The cumulative exports (merchandise & services) during April-August 2026-27 is estimated at US$ 399.27 Billion, as compared to US$ 345.55 Billion in A...
Rupee depreciation reflected dollar strength, foreign outflows, elevated oil prices, and importer demand despite stronger domestic equities. Foreign-exchange market conditions resulted in the rupee weakening for a seventh consecutive session and closing lower against the US dollar. Dollar strength, foreign fund outflows, elevated crude oil prices, higher US Treasury yields and increased importer demand for dollars exerted pressure on the currency. Positive domestic equity-market performance limited the downside, while expectations of a US Federal Reserve interest-rate increase supported the dollar index.
Multi-currency prepaid travel cards enable foreign-exchange spending, exchange-rate locking, and mobile-based controls for Indian international travellers. Wizzmoni Financial Services Ltd. and City Union Bank Ltd. have partnered to launch Wizz Voyager, a co-branded AI-powered multi-currency prepaid travel card for Indian residents undertaking international travel. The card supports 37 international currencies and provides real-time exchange-rate locking, spending controls, transaction tracking and mobile-app-based management. It is designed to facilitate foreign-exchange spending and management of multiple currencies through a single payment instrument.
Non-executive nominee directorship strengthens lending governance, compliance, risk management and technology-led capability as the business scales responsibly. Finnable has appointed Sreeram Ranganathan Iyer as a Non-Executive Nominee Director representing investor TVS Capital. The role is intended to strengthen board oversight as the non-banking financial company expands its lending operations. The identified priorities for sustainable growth include technology, compliance, governance, risk management, responsible lending, and data-driven underwriting. The nominee directorship reflects investor participation in governance and capability-building for a sustainable lending franchise.
Money laundering investigation addresses alleged land grabbing through forged property records, fabricated claims, coercion, and denial of landowners' rights. Money-laundering proceedings under the Prevention of Money Laundering Act concern alleged land grabbing through forged board resolutions, forged-sale agreements, fabricated deeds, and falsified property records. The alleged conduct includes manipulation of land records, civil proceedings based on false claims, denial of landowners' lawful entitlements, and threats or physical force against persons asserting legitimate rights. The investigation is linked to multiple police FIRs concerning the individual and associated entities.
Trade performance estimates show merchandise and services exports increasing while imports rise, widening the cumulative trade deficit. External trade estimates for April-August 2026-27 show combined merchandise and services exports of US$399.27 billion and imports of US$459.65 billion, with a trade deficit of US$60.38 billion. Merchandise exports reached US$215.91 billion, while services exports were estimated at US$183.36 billion. Non-petroleum exports increased to US$180.61 billion. Growth in August merchandise exports was driven by electronic goods, petroleum products, engineering goods, chemicals, and cotton yarn, fabrics, made-ups and handloom products. Services-sector figures for August were estimated using data available through July.
Rupee depreciation amid dollar strength and foreign fund outflows highlights pressure from global monetary expectations and elevated oil prices. Rupee depreciation against the US dollar in early trading reflected pressure from a stronger dollar and net foreign fund outflows, notwithstanding support from positive domestic equity-market performance. Dollar strength was associated with market expectations of a US Federal Reserve interest-rate increase to address inflation linked to higher oil prices. Elevated crude oil prices and risks to oil exports remained concerns, while domestic equity gains provided countervailing support.
Fraudulent input tax credit through bogus invoices prompted arrest following allegations of invoicing without actual supply of goods. The investigation concerned alleged fraudulent availment and passing on of inadmissible input tax credit through bogus invoices. Multiple suppliers were identified as non-existent, non-functional, suspended or cancelled, while field verification indicated an absence of genuine business activity at certain declared premises. Input tax credit was allegedly availed without receipt of goods and passed on through invoices without corresponding supplies. Statements recorded during investigation led to the arrest of a firm partner under the CGST Act.
UPI merchant discount rate framework preserves free individual and small-merchant payments while charging specified larger merchant transactions. UPI person-to-person transactions remain free irrespective of value, and person-to-merchant payments up to Rs.2,000 remain outside the merchant discount rate framework. Small merchants receiving qualifying UPI QR payments under the P2PM category continue to receive zero MDR treatment. MDR applies only to specified merchant payments above the threshold, with separate treatment for essential sectors and capital-market payments. Customers are not liable for MDR, merchants must not pass it on, and UPI application providers may not levy platform fees or hidden charges. MDR revenue supports payment ecosystem participants and small-merchant UPI adoption.
