🥷 Smuggling

Good morning. We come bearing good news for those who hate to read their emails (trust me, been there…)

Up n’ Running can now be installed as an app on your phone! Here’s how:

• Click on the banner above and select your browser of choice.

• You will receive a pop-up saying “Install the app.”

• Follow the instructions on that pop-up, and voila - you will now receive Up n’ Running updates directly to your phone! It’s also an easy way for you to access previous Up n’ Running editions at will.

Happy reading 🔖 🤗 

- Ruchirr Sharma & Shatakshi Sharmaa

TABLE OF CONTENTS

• 💰️ Union Budget 2024

• 🥷 Smuggling

• 🗞️ Bite-sized summaries

  • ❌ No more takeover

  • 🇺🇸 Secret Service director resigns after Trump assassination attempt

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• The Sensex and Nifty closed slightly lower after volatile trading due to proposed hikes in securities transaction tax on F&O. The budget announced tax exemptions, customs duty cuts, and personal income tax relief, helping stocks recover from early losses. The Sensex settled at 80,429.04, down 0.09%.

🌍️ International

• Wall Street’s main indexes closed slightly lower after giving up intraday gains. Tesla and Alphabet reported positive Q2 revenue, driven by vehicle deliveries and digital advertising sales. The overall market declined in the afternoon due to disappointing earnings from household names e.g., UPS and General Motors, which subdued equity markets.

ECONOMY

💰️ Union Budget 2024

Yesterday marked a significant milestone for the Indian Financial Minister as Nirmala Sitharaman presented her 7th consecutive Union Budget.

Let's break down the key points:

Fiscal Outlook:

• Total receipts: ₹32.07 lakh crore

• Total expenditure: ₹48.21 lakh crore

• Fiscal deficit: 4.9% of GDP

The budget focused on nine crucial areas: agriculture, employment, inclusive development, manufacturing, urban development, energy security, infrastructure, innovation, and reforms.

Key Highlights:

➡️ Employment and Skilling:

• ₹1.48T was allocated for education, employment, and youth skilling (a 30% increase).

• Five new schemes introduced with a ₹2T outlay.

• Goal to skill 2 million youth over 5 years.

• 1,000 ITIs to be upgraded.

• Increased financial support for higher education loans.

➡️ Agriculture (₹1.52 lakh Cr. allocation):

• Push for natural farming and climate-resilient crops.

• 10,000 bio-input centres to boost oilseed production.

• Enhanced digital infrastructure for farmers.

• Large-scale vegetable production clusters.

• Jan Samarth-based Kisan Credit Cards in five states.

➡️ Tax Reforms:

• The standard deduction in the new tax regime increased from ₹50,000 to ₹75,000.

  • Salaried employees can save up to ₹17,500 under the new regime.

• Deduction on family pension for pensioners increased from ₹15,000 to ₹25,000.

• Short-term capital gains on certain financial assets to be taxed at 20%.

• Long-term capital gains tax increased to 12.5% from 10%.

The new tax brackets also sparked debate, with some arguing that higher taxation should correspond with improved infrastructure and public amenities.

Finally, the abolition of the Angel Tax was a welcome sight for all investors and a significant boost to India's startup ecosystem. Previously a contentious issue, this move is expected to create a more favourable environment for startups and improve funding sentiment.

Finally, the FM also announced an increase in the Mudra loan limit from ₹10 lakh to ₹20 lakh, supporting micro-enterprises across various sectors. 

Read more: Reuters

ECONOMY

🥷 Smuggling

India grapples with a significant gold smuggling problem, with an estimated 200 tonnes of gold, valued at over $1B, illegally entering the country annually. This represents about one-fourth of the total gold inflow and results in at least $20M in lost tax revenue. 

The issue, facilitated through innovative methods and predominantly air routes, poses multiple challenges for India, including regulatory enforcement, border control, and potential links to criminal networks. It also distorts the legal gold market and harms India's international reputation.

In response, Finance Minister Nirmala Sitharaman has announced a substantial reduction in import duties on gold and silver, aiming to boost retail demand and curb smuggling in the world's second-largest bullion market.

Here’s the TL;DR: 

• Reduction of import duties on gold and silver from 15% to 6%.

• New duty structure: 5% basic customs duty + 1% Agriculture Infrastructure & Development Cess.

The duty cut immediately impacted local gold prices, causing them to fall 6% to their lowest level in over three months. This price reduction is anticipated to boost consumption, which had been affected by record-high gold prices.

Industry experts welcome the move, with the World Gold Council's Indian CEO calling it a "massive step in the right direction." However, increased gold demand could potentially widen India's trade deficit and pressure the rupee.

The government also announced an import duty exemption for 25 critical minerals, including lithium, as India seeks to secure supplies for electric vehicle batteries.

Overall: Following the announcement, shares of major jewellery makers surged by up to 10%, reflecting positive market sentiment towards the policy change.

While this move is expected to boost domestic gold consumption, which had been affected by record-high prices, it could also widen India's trade deficit and pressure the rupee due to increased gold imports.

Read more: Reuters

GENERAL OVERVIEW

🗞️ Bite-sized summaries

❌ No more takeover - Cybersecurity startup Wiz has rejected a $23B takeover bid from Google's parent company, Alphabet, opting instead to pursue an initial public offering. The deal would have been Google's largest acquisition to date, doubling Wiz's $12B valuation from May. Wiz co-founder Assaf Rappaport cited antitrust and investor concerns as reasons for abandoning the deal. The company will now focus on achieving $1B in annual recurring revenue alongside its IPO plans. This decision comes amidst increased scrutiny of Big Tech acquisitions by antitrust regulators, with Google already facing two ongoing antitrust lawsuits over its search engine and digital advertising businesses.

🇺🇸 Secret Service director resigns after Trump assassination attempt - Kimberly Cheatle, the U.S. Secret Service director, has resigned following an assassination attempt on former President Donald Trump at a Pennsylvania rally. The incident, described as the agency's "most significant operational failure in decades", occurred despite prior warnings and identified vulnerabilities. Cheatle faced intense scrutiny and calls for resignation from lawmakers. The shooter got within 135 metres of Trump before being killed by agents. The event has prompted multiple investigations and an independent review ordered by President Biden. Cheatle, who had served since August 2022, took full responsibility for the security lapse in her resignation email to staff.

HEADLINES

🧑‍🍳 What else is cookin’?

What’s happening in India (and around the world 🌍️)

• ISRO conducts flight experiment of air-breathing propulsion system.

• India criticises Western ‘one-size-fits-all’ approach to tackling climate change.

• Govt to release financial sector vision, and strategy document for 5 years.

• India cuts development aid to Maldives amid strained relations, allocates highest for Bhutan.

• After protests, the Bangladesh government formally accepts the ruling on job quotas.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Bridgerton Season 4: Netflix reveals Benedict as lead, teases ‘The Masked Ball’ in new video.

• Joaquin Phoenix, Lady Gaga find love, create chaos in new ‘Joker 2’ trailer.

• Kartik Aaryan returns to comedy, signs Pati Patni Aur Woh 2.

• Andy Murray confirms he will retire from tennis after the 2024 Paris Olympics.