Important News - 2025-04-14
14 April 2025
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Economy (6)
BOJ Governor Ueda Highlights Economic Uncertainty from U.S. Tariff Policies
Bank of Japan Governor Kazuo Ueda highlighted on Monday that global and domestic economic uncertainty has significantly increased due to U.S. tariff policies. Speaking before the parliament, Ueda emphasized that U.S. tariffs are likely to exert downward pressure on both the global and Japanese economies through various channels. He assured that the Bank of Japan will continue to guide monetary policy appropriately, focusing on sustainably achieving its 2% inflation target. Ueda also stated that the BOJ will closely monitor economic, price, and financial developments without any preconceived notions to ensure stability.
Consumer Goods Companies Focus on Rs 10 Packs to Drive Summer Demand
Consumer goods companies in India are focusing on Rs 10 price packs to cater to the value-conscious market, especially during the summer season. Companies like Rasna, Mother Dairy, PepsiCo, and Dabur are introducing new products and variants in Rs 10 packs to attract middle-class consumers who are cutting back on discretionary spending due to high inflation. Rasna has launched a fruit drink concentrate in Rs 10 sachet packs, while Mother Dairy has added mango lassi and pudina chaach to its Rs 10 product range. PepsiCo has introduced a no-sugar beverage pack in Hyderabad at this price point. Dabur is emphasizing its Rs 10 juice portfolio to drive market share and distribution. The early onset of summer has already boosted demand for beverages, ice creams, and curd, with Mother Dairy reporting a 30%-40% surge in demand. Reliance's introduction of Campa Cola at Rs 10 has also intensified competition, prompting other brands to revisit their pricing strategies. Coca-Cola's global CFO, John Murphy, highlighted the importance of the Rs 10 price point in India, stating that understanding such 'magic price points' is crucial in a price-sensitive market like India.
Study Reveals Under-Reporting of Income by India's Super-Rich and Its Economic Implications
A recent study by Ram Singh, a member of the RBI's Monetary Policy Committee and Director of the Delhi School of Economics, reveals significant under-reporting of income by India's super-rich. The research, based on Lok Sabha election candidates' affidavits, the Forbes' rich list, and income-tax data, shows that the wealthier a taxpayer, the smaller the income tax paid relative to their wealth. For the wealthiest 0.1% of individuals, the tax liability amounts to approximately 0.7% of their wealth. The study also highlights that the average politician is wealthier than the average Indian, with the average family wealth of Lok Sabha members being USD 998,311 compared to the average Indian household wealth of USD 26,867. The research suggests that tax avoidance plays a significant role in the low income-wealth ratios observed among the ultra-wealthy, and while this leads to tax evasion, it might also result in higher investments and economic growth.
Global Economic Impact of Trump's Tariffs: Insights from Kunal Vora
Kunal Vora, Partner at White Whale Partners, discussed the potential global economic impacts of President Trump's tariffs in an interview with ETMarkets. He highlighted that the tariff wars could lead to slower global growth, increased inflation, and delayed business decisions. Vora emphasized that the uncertainty caused by these tariffs might result in businesses deferring strategic or capital expenditure plans, cutting budgets, and adopting a cautious approach. He also noted that India, despite its relatively better position, would face market volatility due to its integration with the global economy. The interview further explored the inflationary effects of tariffs, the role of gold as a hedge against uncertainty, and the potential risks for sectors like IT, manufacturing, and pharma. Vora advised investors to focus on predictable cash flows and domestic-focused businesses in such a volatile environment.
Asian Tech Stocks Surge Following U.S. Tariff Exemptions on Electronics Imports
Asian technology stocks experienced a significant rebound on Monday following the U.S. government's decision to grant temporary exemptions from steep tariffs on smartphones, computers, and other electronics imported primarily from China. Shares in major tech companies such as Foxconn, Apple's largest iPhone assembler, rose by around 4%, while Quanta, a contract laptop maker, saw a 7% increase. Inventec, which also produces artificial intelligence servers, gained 4%. The broader index was up by approximately 1%. Notable gains were also observed in Apple's Chinese suppliers, Goertek and Lens Tech, which rose by 3% and 1.1%, respectively. South Korea's Samsung Electronics, a key Apple supplier and the second-largest smartphone vendor in the U.S. market, saw its shares increase by 2%. Analysts, including Dan Ives from Wedbush Securities, view the tariff exemptions as a positive development for Apple and other tech companies, providing flexibility and facilitating ongoing negotiations with China. However, concerns remain about potential price increases for iPhones due to Apple's heavy reliance on Chinese imports. Meanwhile, U.S. President Donald Trump indicated that the excluded electronics products would be reviewed in a national security trade investigation, alongside semiconductors. Shares of some chipmakers, such as TSMC and SK Hynix, declined slightly amid uncertainty over future tariff rates.