Merchant discount rate on large-value UPI merchant payments supports infrastructure investment while preserving free user payments. Merchant Discount Rate (MDR) of 0.4 per cent applies to large-value UPI person-to-merchant payments exceeding Rs 2,000 from October 15. MDR is a merchant payment ecosystem charge, not a fee payable by customers. Person-to-person UPI payments remain free for users, while person-to-merchant UPI payments below Rs 2,000 remain free for merchants. MDR distribution is intended to support payment technology, infrastructure, acceptance networks and sustained UPI growth.
Special economic zone approval enables a silicon carbide semiconductor facility operating under an export-oriented technology investment framework. Approval for a special economic zone-linked silicon carbide semiconductor manufacturing unit permits establishment of a facility under the jurisdiction of Falta Special Economic Zone. The unit is proposed to manufacture silicon carbide diodes and silicon carbide MOSFETs. Project financing combines government capital subsidies and promoter contribution, while the facility is projected to support export-oriented advanced semiconductor manufacturing, domestic capabilities, and technology-driven capital investment.
Merchandise trade performance reflects strong export momentum, import-led deficit pressures, and expanded services trade during August. Merchandise exports increased by 26.12 per cent year-on-year to USD 43.81 billion in August, led by electronics, engineering goods and petroleum products. Merchandise imports rose 14.1 per cent to USD 70.76 billion, driven by crude oil, project goods, electronic items, silver, coal and coke. Gold imports declined substantially, contributing to a five-month low merchandise trade deficit. During April-August 2026-27, higher imports reflected domestic economic expansion, energy requirements and manufacturing-sector input needs.
Foreign exchange market pressures weakened the rupee as oil-import demand, risk aversion, dollar strength, and rising yields intensified. Foreign exchange market pressures led to a sixth consecutive session of rupee depreciation against the US dollar. Higher Brent crude prices, dollar demand from oil importers, risk aversion, a stronger dollar and elevated global Treasury yields heightened concerns over inflation and India's external trade balance. Potential RBI intervention was viewed as a factor that could support the rupee at lower levels.
Merchant discount rates for larger merchant UPI payments introduce category-based fees while preserving free consumer transfers. Merchant discount rate framework introduces a 0.4 per cent charge on direct person-to-merchant UPI payments exceeding Rs 2,000, effective from 15 October 2026. The charge is capped at Rs 300 for higher-value payments and is payable by merchants to acquiring banks. Person-to-person transfers remain free regardless of value, and P2M payments up to Rs 2,000 remain outside the charge. App providers may not impose platform fees or hidden charges, and banks must prevent merchants from passing MDR costs to customers.
Insolvency fraud enforcement targets collusive resolutions, coordinated predicate-offence investigations, accelerated money-laundering trials, and earlier victim asset restoration. Enforcement priorities target suspected insolvency-resolution frauds involving collusive large haircuts, promoter reacquisition of assets, related-party claim inflation, creditor-process manipulation, asset stripping, and circumvention of resolution-applicant ineligibility. Coordination with police and other agencies is emphasised for predicate offences, including joint investigation teams and committal applications to enable combined trials of predicate and money-laundering offences. Asset restoration for legitimate victims is to be pursued early, especially in investor and homebuyer frauds.
Export expansion and domestic manufacturing guide JCB India's strategy through broader equipment offerings, fuel efficiency, and operator comfort. JCB India targets 15-20 per cent export growth during the current financial year and plans a similar increase in annual production. Its export operations cover approximately 135 countries, including Southeast Asia, Africa and developed markets. The company's construction and earthmoving equipment portfolio is designed, engineered and manufactured in India for domestic and international customers, with product development focused on fuel efficiency, operator ergonomics, comfort and productivity.
Merchandise export growth driven by petroleum products coincided with lower gold imports and a narrowing trade deficit. Merchandise exports increased sharply in August, led by petroleum product shipments, while imports also rose year-on-year. Reduced gold imports contributed to a narrower merchandise trade deficit. During the first five months of the fiscal year, the cumulative deficit widened as higher imports reflected domestic expansion, energy requirements and manufacturing-input demand. Energy commodities and electronic goods were principal contributors to the deficit, while export growth was supported by engineering goods, petroleum products, chemicals and textiles.
