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After the Rouble dropped to levels not seen before the Ukraine War, Russia is considering reinstating capital restrictions. A Bloomberg report quoting four sources showed that a proposal to mandate sales of export revenues was discussed during a meeting between the government and exporters on Monday before the bank of Russia announced an emergency rate hike. Two of those Bloomberg sources said no progress was made, and another meeting may be scheduled for later this week.

Russia plan capital controls to stem Rouble slump | World Business News

Singapore on Tuesday (August 15) launched one of the biggest anti-money laundering operations the country has ever witnessed, leading to the seizure of assets worth $736 million.

South China Morning Post (SCMP) reported that Singapore Police Force (SPF) arrested 10 foreign nationals, including three Chinese, in the crackdown and seized cash, prime properties, luxury cars and other valuable assets.

The authorities said Wednesday it was a well-coordinated operation involving several agencies and more than 400 personnel, including those from the Criminal Investigation Department, Commercial Affairs Department (CAD), Special Operations Command or riot police, and Police Intelligence Department.

<h2>What are the allegations against those arrested?</h2>

According to the authorities, the group is allegedly involved in laundering money earned through criminal activities overseas, such as scams and online gambling.

Police said another 12 are assisting the investigations while eight people were put on the most-wanted list and are currently on the run.

The police identified them through extensive investigations, including the analysis of suspicious transaction reports (STRs) made by financial institutions about suspicious activity, as reported by Strait Times.

<h2>Police in action mode</h2>

The police have issued a prohibition of disposal orders for 94 properties and 50 vehicles, collectively valued at over S$815 million, along with various ornaments, bottles of liquor, and wine.

These orders prohibit the suspects from selling the mentioned properties and vehicles as the police open an investigation. 
 
In addition, the police have seized over 35 associated bank accounts, holding an estimated total balance exceeding S$110 million, to aid investigations and prevent the transfer of suspected criminal proceeds.

<a href="https://www.wionews.com/entertainment/hollywood/news-disney-to-close-lucasfilm-singapore-studio-amid-industry-challenges-and-restructuring-625711">Also read:&nbsp;Disney to close Lucasfilm Singapore studio amid industry challenges and restructuring</a>

Furthermore, the authorities have confiscated more than S$23 million in cash, over 250 luxury bags and watches, 120 electronic devices including computers and mobile phones, over 270 pieces of jewellery, two gold bars, and 11 documents containing information about virtual assets.

<h2>Singapore’s ‘zero tolerance’ policy</h2>

Singapore’s Commercial Affairs Department (CAD) said in a statement that they were committed to keeping their country from becoming a safe haven for financial criminals.

Watch:&nbsp;Indian woman jumps from cruise ship, dies in Singapore strait

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CAD director David Chew said, “We have zero tolerance for the use of Singapore as a safe haven for criminals or their families, nor for the abuse of our banking facilities."

“Our message to these criminals is simple – if we catch you, we will arrest you. If we find your ill-gotten gains, we will seize them. We will deal with you to the fullest extent of our laws,” he added.

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Singapore on Tuesday (August 15) launched one of the biggest anti-money laundering operations the country has ever witnessed, leading to the seizure of assets worth $736 million.

Singapore on Tuesday (August 15) launched one of the biggest anti-money laundering operations the country has ever witnessed, leading to the seizure of assets worth $736 million. South China Morning Post (SCMP) reported that Singapore Police Force (SPF) arrested 10 foreign nationals, including three Chinese, in the crackdown and seized cash, prime properties, luxury cars and other valuable assets. The authorities said Wednesday it was a well-coordinated operation involving several agencies and more than 400 personnel, including those from the Criminal Investigation Department, Commercial Affairs Department (CAD), Special Operations Command or riot police, and Police Intelligence Department. What are the allegations against those arrested? According to the authorities, the group is allegedly involved in laundering money earned through criminal activities overseas, such as scams and online gambling. Police said another 12 are assisting the investigations while eight people were put on the most-wanted list and are currently on the run. The police identified them through extensive investigations, including the analysis of suspicious transaction reports (STRs) made by financial institutions about suspicious activity, as reported by Strait Times. Police in action mode The police have issued a prohibition of disposal orders for 94 properties and 50 vehicles, collectively valued at over S$815 million, along with various ornaments, bottles of liquor, and wine. These orders prohibit the suspects from selling the mentioned properties and vehicles as the police open an investigation. In addition, the police have seized over 35 associated bank accounts, holding an estimated total balance exceeding S$110 million, to aid investigations and prevent the transfer of suspected criminal proceeds. Also read: Disney to close Lucasfilm Singapore studio amid industry challenges and restructuring Furthermore, the authorities have confiscated more than S$23 million in cash, over 250 luxury bags and watches, 120 electronic devices including computers and mobile phones, over 270 pieces of jewellery, two gold bars, and 11 documents containing information about virtual assets. Singapore’s ‘zero tolerance’ policy Singapore’s Commercial Affairs Department (CAD) said in a statement that they were committed to keeping their country from becoming a safe haven for financial criminals. Watch: Indian woman jumps from cruise ship, dies in Singapore strait × CAD director David Chew said, “We have zero tolerance for the use of Singapore as a safe haven for criminals or their families, nor for the abuse of our banking facilities." “Our message to these criminals is simple – if we catch you, we will arrest you. If we find your ill-gotten gains, we will seize them. We will deal with you to the fullest extent of our laws,” he added. WATCH WION LIVE HERE ×

Singapore’s massive anti-money laundering operation: Cash, assets worth $700mn seized, 10 arrested

A group of investors protested outside the office of Zhongrong International Trust Co—one of China’s largest shadow banks—after it again failed to make payments on dozens of its products.

Zhongrong is the ninth largest trust in China, with 600 billion Chinese yuan, or $82 billion, worth of assets under management. It has been deferring its payments since late July.

According to Bloomberg, Zhongrong has missed payments on dozens of products and has no immediate plan to make clients whole payouts.

At least 30 products are now overdue, and Zhongrong also reportedly halted redemptions on some short-term instruments.

<h2>Deferred payments since July&nbsp;</h2>

On Wednesday (Aug 16), around two dozen protesters flocked to Zhongrong to demand payment. A video of the incident also went viral showing around 10 police and security officers deployed outside the office and attempting to pacify the agitated crowd.

In one of the clips, which was accessed by Bloomberg, a woman angrily asks about a product she owned that matured on July 28. “Why doesn’t the company pay us back?” she says. “It has already matured. Your financial statements said there is a profit.”

Another woman shouts,&nbsp;“Give us the money back, or we will die here.” A third says: “Why you don’t give us a clear explanation?”

The liquidity crisis troubling Zhongrong has sent alarm bells in Beijing as it comes just days after Country Garden, China's biggest private-sector developer by sales, missed interest payments on two US-dollar-denominated bonds.

<h2>China economy: Overall urban employment rises, economy in China signals sharper downturn</h2>

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<h2>Looming crisis&nbsp;</h2>

Both events are concerning as China's trust companies, once seen as a safe place for wealthy Chinese to park their money for hefty returns, are struggling to repay their clients.

These trust companies sell investment or trust products to corporate and wealthy clients. The clients' funds are then pooled and invested in a wide range of products or used as loans to private companies — including real-estate developers.

According to Bloomberg Economics, as of the end of 2022, China's trust sector's exposure to real estate was about 2.2 trillion yuan, or $302 billion, accounting for 10 per cent of its total assets.

Recently, a lot of trust firms have started defaulting on billions of dollars of investment products and the industry has shrunk by about 20 per cent from its peak in 2017, when regulators began clamping down on the nation’s shadow-banking excesses.&nbsp;

“The big danger is that a negative feedback loop kicks in, with property stress causing strains in the financial system, undermining credit expansion and depressing growth, which, in turn, exacerbates the slump in the property sector,” Bloomberg Economics said in a note.

(With inputs from agencies)

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A group of investors protested outside the office of Zhongrong International Trust Co—one of China’s largest shadow banks—after it again failed to make payments on dozens of its products.

A group of investors protested outside the office of Zhongrong International Trust Co—one of China’s largest shadow banks—after it again failed to make payments on dozens of its products. Zhongrong is the ninth largest trust in China, with 600 billion Chinese yuan, or $82 billion, worth of assets under management. It has been deferring its payments since late July. According to Bloomberg, Zhongrong has missed payments on dozens of products and has no immediate plan to make clients whole payouts. At least 30 products are now overdue, and Zhongrong also reportedly halted redemptions on some short-term instruments. Deferred payments since July On Wednesday (Aug 16), around two dozen protesters flocked to Zhongrong to demand payment. A video of the incident also went viral showing around 10 police and security officers deployed outside the office and attempting to pacify the agitated crowd. In one of the clips, which was accessed by Bloomberg, a woman angrily asks about a product she owned that matured on July 28. “Why doesn’t the company pay us back?” she says. “It has already matured. Your financial statements said there is a profit.” Another woman shouts, “Give us the money back, or we will die here.” A third says: “Why you don’t give us a clear explanation?” The liquidity crisis troubling Zhongrong has sent alarm bells in Beijing as it comes just days after Country Garden, China's biggest private-sector developer by sales, missed interest payments on two US-dollar-denominated bonds. China economy: Overall urban employment rises, economy in China signals sharper downturn Looming crisis Both events are concerning as China's trust companies, once seen as a safe place for wealthy Chinese to park their money for hefty returns, are struggling to repay their clients. These trust companies sell investment or trust products to corporate and wealthy clients. The clients' funds are then pooled and invested in a wide range of products or used as loans to private companies — including real-estate developers. According to Bloomberg Economics, as of the end of 2022, China's trust sector's exposure to real estate was about 2.2 trillion yuan, or $302 billion, accounting for 10 per cent of its total assets. Recently, a lot of trust firms have started defaulting on billions of dollars of investment products and the industry has shrunk by about 20 per cent from its peak in 2017, when regulators began clamping down on the nation’s shadow-banking excesses. “The big danger is that a negative feedback loop kicks in, with property stress causing strains in the financial system, undermining credit expansion and depressing growth, which, in turn, exacerbates the slump in the property sector,” Bloomberg Economics said in a note. (With inputs from agencies) WATCH WION LIVE HERE

Dozens of investors protest as China's shadow bank misses payments, signals deep distress in economy

Russia may partially reintroduce capital controls to prevent the rouble from falling to levels not seen since the start of the Ukrainian conflict, according to a Bloomberg report.

