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Tuesday,27-May-2025
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Stock markets in Asia, US tumble after biggest interest rate hike in 22 yrs

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Stock markets in Asia and America have tumbled after the US Federal Reserve this week announced the biggest interest rate hike in 22 years.

The sell-off comes as worries intensified over how rising prices, and the Federal Reserve’s steps to rein them in, will affect economic growth, the BBC said in a report.

Major share indexes in Hong Kong and mainland China dropped on Friday in Asia. That came after shares in New York fell sharply, led by technology stocks.

Hong Kong’s benchmark Hang Seng index fell by 3.6 per cent, while shares on the Shanghai Stock Exchange were down by 2.3 per cent and Australia’s ASX 200 was 2.4 per cent lower, BBC reported.

Those falls followed the Dow index, which includes big names such as Apple and Nike, sliding on Thursday by more than 1,000 points to end 3.1 per cent lower.

The wider S&P 500 fell 3.6 per cent, while the tech-heavy Nasdaq plummeted by almost 5 per cent.

The losses wiped out the gains the markets had enjoyed on Wednesday, after the Federal Reserve announced it was raising its benchmark rate by half a percentage point to 0.75 per cent to 1 per cent.

That move, which will make borrowing more expensive, had been expected.

Analysts said investors were relieved that the bank had not moved even more aggressively, with Federal Reserve chairman Jerome Powell saying that a bigger rate hike was not under “active consideration”.

But Thursday’s losses suggested that worries remain about whether the Fed will be able to slow economic activity enough to cool price increases without tipping the economy into recession – defined as the economy getting smaller for two consecutive quarters, the BBC reported.

Rising prices are also being driven by factors outside the central bank’s control, such as spiking energy prices due to the war in Ukraine.

Business

Export booster: Centre restores RoDTEP benefits from June 1

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New Delhi, May 27: In sustained efforts to boost India’s export competitiveness in global markets, the government on Tuesday announced the restoration of benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.

The restoration of benefits under the scheme are for exports made by Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and units operating in Special Economic Zones (SEZs).

The benefits will be applicable for all eligible exports made from June 1 onwards, said the Commerce Minister in a statement.

The benefits under RoDTEP for these categories were previously available until February 5, 2025, and their reinstatement is expected to provide a level-playing field for exporters across sectors.

Operational since January 1, 2021, the RoDTEP scheme is designed to reimburse exporters for embedded duties, taxes, and levies that are not otherwise refunded under any other existing scheme.

It is compliant with World Trade Organisation (WTO) norms and is implemented via a comprehensive end-to-end digital platform to ensure transparency and efficiency.

As of March 31, 2025, total disbursements under the RoDTEP scheme have crossed Rs 57,976.78 crore, underscoring its significant role in supporting India’s merchandise exports.

For the financial year 2025–26, the government has allocated Rs 18,233 crore under the scheme.

The support will cover 10,780 HS lines for Domestic Tariff Area (DTA) exports and 10,795 HS lines for AA/EOU/SEZ exports, ensuring broad-based coverage for diverse sectors of the economy, said the ministry.

“The reinstatement of RoDTEP benefits for special export categories reflects the government’s continued commitment to creating a conducive, competitive, and compliant export ecosystem that drives India’s long-term trade growth,” it added.

An opportunity to grow exports is knocking on India’s door as supply chains are getting redrawn and steps which raise mid-tech labour-intensive exports can boost the country’s trade interlinkages, mass consumption, investment, and GDP growth, according to an HSBC report released last week.

While there is a general sense that India is mostly a domestic demand-driven economy, it is in periods of rising integration with the world that India has grown its fastest, the report stated.

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National

Oppn slams Fadnavis govt over Mumbai waterlogging issue after season’s first heavy rainfall

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Mumbai, May 26: Shiv Sena(UBT) and Congress have slammed the Mahayuti government and the BrihanMumbai Municipal Corporation (BMC) for the disruption of normal life in Mumbai due to waterlogging following heavy rain.

Shiv Dena(UBT) leader and former Minister Aaditya Thackeray in a stinging post on blamed the government for failing to act on time.

He wrote on X, “The absolute apathy of the bjp government that controls the BMC for the past 3 years has led to Mumbai come to a standstill today. Mumbai has water logging in places that never saw water logged earlier. The Hind Mata which was made water logging free by us in 2021/22, is now water logged again today only and only because the @mybmc did not initiate the process of pumping out water on time. Last week it was Andheri Subway and Saki Naka. Today, it is many more areas that we see suffering the bjp’s terrible governance.”

