Weekly News Updates-India Jun 7 to Jun 13

India leads the world in digital payments; Government approves Rs 89,047 crore revival plan for BSNL; Agreement for US-India collaboration in the defense industry; India's forex reserves recover after a two-week decline; SIDBI and NITI Aayog launch the EVOLVE mission; UAE becomes the fourth-largest investor in India; Technical Director for Odisha Semiconductor Project appointed

India leads the world in digital payments: MyGovIndia data

India has surpassed other countries in terms of the value and volume of transactions to become the world’s leader in digital payments for the year 2022. The data from MyGovIndia, the government’s portal for citizen engagement, indicates India’s dominant position in the digital payment environment, highlighting the nation’s strong payment infrastructure and wide-spread use of digital modes.

The results show that during the study period, India recorded an astounding 89.5 million digital transactions. In 2022, this accounted for a remarkable 46 percent of real-time payments worldwide, outperforming the sum of digital payments from the following four leading nations.

India tops digital payments rankings globally, shows MyGovIndia data (adda247.com)

Government approves Rs 89,047 crore revival plan for BSNL

The Cabinet has approved Rs.89,047 crore revival package for Bharat Sanchar Nigam Ltd (BSNL).  The Union Cabinet, led by Prime Minister Narendra Modi, approved the third BSNL revival package, with a total outlay of Rs. 89,047 crore. Additionally, it involves BSNL investing in equity to purchase 4G/5G spectrum.

Jio, the wireless division of Reliance Industries, Bharti Airtel, and Vodafone Idea have aggressively competed against BSNL, which is struggling with inadequate infrastructure. These companies have introduced 4G services with reasonable call and data rates.

Cabinet approves revival package of ₹89,047 crore for BSNL | Mint (livemint.com)

US and India reach an agreement for collaboration in the defense industry

India and the United States announced on Monday that they had reached an agreement on a roadmap for future military industry collaboration, a significant development that should support New Delhi’s aspirations for the defense sector.

Stronger military-to-military and technological links with the largest democracy in the world are among Washington’s priorities as it seeks to counterbalance the dominance of China in the area.

Additionally, it aims to wean New Delhi off of its traditional dependence on Russia for defense supplies. The course of action was decided upon during a meeting between Indian Defense Minister Rajnath Singh and visiting U.S. Defense Secretary Lloyd Austin.

The agreement was reached weeks before Indian Prime Minister Narendra Modi’s official state visit to Washington on June 22 and his meeting with President Joe Biden.

US, India agree roadmap for defence industry cooperation | Reuters

RBI: India’s forex reserves recover after a two-week decline, rise $5.9 billion to $595 billion

The Reserve Bank reported on Friday that India’s foreign exchange reserves increased by USD 5.929 billion to USD 595.067 billion for the week ending June 2. The reserves had decreased during the previous two reporting weeks, falling by USD 4.34 billion to USD 589.14 billion.

It should be mentioned that the nation’s foreign exchange reserves hit an all-time high of USD 645 billion in October 2021. The reserves have been dropping as the central bank uses its funds to defend the rupee against pressures mostly brought on by global developments.

Forex reserves: India’s forex reserves up $5.9 billion to $595.1 billion as on June 2 – The Economic Times (indiatimes.com)

SIDBI and NITI Aayog launch the EVOLVE mission

In order to provide financial support for micro, small, and medium-sized enterprises (MSMEs) operating in the electric vehicle industry, the Small Industries Development Bank of India (SIDBI) and the NITI Aayog, the World Bank, the Korean-World Bank, and the Korean Economic Development Cooperation Fund (EDCF), respectively, announced the launch of mission EVOLVE (Electric Vehicle Operations and Lending for Vibrant Ecosystem).

The goal seeks to finance 50,000 EVs, and organisations like Aristo Securities and Mufin Green Finance have received authorization letters to soon put 5000 to 2/3-wheel EVs on the road.

With the use of telematics to cut down on financing costs and give financial data, the effort will provide accessible commercial financing for EV loans. The objective of the mission is to support India’s 30% target for EV penetration by 2030 (EV30@30).

SIDBI Launches EVOLVE Mission with NITI Aayog (adda247.com)

UAE becomes the fourth-largest investor in India as FDI triples to $3.35 billion during FY23

According to government data, the United Arab Emirates (UAE), with which India concluded a comprehensive free trade deal in May of last year, will rank as India’s fourth-largest investor between 2022 and 2023.

According to Department for Promotion of Industry and Internal Trade (DPIIT) data, foreign direct investment (FDI) from the UAE to India increased more than thrice to USD 3.35 billion in the most recent fiscal year from USD 1.03 billion in 2021–22.

In comparison to 2021–2022, the UAE was India’s fourth-largest investor in 2022–2023. With USD 17.2 billion invested in India in FY23, Singapore was the largest investor, followed by Mauritius (USD 6.1 billion) and the US (USD 6 billion).

Strong bilateral ties between India and UAE, an increase in UAE investment commitments, and policy changes to further ease doing business between the two nations can all be credited for the rapidly growing bilateral ties and investment cooperation between India and the UAE.

UAE emerges as fourth largest investor in India during FY23 as FDI jumps three-folds to $3.35 billion | Mint (livemint.com)

Singapore Manufacturers Moving to India

Approximately 9,000 Indian companies are registered in Singapore, according to the Indian High Commission in Singapore. Prominent Indian companies with bases in Singapore include Tata Group, Mahindra & Mahindra Reliance Industries, Adani Group, Infosys, and Wipro. For a long time, there has been a strong trading relationship between India and Singapore.

The value of bilateral trade during the fiscal year 2021–2022 was USD 30.11 billion. With a 2.9% proportion of India’s total commerce, Singapore is the sixth-largest trading partner. India, on the other hand, accounts for 2.3 percent of Singapore’s entire trade and is the 12th largest trading partner.

The city-state benefits from having a competitive tax structure, a vast network of tax treaties, ready access to qualified labor, geopolitical stability, easy access to money, connectedness to the outside world, and solid infrastructure.

World News | Why Are Singapore Manufacturers Moving to India? | LatestLY

Technical Director for Odisha Semiconductor Project appointed by SRAM & MRAM Group

UK-based conglomerate SRAM & MRAM Group appointed Nitin Gupta as the Technical Director for the Odisha semiconductor project.

An MoU has been signed between the group and the Odisha government to establish a semiconductor manufacturing plant in the state. The group is a UK-based investment and business consultancy firm and growth accelerator.

The group plans to invest Rs 30,000 crore in the unit’s initial stages. According to a statement, the project will help the Indian semiconductor industry flourish in addition to boosting the local economy.

SRAM & MRAM Group appoints technical director for Odisha semiconductor project, ET Telecom (indiatimes.com)