Rupee gains 6 paise to 74.68 against U.S. dollar in early trade
The Hindu
On February 8, the domestic unit settled at 74.74 against the U.S. dollar
The rupee appreciated 6 paise to 74.68 against the U.S. dollar in the opening trade on February 9, supported by firm domestic equities and weak American currency.
At the interbank foreign exchange, the rupee opened at 74.70 against the American dollar and then inched higher to quote 74.68, registering a rise of 6 paise from the last close.
On February 8, the domestic unit settled at 74.74 against the U.S. dollar.
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The Union Budget unveiled on February 1, 2025, has come at a time of unprecedented global uncertainty and a flagging domestic economy. The real GDP growth is estimated at 6.4% for 2024-25 and between 6.3-6.8% for 2025-26, a far cry from >8 percent growth required annually to make India a developed nation by 2047. While much attention has been devoted to the demand stimulus through income tax cuts, not enough is said about the proposed reforms in urban development, tariff rationalisation, and regulatory simplification aimed at making Indian cities and corporates more competitive. Since the majority of economic activity is located in cities (urban areas account for ~55% of GDP) and produced by large corporates (~40% of the national output and 55% of India’s exports), the above-mentioned reforms have a pivotal role in improving India’s trend growth rate. Below we unpack each reform.