Budget could levy higher import duties to contain dollar demand, stem rupee slide: EY’s Srivastava
4 hours, 52 minutes ago

Budget could levy higher import duties to contain dollar demand, stem rupee slide: EY’s Srivastava

Live Mint  

New Delhi, Jan 15 The government, in the forthcoming Budget, could consider levying higher tariffs on imports to check the significant decline in rupee value witnessed in the past few months, said EY Chief Policy Advisor DK Srivastava. The noted economist argued that higher import duties would curb the demand for dollars from importers and help arrest the sliding value of the rupee, which touched a historic low of 86.70 to a dollar on January 13. "In Budget, they do not have a very potent fiscal instrument to effect the movement of exchange rates, but they may examine the tariff rates a little more closely, and they may possibly take the Indian economy towards a greater degree of protection to the domestic industry as a result of which import duty revenue may also increase. On January 13, the rupee logged its steepest single-day fall in nearly two years and ended the session 66 paise down at its historic low of 86.70 against the US dollar.

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History of this topic

Falling rupee may increase consumer woes
1 day, 10 hours ago

Falling rupee may increase consumer woes

New Indian Express  

NEW DELHI: The sharp fall in rupee vis-a-vis dollar over the past couple of months will have more of negative impacts and minimal gain on export front, as per experts. In recent years, a weaker rupee has not translated into major gains for Indian exports due to several structural and global factors, says Ajay Sahai, director general and CEO, Federation …

Gold googly bamboozles import data
6 days, 16 hours ago

Gold googly bamboozles import data

The Hindu  

In what may constitute the steepest revision in India’s trade data in recent times, the Centre has revised India’s import bill for November 2024 by almost six billion dollars to $63.86 billion from the record tally of $70 billion reported as quick estimates by the Commerce Ministry last month, led by a sharp $5 billion downward revision in gold imports. …

Rupee at 85 to a Dollar: Sinking Towards 100?
3 weeks, 2 days ago

Rupee at 85 to a Dollar: Sinking Towards 100?

The Quint  

India has indeed developed a strong export franchise in not only IT services but also in setting up global capability centers that employ over 1.5 million talented Indians for highly productive use. India, in contrast to its merchandise counterpart, import much less of services, and generate good surplus despite Indians’ itch to travel abroad and seek overseas education. India exported …

Indian Rupee Decline: Rupee falls 1 paisa to all-time low of 84.92 against U.S. dollar
4 weeks, 1 day ago

Indian Rupee Decline: Rupee falls 1 paisa to all-time low of 84.92 against U.S. dollar

The Hindu  

The rupee dropped 1 paisa to hit a new lifetime low of 84.92 against the U.S. dollar in early trade on Tuesday, weighed down by foreign fund outflows and a muted trend in domestic equities. “The Indian rupee is expected to open at its lowest after a record number in respect of imports and a record trade deficit for November …

Record trade deficit adds to rupee’s challenges, may open to all-time low
4 weeks, 1 day ago

Record trade deficit adds to rupee’s challenges, may open to all-time low

Live Mint  

By Nimesh Vora MUMBAI, Dec 17 - The Indian rupee may slip to an all-time low on Tuesday with the currency, already under pressure from slowing growth, choppy equity flows and a dollar rally, will have to contend with an unexpected widening in trade deficit to a record high. The jump in gold imports and weak exports pushed India's merchandise …

India’s imports rises to 27%, touches to record high of almost $70 billion
4 weeks, 2 days ago

India’s imports rises to 27%, touches to record high of almost $70 billion

The Hindu  

India’s merchandise exports fell 4.83% to $32.11 billion in November while the import bill jumped 27% to a record high of almost $70 billion, as per data released by the Commerce Ministry. This is the third time in four months that India’s import bill has hit a record high, but November’s tally surpasses the last two occasions by a wide …

Rupee takes a dive, more turbulence in 2025
1 month ago

Rupee takes a dive, more turbulence in 2025

Live Mint  

What triggered the rupee’s recent fall? The Indian rupee breached a record low of 84.85 per dollar this week and briefly tested 85.06-per-dollar levels as outgoing Reserve Bank of India governor Shaktikanta Das’s term ended on Tuesday. However, increasing geopolitical uncertainty, attractive US government bond yields, cheaper crude oil prices and heavy foreign institutional investor outflow from domestic equities further …

Rupee poised for some relief on softer dollar, portfolio flows
1 month, 3 weeks ago

Rupee poised for some relief on softer dollar, portfolio flows

Live Mint  

By Jaspreet Kalra MUMBAI, Nov 25 - The Indian rupee may log mild gains on Monday helped by a pullback in the U.S. dollar and portfolio inflows on account of the rebalancing of MSCI's global equity indexes. The dollar index rose to its highest level in two years on Friday but dipped 0.5% at Monday's market open to 106.9 after …

Is the spike in India’s trade deficit a worry?
3 months, 3 weeks ago

Is the spike in India’s trade deficit a worry?