According to four persons with knowledge of the discussions who asked to remain anonymous, the mandated selling of export revenues was addressed at a meeting on Monday before the Bank of Russia announced an emergency rate hike. According to two of the attendees, no progress was made and a subsequent meeting may be scheduled for this week.

After the rouble temporarily crossed over 100 to the dollar for the first time since March of last year, the Bank of Russia increased its benchmark rate from 8.5 per cent to 12 per cent on Tuesday. The rouble appreciated after the rate hike before losing ground.&nbsp;

Forced sales of export income, along with other actions including restrictions on foreign currency transactions between banks, had assisted in halting the rouble’s decline after the conflict began in February 2022.&nbsp;

With a loss of almost 25 per cent, the currency is now among the three worst performers in emerging economies this year.&nbsp;

According to Sofya Donets, an economist at Renaissance Capital, it may take many months for the rouble to strengthen in the absence of additional measures like central bank interventions or mandated sales of export income.

Presently the majority of the central bank’s reserves are frozen due to the sanctions; therefore, policymakers are not eager to enter the currency market directly.

(With inputs from agencies)

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Russia may partially reintroduce capital controls to prevent the rouble from falling to levels not seen since the start of the Ukrainian conflict, according to a Bloomberg report.

Russia may partially reintroduce capital controls to prevent the rouble from falling to levels not seen since the start of the Ukrainian conflict, according to a Bloomberg report. According to four persons with knowledge of the discussions who asked to remain anonymous, the mandated selling of export revenues was addressed at a meeting on Monday before the Bank of Russia announced an emergency rate hike. According to two of the attendees, no progress was made and a subsequent meeting may be scheduled for this week. After the rouble temporarily crossed over 100 to the dollar for the first time since March of last year, the Bank of Russia increased its benchmark rate from 8.5 per cent to 12 per cent on Tuesday. The rouble appreciated after the rate hike before losing ground. Forced sales of export income, along with other actions including restrictions on foreign currency transactions between banks, had assisted in halting the rouble’s decline after the conflict began in February 2022. With a loss of almost 25 per cent, the currency is now among the three worst performers in emerging economies this year. According to Sofya Donets, an economist at Renaissance Capital, it may take many months for the rouble to strengthen in the absence of additional measures like central bank interventions or mandated sales of export income. Presently the majority of the central bank’s reserves are frozen due to the sanctions; therefore, policymakers are not eager to enter the currency market directly. (With inputs from agencies) WATCH WION LIVE HERE

Russia discusses return to capital controls to stem rouble slump: Report  

According to a recent report, social media platform X, formerly known as Twitter, has retracted from its previous move of slowing down access to a few of the top news outlets. However, the delays in accessing links to other&nbsp;social media competing platforms like Bluesky, Facebook, and Instagram continue to remain. This alleged deliberate delay, which lasted approximately five seconds upon clicking a link on X, was observed during tests conducted by The Washington Post and Reuters. However, as of late Tuesday, X seemed to have eliminated this delay. Despite confirmation of the removal, there was no comment&nbsp;by X.&nbsp;

<h2>Previous conflicts</h2>

Billionaire Elon Musk, who acquired Twitter in October, has previously engaged in public disputes with news organisations and journalists who have critiqued his companies, including Tesla and SpaceX. Moreover, X has previously prevented users from sharing links to rival social media platforms.

Also Read | <a href="https://www.wionews.com/world/georgia-governor-brian-kemp-takes-to-twitter-to-refute-donald-trumps-allegations-of-election-theft-625869">Georgia Governor Brian Kemp takes to Twitter to refute Donald Trump's allegations of election theft</a>

At the time he cited that there will be no free advertising for these competing platforms and that it is a violation of X policies. As per reports, Musk said that cross-posting is accepted but what is not acceptable is X platform being used in order to promote one's content.&nbsp;

<h2>Delay in accessing links&nbsp;</h2>

While the exact events which led to the delay in accessing links remain unclear, a user on Hacker News, a technology-focused forum, reportedly said that X began imposing delays on links to the New York Times on August 4.

Also Read | <a href="https://www.wionews.com/world/hunter-bidens-lawyer-steps-down-to-testify-as-witness-in-doj-investigation-625865">Hunter Biden's lawyer steps down, to testify as witness in DOJ investigation</a>

On that same day, Musk publicly criticised the New York Times for its coverage of South Africa and accused it of promoting genocide. However, it is worth noting that there is no proven connection between these two events and no certain conclusion can be drawn.&nbsp;

<h2>Concerns and reactions&nbsp;</h2>

Before the delay in accessing the links was reversed, representatives from The New York Times expressed concerns over the incident. "While we don't know the rationale behind the application of this time delay, we would be concerned by targeted pressure applied to any news organisation for unclear reasons," the spokesperson said on Tuesday.

Watch | Poland beefs defence amid Russia-Ukraine war

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A Reuters spokesperson said: "We are aware of the report in the Washington Post of a delay in opening links to Reuters stories on X. We are looking into the matter."&nbsp;Bluesky, a competitor of X, and Meta reportedly did not respond to requests for comments on the issue.

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According to a recent report, social media platform X, formerly known as Twitter, has retracted from its previous move of slowing down access to a few of the top news outlets.

According to a recent report, social media platform X, formerly known as Twitter, has retracted from its previous move of slowing down access to a few of the top news outlets. However, the delays in accessing links to other social media competing platforms like Bluesky, Facebook, and Instagram continue to remain. This alleged deliberate delay, which lasted approximately five seconds upon clicking a link on X, was observed during tests conducted by The Washington Post and Reuters. However, as of late Tuesday, X seemed to have eliminated this delay. Despite confirmation of the removal, there was no comment by X. Previous conflicts Billionaire Elon Musk, who acquired Twitter in October, has previously engaged in public disputes with news organisations and journalists who have critiqued his companies, including Tesla and SpaceX. Moreover, X has previously prevented users from sharing links to rival social media platforms. Also Read | Georgia Governor Brian Kemp takes to Twitter to refute Donald Trump's allegations of election theft At the time he cited that there will be no free advertising for these competing platforms and that it is a violation of X policies. As per reports, Musk said that cross-posting is accepted but what is not acceptable is X platform being used in order to promote one's content. Delay in accessing links While the exact events which led to the delay in accessing links remain unclear, a user on Hacker News, a technology-focused forum, reportedly said that X began imposing delays on links to the New York Times on August 4. Also Read | Hunter Biden's lawyer steps down, to testify as witness in DOJ investigation On that same day, Musk publicly criticised the New York Times for its coverage of South Africa and accused it of promoting genocide. However, it is worth noting that there is no proven connection between these two events and no certain conclusion can be drawn. Concerns and reactions Before the delay in accessing the links was reversed, representatives from The New York Times expressed concerns over the incident. "While we don't know the rationale behind the application of this time delay, we would be concerned by targeted pressure applied to any news organisation for unclear reasons," the spokesperson said on Tuesday. Watch | Poland beefs defence amid Russia-Ukraine war × A Reuters spokesperson said: "We are aware of the report in the Washington Post of a delay in opening links to Reuters stories on X. We are looking into the matter." Bluesky, a competitor of X, and Meta reportedly did not respond to requests for comments on the issue. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. ×

Musk retracts slowed access to news outlets, but delay not removed for social media rivals

Hyundai Motor Co's&nbsp;Indian unit will buy automaker General Motors'&nbsp;Talegaon plant in the western state of Maharashtra, a move that will allow the U.S. automaker to exit the country as well increase Hyundai's annual production.

Through its Sriperumbudur facility outside Chennai city and now the Talegaon plant, Hyundai aims to increase its cumulative production capacity to one million units per year, it said on Wednesday. The company had a production capacity of 820,000 units in the first half of this year.

The South Korean firm said it intends to upgrade the existing infrastructure at the Talegaon unit and start manufacturing in 2025. The plant currently has an annual production capacity of 130,000 units.

Hyundai, India's second-biggest carmaker by sales, did not mention a deal value.

This deal will allow the US&nbsp;automaker&nbsp;to exit India. GM stopped selling cars in the country in 2017 after years of dwindling sales but its complete exit from the market has been marred by complications, including legal tussles with workers and failure to find a buyer for the plant.

In 2019, GM agreed to sell the plant to China's Great Wall Motor&nbsp;but talks&nbsp;collapsed&nbsp;after the companies failed to obtain regulatory approvals amid New Delhi's scrutiny of Chinese investments.

Last week, Hyundai&nbsp;said&nbsp;it plans to launch more electric vehicles (EVs) under the Hyundai and Kia brands in India, in a sign that it is betting big on the world's third-largest auto market.

It plans to&nbsp;invest&nbsp;$2.45 billion to beef up EV production in the country and is bullish on the local appetite for EVs.

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Hyundai Motor Co's Indian unit will buy automaker General Motors' Talegaon plant in the western state of Maharashtra, a move that will allow the U.S. automaker to exit the country as well increase Hyundai's annual production.