US Tariff Pause Offers India Relief, But China’s Export Spillover Poses Risks
The United States has imposed steep tariffs on China while pausing similar actions against other countries, including India. This move has shifted immediate pressure toward Chinese exports, but analysts warn of potential ripple effects on India. Jigar Mistry of Buoyant Capital highlighted that while India appears relatively insulated for now, there could be spillovers from China’s trade displacement. Historically, when China faced export restrictions, it flooded other markets such as the Philippines, Thailand, and the Asia-Pacific region. Mistry cautioned against oversimplifying the impact, noting that while India has a 'first-order advantage' due to lower tariffs, its exports to the US constitute a small percentage of its GDP, limiting direct benefits. He also emphasized second- and third-order effects, such as the weakening of crude oil and the dollar due to global slowdown fears, which could challenge India’s macro outlook. Mistry concluded that the situation is nuanced and requires a calibrated approach.
Politics (6)
Political Clash Over Murshidabad Violence: BJP Demands AFSPA, TMC Calls It Unconstitutional
In West Bengal, a political clash erupted between the Trinamool Congress (TMC) and the Bharatiya Janata Party (BJP) over the recent violence in Murshidabad district. BJP MP Jyotirmay Singh Mahato wrote to Union Home Minister Amit Shah, urging the Centre to declare Murshidabad, Malda, Nadia, and South 24-Parganas as 'disturbed areas' under the Armed Forces (Special Powers) Act (AFSPA). Mahato alleged repeated attacks on the Hindu community in these districts and accused the state administration of turning a blind eye due to TMC's 'appeasement politics.' TMC spokesperson Kunal Ghosh countered the demand, calling it 'unconstitutional' and suggesting that the violence might have 'cross-border links,' implicating sections of the BSF and an opposition party. Meanwhile, another BJP MP, Jagannath Sarkar, accused the Bengal government of inaction during the tensions in Murshidabad. The Calcutta High Court also criticized the state's measures to control communal unrest as inadequate. Separately, the Bengal BJP organized a protest in Kolkata against the violence and job losses in state-run schools following the Supreme Court's verdict on the SSC recruitment scam.
Kharge Accuses BJP-RSS of Disrespecting Ambedkar, Reiterates Congress's Social Justice Demands
Congress President Mallikarjun Kharge criticized the BJP and RSS, labelling them as 'enemies' of Dr. B.R. Ambedkar. He referenced a letter written by Ambedkar to his friend in 1952, where he blamed V.D. Savarkar for his election defeat. Kharge accused the RSS-BJP of paying only lip service to Ambedkar for political gains, contrasting it with the Congress's historical respect for him, including his role in the Constituent Assembly and as chairman of the drafting committee of the Indian Constitution. He also highlighted the RSS's past actions, such as burning a copy of the Constitution and mocking Ambedkar's conversion to Buddhism. Kharge emphasized the Constitution as Ambedkar's gift to the nation, ensuring social, economic, and political justice. He reiterated Congress's five-fold demands, including a caste census, quotas in private sector educational institutions, removal of the 50% cap on reservations, and implementation of women's reservation with sub-quotas for SC/ST/OBC.
Maharashtra Government to Act on Waqf Land Encroachments Using ATAK Shaikh Report
The Maharashtra government is leveraging the ATAK Shaikh inquiry commission report, originally submitted in 2011 and recompiled after being lost in the 2012 Mantralaya fire, to address encroachments and irregularities in waqf land dealings. The report, which scrutinized 114 complaints across districts like Mumbai, Pune, and Chhatrapati Sambhajinagar, highlighted systematic fraudulent practices, including forged documents and illegal transfers. Despite its findings, the report has seen little action over the past decade. With the Waqf (Amendment) Act, 2025, now in effect, Chief Minister Devendra Fadnavis has pledged to use the report as a reference to act against encroachments. The government has also initiated GIS-based mapping of waqf properties to ensure better management and transparency.
Waqf Act Amendments Spark Violent Protests in West Bengal’s Murshidabad
Violent protests erupted in West Bengal’s Murshidabad district following the Union Government’s decision to amend the Waqf Act of 1995, renamed the UMEED Act. The protests, which began on April 11, 2023, led to three deaths and prompted the Calcutta High Court to deploy central forces in sensitive areas. The amendments include the abolition of 'Waqf by user,' inclusion of non-Muslims on Waqf Boards, and new donor requirements, which have sparked outrage among sections of the Muslim community. West Bengal, with over 80,480 Waqf properties, has been particularly affected. CM Mamata Banerjee has assured that the Act will not be implemented in the state, but legal experts question the constitutional validity of her stance. The political ramifications are significant, with the BJP and TMC engaging in a blame game, and the issue threatening communal harmony in the region. The Supreme Court is set to hear the Waqf case on April 16, 2023, while Mamata Banerjee plans to meet Muslim clerics to address the situation.