The Hindu  

The story so far: After a positive start to goods exports in the first quarter of 2024-25, there has been a blip in momentum. On the exports front, 18 of India’s top 30 segments recorded growth in July and 19 in August, but the big-ticket sectors like petroleum, and gems and jewellery, have tanked significantly. While gems and jewellery exports …

200% import duty on Pakistani products killed neighbour's economy
7 months, 3 weeks ago

200% import duty on Pakistani products killed neighbour's economy

Op India  

On 17th May, Pakistan’s Foreign Minister Ishaq Dar acknowledged that the trade ties with India went south after the Pulwama terrorist attack on 14th February 2019 in which India lost 40 brave soldiers. Upon withdrawal, basic customs duty on all goods exported from Pakistan to India has been raised to 200% with immediate effect.” India has withdrawn MFN status to …

Trade deficit widens to USD 18.71 billion in Feb as both imports, exports rise
9 months, 4 weeks ago

Trade deficit widens to USD 18.71 billion in Feb as both imports, exports rise

New Indian Express  

NEW DELHI: India’s trade deficit increased to $18.71 billion in February from $17.49 billion in January, with imports exceeding exports, amid red sea crisis, as per recent official data. Goods imports surged to $60.11 billion in February from $54.41 billion in January, while exports increased to $41.40 billion from $36.92 billion. Goods exports grew by 11.86% compared to $37.01 billion …

Deceptive signals: The Hindu Editorial on India’s October 2023 goods exports numbers
1 year, 1 month ago

Deceptive signals: The Hindu Editorial on India’s October 2023 goods exports numbers

The Hindu  

Last month, India’s goods exports recorded only their second uptick this financial year, with a 6.2% rise. Merchandise imports grew a sharper 12.3% over last October and nearly 21% over September’s tally to hit an all-time high of $65.03 billion. The Finance Ministry’s monthly economic review asserted that merchandise exports “surprised on the upside” with the highest growth in 11 …

India’s goods trade deficit hits a 10-month high
1 year, 4 months ago

India’s goods trade deficit hits a 10-month high

The Hindu  

India’s foreign trade hit a fresh trough in August, with goods exports shrinking for the seventh successive month, services exports estimated to have dropped for the first time in well over a year, and the goods trade deficit hitting a 10-month high. The merchandise import bill for August dropped 5.23% year-on-year to $58.64 billion, but was 10.85% higher than July’s …

Downhill driving: The Hindu Editorial on India’s overall trend of exports
1 year, 5 months ago

Downhill driving: The Hindu Editorial on India’s overall trend of exports

The Hindu  

After hitting a record $775 billion in 2022-23, India’s exports are off to a rocky start this year. While this implies the goods trade deficit may not widen as it had last year, it does not augur well for domestic growth impulses that form India’s key armour against the gathering global slowdown. Frail global demand may not just impact trade …

Tripping trade: on India and its trade stance
1 year, 7 months ago

Tripping trade: on India and its trade stance

The Hindu  

This financial year is off to a subdued start on the trade front. The prospects of last year’s healthy 14.7% growth that lifted total exports to about $776 billion being replicated in 2023-24 look bleak already. China’s opening up of the economy may have prompted a global trade growth forecast hike for 2023 from the WTO, but recent Chinese data …

India ready for rupee trade with countries facing currency crises: Commerce Secretary
1 year, 9 months ago

India ready for rupee trade with countries facing currency crises: Commerce Secretary

The Hindu  

Commerce Secretary Sunil Barthwal on March 31 said India is ready to trade in Indan Rupee with countries which are facing currency failure or have dollar shortage. Speaking after the unveiling of Foreign Trade Policy 2023 which seeks to increase India's exports to $2 trillion by 2030, the Secretary also said the government is focusing on strengthening the rupee payment …

Finance Minister Nirmala Sitharaman exhorts exporters to 'foresee' impact of global slowdown, engage with govt
1 year, 10 months ago

Finance Minister Nirmala Sitharaman exhorts exporters to 'foresee' impact of global slowdown, engage with govt