Hyundai Motor Co's Indian unit will buy automaker General Motors' Talegaon plant in the western state of Maharashtra, a move that will allow the U.S. automaker to exit the country as well increase Hyundai's annual production. Through its Sriperumbudur facility outside Chennai city and now the Talegaon plant, Hyundai aims to increase its cumulative production capacity to one million units per year, it said on Wednesday. The company had a production capacity of 820,000 units in the first half of this year. The South Korean firm said it intends to upgrade the existing infrastructure at the Talegaon unit and start manufacturing in 2025. The plant currently has an annual production capacity of 130,000 units. Hyundai, India's second-biggest carmaker by sales, did not mention a deal value. This deal will allow the US automaker to exit India. GM stopped selling cars in the country in 2017 after years of dwindling sales but its complete exit from the market has been marred by complications, including legal tussles with workers and failure to find a buyer for the plant. In 2019, GM agreed to sell the plant to China's Great Wall Motor but talks collapsed after the companies failed to obtain regulatory approvals amid New Delhi's scrutiny of Chinese investments. Last week, Hyundai said it plans to launch more electric vehicles (EVs) under the Hyundai and Kia brands in India, in a sign that it is betting big on the world's third-largest auto market. It plans to invest $2.45 billion to beef up EV production in the country and is bullish on the local appetite for EVs. WATCH WION LIVE HERE

Hyundai Motor's unit to buy General Motors' India Talegaon plant in Maharashtra

VinFast Auto Ltd., a Vietnamese electric vehicle manufacturer, made its public debut on Tuesday. Following its listing in New York, the company's share price rose by a whopping 175 per cent, adding $30.3 billion to the net worth of chairman Pham Nhat Vuong.

With the latest surge in his wealth, Vuong, already Vietnam's richest man and sole billionaire, is estimated to be over $37 billion.&nbsp;

Vuong possesses 99 percent of the company's outstanding shares, primarily through his parent company, Vingroup JSC. Vingroup's diverse business operations encompass real estate, resorts, schools, shopping malls, and more.

However, this concentrated ownership structure presents a challenge as it restricts investor participation, leading to potential liquidity concerns and significant market fluctuations.

VinFast's entry into the market was facilitated through a Special Purpose Acquisition Company (SPAC) listing, which enables companies to raise capital via an IPO for the purpose of acquiring or merging with an existing entity.

For the same, Vinfast agreed to merge with a blank-check company, Black Spade Acquisition Co., founded by Casino Mogul Lawrence Ho, and scraped&nbsp;the plan of raising capital through a normal IPO as investors in the market have been quite underconfident to invest in startups that are not churning profit.

Moreover, the automotive company anticipates sales to range between 45,000 and 50,000 units this year. Adding to its expansion endeavors, the company recently began constructing a factory in the US state of North Carolina.

If VinFast can maintain its gains, it will be in a somewhat unique position as other EV makers --&nbsp;Lordstown Motors Corp., Nikola Corp., and Faraday Future Intelligent Electric Inc -- have fared poorly after listing on the New York Stock Exchange via SPAC. These companies have lost more than 90 per cent of their market value since going public.

(Inputs from Bloomberg)

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VinFast Auto Ltd., a Vietnamese electric vehicle manufacturer, made its public debut on Tuesday. Following its listing in New York, the company's share price rose by a whopping 175 per cent, adding $30.

VinFast Auto Ltd., a Vietnamese electric vehicle manufacturer, made its public debut on Tuesday. Following its listing in New York, the company's share price rose by a whopping 175 per cent, adding $30.3 billion to the net worth of chairman Pham Nhat Vuong. With the latest surge in his wealth, Vuong, already Vietnam's richest man and sole billionaire, is estimated to be over $37 billion. Vuong possesses 99 percent of the company's outstanding shares, primarily through his parent company, Vingroup JSC. Vingroup's diverse business operations encompass real estate, resorts, schools, shopping malls, and more. However, this concentrated ownership structure presents a challenge as it restricts investor participation, leading to potential liquidity concerns and significant market fluctuations. VinFast's entry into the market was facilitated through a Special Purpose Acquisition Company (SPAC) listing, which enables companies to raise capital via an IPO for the purpose of acquiring or merging with an existing entity. For the same, Vinfast agreed to merge with a blank-check company, Black Spade Acquisition Co., founded by Casino Mogul Lawrence Ho, and scraped the plan of raising capital through a normal IPO as investors in the market have been quite underconfident to invest in startups that are not churning profit. Moreover, the automotive company anticipates sales to range between 45,000 and 50,000 units this year. Adding to its expansion endeavors, the company recently began constructing a factory in the US state of North Carolina. If VinFast can maintain its gains, it will be in a somewhat unique position as other EV makers -- Lordstown Motors Corp., Nikola Corp., and Faraday Future Intelligent Electric Inc -- have fared poorly after listing on the New York Stock Exchange via SPAC. These companies have lost more than 90 per cent of their market value since going public. (Inputs from Bloomberg) WATCH WION LIVE HERE

Vietnam’s richest man gains $30 billion after his EV company goes public

Environmental activists have sued the South African environment minister and the national air-quality officer and a regional unit of ArcelorMittal South Africa for failing to take action against the company over its air pollution, according to a report by Bloomberg.

According to a statement sent through email on Tuesday, the Vaal Environmental Justice Alliance and groundWork filed the lawsuit&nbsp;at the South African High Court. They assert that the government has not taken any action to reduce emissions from ArcelorMittal South Africa Limited’s largest steel plant, located in Vanderbijlpark, south of Johannesburg.

The lawsuit is similar to one that was filed against the government in 2022 and won by activists including groundWork because of air pollution from coal-fired plants run by Eskom Holdings SOC Limited and Sasol Limited.

Judge Colleen Collis of the South African High Court concluded in that in the 2022 case,the Environment Minister Barbara Creecy was required by the Constitution to adopt and enforce laws to promote cleaner air.

Presently, the activists claim that Arcelor’s South African branch has failed to reduce air pollution for years, even after installing technology to control emissions. The parties filing the action assert that the government acted leniently and lowered emission restrictions for the company.

“The minister, instead of bringing industries into compliance, continues to allow for weaker limits,” Bloomberg quoted the activists as saying in the court papers. “This erodes the rights of the people living in the area, who are breathing dangerous levels of pollution.”

The southern and eastern regions of Johannesburg have the highest concentration of coal-burning enterprises, contribution to severe air pollution. Coal being the primary fuel for manufacturing petrochemicals, steel, and ferroalloys, provides more than 80 per cent of South Africa’s electricity, has also played a role in the economic development of the continent’s most industrialised country.

A request for comment was not answered by the environment agency or ArcelorMittal South Africa.

(With inputs from agencies)

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Environmental activists have sued the South African environment minister and the national air-quality officer and a regional unit of ArcelorMittal South Africa for failing to take action against the company over its air pollution, according to a report by Bloomberg.

Environmental activists have sued the South African environment minister and the national air-quality officer and a regional unit of ArcelorMittal South Africa for failing to take action against the company over its air pollution, according to a report by Bloomberg. According to a statement sent through email on Tuesday, the Vaal Environmental Justice Alliance and groundWork filed the lawsuit at the South African High Court. They assert that the government has not taken any action to reduce emissions from ArcelorMittal South Africa Limited’s largest steel plant, located in Vanderbijlpark, south of Johannesburg. The lawsuit is similar to one that was filed against the government in 2022 and won by activists including groundWork because of air pollution from coal-fired plants run by Eskom Holdings SOC Limited and Sasol Limited. Judge Colleen Collis of the South African High Court concluded in that in the 2022 case,the Environment Minister Barbara Creecy was required by the Constitution to adopt and enforce laws to promote cleaner air. Presently, the activists claim that Arcelor’s South African branch has failed to reduce air pollution for years, even after installing technology to control emissions. The parties filing the action assert that the government acted leniently and lowered emission restrictions for the company. “The minister, instead of bringing industries into compliance, continues to allow for weaker limits,” Bloomberg quoted the activists as saying in the court papers. “This erodes the rights of the people living in the area, who are breathing dangerous levels of pollution.” The southern and eastern regions of Johannesburg have the highest concentration of coal-burning enterprises, contribution to severe air pollution. Coal being the primary fuel for manufacturing petrochemicals, steel, and ferroalloys, provides more than 80 per cent of South Africa’s electricity, has also played a role in the economic development of the continent’s most industrialised country. A request for comment was not answered by the environment agency or ArcelorMittal South Africa. (With inputs from agencies) WATCH WION LIVE HERE

South African environment authorities sued over Arcelor pollution: Report

Family of IndiGo’s co-founder, Rakesh Gangwal, is looking to sell shares worth $450 million through a block deal on Wednesday, according to a&nbsp;by CNBC-TV18 report.

Rakesh Gangwal and his wife Shobha Gangwal are likely to sell their shares for a starting price of 2,400 rupees ($29) each, which is almost six&nbsp;per cent less than the going market rate.

According a CNBC Awaaz report in June, the family was expected to sell between five&nbsp;per cent and eight&nbsp;per cent of its ownership for up to 75 billion rupees (about $900 million).

As of March 31, Rakesh and Shobha Gangwal owned 13.23 per cent and 2.99 per cent of InterGlobe, respectively, while their Chinkerpoo Family Trust owned 13.5 per cent of the company, according to exchange data from June.

In February, Shobha Gangwal decreased her stake in the company by more than four&nbsp;per cent.

When Rakesh Gangwal left the company’s board in February 2022, he said that he would to reduce his stake in the airline over a five-year period.

(With inputs from Reuters)

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Family of IndiGo’s co-founder, Rakesh Gangwal, is looking to sell shares worth $450 million through a block deal on Wednesday, according to a by CNBC-TV18 report.

Family of IndiGo’s co-founder, Rakesh Gangwal, is looking to sell shares worth $450 million through a block deal on Wednesday, according to a by CNBC-TV18 report. Rakesh Gangwal and his wife Shobha Gangwal are likely to sell their shares for a starting price of 2,400 rupees ($29) each, which is almost six per cent less than the going market rate. According a CNBC Awaaz report in June, the family was expected to sell between five per cent and eight per cent of its ownership for up to 75 billion rupees (about $900 million). As of March 31, Rakesh and Shobha Gangwal owned 13.23 per cent and 2.99 per cent of InterGlobe, respectively, while their Chinkerpoo Family Trust owned 13.5 per cent of the company, according to exchange data from June. In February, Shobha Gangwal decreased her stake in the company by more than four per cent. When Rakesh Gangwal left the company’s board in February 2022, he said that he would to reduce his stake in the airline over a five-year period. (With inputs from Reuters) WATCH WION LIVE HERE

IndiGo co-founder Rakesh Gangwal’s family to sell shares worth $450 million on Aug 16: Report  

China’s Tencent Holdings reported a smaller-than-expected 11 per cent increase in second-quarter revenue on Wednesday as the social media and gaming giant’s comeback from last year’s record fall was hampered by the nation’s sluggish economic recovery.