Bribery allegations in CGST redevelopment approvals lead to arrests following a trap involving an intermediary consultant. Bribery allegations concerning CGST redevelopment approvals led to registration of a case against a CGST Superintendent and unknown persons. The Superintendent allegedly sought undue advantage for issuing a no-objection certificate and handing over CGST-owned flats. Following verification, a trap was laid after the complainant was allegedly directed to deliver cash to a CGST consultant. Both the Superintendent and consultant were arrested, produced before the competent court, and placed in police custody. Further investigation remains in progress.
Financial technology innovation receives recognition across banking, payments, lending, insurance, wealth management, cybersecurity and digital trust. Global Fintech Awards 2026 recognised financial-technology innovation across banking, fintech, artificial intelligence, digital trust and identity, payments, lending, insurance, wealth management and cybersecurity. Its theme emphasised trusted, connected and inclusive financial systems, identifying Agentic AI, tokenisation and quantum technologies as areas of transformation. AI-powered financial innovation recognition covered AI applications in payments, banking, lending, insurance, and asset or wealth management.
Tokenised corporate bonds under the regulatory sandbox enable blockchain-based issuance and settlement experimentation for non-banking finance companies. IIFL Finance completed a tokenised bond transaction under the SEBI Regulatory Sandbox framework for securities tokenisation. The transaction used the Metropolitan Stock Exchange of India bidding platform, with Trust Investment Advisors Private Limited as sole arranger and advisor, and the bonds are intended to be listed on the National Stock Exchange of India. Securities tokenisation digitally represents securities through blockchain and distributed ledger technology to support more efficient, transparent and faster debt-market processes.
Commercial-vehicle safety readiness and connected fleet support underpin expanded regional operations, automated transmission adoption, and localized manufacturing investment. BharatBenz's product transformation is directed toward safer, more productive and efficient commercial transport. The truck and bus portfolio is being prepared with Advanced Driver Assistance Systems calibrated to Indian operating conditions in advance of evolving safety requirements. Automated Manual Transmission technology is being expanded to improve driver comfort, reduce fatigue, support fleet safety and efficiency, and lower total cost of ownership. Customer support combines connected fleet technology, service assurance, parts availability and service-network expansion.
Extracts of FM’s reply on the Interim Budget - FURTHER CONCESSIONS IN CENTRAL EXCISE & SERVICE TAX ANNOUNCED - CUSTOMS DUTY EXEMPTION ON NAPTHA EXTENDED BEYOND THIS FISCAL
February 24, 2009
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Following are the extracts from the reply of Finance Minister, Shri Pranab Mukhejee on Interim Budget 2009-10, in Lok Sabha, here today:
"My friends from the other side have raised a number of issues. They have blamed the UPA Government for failure on the economic front, on the performance of the public sector, on employment generation, inflation, on fiscal deficit, plight of farmers, FDI and inadequacies of our regulatory framework. They have also pointed towards the "lost opportunities" in my Interim Budget speech.
Let me turn to some figures that tell their own story. A look at the comparative annual average figures between the two periods shows:
The GDP growth rate which was 5.8 per cent during 1999-2004 rose to 8.6 per cent during the 2004-2009.
The fiscal deficit and revenue deficit that stood at 5.5 per cent and 4.0 per cent respectively during 1999-2004 declined to 4.1 per cent and 2.5 per cent during 2004-09.
The Tax to GDP ratio went up from 8.8 per cent during 1999-2004 to 11.1 per cent during 2004-09, while the Savings to GDP ratio which was 25.6 per cent in 1999-2004 shot up to 34.8 per cent during 2004-08.
Similarly, Investment to GDP ratio at 25.2 per cent during 1999-2004 went upto 35.9 per cent during 2004-08.
The Government's policy on disinvestment does not envisage any outright or strategic sale of a Central Public Sector Enterprise (CPSE). The focus of the policy is to enable unlisted and profitable CPSEs to raise capital through Initial Public Offerings (IPOs) with the Government offering a minority shareholding for divestiture. The intent is to ensure that Government equity remains above 51% and Government retains management control. However, because of the adverse market conditions during the year 2008-09, there has not been a single IPO and nor has there been any disinvestment.
The UPA Government is making all possible efforts to turnaround the loss making Central PSE's like Indian Telephone Industries (ITI) through the infusion of funds and superior techno-managerial practices.
