While supportive fiscal & monetary measures boosted earnings outlook, market sentiment deteriorated sharply toward the fiscal year-end as West Asia war sent crude prices surging.
New Delhi, Mar 30 (PTI) The WTO ministerial conference in Yaounde, which concluded on Monday, failed to reach any agreement on key issues, including...
New Delhi, Mar 30 (PTI) India's industrial production grew 5.2 per cent in February, mainly due to improvement in manufacturing sector, according to...
A global realignment of trade sparked by US tariffs has prompted New Delhi to consider a calibrated reset with China to keep supply chains steady and attract investments.
New Delhi, Mar 30 (PTI) The World Trade Organization’s fourteenth Ministerial Conference (MC14) concluded on Monday in Yaounde, Cameroon with members failing to...
Traders see little chance of a US rate cut this year, as higher energy prices threaten to feed into broader inflation & limit scope for monetary easing.
Newly appointed Foreign Minister of Bangladesh, Kahlilur Rahman, is expected to land in India in April. This will be first high-level outreach since PM Tarique Rahman took office.
Report on impact of AI emergence—drawing upon depositions from several ministries—confirms that the developments come in the absence of AI laws or considerations over them.
It’s easy to understand why the government can’t speak the hard truth. When this war ends, as all wars do, India’s interests will lie with both the winner and the loser.
The argument is that the weakening rupee is about “exchange rate” and not PPP related – which is why someone even claims that it is a “perfect medicine” assuming both economies offer “Public goods” at the same level – so PPP-wise we are ok with a falling rupee.
That base itself is flawed – the basis on which they both make their argument:
PPP calculations assume that “public goods” (air, water, safety, roads) are equal and free in both countries. They are not.
In the US: You pay high taxes, but you get clean air, drinkable tap water, 24/7 electricity, and walkable sidewalks “for free” (included in the system).
In India: You pay lower taxes (nominally), but the state provides none of these effectively. You have to buy them privately.
Air: You buy Air Purifiers (Rs 15k+ each).
Water: You buy RO filters and water softeners.
Power: You buy Inverters or Generators.
Safety: You pay a premium for a “Gated Community” to escape the chaos outside.
The Reality: Your “high PPP” savings in India are immediately drained by paying for things that are basic rights in the West. You are essentially running a mini-municipality inside your own home.
Factor in all that math when trying to treat the “exchange rate” as a medicine for the elevated tariffs.
Common sense says : if you make something at loss dont product it. Had the same tariffs been in the domestic market should the rest of India accommodate to absorb those tariffs? Then why should be slide the rupee to accommodate those export industries?
The argument is that the weakening rupee is about “exchange rate” and not PPP related – which is why someone even claims that it is a “perfect medicine” assuming both economies offer “Public goods” at the same level – so PPP-wise we are ok with a falling rupee.
That base itself is flawed – the basis on which they both make their argument:
PPP calculations assume that “public goods” (air, water, safety, roads) are equal and free in both countries. They are not.
In the US: You pay high taxes, but you get clean air, drinkable tap water, 24/7 electricity, and walkable sidewalks “for free” (included in the system).
In India: You pay lower taxes (nominally), but the state provides none of these effectively. You have to buy them privately.
Air: You buy Air Purifiers (Rs 15k+ each).
Water: You buy RO filters and water softeners.
Power: You buy Inverters or Generators.
Safety: You pay a premium for a “Gated Community” to escape the chaos outside.
The Reality: Your “high PPP” savings in India are immediately drained by paying for things that are basic rights in the West. You are essentially running a mini-municipality inside your own home.
Factor in all that math when trying to treat the “exchange rate” as a medicine for the elevated tariffs.
Common sense says : if you make something at loss dont product it. Had the same tariffs been in the domestic market should the rest of India accommodate to absorb those tariffs? Then why should be slide the rupee to accommodate those export industries?