The owner of the WeChat messaging service and the biggest video game developer in the world reported revenue of 149.20 billion yuan ($20.45 billion) for the three months ending June 30. This contrasted with the average of 21 analyst projections, which came to 151.73 billion yuan.

In comparison to the same period in the previous year, net profit increased 41 per cent to 26.17 billion yuan. However, it was below the average expectation of 33.41 billion yuan.

Tencent had its first-ever sales decrease during the same period last year, seeing a one per cent decline in revenue as a result of Beijing’s harsh regulatory assault on the country’s expansive digital sector.

For China’s tech behemoths like Tencent, regulatory uncertainty has decreased this year as a result of Chinese authorities’ desire to increase private sector confidence. But despite lifting COVID-19 limits in the latter part of last year, the world’s second-largest economy failed to take off.

&nbsp;(With inputs from Reuters)

&nbsp;

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China’s Tencent Holdings reported a smaller-than-expected 11 per cent increase in second-quarter revenue on Wednesday as the social media and gaming giant’s comeback from last year’s record fall was hampered by the nation’s sluggish economic recovery.

China’s Tencent Holdings reported a smaller-than-expected 11 per cent increase in second-quarter revenue on Wednesday as the social media and gaming giant’s comeback from last year’s record fall was hampered by the nation’s sluggish economic recovery. The owner of the WeChat messaging service and the biggest video game developer in the world reported revenue of 149.20 billion yuan ($20.45 billion) for the three months ending June 30. This contrasted with the average of 21 analyst projections, which came to 151.73 billion yuan. In comparison to the same period in the previous year, net profit increased 41 per cent to 26.17 billion yuan. However, it was below the average expectation of 33.41 billion yuan. Tencent had its first-ever sales decrease during the same period last year, seeing a one per cent decline in revenue as a result of Beijing’s harsh regulatory assault on the country’s expansive digital sector. For China’s tech behemoths like Tencent, regulatory uncertainty has decreased this year as a result of Chinese authorities’ desire to increase private sector confidence. But despite lifting COVID-19 limits in the latter part of last year, the world’s second-largest economy failed to take off. (With inputs from Reuters) WATCH WION LIVE HERE

China’s tech giant Tencent reports smaller than expected revenue growth

Hindenburg Research, a notable short seller who has waged war on Jack Dorsey's Block, Carl Icahn, and Nikola, an electric car company, is now taking on a $4.6 billion online brokerage, Freedom Holding Corp., located in Kazakhstan.

In a year-long investigation by Hindenburg, the short-seller found "a laundry list of red flags", including evidence that brokerage firm Freedom Holding "brazenly" skirts sanctions, appears to have "fake" revenue, and uses customer funds to make leveraged and illiquid bets.

Freedom Holding Corp. was created in 2008 in Moscow before relocating to Kazakhstan and listing on the Nasdaq in 2019 through an initial public offering (IPO); moreover, since then, the stock price has increased by more than 422 percent.

Furthermore, Hindenburg's disclosure occurred just a day after Nasdaq notified Freedom that its quarterly earnings report for the period ending June 30 had not been filed. Shares of Freedom Holding declined roughly 3.3 percent on Tuesday.

Hindenburg also said the "review of extensive international corporate and regulatory records, interviews with former employees, and industry analysis" were all part of the research into freedom. However, the Kazakh brokerage firm claims that Deloitte conducted an audit of its annual report and that it fully disclosed all linked-party activities.

In retaliation, a spokesperson for Kazakh brokerage&nbsp;said in a statement, called the report "speculation and a set of unsubstantiated facts".&nbsp;

Hindenburg's reports have wiped out as much as $99 billion in wealth and $173 billion in market value from the publicly held enterprises of those business tycoons in only a few months this year.

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Hindenburg Research, a notable short seller who has waged war on Jack Dorsey's Block, Carl Icahn, and Nikola, an electric car company, is now taking on a $4.6 billion online brokerage, Freedom Holding Corp.

Hindenburg Research, a notable short seller who has waged war on Jack Dorsey's Block, Carl Icahn, and Nikola, an electric car company, is now taking on a $4.6 billion online brokerage, Freedom Holding Corp., located in Kazakhstan. In a year-long investigation by Hindenburg, the short-seller found "a laundry list of red flags", including evidence that brokerage firm Freedom Holding "brazenly" skirts sanctions, appears to have "fake" revenue, and uses customer funds to make leveraged and illiquid bets. Freedom Holding Corp. was created in 2008 in Moscow before relocating to Kazakhstan and listing on the Nasdaq in 2019 through an initial public offering (IPO); moreover, since then, the stock price has increased by more than 422 percent. Furthermore, Hindenburg's disclosure occurred just a day after Nasdaq notified Freedom that its quarterly earnings report for the period ending June 30 had not been filed. Shares of Freedom Holding declined roughly 3.3 percent on Tuesday. Hindenburg also said the "review of extensive international corporate and regulatory records, interviews with former employees, and industry analysis" were all part of the research into freedom. However, the Kazakh brokerage firm claims that Deloitte conducted an audit of its annual report and that it fully disclosed all linked-party activities. In retaliation, a spokesperson for Kazakh brokerage said in a statement, called the report "speculation and a set of unsubstantiated facts". Hindenburg's reports have wiped out as much as $99 billion in wealth and $173 billion in market value from the publicly held enterprises of those business tycoons in only a few months this year. WATCH WION LIVE HERE

Hindenburg's latest target: Kazakh brokerage firm Freedom Holding Corp

Fitch Ratings, a notable credit ratings agency, has cautioned that it could potentially downgrade several significant banks, including JP Morgan Chase, according to a CNBC report cited by Reuters.

<meta charset="utf-8" />

Chris Wolfe, an analyst at Fitch Ratings, highlighted&nbsp;that the industry's health assessment experienced a setback earlier this year, though with limited public attention.

The firm in June reduced the industry’s "operating environment" grade to AA- from AA due to the regular gap in the country’s credit rating exposed by the March regional bank and persisting interest rate volatility.

This downgrade to A+ can lead to lower industry scores than some of the top-rated lenders. In this scenario, the country's two largest banks by assets, JPMorgan and Bank of America, would most likely be downgraded to A+ from AA- because banks cannot be rated higher than the environment in which they operate.

Wolfe also highlighted that&nbsp;if big banks like JP Morgan are downgraded, Fitch will be obliged to contemplate downgrades on all of their peers' ratings. This might push some of the weaker lenders closer to the non-investment-grade classification.

Furthermore, bond investors' trusted credit rating agencies have recently roiled markets with their activities. Moody, a credit rating agency, downgraded ten small and midsized banks last week and warned of further downgrades for another 17 lenders, including larger institutions such as Truist and U.S. Bank.

Fitch downgraded the United States' long-term credit rating earlier this month due to political turmoil and rising debt loads, a decision criticized by corporate leaders like JPMorgan CEO Jamie Dimon.

(Inputs from Reuters)

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Fitch Ratings, a notable credit ratings agency, has cautioned that it could potentially downgrade several significant banks, including JP Morgan Chase, according to a CNBC report cited by Reuters.

Fitch Ratings, a notable credit ratings agency, has cautioned that it could potentially downgrade several significant banks, including JP Morgan Chase, according to a CNBC report cited by Reuters. Chris Wolfe, an analyst at Fitch Ratings, highlighted that the industry's health assessment experienced a setback earlier this year, though with limited public attention. The firm in June reduced the industry’s "operating environment" grade to AA- from AA due to the regular gap in the country’s credit rating exposed by the March regional bank and persisting interest rate volatility. This downgrade to A+ can lead to lower industry scores than some of the top-rated lenders. In this scenario, the country's two largest banks by assets, JPMorgan and Bank of America, would most likely be downgraded to A+ from AA- because banks cannot be rated higher than the environment in which they operate. Wolfe also highlighted that if big banks like JP Morgan are downgraded, Fitch will be obliged to contemplate downgrades on all of their peers' ratings. This might push some of the weaker lenders closer to the non-investment-grade classification. Furthermore, bond investors' trusted credit rating agencies have recently roiled markets with their activities. Moody, a credit rating agency, downgraded ten small and midsized banks last week and warned of further downgrades for another 17 lenders, including larger institutions such as Truist and U.S. Bank. Fitch downgraded the United States' long-term credit rating earlier this month due to political turmoil and rising debt loads, a decision criticized by corporate leaders like JPMorgan CEO Jamie Dimon. (Inputs from Reuters) WATCH WION LIVE HERE

Fitch considering potential downgrade of multiple banks, including JPMorgan: CNBC

India's diplomats have been the unsung heroes of the country's growth story. one key aspect in attaining global supremacy is diplomacy, and India's transformation from a help-seeking nation to a help-giving nation is an inspiring story.

India's economic diplomacy shines | World Business Watch special

The Indian stock market today is one of the most vibrant. It has a range of companies from Fortune 100 to small startups and now analysts think that Indian markets will outperform all of their peers.

Tracing India's stock market trajectory | World Business Watch Special

As India celebrates its 76th year since Independence, we look back on the country's many achievements in the digital sphere. This special report traces how India has transformed itself from a largely offline society to a digital powerhouse within a matter of a few years.