It is important to recognize that the Union Budget statement is just one of the instruments for addressing economic policy concerns. Indeed, right from the day when the financial crisis erupted in the middle of September 2008, the Government has been alert and responsive to the fast changing developments. Government has undertaken the required administrative and fiscal measures in tandem with the monetary policy initiatives of the RBI by announcing two stimulus packages on December 7, 2008 and January 2, 2009.
A number of Tax and other fiscal measures have been undertaken. These include:
• An across the board cut in CENVAT by 4 percentage points benefitting all sectors;
• Reduction of the rate of duty on cotton textiles and textile articles from 4% to Nil.
• Provision of additional funds of Rs.1100 crore to ensure full refund of Terminal Excise duty/CST.
• Specific measures on customs duties on sectors such as steel and cement through restoration of the levels of protection;
• Service tax concessions and enhancement of drawback rates for exports.
• Interest subvention on pre and post shipment credit for labour intensive exports like textiles, leather, gem and jewellery, carpets and handicrafts; and
• Extension of a Line of Credit (LoC) by Rs.5000 crore to EXIM Bank from RBI to provide pre-shipment and post-shipment credit, in rupees or dollars, to Indian exporters at competitive rates.
• Refinance facilities respectively of Rs.4000 crore for the National Housing Bank for housing sector.
• Announcement of a package by Public sector banks for borrowers of home loans of up to 20 lakhs. This sector will be kept under a close watch and additional measures would be taken as necessary to promote an accelerated growth trajectory.
• Provision of additional allocation of Rs.1400 crore to clear the entire backlog in Technology Upgration Fund (TUF) Scheme in the textile sector.
• Inclusion of all items of handicrafts under 'Vishesh Krishi & Gram Udyog Yojana'.
• To facilitate the flow of credit to Medium, Small and Micro Enterprises (MSMEs), RBI has announced a refinance facility of Rs.7000 crore for SIDBI which will be available to support incremental lending, either directly to MSMEs or indirectly via banks, NBFCs and SFCs. In addition, the following steps are being taken.
(a) To boost collateral free lending, the current guarantee cover under Credit Guarantee Scheme for Micro and Small enterprises on loans will be extended from Rs.50 lakh to Rs.1 crore with guarantee cover of 50 percent.
(b) The lock in period for loans covered under the existing credit guarantee scheme will be reduced from 24 to 18 months, to encourage banks to cover more loans under the guarantee scheme.
(c) Public Sector Banks have announced a reduction of interest rates on existing as well as new loans to MSME sectors.
(d) Special monthly meetings of State Level Bankers' Committees would be held to oversee the resolution of credit issues of micro, small and medium enterprises by banks. Department of MSME and Department of Financial Services will jointly set up a Cell to monitor progress on this front. Matters of MSMEs remaining unresolved with the Banks- SME Helpline for more than a fortnight may be brought to the notice of this Cell.
To provide a measure of security to unorganized workers, we have enacted the Unorganized Worker Sector Social Security Bill, 2008. The National Commission of Enterprises in the Unorganized Sector (NCEUS) has been asked to work out the detailed schemes in this regard.
The recommendations of the Committee of Governors for speedy socio economic development and empowerment of Women is under the active consideration of the Government. Meanwhile, the UPA Government has decided:
(i) to set up a High Power Committee of eminent persons and experts to study the Status of Women of India to enable the Government to take expeditious action.
(ii) to set up a 'National Mission for Empowerment of Women' for implementation of women-centric programmes in a Mission mode to achieve better coordination and synergy amongst the participating stakeholders.
(iii) to restructure and revitalize the Rashtriya Mahila Kosh (RMK) to scale up their activities including that of backward and forward linkages to function as a single window facilitator and service provider for women Self-Help Groups (SHGs). The authorized and paid-up capital of RMK will be enhanced in a phased manner.
Monetary Policy Measures
RBI took a number of liquidity enhancing measures to deal with the global crisis. These include:
• Reduction of the repo rate from 9 per cent in August 2008 to 5.50 per cent in January 2009.
• Reduction of the reverse repo rate which remained at 6 per cent from mid 2006 in December 2008 and January 2009 respectively by 1 per cent each to bring it to a level of 4 per cent.
• Reduction of the Cash Reserve Ratio from 9 per cent as on August 30, 2008 to 5 per cent with effect from January 17, 2009.
