest rates on money market instruments such as certificates of deposit (CDs) and commercial paper (CPs) also eased through the quarter so far.

11. Exports declined for the seventeenth consecutive month in April in US dollar terms in spite of a modest increase in volume. The fall in crude oil prices led to lower export realisations from petroleum products (POL), although the volume of shipments of petroleum products is estimated to have picked up modestly. Among non-oil items, exports of gems and jewellery, drugs and pharmaceuticals, chemicals and electronic goods improved over their levels a year ago. By contrast, exports of engineering goods declined for the ninth straight month while readymade garments recorded a fall for the fourth successive month. Imports fell sharply and across constituents – 25 items accounting for a share of 87 per cent in total imports recorded a decline; POL imports also declined, essentially reflecting lower prices. Accordingly, the trade deficit narrowed sequentially and was less than half its level a year ago. Portfolio flows resumed in April and May. The level of foreign exchange reserves rose to US $ 360 billion by May 27, 2016.

Policy Stance and Rationale

12. The inflation surprise in the April reading makes the future trajectory of inflation somewhat more uncertain. The expectations of a normal monsoon and a reasonable spatial and temporal distribution of rainfall, along with various supply management measures and the introduction of the electronic national agriculture market (e-NAM) trading portal, should moderate unanticipated flares of food inflation. In addition, capacity utilisation indicators suggest that the available headroom in industry could keep output prices subdued even as demand picks up. Nonetheless, there are upside risks – firming international commodity prices, particularly of crude oil; the implementation of the 7th Central Pay Commission awards which will have to be factored into projections as soon as clarity on implementation emerges; the upturn in inflation expectations of households and of corporates; and the stickiness in inflation excluding food and fuel. Taking these factors into account, the inflation projections given in the April policy statement are retained, though with an upside bias. Considerable uncertainty surrounds these projections (Chart 1), which should be clarified by incoming data in the next few months.

13. Domestic conditions for growth are improving gradually, mainly driven by consumption demand, which is expected to strengthen with a normal monsoon and the implementation of the Seventh Pay Commission award. Higher public sector capital expenditure, led by roads and railways, should crowd in private investment, offsetting somewhat the subdued appetite for fresh private investment due to financial stress. Yet, business confidence will be restrained to an extent on account of unrelenting global factors. On a reassessment of balance of risks, therefore, the GVA growth projection for 2016-17 has been retained at 7.6 per cent with risks evenly balanced.

14. In its bi-monthly monetary policy statement of April 2016, the Reserve Bank stated that it would watch macroeconomic and financial developments in the months ahead with a view to responding as space opens up. Incoming data since then show a sharper-than-anticipated upsurge in inflationary pressures emanating from a number of food items (beyond seasonal effects), as well as a reversal in commodity prices. A strong monsoon, continued astute food management, as well as steady expansion in supply capacity, especially in services, could help offset these upward pressures. Given the uncertainties, the Reserve Bank will stay on hold, but the stance of monetary policy remains accommodative. The Reserve Bank will monitor macroeconomic and financial developments for any further scope for policy action.

15. More monetary transmission to support the revival of growth continues to be critical. The government’s reform measures on small savings rates combined with the Reserve Bank’s refinements in the liquidity management framework should help the transmission of past policy rate reductions into lending rates of banks. The Reserve Bank will shortly review the implementation of the Marginal Cost Lending Rate framework by banks. Timely capital infusions into constrained public sector banks will also aid credit flow.

16. The third bi-monthly monetary policy statement will be announced on August 9, 2016.

Sangeeta Das
Director

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Acts Income Tax