How India is powering the digital future | World Business Watch special

After gaining freedom from oppressive British colonial rule in 1947, India needed to become 'independent' in a real sense — independence from illiteracy, corruption and poverty. The country needed to expand its economy, develop technological know-how, and create job opportunities to forge forward to establish itself in the world.&nbsp;

The initiation of a new economic policy in 1991 provided a much-needed boost and Foreign Direct Investment (FDI) emerged as a key driver of India's economic growth. It is also a significant non-debt financial resource for the country's economic development.&nbsp;

FDI refers to an investment made by a corporation or individual in one country into business interests in another. FDI occurs when a foreign entity gains ownership or a controlling stake in the shares of a company in one nation or starts operations in that country, as opposed to foreign portfolio investment, which occurs when a foreign corporation just purchases equity shares in a firm. The foreign entity has a say in the day-to-day operations of the company in the case of FDI.&nbsp;

FDI helped India immensely, as it was not about just the inflow of money, but also the inflow of technology, knowledge, skills and expertise/know-how.&nbsp;

FDI emerged as a catalyst for India's tremendous growth because the investment opportunities improved since 1991 when the government opened up the economy and initiated the LPG (Liberalisation, Privatisation and Globalisation) strategies.&nbsp;

The progress in this area is often linked to the relaxation of FDI regulations. Since the country's economic liberalization, many sectors have become partially or entirely accessible to foreign investment.

<h2>FDI trends in recent years&nbsp;</h2>

India received its highest-ever FDI inflow of US$83.57 billion in the fiscal year 2021-2022, but FY 2022-2023 saw a drop in FDI inflows due to global uncertainties. Total FDI inflows in FY 2022-2023 amounted to US$70.97 billion.&nbsp;

The growth has been consistent as the official data revealed that from April to August 2020, a total FDI inflow of US$35.73 billion was received. India's FDI inflows reached record levels during 2020-21 and the total FDI inflows were at US$81.973 billion — a 10% increase from the previous financial year.&nbsp;

<h2>Indian economy&nbsp;</h2>

A report in May 2023 revealed that India's GDP grew by 7.2% in the year to March, boosted by services and consumption, putting it among the world's fastest-expanding major economies. The South Asian nation is the world's fifth-largest economy, and recently surpassed China to become the most populous country. Its growth has rebounded since the pandemic — the economy rocketed 9.1% in the 2021-22 financial year.&nbsp;

As the nation celebrates independence day this year, let's cheer the country's aspiration to grow at the same pace, or maybe even faster.&nbsp;

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After gaining freedom from oppressive British colonial rule in 1947, India needed to become 'independent' in a real sense — independence from illiteracy, corruption and poverty.

After gaining freedom from oppressive British colonial rule in 1947, India needed to become 'independent' in a real sense — independence from illiteracy, corruption and poverty. The country needed to expand its economy, develop technological know-how, and create job opportunities to forge forward to establish itself in the world. The initiation of a new economic policy in 1991 provided a much-needed boost and Foreign Direct Investment (FDI) emerged as a key driver of India's economic growth. It is also a significant non-debt financial resource for the country's economic development. FDI refers to an investment made by a corporation or individual in one country into business interests in another. FDI occurs when a foreign entity gains ownership or a controlling stake in the shares of a company in one nation or starts operations in that country, as opposed to foreign portfolio investment, which occurs when a foreign corporation just purchases equity shares in a firm. The foreign entity has a say in the day-to-day operations of the company in the case of FDI. FDI helped India immensely, as it was not about just the inflow of money, but also the inflow of technology, knowledge, skills and expertise/know-how. FDI emerged as a catalyst for India's tremendous growth because the investment opportunities improved since 1991 when the government opened up the economy and initiated the LPG (Liberalisation, Privatisation and Globalisation) strategies. The progress in this area is often linked to the relaxation of FDI regulations. Since the country's economic liberalization, many sectors have become partially or entirely accessible to foreign investment. FDI trends in recent years India received its highest-ever FDI inflow of US$83.57 billion in the fiscal year 2021-2022, but FY 2022-2023 saw a drop in FDI inflows due to global uncertainties. Total FDI inflows in FY 2022-2023 amounted to US$70.97 billion. The growth has been consistent as the official data revealed that from April to August 2020, a total FDI inflow of US$35.73 billion was received. India's FDI inflows reached record levels during 2020-21 and the total FDI inflows were at US$81.973 billion — a 10% increase from the previous financial year. Indian economy A report in May 2023 revealed that India's GDP grew by 7.2% in the year to March, boosted by services and consumption, putting it among the world's fastest-expanding major economies. The South Asian nation is the world's fifth-largest economy, and recently surpassed China to become the most populous country. Its growth has rebounded since the pandemic — the economy rocketed 9.1% in the 2021-22 financial year. As the nation celebrates independence day this year, let's cheer the country's aspiration to grow at the same pace, or maybe even faster. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Independence Day: How FDI emerged as a catalyst for India's colossal growth

In a bid to halt the rapid depreciation of its ruble currency against the dollar, Russia’s central bank jacked up the interest rates by 350 basis points to 12 per cent at an emergency meeting on Tuesday (Aug 15).

It came as the ruble breached the 100 threshold against the dollar on Monday as Western sanctions and rising military spending due to the invasion of Ukraine took&nbsp;a toll on the economy.

The bank’s response came after President Vladimir Putin's economic adviser Maxim Oreshkin in an op-ed in Russian state-owned Tass agency rebuked the central bank’s “loose monetary policy” for plunging currency and the acceleration of inflation.

Hours after Oreshkin's remarks, the bank announced the emergency meeting, throwing the currency a lifeline.

"Inflationary pressure is building up," the bank said in a statement on Tuesday.

"The pass-through of the rouble's depreciation to prices is gaining momentum and inflation expectations are on the rise."

The central bank said that the decision was aimed at “limiting price stability risks” as “inflationary pressure is building up.”

<h2>Inflation at 4.4%</h2>

The annual inflation stood at an annual 4.4 per cent for the first seven days of August, but the Bank of Russia said that the inflation may edge up further as the current price growth over the last three months is averaging at an annualised 7.6 per cent on a seasonally adjusted basis. Core inflation over the same period rose to 7.1%.

“Steady growth in domestic demand surpassing the capacity to expand output amplifies the underlying inflationary pressure and has an impact on the ruble’s exchange rate dynamics through elevated demand for imports,” the central bank’s board said.

Also read |&nbsp;<a href="https://www.wionews.com/world/three-russian-spies-arrested-after-major-uk-national-security-investigation-reports-625706">Three ‘Russian spies’ arrested after major UK national security investigation</a>

The central bank said that its decision was aimed at “shaping monetary conditions and overall domestic demand dynamics necessary to bring inflation back to 4 per cent in 2024 and stabilise it close to 4 per cent further on.”

Also read |&nbsp;<a href="https://www.wionews.com/world/russia-ukraine-war-two-western-ukrainian-cities-hit-by-air-strikes-625582">Russia-Ukraine war: At least three killed in air strikes on west Ukraine</a>

The last time the bank raised the interest rate was in late February 2022 when Russia invaded Ukraine. That time, it raised the interest rate to 20 per cent. Later on, the bank steadily lowered the cost of borrowing to 7. Per cent % as strong inflation pressure eased in the second half of 2022.

Since its last cut in September 2022, the bank had held rates but steadily increased its hawkish rhetoric, eventually hiking by 100 basis points to 8 per cent at its last scheduled meeting in July. The next rate decision is due on September&nbsp;15.

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In a bid to halt the rapid depreciation of its ruble currency against the dollar, Russia’s central bank jacked up the interest rates by 350 basis points to 12 per cent at an emergency meeting on Tuesday (Aug 15).

In a bid to halt the rapid depreciation of its ruble currency against the dollar, Russia’s central bank jacked up the interest rates by 350 basis points to 12 per cent at an emergency meeting on Tuesday (Aug 15). It came as the ruble breached the 100 threshold against the dollar on Monday as Western sanctions and rising military spending due to the invasion of Ukraine took a toll on the economy. The bank’s response came after President Vladimir Putin's economic adviser Maxim Oreshkin in an op-ed in Russian state-owned Tass agency rebuked the central bank’s “loose monetary policy” for plunging currency and the acceleration of inflation. Hours after Oreshkin's remarks, the bank announced the emergency meeting, throwing the currency a lifeline. "Inflationary pressure is building up," the bank said in a statement on Tuesday. "The pass-through of the rouble's depreciation to prices is gaining momentum and inflation expectations are on the rise." The central bank said that the decision was aimed at “limiting price stability risks” as “inflationary pressure is building up.” Inflation at 4.4% The annual inflation stood at an annual 4.4 per cent for the first seven days of August, but the Bank of Russia said that the inflation may edge up further as the current price growth over the last three months is averaging at an annualised 7.6 per cent on a seasonally adjusted basis. Core inflation over the same period rose to 7.1%. “Steady growth in domestic demand surpassing the capacity to expand output amplifies the underlying inflationary pressure and has an impact on the ruble’s exchange rate dynamics through elevated demand for imports,” the central bank’s board said. Also read | Three ‘Russian spies’ arrested after major UK national security investigation The central bank said that its decision was aimed at “shaping monetary conditions and overall domestic demand dynamics necessary to bring inflation back to 4 per cent in 2024 and stabilise it close to 4 per cent further on.” Also read | Russia-Ukraine war: At least three killed in air strikes on west Ukraine The last time the bank raised the interest rate was in late February 2022 when Russia invaded Ukraine. That time, it raised the interest rate to 20 per cent. Later on, the bank steadily lowered the cost of borrowing to 7. Per cent % as strong inflation pressure eased in the second half of 2022. Since its last cut in September 2022, the bank had held rates but steadily increased its hawkish rhetoric, eventually hiking by 100 basis points to 8 per cent at its last scheduled meeting in July. The next rate decision is due on September 15. WATCH WION LIVE HERE

Russia raises interest rate to 12% as sliding ruble bites hard

India, after gaining independence in 1947 from British rule, has evolved into the world's largest democracy. What was once labeled a "third-world country" has now emerged as a global economic powerhouse. Notable milestones in India's economic journey unfolded during the crisis years of 1966, 1981, and 1991. Yet, India's impressive rebound led to its distinction as the fastest-growing major economy worldwide.