“Why does the BJP hate Mumbai so much that it has left Mumbai grappling with roads half rug up, nallahs not cleaned and water logged in more places than before? This is immensely painful to see. This area was made water logging free by us 4 years ago. Today, because the bjp controlled @mybmc did not initiate the SoPs for the monsoons, it is water logged again,” he said.

The Maharashtra Pradesh Congress Committee president, Harshwardhan Sapkal, alleged that the BJP alliance is corrupt, which has drowned Mumbai in the first rain and asked where have crores of rupees spent on cleaning drains have gone and whose pocket?

He claimed that the BMC and the state government are responsible for the plight of Mumbaikars, who will not forgive the “corrupt gang that looted Mumbai”. He added that roads, housing societies, railway tracks, underground metro stations and hospitals were flooded heavily.

“In the first heavy rain, the streets of Mumbai were flooded with the corruption of the state government and the municipal administration. The roads and railway tracks were flooded with water. The working class of Mumbaikars faced immense hardship while going to work. Every year, the BMC claims to spend crores of rupees on cleaning drains and pre-monsoon work in Mumbai, but when it rains, everything falls apart, and the truth gets exposed. Mumbaikars are facing this hardship because contractors and the ruling party are filling their pockets by embezzling public money,” he remarked.

“One rain has exposed the corrupt practices of the BJP, Shinde Sena and Ajit Pawar. Their achievements are so great that it seems that they will have to go door to door by boat to seek people’s votes in the upcoming elections. Every year, the municipal corporation spends crores of rupees on pre-monsoon work, but in reality, where does this money go? This question arises. Mumbai is facing this situation due to the corrupt alliance of the Ministry, Mumbai Municipal Corporation administration, and contractors,” said Sapkal.

BMC presented a budget of Rs 74,427 crore for the year 2025-26, which was about 14.19 per cent more than the budget of 2024-25, making it the largest in the history of BMC. A provision of Rs 5,100 crore was made for the Roads and Transport Department in this budget. A provision of Rs 5,545 crore was made for the Sewage Treatment Plant. In 2024, Rs 249.27 crore was spent on drain cleaning, while in 2025, Rs 395 crore was spent on drain cleaning and silting of the Mithi River. A total of 31 contractors were given work for this.

“Despite spending this much money, drain cleaning in Mumbai has not been done… They have embezzled the tax money of Mumbaikars…,” said Sapkal. He claimed that the people of Mumbai will not forgive this “corrupt gang looting Mumbai”.

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Crime

Drug peddler arrested, narcotics recovered in J&K’s Kupwara

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Srinagar, May 26: Police on Monday arrested a drug peddler and recovered narcotic substances from his possession in Jammu and Kashmir’s Kupwara border district.

“Continuing its firm action against drug trafficking and its harmful impact on society, the Kupwara Police today apprehended a drug peddler during a ‘Naka’ (checkpoint) operation, dealing a significant blow to the drug menace in the region,” said police in a statement.

“A police party from Police Post Bazar, under the supervision of senior officers, had established a checkpoint at Geerhatchi as part of routine surveillance and anti-drug operations. During the naka checking, a suspicious individual approaching from Zangli towards Kupwara attempted to evade the checkpoint. However, the alert naka party acted swiftly and apprehended the suspect before he could flee. Upon initial questioning, the individual identified himself as Faisal Ahmad Sheikh, son of Mushtaq Ahmad Sheikh, resident of Kupwara. A subsequent search led to the recovery of a heroin-like substance from his possession,” the statement mentioned.

The preliminary investigation revealed that the accused was actively involved in the supply and distribution of narcotics, particularly targeting the youth in Kupwara town and the Hyhama belt, thereby contributing to the rise of drug abuse in the region.

“Accordingly, a case under FIR No. 149/2025 U/S 8/21 of the NDPS Act has been registered at Police Station Kupwara, and a detailed investigation has been initiated to uncover the broader network involved,” the police said.

“The arrest of the said individual is seen as a major respite for the local population, especially the parents and families concerned about the growing drug abuse among the youth. Kupwara Police remains committed to its zero-tolerance policy against drug trafficking,” the officials said.

It must be mentioned that J&K Police and the security forces have launched an aggressive campaign against drug smugglers and drug peddlers, as the roots of drug smuggling have been traced to across the border in Pakistan.

Security forces and intelligence agencies believe that money generated by hawala rackets and drug smuggling is finally used to sustain terrorism in Jammu and Kashmir.

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