Firstpost  

Nirmala Sitharaman further said that customs authorities at the borders are keeping a tab on both exports and imports New Delhi: Finance minister Nirmala Sitharaman on Wednesday exhorted exporters to be receptive and ‘foresee’ how the recession or slowing economy abroad will pan out for them, while asking them to constantly engage with the government. With regard to imports, she …

India’s merchandise imports from three of top 10 trade partners dip
2 years, 1 month ago

India’s merchandise imports from three of top 10 trade partners dip

Hindustan Times  

New Delhi: India’s merchandise imports from three out of top 10 trade partners contracted year-on-year in October – about 10% from China at $7.8 billion, nearly 5% with the US to $3.5 billion and 31% from Australia at $1.3 billion – although inbound shipments from Russia surged over 441% at over $3.8 billion, mainly due to energy imports. India’s merchandise …

Trade tumult: The Hindu Editorial on shrinking exports
2 years, 1 month ago

Trade tumult: The Hindu Editorial on shrinking exports

The Hindu  

For the first time since February 2021, India’s goods exports shrank this October, dropping 16.7% from last year to slip below $30 billion after a 20-month-streak above that mark. While the Government acknowledged forecasts of a slump in global shipments growth to just 1% in 2023, it attributed the October trade blip to a seasonal Deepavali effect — production dips …

Bright growth prospects driving high imports, financing them a top priority: Finance Ministry
2 years, 3 months ago

Bright growth prospects driving high imports, financing them a top priority: Finance Ministry

The Hindu  

India’s growth has been robust and inflation in control, even as the world’s major economies are afflicted by slowing growth and high inflation, the Finance Ministry said on Saturday, reckoning that the economy will grow 7.2% this year driven by a revival in consumption, employment and investments. The Finance Ministry attributed the ‘inflation acceleration in 2022 compared to 2021’ to …

Gold imports up 6.4% to $12.9 billion in April-July this fiscal
2 years, 4 months ago

Gold imports up 6.4% to $12.9 billion in April-July this fiscal

The Hindu  

India's gold imports, which have a bearing on the country's Current Account Deficit, rose 6.4% to $12.9 billion during April-July this fiscal due to healthy demand, according to government data. In July 2022, however, imports of the precious metal fell sharply by 43.6% to $2.4 billion, as per the latest data released by the Commerce Ministry. Increase in gold and …

The larger message from July trade numbers
2 years, 5 months ago

The larger message from July trade numbers

Hindustan Times  

India’s trade deficit jumped to an all-time high of $31 billion in July, significantly higher than the $26.2 billion number for June. Given the fact that the global economy, especially that of advanced economies, is expected to slow down, India’s export earnings will continue to face headwinds. The import outlook, given the primacy of crude oil imports, will depend on …

Data | Why the rupee is under pressure — explained in seven charts
2 years, 5 months ago

Data | Why the rupee is under pressure — explained in seven charts

The Hindu  

Till recently, the rupee was recording fresh lows every other day. Deteriorating CAD A widening trade deficit causes the current account deficit to deteriorate which in turn adds pressure on the local currency. With slowing global economic growth and looming recession fears, a depreciating currency may not help spur exports which otherwise would have helped at least partly bridge the …

Despite pressures, the Indian rupee’s remarkable resilience
2 years, 5 months ago

Despite pressures, the Indian rupee’s remarkable resilience

The Hindu  

The Indian rupee has depreciated by around 7% against the U.S. dollar, since the start of the year, in response to various domestic and global factors. Specifically, a widening current account deficit, persistent risk-off sentiment as a result of geopolitical tensions, ‘a strengthening dollar index, and continuous sell-off by foreign portfolio investors have all put pressure on the rupee’. Elevated …

Rupee's historic plunge: How is it impacting people | Explained
2 years, 6 months ago

Rupee's historic plunge: How is it impacting people | Explained

India TV News  

Rupee's historic plunge: The Indian rupee nearing 80 to a US dollar will make imports of items from crude oil to electronic goods, overseas education and foreign travel costlier while raising fears that the inflation situation could worsen. As per the latest data, the country's imports expanded by 57.55 per cent to USD 66.31 billion in June compared to the …

Rupee vs Dollar: What is to be expected in coming months?
2 years, 6 months ago

Rupee vs Dollar: What is to be expected in coming months?

