This week was a busy week for the political leaders of India that started with presenting the Union Budget by Nirmala Sitharaman. He said they have directed priority towards increase in spending on infrastructure in order to catalyze the growth of the economy with special consideration to inflation rate and unemployment factors. Discussions related to the income tax rates and effects including that regarding the middle income group also rose when the issue of fiscal deficit was in the news.
This shift in policy was viewed by the Modi government as strategic as it refrained from ambitious privatization measures. Instead, billions are flowing into rescuing state-run enterprises, just as the billion-dollar lifeline is extended to Pawan Hans. Privatization attempts in nine sectors are on hold in the present year due to the government’s trend of actually reprioritizing government owned entities instead of divesting.
India’s rupee fell down a record low of 86.65 against the US dollar owing to apprehensions regarding future US tariffs. To intervene in the movement of the currency, the Reserve Bank of India had to employ state-run banks. The foreign investors pulled out $9 billion from the Indian markets in January and this has deepened the turmoil in the economy.
In this legal news, ANI Indian news agency is suing open AI for copyright infringement. OpenAI further states that this is because they do not own Indian servers, and therefore, the laws governing the case should be those of the United States of America. But this is an important test for AI-related issues in India as Indian courts have turned down same arguments in similar cases involving foreign technology companies before.
For the key food products, SEBI banned the trading of derivatives until March earlier this year. Being implemented since the last fiscal year, it applies to paddy, wheat, chickpeas, mustard seeds, and soybeans. The action will be useful to prevent the rampant speculation on commodity prices and standardizing market control over agricultural produce .
Conclusion
In Conclusion, India’s political structure and economic dynamics shifted this week bringing out the new strategies the government is employing. The Union Budget aimed for infrastructure development in the country but at the same time keeping eyes on the fiscal constraints. This has come as a halt of privatization which implies a new tendency towards state ownership of enterprises. On the same note, the recent low record by rupee indicates vulnerability in the economy through which RBI intervened. These include open web regulation issues like those that occurred with OpenAI in connection with the copyright. In maintaining the stability of the market, SEBI has further extended its restriction on the trading of food commodities. These all are happening at the same time which defines the future course of action of India and needs political will and prudent policy implementation in the forthcoming months.
