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Indian government has no plans to restrict import of goods and raw materials – News

By on July 23, 2022 0

The Reserve Bank of India has taken the decision to allow invoicing, payment and settlement of export duties in Indian currency with its trading partners.



Reuters file photo

By HP Ranina

Published: Sat 23 Jul 2022, 7:28 PM

Last update: Sat 23 Jul 2022, 7:29 PM

India’s trade deficit has widened in recent months. Are there plans to reduce or restrict imports to meet this challenge?

The Indian government has made it clear that it has no intention of restricting the importation of goods and raw materials into India. The Reserve Bank of India has taken the decision to allow invoicing, payment and settlement of export duties in Indian currency with its trading partners. This is part of a broader strategy to respond quickly to changing economic and geopolitical conditions. The decision to use the rupee for trade between its partners was taken in response to the tightening of monetary policy in some foreign countries. Officials believe this will help India’s trading partners get fair value for the rupiah during a period of uncertainty, given that India has macroeconomic stability and has been able to control its trading costs. fuel by obtaining oil and other commodity imports at below market prices.

Older people and fixed-income earners do not receive sufficient returns on bank deposits. This is despite the rate hike by the Reserve Bank. Is there any other form of investment that would give better returns than bank deposits?

The reason why banks are not raising their interest rates on term deposits is that they are currently awash with a large amount of funds pouring in every day. Therefore, seniors and people on fixed incomes may consider investing in high yield bonds. Bond yields are market determined and currently offer a much higher yield than bank deposits. For example, tax-exempt bonds with a residual maturity of seven years offer a tax-adjusted yield of nearly 8%, compared to the roughly 5.% percent that seniors get from term deposits in banks. Bonds also offer a high level of security as government securities come with a sovereign rating. Additionally, G-Secs are more widely accepted as collateral when taking out loans. Government bonds, being risk-free investments, ensure good diversification of the investor’s portfolio, a strategy that should continue for a longer period.

My sister in India is going through a difficult legal battle after divorcing her husband. He did not pay his alimony as decided by the court. Is it possible for her ex-husband to reduce the quantum of allowance?

The Indian courts have taken a practical view by stating that the maintenance allowance, called alimony, payable to the ex-wife is not a general liability at all times and can be increased or decreased due to a change in the circumstances of the husband or wife. The Delhi High Court has ruled that the purpose of awarding alimony upon divorce is not to punish a spouse but to ensure that the dependent ex-spouse is not reduced to misery due to the breakdown of the marriage. In this case, the ex-wife had applied to the Court for an increase in the alimony to be paid by her ex-husband. According to Indian law, changed circumstances are an important factor in determining whether previously fixed child support can be increased or reduced. The reduction in child support can be made taking into account changing circumstances, such as the ex-husband’s income which may have decreased or dried up due to the loss of his job or the obligation to accept a reduced salary. The courts would take into account the financial capacity of the ex-spouse taking into account his actual income and the reasonable expenses that would be necessary for his own maintenance as well as that of his dependent family members, including his own parents. .

HP Ranina is a practicing lawyer, specializing in tax management and foreign exchange laws of India. The opinions expressed are his own and do not reflect the policy of the newspaper.