๐๐ผ๐ฟ๐ฒ๐ถ๐ด๐ป ๐๐ฎ๐ฝ๐ถ๐๐ฎ๐น ๐๐ป๐ณ๐น๐ผ๐๐ ๐๐ป ๐๐ป๐ฑ๐ถ๐ฎ
Finance Minister Nirmala Sitharaman announced new strategies to attract international capital to India. These actions serve as an initial phase of a larger plan to stabilize the economy against global tensions.
Key financial updates:
- The government expanded the Fully Accessible Route list on June 5 to include new government securities.
- Foreign portfolio investors received income tax exemptions on interest and capital gains from government securities.
- The Reserve Bank of India allows banks to use a swap facility for FCNR(B) deposits until September 30.
- A new forex swap window exists for public sector enterprises using external commercial borrowings until September 30.
- The RBI framework moves currency hedging costs to the central bank to reduce risks for banks.
Economic pressures and risks:
- Foreign exchange reserves fell by $711 million to $681.61 billion for the week ending June 5.
- India imports 87% of its crude oil and 60% of its LPG.
- Nearly 46% of crude oil shipments and 90% of LPG supplies pass through the Strait of Hormuz.
- Rising global prices for fertilisers increase import costs for the country.
- The Union Budget allocated Rs 1.71 lakh crore for fertiliser subsidies this fiscal year.
The government intends to implement more measures to increase foreign direct investment and protect the rupee.
Source: The Times of India