Substantial reforms and policies propelled this remarkable economic trajectory, transforming not only the nation's financial landscape but also facilitating its remarkable growth.

Diving deeper, let's explore some significant economic reforms that successive governments have undertaken in recent decades, shaping India's economic landscape and setting it on a path of unprecedented growth.

Transforming India's Telecommunications

Around 1992–93, India's telecommunications sector initiated a transformative trajectory, characterized by the privatization of value-added services. A pivotal shift arrived in 1994 with the introduction of the National Telecom Policy (NTP), heralding competition in basic telecom and mobile services.

The 1990s witnessed escalating demand for telephones, nudging India toward embracing private participation as part of the liberalization-privatization-globalization agenda.

Moreover, the separation of the Department of Telecom (DoT) from the Indian Post and Telecommunication Department transpired as a significant development in 1985. Entities such as Mahanagar Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) emerged independently from the DoT's umbrella.

&nbsp;In the realm of mobile telephony, the Telecom Regulatory Authority of India (TRAI) facilitated market-driven mobile pricing while retaining regulatory oversight against unjust practices. August 15, 2000, marked the entry of unlimited competition for domestic long-distance telecommunications services. The year 2000's budget witnessed a reduction in import tariffs on mobile devices from 25 percent to 5 percent. The monopoly of Videsh Sanchar Nigam Ltd. over international telecommunications concluded on April 1, 2002.

Presently, India's telecom industry boasts a staggering 1.17 billion users, achieving a national tele-density of 84.86 percent. Remarkably, it ranks third in attracting foreign direct investment (FDI), directly employing 2.2 million individuals and indirectly supporting an additional 1.8 million.

The past decade has witnessed a surge of 500 million smartphone users. Predictions estimate a total of 850 million users by 2026, encompassing 55 percent of the population. India's trajectory to becoming the world's second-largest smartphone market by 2025 is unmistakable, as indicated by the GSM Association (GSMA).

Furthermore, in 2022, the Ministry of Communications unveiled the draft of the Indian Telecommunication Bill, which addresses sector achievements and challenges, affirming the government's commitment to a thriving telecommunications landscape.

Empowering India's capital market: Securities and Exchange Board of India (SEBI)

The journey of the Securities and Exchange Board of India (SEBI) commenced with a significant stride in 1988, as Prime Minister Rajeev Gandhi announced the establishment of a distinct regulatory body for the stock exchange and securities industry. Under the guidance of S. S. Nadkarni, IDBI recommended S. A. Dave, an executive director, to helm the newly formed regulator. Dave assumed the role in April 1988, operating initially from IDBI's Mumbai headquarters.

SEBI was initially established as a statutory body to oversee the securities market, gaining autonomy on January 30, 1992. This move endowed it with statutory powers that fortified its regulatory control over the financial market. Before SEBI's advent, the Controller of Capital Issues administered the capital market under the Capital Issues (Control) Act, 1947.

SEBI's impact on India's capital market has been profound. The introduction of an electronic trading system and the creation of a robust market surveillance mechanism stand as pivotal milestones that underscore its commitment to transparency and efficiency.

Nevertheless, SEBI encountered considerable challenges on its journey. Notably, its efficacy in curbing fraudulent activities, such as insider trading, faced scrutiny. Instances like the Satyam affair, the NSEL scam, and the Punjab National Bank case highlighted the regulatory constraints of SEBI in market oversight.

&nbsp;Moreover, SEBI faced criticism for its sluggishness in addressing corporate violations. The IL&amp;FS crisis serves as a prime illustration, wherein the infrastructure finance corporation grappled with financial upheaval for years before its collapse in 2018.

Fostering economic growth: Special Economic Zones (SEZ)

The inception of Special Economic Zones (SEZs) in 2000 primarily aimed to attract foreign investments and establish a globally competitive and seamless export environment. Subsequently, on February 10, 2006, the SEZ Act 2005 and accompanying SEZ Rules came into effect.

To incentivize businesses to operate within SEZs, the government extended benefits such as duty-free imports or local sourcing of materials essential for setting up, operating, and maintaining SEZ units.

The SEZ initiative has demonstrated its merits for the nation, evident in the impressive surge of exports from Rs. 22,840 crore in 2005–06 to Rs. 7,59,524 crore in 2020–21, along with a rise in investments from Rs. 4,035.51 crore in 2005–06 to Rs. 6,17,499 crore in 2020–21.

However, the trade ministry's recent research highlights two factors that impede the envisioned success of SEZs. These factors pertain to incentives provided under the foreign trade policy to exporters outside SEZs and disadvantages arising from free-trade agreements (FTA), both of which have impacted the SEZ program.

Furthermore, the exclusion of SEZs from the country's domestic tariff zone grants them the advantage of duty-free access to manufacturing inputs. However, India's free-trade agreements with nations that have eliminated or substantially reduced taxes on various items have compromised this advantage.

Revolutionizing welfare assistance: JAM Trinity&nbsp;

The JAM Trinity, encompassing Jan Dhan-Aadhaar-Mobile, was introduced during the economic survey of 2014–2015. Its primary objective is to interlink bank accounts, mobile phones, and Aadhaar cards to prevent the leakage of subsidies.

The government's intent behind this initiative was to extend assistance to the less privileged. Despite the operation of the Direct Benefits Transfer (DBT) since 2013, the Trinity streamlines the process of identifying and tackling the remaining challenges within each component.

Furthermore, JAM has enhanced the distribution of LPG subsidies by connecting Aadhaar-linked bank accounts and gas connections, significantly curtailing fund losses and fortifying the government's financial capability.

Consequently, dormant funds have dwindled, leading to smoother transactions. Since the introduction of Jan Dhan Yojana up until August 2017, the initiative has contributed to an increase of over Rs. 65,000 crores in the economy, further elevating the gold holdings to financial savings ratio.

Nevertheless, the JAM Trinity encounters certain hurdles, particularly in addressing inactive Jan Dhan accounts and bridging the conspicuous digital divide across the country.

Harmonizing taxation: Goods and Services Tax (GST)

The introduction of the Goods and Services Tax (GST) on July 1st, 2017, aimed to establish a unified tax structure across India. Previously, taxpayers navigated through a maze of indirect taxes for various transactions such as purchases, sales, manufacturing, retailing, and marketing. These included value-added tax (VAT), excise duty, service tax, central sales tax, entertainment tax, luxury tax, and sales tax.

The GST implementation had both positive and negative consequences for the Indian economy. The primary aim was to simplify the intricate tax landscape by eliminating cascading tax effects. Additionally, it aimed to expand the taxpayer base, foster a corruption-free environment, and reduce instances of tax evasion.

However, GST encountered criticism for its complex structure and varying interpretations across states. Furthermore, there is a call for GST to encompass all sectors, including petroleum products currently exempt from the tax. Bringing petroleum products under the GST ambit could yield significant benefits, enhancing flexibility and reducing costs.

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India, after gaining independence in 1947 from British rule, has evolved into the world's largest democracy. What was once labeled a "third-world country" has now emerged as a global economic powerhouse.