India Today  

The rupee has shed about six per cent of its value against the dollar since the beginning of this year and the worrying trend has become much more prominent in recent weeks. However, the question remains whether these moves will offer much needed immediate support to the floundering rupee as inflation pushes higher and the current account deficit threatens to …

With rupee nearing 80 to a dollar, govt. raises gold import duties to 15%
2 years, 6 months ago

With rupee nearing 80 to a dollar, govt. raises gold import duties to 15%

The Hindu  

In a bid to curb a surge in gold imports and check windfall profits being made by crude petroleum producers, the Government has raised the import duty on the yellow metal from 10.75% to 15% and levied fresh taxes on the export of petrol, fuel and ATF as well as the domestic sale of crude oil. As much as 107 …

India's February WPI inflation rises to 13.11%
2 years, 10 months ago

India's February WPI inflation rises to 13.11%

India Today  

India's annual wholesale price-based inflation accelerated to 13.11 per cent in February from the previous month's 12.96 per cent, government data showed on Monday, according to a Reuters report. INDIA'S EXPORTS GROW Meanwhile, India's exports rose 25.1 per cent to USD 34.57 billion in February on account of healthy growth in sectors like engineering, petroleum and chemicals, even as the …

Dealing with a weaker rupee
2 years, 10 months ago

Dealing with a weaker rupee

Hindustan Times  

The Indian rupee fell to an all-time low of 76.97 per US dollar on March 7. Countries have different levels of dependence on critical goods and sudden changes in prices of these goods can have a different impact on exchange rates. This means that when crude prices go up significantly, India’s import bill also goes up in a big way, …

Fix inverted tariff structures to boost industrial growth in India
3 years, 11 months ago

Fix inverted tariff structures to boost industrial growth in India

Live Mint  

A steady decline in import tariff rates in manufacturing industries had been an important feature of India’s economic reforms during the 1990s and 2000s. During 2000-2011, India’s exports recorded high annual growth rates of 21% and 24%, respectively, for goods and services. The forthcoming budget should begin the process of cutting India’s high import tariff rates. It may be noted …

Goods trade data hints at recovery, albeit at soft pace
4 years, 2 months ago

Goods trade data hints at recovery, albeit at soft pace

Live Mint  

India’s goods exports in September were up 6% from last year to $27.6 billion. There are two reasons behind the 21.5% fall in exports to $125 billion during the first half of this fiscal year. This explains how countries, such as Bangladesh and Vietnam, and not India, are taking several global exports markets that Beijing has been gradually vacating, with …

Budget 2020: Govt likely to raise import duties on over 50 items
4 years, 11 months ago

Budget 2020: Govt likely to raise import duties on over 50 items

India TV News  

Ahead of Budget 2020 which will be presented by Finance Minister Nirmala Sitharaman on February 1, sources have indicated that the government may increase import duties on as many as 50 items as the administration eyes to revive the economy after IMF trimmed India's growth projection. 69% want tax free income to be hiked to Rs 5 lakh in budget …

India's August gold imports plunge 73% to hit three-year low on record high prices, hike in duty
5 years, 4 months ago

India's August gold imports plunge 73% to hit three-year low on record high prices, hike in duty

Firstpost  

India’s gold imports in August plunged 73 percent from a year ago to the lowest level in three years as a rally in local prices to a record high and a hike in import duty curtailed retail purchases of the precious metal New Delhi/Mumbai: India’s gold imports in August plunged 73 percent from a year ago to the lowest level …

India might impose retaliatory import tariffs on 29 US items
5 years, 7 months ago

India might impose retaliatory import tariffs on 29 US items

India TV News  

India might finally go ahead to impose retaliatory import tariffs against some US goods, sources said on Friday. According to sources, the long overdue retaliatory move, which was first proposed last year, will consist of tariffs on 29 US items and this can come in effect from as soon as next week. Speculations are that the 29 items imported from …

From 74.5 to 72 a dollar in a month, rupee’s jump explained in 5 points
6 years, 2 months ago

From 74.5 to 72 a dollar in a month, rupee’s jump explained in 5 points

Live Mint  

The rupee jumped sharply today against the US dollar, buoyed by a big drop in global oil prices. 5 things to know about rupee’s gain vs US dollar 1) Combined with Tuesday’s drop, global oil prices are down over 25% since early October in what has become one of the biggest declines since prices collapsed in 2014. US crude production …

Govt hikes import duty on select communication items to up to 20% to check widening CAD
6 years, 3 months ago

Govt hikes import duty on select communication items to up to 20% to check widening CAD

Firstpost  

The CAD widened to 2.4 percent of the GDP in the first quarter of 2018-19. New Delhi: The government Thursday hiked the import duty on certain communication items, including base stations, to up to 20 percent as part of efforts to check a widening current account deficit by curbing imports. Import duty on populated, loaded or stuffed printed circuit boards …

Government to raise import tariffs on several electronics to bolster falling rupee
6 years, 3 months ago

