Typically, net exporters, remittance receivers, or those with dollar incomes will gain, while net importers will get hit, when the currency weakens. Those with large foreign loans will see rupee interest costs rise. The equation is more complicated this time though as all currencies have depreciated against the dollar and the rupee may even have gained against some such as the pound. ET looks at the impact on key sectors.
Domestic indices rose 2% on Tuesday, led by gains in banks and metal companies, as an attempted bounce in global equities and upbeat quarterly updates from companies lifted sentiment ahead of the corporate earnings season.
Foreign exchange reserves with the central bank stand at $8 billion and commercial banks hold another $5.7 billion. That covers imports for barely a month, despite IMF funding. Saudi Arabia, United Arab Emirates and Qatar had pledged some $5 billion in investments. That would boost both finances and confidence.
The exemption from GST on export freight, introduced in 2018, ended on September 30 after being extended twice. Exporters now have to pay 18% GST on export ocean freight for which they can claim a refund. "The global trade is entering into a very difficult phase as countries are facing high inflation and impending recession affecting demand. The rate of growth in exports is also coming down as can be seen in export growth rate from April-August 2022," FIEO said.
The report also flagged the off-budget borrowings of states, which are loans raised by state-owned entities and guaranteed by the states, to have reached around 4.5% of GDP in 2022. "If we look at the state budgets, election promises recently made for forthcoming state elections range from 0.1-2.7% of GSDP (gross state domestic product) for different states and around 5-10% of own tax revenue of the states," the report said.
Accordingly, the company will continue to follow the schedule for the proposed rights issue set out in its letter of offer(LOF) dated September 28, 2022.
Private equityventure capital (PE-VC) activity continued to slump in a difficult macro-environment, recording its fourth continuous quarter of decline in the country.
Under a 100-lakh-crore-rupee ($1.2 trillion) mega project called PM Gati Shakti -- Hindi for strength of speed -- Modi’s administration is creating a digital platform that combines 16 ministries. The portal will offer investors and companies a one-stop solution for design of projects, seamless approvals and easier estimation of costs.