India, after gaining independence in 1947 from British rule, has evolved into the world's largest democracy. What was once labeled a "third-world country" has now emerged as a global economic powerhouse. Notable milestones in India's economic journey unfolded during the crisis years of 1966, 1981, and 1991. Yet, India's impressive rebound led to its distinction as the fastest-growing major economy worldwide. Substantial reforms and policies propelled this remarkable economic trajectory, transforming not only the nation's financial landscape but also facilitating its remarkable growth. Diving deeper, let's explore some significant economic reforms that successive governments have undertaken in recent decades, shaping India's economic landscape and setting it on a path of unprecedented growth. Transforming India's Telecommunications Around 1992–93, India's telecommunications sector initiated a transformative trajectory, characterized by the privatization of value-added services. A pivotal shift arrived in 1994 with the introduction of the National Telecom Policy (NTP), heralding competition in basic telecom and mobile services. The 1990s witnessed escalating demand for telephones, nudging India toward embracing private participation as part of the liberalization-privatization-globalization agenda. Moreover, the separation of the Department of Telecom (DoT) from the Indian Post and Telecommunication Department transpired as a significant development in 1985. Entities such as Mahanagar Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) emerged independently from the DoT's umbrella. In the realm of mobile telephony, the Telecom Regulatory Authority of India (TRAI) facilitated market-driven mobile pricing while retaining regulatory oversight against unjust practices. August 15, 2000, marked the entry of unlimited competition for domestic long-distance telecommunications services. The year 2000's budget witnessed a reduction in import tariffs on mobile devices from 25 percent to 5 percent. The monopoly of Videsh Sanchar Nigam Ltd. over international telecommunications concluded on April 1, 2002. Presently, India's telecom industry boasts a staggering 1.17 billion users, achieving a national tele-density of 84.86 percent. Remarkably, it ranks third in attracting foreign direct investment (FDI), directly employing 2.2 million individuals and indirectly supporting an additional 1.8 million. The past decade has witnessed a surge of 500 million smartphone users. Predictions estimate a total of 850 million users by 2026, encompassing 55 percent of the population. India's trajectory to becoming the world's second-largest smartphone market by 2025 is unmistakable, as indicated by the GSM Association (GSMA). Furthermore, in 2022, the Ministry of Communications unveiled the draft of the Indian Telecommunication Bill, which addresses sector achievements and challenges, affirming the government's commitment to a thriving telecommunications landscape. Empowering India's capital market: Securities and Exchange Board of India (SEBI) The journey of the Securities and Exchange Board of India (SEBI) commenced with a significant stride in 1988, as Prime Minister Rajeev Gandhi announced the establishment of a distinct regulatory body for the stock exchange and securities industry. Under the guidance of S. S. Nadkarni, IDBI recommended S. A. Dave, an executive director, to helm the newly formed regulator. Dave assumed the role in April 1988, operating initially from IDBI's Mumbai headquarters. SEBI was initially established as a statutory body to oversee the securities market, gaining autonomy on January 30, 1992. This move endowed it with statutory powers that fortified its regulatory control over the financial market. Before SEBI's advent, the Controller of Capital Issues administered the capital market under the Capital Issues (Control) Act, 1947. SEBI's impact on India's capital market has been profound. The introduction of an electronic trading system and the creation of a robust market surveillance mechanism stand as pivotal milestones that underscore its commitment to transparency and efficiency. Nevertheless, SEBI encountered considerable challenges on its journey. Notably, its efficacy in curbing fraudulent activities, such as insider trading, faced scrutiny. Instances like the Satyam affair, the NSEL scam, and the Punjab National Bank case highlighted the regulatory constraints of SEBI in market oversight. Moreover, SEBI faced criticism for its sluggishness in addressing corporate violations. The IL&FS crisis serves as a prime illustration, wherein the infrastructure finance corporation grappled with financial upheaval for years before its collapse in 2018. Fostering economic growth: Special Economic Zones (SEZ) The inception of Special Economic Zones (SEZs) in 2000 primarily aimed to attract foreign investments and establish a globally competitive and seamless export environment. Subsequently, on February 10, 2006, the SEZ Act 2005 and accompanying SEZ Rules came into effect. To incentivize businesses to operate within SEZs, the government extended benefits such as duty-free imports or local sourcing of materials essential for setting up, operating, and maintaining SEZ units. The SEZ initiative has demonstrated its merits for the nation, evident in the impressive surge of exports from Rs. 22,840 crore in 2005–06 to Rs. 7,59,524 crore in 2020–21, along with a rise in investments from Rs. 4,035.51 crore in 2005–06 to Rs. 6,17,499 crore in 2020–21. However, the trade ministry's recent research highlights two factors that impede the envisioned success of SEZs. These factors pertain to incentives provided under the foreign trade policy to exporters outside SEZs and disadvantages arising from free-trade agreements (FTA), both of which have impacted the SEZ program. Furthermore, the exclusion of SEZs from the country's domestic tariff zone grants them the advantage of duty-free access to manufacturing inputs. However, India's free-trade agreements with nations that have eliminated or substantially reduced taxes on various items have compromised this advantage. Revolutionizing welfare assistance: JAM Trinity The JAM Trinity, encompassing Jan Dhan-Aadhaar-Mobile, was introduced during the economic survey of 2014–2015. Its primary objective is to interlink bank accounts, mobile phones, and Aadhaar cards to prevent the leakage of subsidies. The government's intent behind this initiative was to extend assistance to the less privileged. Despite the operation of the Direct Benefits Transfer (DBT) since 2013, the Trinity streamlines the process of identifying and tackling the remaining challenges within each component. Furthermore, JAM has enhanced the distribution of LPG subsidies by connecting Aadhaar-linked bank accounts and gas connections, significantly curtailing fund losses and fortifying the government's financial capability. Consequently, dormant funds have dwindled, leading to smoother transactions. Since the introduction of Jan Dhan Yojana up until August 2017, the initiative has contributed to an increase of over Rs. 65,000 crores in the economy, further elevating the gold holdings to financial savings ratio. Nevertheless, the JAM Trinity encounters certain hurdles, particularly in addressing inactive Jan Dhan accounts and bridging the conspicuous digital divide across the country. Harmonizing taxation: Goods and Services Tax (GST) The introduction of the Goods and Services Tax (GST) on July 1st, 2017, aimed to establish a unified tax structure across India. Previously, taxpayers navigated through a maze of indirect taxes for various transactions such as purchases, sales, manufacturing, retailing, and marketing. These included value-added tax (VAT), excise duty, service tax, central sales tax, entertainment tax, luxury tax, and sales tax. The GST implementation had both positive and negative consequences for the Indian economy. The primary aim was to simplify the intricate tax landscape by eliminating cascading tax effects. Additionally, it aimed to expand the taxpayer base, foster a corruption-free environment, and reduce instances of tax evasion. However, GST encountered criticism for its complex structure and varying interpretations across states. Furthermore, there is a call for GST to encompass all sectors, including petroleum products currently exempt from the tax. Bringing petroleum products under the GST ambit could yield significant benefits, enhancing flexibility and reducing costs. WATCH WION LIVE HERE

India's economic metamorphosis: Reforms and triumphs

India is one of the world's fastest-growing economies, and its economic influence is growing on the global stage. In 2022, India was the world's third-largest importer and the fifth-largest exporter.

Why India is a major global trade partner | World Business Watch Special

Brazil will be embarking on an ambitious 350 billion dollar 'growth acceleration' plan. The new economic plan pushes for more public-private partnership and greater focus on ecological transition. The plan is the brainchild of Lula da Silva, who first implemented it during his first tenure in the mid-2000s.

Brazil's economic revival plan | World Business Watch

Softbank Group Corp, a prominent player in the tech industry, is reportedly in talks to secure full ownership of arm ltd, a major chip designer. This chip designer has garnered attention for its potential IPO valuation of $60 billion to $70 billion on Nasdaq next month. Softbank, which currently holds 75% of arm, aims to seize control and potentially deliver gains to investors who have weathered previous losses.

Softbank considers full ownership of Arm ltd | World Business Watch

Teach for America, the non-profit organization known for placing college graduates in underserved schools across the US is making waves once again. With a surge of nearly 40% in recruits for the upcoming academic year, the program's popularity is on the rise.

Teach for America recruits surge by 40% amid pandemic

Analysts at Goldman Sachs predict the federal reserve to start cutting interest rates by the end of next June. Watch the video to know more.

Goldman Sachs: Fed rates cut in Q2 next year | World DNA

India’s retail inflation rose to a 15-month high in July on account of high prices of vegetables and other food items, official data showed on Monday (Aug 14).

According to the data released by the National Statistical Office (NSO), retail inflation, as measured by the consumer price index, was 7.44 per cent in July this year. In the previous month, it was 4.87 per cent, and 6.71 per cent in July last year.

Inflation in the consumer food price index rose to 11.51 per cent in July while inflation in the food and beverages basket jumped to 10.57 per cent.

Retail inflation in vegetables surged to 37.34 per cent last month from a deflation of -0.93 per cent in June.

Inflation was also witnessed in different components of the food basket.

<h2>Food prices go up</h2>

While food and beverage inflation soared to 10.57 per cent, compared to 4.63 per cent last month, cereals recorded 13.04 per cent inflation from 12.71 per cent in June.

For fuel and light, the inflation was at 3.67 per cent in July. Rural inflation came in at 7.63 per cent, compared to 4.72 per cent in June, while urban inflation stood at 7.2 per cent, rising from 4.96 per cent in June.

A poll of 53 economists conducted by Reuters had estimated the headline inflation would surge up to 6.40 per cent on an annual basis on rising food prices.

<h2>RBI expects inflation rates to rise&nbsp;</h2>

The data comes days after the Reserve Bank of India’s Monetary Policy Committee meeting, which has suggested that inflation would continue to remain high in August as well.

However, the RBI said, “While the vegetable price shock may reverse quickly, possible El Nino weather conditions, along with global food prices need to be watched closely, against the backdrop of skewed Southwest Monsoon.”

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/india-and-uae-make-landmark-move-to-settle-crude-oil-transactions-in-national-currencies-625386">India and UAE to settle crude oil transactions in national currencies</a>

In its August monetary policy review, the RBI kept the policy rates unchanged at 6.50 per cent but raised the forecast for CPI inflation for FY24 to 5.4 per cent from 5.1 per cent.

(With inputs from agencies)

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India’s retail inflation rose to a 15-month high in July on account of high prices of vegetables and other food items, official data showed on Monday (Aug 14). According to the data released by the National Statistical Office (NSO), retail inflation, as measured by the consumer price index, was 7.

India’s retail inflation rose to a 15-month high in July on account of high prices of vegetables and other food items, official data showed on Monday (Aug 14). According to the data released by the National Statistical Office (NSO), retail inflation, as measured by the consumer price index, was 7.44 per cent in July this year. In the previous month, it was 4.87 per cent, and 6.71 per cent in July last year. Inflation in the consumer food price index rose to 11.51 per cent in July while inflation in the food and beverages basket jumped to 10.57 per cent. Retail inflation in vegetables surged to 37.34 per cent last month from a deflation of -0.93 per cent in June. Inflation was also witnessed in different components of the food basket. Food prices go up While food and beverage inflation soared to 10.57 per cent, compared to 4.63 per cent last month, cereals recorded 13.04 per cent inflation from 12.71 per cent in June. For fuel and light, the inflation was at 3.67 per cent in July. Rural inflation came in at 7.63 per cent, compared to 4.72 per cent in June, while urban inflation stood at 7.2 per cent, rising from 4.96 per cent in June. A poll of 53 economists conducted by Reuters had estimated the headline inflation would surge up to 6.40 per cent on an annual basis on rising food prices. RBI expects inflation rates to rise The data comes days after the Reserve Bank of India’s Monetary Policy Committee meeting, which has suggested that inflation would continue to remain high in August as well. However, the RBI said, “While the vegetable price shock may reverse quickly, possible El Nino weather conditions, along with global food prices need to be watched closely, against the backdrop of skewed Southwest Monsoon.” Also read | India and UAE to settle crude oil transactions in national currencies In its August monetary policy review, the RBI kept the policy rates unchanged at 6.50 per cent but raised the forecast for CPI inflation for FY24 to 5.4 per cent from 5.1 per cent. (With inputs from agencies) WATCH WION LIVE HERE

India’s retail inflation in July soars to 15-month high of 7.44%

In a key development, India and the United Arab Emirates (UAE) have embarked on a groundbreaking move by opting to settle their crude oil transactions using their respective national currencies.