Modi Government to Extradite Mehul Choksi in PNB Scam, Reaffirms Zero-Tolerance on Corruption
The Modi government has reaffirmed its zero-tolerance policy towards corruption and fugitives, particularly those accused of financial fraud. Union Minister of State for Finance, Pankaj Chaudhary, announced that Mehul Choksi, a key accused in the Rs 13,000 crore Punjab National Bank (PNB) loan scam, will be extradited to India. Choksi, who was recently arrested in Belgium, is also the uncle of Nirav Modi, another high-profile bank loan defaulter. Chaudhary emphasized that the government is committed to bringing back all individuals who have fled the country after committing financial crimes. The minister made these remarks during the valediction function for the 77th batch of Indian Revenue Service (IRS) officers at the National Academy of Direct Taxes (NADT) in Nagpur. Chaudhary highlighted the government’s rigorous approach to tax evasion and defaulters, stating that extensive investigations are underway to address such cases. He also mentioned the success of the Mudra scheme, which has provided Rs 33 lakh crore in collateral-free loans to 52 crore individuals since its inception in 2015, with 68% of beneficiaries being women. Additionally, he noted that the number of airports in India has doubled since 2014, reflecting the country’s infrastructural growth. Chaudhary underscored the importance of direct taxes in the economy and the increasing role of taxmen as India progresses towards becoming a developed nation by 2047.
CPM’s Tarigami Criticizes Centre for Undermining Omar Abdullah Government in J&K
CPM MLA M Y Tarigami has criticized the BJP-led central government for allegedly obstructing the functioning of the Omar Abdullah-led government in Jammu and Kashmir. Speaking at a press conference in Srinagar, Tarigami emphasized the need to respect the democratic mandate given by the people in the October 2024 assembly elections, which were held after a gap of seven years. He accused the central government of undermining the elected government through executive orders, domicile laws, media restrictions, and intimidation of government employees. Tarigami also condemned the Waqf (Amendment) Act, arguing that it would increase communal polarization and harm the nation’s secular fabric. Additionally, he criticized the abrogation of Articles 370 and 35A on August 5, 2019, and the subsequent bifurcation of Jammu and Kashmir into two Union Territories, stating that these decisions had created political uncertainty and alienation among the people. Tarigami demanded the immediate restoration of full statehood to Jammu and Kashmir, along with the protection of land and job rights.
Census (1)
Karnataka Cabinet Discusses Caste Census Report Amid Reservation Quota Proposals
A special cabinet meeting was convened by Karnataka Chief Minister Siddaramaiah on April 17 to discuss the recently submitted caste census report. The report, which was delivered to all cabinet ministers on April 14, has sparked controversy, particularly regarding the population proportions of the Vokkaliga and Lingayat communities. While the report does not specify the exact population share of these two dominant caste groups, it proposes revised reservation quotas. Under Category III(A), which includes Vokkaligas and two other communities, the population is estimated at 73 lakh with a recommended 7% reservation. Similarly, Category III(B), comprising Veerashaiva-Lingayats and five other communities, has a population of 81.3 lakh with an 8% quota recommendation. The total population of Karnataka is pegged at 5.9 crore. The report suggests increasing the total reservation to 73.5%, including 15% for Scheduled Castes (SCs) and 7.5% for Scheduled Tribes (STs), up from the existing 50%. The Chenappa Reddy commission’s 1990 socio-economic survey had estimated the Lingayat and Vokkaliga populations at 19% and 17%, respectively. Industries Minister M B Patil raised concerns about the accuracy of the survey, suggesting that the Lingayat population could exceed 1 crore if sub-caste identities are considered. The report also places Muslims at 12.6% of the population, while Scheduled Castes remain the largest community with nearly 1.1 crore individuals. The BJP has criticized the report, accusing the Congress government of minority appeasement.
Elections (1)
AAP Announces Bid for Budgam Bypoll Following Omar Abdullah's Seat Vacancy
The Aam Aadmi Party (AAP), encouraged by its first victory in the Jammu and Kashmir (J&K) assembly elections from the Doda constituency in October last year, has announced its intention to contest the upcoming Budgam assembly bypoll. This bypoll was necessitated after Chief Minister Omar Abdullah vacated the Budgam seat to retain his Ganderbal constituency. Mehraj Malik, the AAP J&K chief and Doda MLA, expressed the party's determination to win the seat. Meanwhile, the National Conference, led by Omar Abdullah, has yet to announce its candidate for the bypoll. Aga Ruhullah Mehdi, the party's MP from Srinagar, has urged the selection of a local candidate for the Budgam constituency.
Miscellaneous (1)
Indian Pharma Giants Glenmark, Sun Pharma, and Zydus Recall Products in the US Over Manufacturing Issues
Glenmark, Sun Pharma, and Zydus, major Indian pharmaceutical companies, are recalling several products in the United States due to manufacturing issues, as reported by the US Food and Drug Administration (USFDA). Glenmark, based in Mumbai, is recalling over 25 products in the US market due to deviations from Current Good Manufacturing Practice (CGMP) standards. Additionally, a US-based subsidiary of Sun Pharma is recalling approximately 13,700 bottles of Gabapentin capsules, a medication used to treat epilepsy. The recalls highlight ongoing concerns about manufacturing quality and compliance with regulatory standards in the pharmaceutical industry.
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