Government to raise import tariffs on several electronics to bolster falling rupee

Firstpost  

The tariff hike attempts to raise import barriers to curtail the import of goods. India said on 11 October it will raise import tariffs on several electronic items and communication devices, in another move to rein in imports and bolster a falling rupee. The tariff hike, the second such move by India in a two-week span, was announced late on …

Rupee gains against dollar as govt hikes import duties
6 years, 3 months ago

Rupee gains against dollar as govt hikes import duties

Live Mint  

Mumbai: The Indian rupee on Thursday strengthened against the US dollar after the government increased tariffs on imported goods to narrow current account deficit. Bond yields and prices move in opposite directions On Wednesday, the government raised import duties on 19 non-essential items, including refrigerators, air conditioners, jewellery, diamonds and jet fuel, accounting for annual imports worth ₹ 86,000 crore, …

Imported ACs, refrigerators to cost more as customs duty hiked to reduce widening CAD, stem rupee slide
6 years, 3 months ago

Imported ACs, refrigerators to cost more as customs duty hiked to reduce widening CAD, stem rupee slide

Firstpost  

Mumbai: The government said on Wednesday it is raising import tariffs on 19 “non-essential items,” marking a further tilt toward protectionism as it tries to reduce its widening current account deficit and tackle a sharp slide in the rupee. The new tariff structure, which goes into effect Thursday, will see the government raise customs duties on items such as air …

ACs, refrigerators, washing machines to get costlier, import duty hiked on over 19 items
6 years, 3 months ago

ACs, refrigerators, washing machines to get costlier, import duty hiked on over 19 items

Live Mint  

New Delhi: The government on Wednesday raised import duties on 19 non-essential items, including refrigerators, air conditioners, jewellery, diamonds and jet fuel, accounting for annual imports worth ₹ 86,000 crore, to arrest a widening current account deficit and a weakening rupee. The imposition of a 5% import duty on jet fuel is, however, unlikely to increase air fare as India …

Curb on imports soon to bring rupee to 68-70 level, says DEA secretary; terms 12% slide in currency 'temporary phenomenon'
6 years, 3 months ago

Curb on imports soon to bring rupee to 68-70 level, says DEA secretary; terms 12% slide in currency 'temporary phenomenon'

Firstpost  

The fall in rupee has shot up oil import bill for the world’s fastest-growing oil user by 76 percent to $10.2 billion in July. New Delhi: The government will “very soon” implement the second set of measures including a curb on imports of non-essential items to shore up rupee to 68-70 level against the US dollar, Economic Affairs Secretary Subhash …

India may restrict non-essential imports to check rupee fall
6 years, 3 months ago

India may restrict non-essential imports to check rupee fall

Live Mint  

New Delhi: After Friday’s measures to increase capital inflows to check a falling rupee and curb the rising current account deficit, the next in line could be trade-related measures to curb non-essential imports and boost exports. On Friday, finance minister Arun Jaitley said a broad policy decision has been made to take necessary steps to cut non-essential imports and increase …

Focus on boosting exports, import curbs may not help control CAD: FIEO to govt
6 years, 4 months ago

Focus on boosting exports, import curbs may not help control CAD: FIEO to govt

Live Mint  

New Delhi: The government should focus primarily on boosting exports to check the widening current account deficit as imposing curbs on imports may not have a significant impact, exporters’ body Federation of Indian Export Organisations said on Saturday. FIEO President Ganesh Gupta said the government should not restrict imports to address rising current account deficit and fall in rupee. The …

India's oil import bill to jump by $26 billion as depreciating rupee renders imported crude costlier
6 years, 4 months ago

India's oil import bill to jump by $26 billion as depreciating rupee renders imported crude costlier

Firstpost  

India, which imports over 80 percent of its oil needs, spent $87.7 billion on importing 220.43 million tonne of crude oil in 2017-18 New Delhi: India’s crude oil import bill is likely to jump by about $26 billion in 2018-19 as rupee dropping to a record low has made buying of oil from overseas costlier, government officials said on Thursday. …

Rupee hits new all-time low of 70.32 on strong dollar demand; spike in trade deficit to five-year high
6 years, 4 months ago

Rupee hits new all-time low of 70.32 on strong dollar demand; spike in trade deficit to five-year high

Firstpost  

Forex dealers said besides strong demand for the dollar from importers, capital outflows mainly weighed on the rupee Mumbai: The rupee today slumped 43 paise against the dollar to trade at a lifetime low of 70.32 on strong demand for the US currency. At the Interbank Foreign Exchange, the local currency opened at a record low of 70.25 a dollar, …

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