The Indian rupee and the UAE dirham will be utilised in this landmark transaction, which will be seen as a significant shift in international trade dynamics. The first such transaction involving national currencies will take place later today on Monday (Aug 14). This comes as a result of the Memorandum of Understanding (MoU) signed during Prime Minister Narendra Modi's visit to the UAE on July 15.

The MoU introduces the Local Currency Settlement (LCS) System, facilitated by the Reserve Bank of India and the Central Bank of the United Arab Emirates. It paves the way for cross-border transactions using the rupee and dirham.

One of the key benefits of this pioneering LCS system is the reduction in transaction time and costs. By eliminating the need for intermediary currencies, both countries can expect to save on foreign exchange expenses, leading to enhanced economic cooperation. Additionally, reliance on national currencies is anticipated to bolster economic resilience and strengthen bilateral relations. Moreover, any surplus balances in the local currencies can be invested in various local assets, including corporate bonds, government securities, and equity markets.&nbsp; 
 
ALSO WATCH | UAE and India agree to settle transactions in local currency

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Monday's transaction for oil trade is expected to pave the way for further such transactions. The LCS system has already proven its efficacy. One of the first transactions between the two&nbsp;countries using national currencies involved a sale of 25 kilograms of gold from a prominent UAE gold exporter, invoiced at approximately Rs 128 million ($1.5 million).

With gold, gems, and jewellery being among the most traded commodities between India and the UAE, the successful execution of such a transaction serves as a testament to the viability of this mechanism. Last year, the two-way trade between India and UAE was worth US$ 20 billion, which was about 42 per cent&nbsp;of the total non-oil trade between the two countries.

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/modis-uae-visit-brings-home-de-dollarisation-bonanza-to-boost-trade-in-indian-rupee-616032">Indian PM brings home de-dollarisation bonanza with rupee-dirham framework</a>

In recent times, India has taken substantial steps to promote the usage of its national currency, the Indian rupee, in international transactions. Collaborating with banks from 22 different countries, India has established special rupee vostro accounts in domestic banks, facilitating trading in national currencies.

As India continues to expand its footprint in the global trade arena, the adoption of the LCS system with the UAE sets a precedent for innovative trade practices that can reshape the course of international commerce. 
&nbsp;

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You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

In a key development, India and the United Arab Emirates (UAE) have embarked on a groundbreaking move by opting to settle their crude oil transactions using their respective national currencies.

In a key development, India and the United Arab Emirates (UAE) have embarked on a groundbreaking move by opting to settle their crude oil transactions using their respective national currencies. The Indian rupee and the UAE dirham will be utilised in this landmark transaction, which will be seen as a significant shift in international trade dynamics. The first such transaction involving national currencies will take place later today on Monday (Aug 14). This comes as a result of the Memorandum of Understanding (MoU) signed during Prime Minister Narendra Modi's visit to the UAE on July 15. The MoU introduces the Local Currency Settlement (LCS) System, facilitated by the Reserve Bank of India and the Central Bank of the United Arab Emirates. It paves the way for cross-border transactions using the rupee and dirham. One of the key benefits of this pioneering LCS system is the reduction in transaction time and costs. By eliminating the need for intermediary currencies, both countries can expect to save on foreign exchange expenses, leading to enhanced economic cooperation. Additionally, reliance on national currencies is anticipated to bolster economic resilience and strengthen bilateral relations. Moreover, any surplus balances in the local currencies can be invested in various local assets, including corporate bonds, government securities, and equity markets. ALSO WATCH | UAE and India agree to settle transactions in local currency Monday's transaction for oil trade is expected to pave the way for further such transactions. The LCS system has already proven its efficacy. One of the first transactions between the two countries using national currencies involved a sale of 25 kilograms of gold from a prominent UAE gold exporter, invoiced at approximately Rs 128 million ($1.5 million). With gold, gems, and jewellery being among the most traded commodities between India and the UAE, the successful execution of such a transaction serves as a testament to the viability of this mechanism. Last year, the two-way trade between India and UAE was worth US$ 20 billion, which was about 42 per cent of the total non-oil trade between the two countries. ALSO READ | Indian PM brings home de-dollarisation bonanza with rupee-dirham framework In recent times, India has taken substantial steps to promote the usage of its national currency, the Indian rupee, in international transactions. Collaborating with banks from 22 different countries, India has established special rupee vostro accounts in domestic banks, facilitating trading in national currencies. As India continues to expand its footprint in the global trade arena, the adoption of the LCS system with the UAE sets a precedent for innovative trade practices that can reshape the course of international commerce. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

India and UAE make landmark move to settle crude oil transactions in national currencies

A growing consensus among economists, including the Federal Reserve's own analysts, suggests that the United States is poised to avoid a recession. However, certainty regarding this outcome is not expected until well into the year 2024.

A recent report points&nbsp;out that if authorities fail to act aggressively enough against rising prices, the country&nbsp;could bounce back inflation. Moreover, the additional concern about the delayed effects of the most aggressive tightening in four decades could push the economy into a recession.

The official arbitrator of US downturns, the National Bureau of Economic Research's business cycle committee, defines a recession as a severe fall in economic activity distributed across the economy that lasts longer than a few months. Once the group examines what might be initially mixed reports and data changes, it can take up to 21 months to proclaim such an occurrence.

Navigating the challenge of a soft economic landing

When it comes to a soft landing, economists generally refer to a situation where inflation is controlled without triggering a recession or causing major disruptions in the job market.

However, achieving such a soft landing can be quite a challenge. A study conducted by former Vice Chair Alan Blinder, analyzing 11 instances of monetary policy between 1965 and 2022, revealed that four instances saw relatively successful outcomes with stable or reduced inflation. In contrast, the remaining cases resulted in a hard landing, leading to an acceleration in inflation two years later.

Additionally, the report indicates that policymakers at the Federal Reserve are considering the long term. The Federal Open Market Committee, which is responsible for making the central bank's policies, predicts that inflation will likely reach its target of 2 percent shortly after the year 2025.

However, a true understanding of a stable economy with moderate prices can only be attained when the data for late 2024 becomes available, as achieving this kind of outcome requires time.

Inflationary concerns amid economic uncertainty

The committee forecasts a rate of 4.6 percent by the end of the upcoming year. This rate is two percentage points higher than the long-term average and roughly half a percentage point more than what the market expects. Additionally, the Fed raised interest rates last month to a range of 5.25 percent to 5.5 percent, marking the highest level in two decades. They have also indicated the possibility of further rate hikes later this year.

Neil Dutta, the head of economics at Renaissance Macro Research LLC, envisions a possible "inflationary boom" due to rising oil prices and the potential for high home prices to affect rents. He believes that determining a soft landing can only be done with the advantage of hindsight, as per a report in Mint.

Moreover, officials, who are keen on avoiding the same misstep that the Federal Reserve made in the 1970s, also share this cautious perspective. During that time, the Fed prematurely abandoned its efforts to control inflation, leading to a resurgence of double-digit price increases later on.

Furthermore, given that economic data can be unclear during critical turning points and is often revised later, it's important to note that determining the Fed's success in real-time might be impossible. Additionally, during extended periods of economic growth, it's not uncommon to encounter a quarter with negative growth.

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A growing consensus among economists, including the Federal Reserve's own analysts, suggests that the United States is poised to avoid a recession. However, certainty regarding this outcome is not expected until well into the year 2024.

A growing consensus among economists, including the Federal Reserve's own analysts, suggests that the United States is poised to avoid a recession. However, certainty regarding this outcome is not expected until well into the year 2024. A recent report points out that if authorities fail to act aggressively enough against rising prices, the country could bounce back inflation. Moreover, the additional concern about the delayed effects of the most aggressive tightening in four decades could push the economy into a recession. The official arbitrator of US downturns, the National Bureau of Economic Research's business cycle committee, defines a recession as a severe fall in economic activity distributed across the economy that lasts longer than a few months. Once the group examines what might be initially mixed reports and data changes, it can take up to 21 months to proclaim such an occurrence. Navigating the challenge of a soft economic landing When it comes to a soft landing, economists generally refer to a situation where inflation is controlled without triggering a recession or causing major disruptions in the job market. However, achieving such a soft landing can be quite a challenge. A study conducted by former Vice Chair Alan Blinder, analyzing 11 instances of monetary policy between 1965 and 2022, revealed that four instances saw relatively successful outcomes with stable or reduced inflation. In contrast, the remaining cases resulted in a hard landing, leading to an acceleration in inflation two years later. Additionally, the report indicates that policymakers at the Federal Reserve are considering the long term. The Federal Open Market Committee, which is responsible for making the central bank's policies, predicts that inflation will likely reach its target of 2 percent shortly after the year 2025. However, a true understanding of a stable economy with moderate prices can only be attained when the data for late 2024 becomes available, as achieving this kind of outcome requires time. Inflationary concerns amid economic uncertainty The committee forecasts a rate of 4.6 percent by the end of the upcoming year. This rate is two percentage points higher than the long-term average and roughly half a percentage point more than what the market expects. Additionally, the Fed raised interest rates last month to a range of 5.25 percent to 5.5 percent, marking the highest level in two decades. They have also indicated the possibility of further rate hikes later this year. Neil Dutta, the head of economics at Renaissance Macro Research LLC, envisions a possible "inflationary boom" due to rising oil prices and the potential for high home prices to affect rents. He believes that determining a soft landing can only be done with the advantage of hindsight, as per a report in Mint. Moreover, officials, who are keen on avoiding the same misstep that the Federal Reserve made in the 1970s, also share this cautious perspective. During that time, the Fed prematurely abandoned its efforts to control inflation, leading to a resurgence of double-digit price increases later on. Furthermore, given that economic data can be unclear during critical turning points and is often revised later, it's important to note that determining the Fed's success in real-time might be impossible. Additionally, during extended periods of economic growth, it's not uncommon to encounter a quarter with negative growth. WATCH WION LIVE HERE

US economy will dodge inflation, but uncertainty to persist until 2024, say analysts