It is important to recognize that there is always some time lag between the announcement of a measure, be it fiscal or monetary, its implementation and its intended impact on the economy and financial parameters of the economy.
Latest figures confirm that our two fiscal packages are steps in the right direction. The data available for the month of December 2008 shows that some of the key sectors of manufacture are exhibiting early signs of recovery compared to November 2008. Cement production has gone up by 8 per cent in December- January and Steel has recorded a production of 22.8 million Metric Tons which is equivalent to the production in May 2008. For the quarter ending December 2008, FMCG registered a growth of more than 25 per cent and Food and Beverages 28 per cent. Railway freight which had declined to 2.2 per cent in October-November 2008 has recovered to a growth of 7 per cent in December, 2008. These are encouraging signs considering that all forecasts point towards a much bleaker 2009 as far as international economy is concerned.
New Concessions
Within the constitutional constraints, I have some flexibility which I want to use to provide further stimulus to the economy.
Even though the signals are encouraging, the full impact of the recession in other parts of the world specially Europe and Asia is yet to unfold. Due to the strong export linkages with these economies, it is likely that the Indian economy may feel further impact in coming months. To counter any such effects, the UPA Government has taken the following decisions:
Central Excise
• General reduction in Excise Duty rates by 4 per cent points was made with effect from 7.12.2008. It is now being extended beyond 31 March, 2009. In addition, it has now been decided to:
• reduce the general rate of Central Excise duty from 10 per cent to 8 per cent.
• retain the rate of central excise duty on goods currently attracting ad valorem rates of 8 per cent and 4 per cent respectively;
• reduce the rate of central excise duty on bulk cement from 10 per cent or Rs. 290 PMT, whichever is higher to 8 per cent or Rs.230 PMT, whichever is higher.
Service Tax
The Government is keen that the business confidence in the Services sector is restored. It is also our objective that the dispersal between CENVAT rate and the Service Tax rate is reduced with a view to move towards the stated goal of a Uniform Goods and Service Tax. In line with this objective, it has been decided to reduce the rate of service tax on taxable services from 12 percent to 10 per cent.
To provide relief to the power sector, Naptha imported for generation of electric energy has been fully exempted from basic Customs Duty. This exemption which was available upto 31 March 2009, is now being extended beyond that date.
Section 10 AA of the Income Tax provides for exemption in respect of export profits of a unit located in a Special Economic Zone (SEZ). The export profits are required to be computed with reference to the total turn over of the assessee. This has resulted in discriminatory treatment of assessees having units located both in SEZ and the Domestic Tariff Area (DTA) vis-à-vis assessees having units located only within the SEZs. It has now been decided to remove this anomaly through necessary changes in the Act.
Hon'ble Members may recall that in my Budget Speech, I had indicated that we may have to review the ceiling of fiscal deficit that the States can incur in 2009-10 in terms of the debt consolidation and relief facility. As a part of the first stimulus package, it was increased by 0.5 per cent to 3.5 per cent of the Gross State Domestic Product (GSDP) for 2008-09. To spur the development of infrastructure and employment generation, this arrangement is being extended to 2009-10 with the possibility of further review, if required, in the coming months.
Our priorities are clear. Rapid development of infrastructure, both in rural and urban areas, and agriculture growth leading to employment generation and distributive justice tops the list. For us economic growth is an instrument for development and not an end in itself. Economic growth has to be both inclusive and equitable. It must provide social justice and lead to the empowerment of Aam Aadmi. In the last five years, the UPA Government has moved steadfastly in that direction. But a social revolution which must flow from these measures is a long process and has to be worked out carefully and systematically, not only through economic growth and mobilization of resources, but also through institutional changes and mobilization of the masses. It is my earnest hope that we will all walk together in the journey ahead to achieve this shared vision."
Tax rate reductions and customs exemption extended to stimulate industry, exports, and state infrastructure financing.
The interim budget implements fiscal stimulus by reducing central excise rates (general reduction of four percentage points and a cut from ten to eight percent), lowering service tax from twelve to ten percent, and extending the basic customs duty exemption on imported naphtha for power generation. It announces credit and refinance facilities for housing, MSME and export sectors, enhancement of credit guarantee cover, and operational measures to speed MSME lending. It also provides that SEZ export profit computation will be amended to remove discrimination against mixed-location assessees and extends the states' fiscal deficit accommodation to promote infrastructure and employment.
Note: It is a system-generated summary and is for quick reference only.