Global media reports on how India’s remittance is tied to the now-troubled region & the war’s cascading effect on economy. J&K's maiden Ranji Trophy win also drew its attention.
India could consider countermeasures under the principle of reciprocity and tax outward remittances by US companies and foreign institutional investors that invest in Indian stock markets.
Since October 2023, foreign transactions above Rs 7 lakh under Liberalised Remittance Scheme have attracted a 20% tax collected at source. It’s sending a signal to big spenders abroad: we are watching you.
The high transaction cost on remittances amounts to an additional tax on cross-border movement of incomes. For 2023, roughly $41 billion was spent on just transaction costs.
India is expected to get $125 billion in 2023, up from 2022’s $111 billion. This inflow has caused South Asia’s share as a whole to rise, says the World Bank.
This is the first such for the South Asian nation that is the world's biggest recipient of remittances. Transfer of funds will now be possible using just mobile phones.
The IFSC regulator has approved banking regulations for IBUs. It has allowed resident Indians, with a net worth of not less than $1 million, to invest in IBUs.
As migrants workers from Asia's developing nations see opportunity drying up in job market, they are sending money home in advance of their own return.
Non-resident Pakistanis will be allowed to open digital accounts to allow diaspora to invest in stock markets, buy govt debt and conduct basic banking.
Remittances, or the money overseas citizens send back to their home country, are expected to contract 20% in 2020 on account of Covid-19, according to a World Bank report.
After dominating India’s crude imports since 2023, Russian supplies slowed amid US sanctions, but a 30-day ‘waiver’ amid West Asia tensions could now push flows back towards 2 mbpd.
Trump has ushered in the age of humiliation. His method is to push around America’s friends rudely and publicly. He knows none of them can afford to fight back.
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