Don't want you building in India, Trump tells Apple CEO: Report
US President Donald Trump has claimed that he spoke with Apple CEO Tim Cook and asked him not to expand Apple's production in India, reported Bloomberg.'We're not interested in you building in India. They can take care of themselves, they are doing very well," Trump told the Apple CEO at a business event in Doha, as quoted by Bloomberg.Trump said that following his conversation, Apple will be increasing its production in the United States. He did not share further details about the outcome of the discussion or any changes in Apple's plans in India.Trump's remarks came just days after India threatened to impose retaliatory tariffs on the US. This was in response to the US raising duties on Indian steel and aluminium exports.Despite the recent tensions, people familiar with the matter told Bloomberg that trade talks between India and the US are still ongoing. Negotiations are continuing, and both countries are working towards reaching agreements.TRUMP CLAIMS INDIA OFFERED ZERO TARIFFS ON US GOODSDuring the same speech in Doha, Trump also said that India had made an offer to remove tariffs on US goods. 'They are willing to literally charge us no tariff,' he said, without offering specific details of the offer.India and the US began formal trade talks after Prime Minister Narendra Modi visited the White House in February. At the time, both sides had agreed to complete the first phase of a trade agreement by the autumn. India's trade minister is expected to visit the US between May 17 and 20 for more meetings with US officials, according to the Bloomberg report.WIDER CONTEXT OF TRADE AND DIPLOMACYTrump's comments come during a time of mixed signals in the relationship between India and the US. According to Bloomberg, Indian officials have grown frustrated over Trump's recent public remarks. These included his announcement of a ceasefire between India and Pakistan and his suggestion that trade was used as a bargaining tool to help stop the military conflict between the two nations.Indian officials have denied that trade matters were linked to talks over the military situation with Pakistan. No details have been officially released from either side confirming whether these issues were discussed together.Apple has been steadily increasing its manufacturing presence in India over the last few years.The company makes several iPhone models in the country through contract manufacturers such as Foxconn and Wistron. These efforts have been in line with India's goal to attract more foreign investment in electronics and reduce reliance on imports.Trending Reel
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Hindustan Times
13 minutes ago
- Hindustan Times
Terms of Trade: Economic dogma won't do the world any good
2025 is going to be the worst year for global GDP growth since 2008 barring the recessions of 2008 and 2020, the World Bank's latest estimates say. The Bank has also said that per capita income convergence between the global south (EDMEs in Bank's technical parlance) and the advanced economies has almost stalled if one were to take out India and China. This is going to have serious repercussions for poverty reduction and employment generation in parts of the world where the population is expected to grow the most in the future. China's population is already declining and India is now below replacement levels of fertility. That this is happening at a time when advanced economies are themselves growing at a slower rate speaks volumes about the nature of the crisis. In the advanced economies, the economic crisis has now reached a different stage where nothing seems to be working. The political aspiration for a break from the globalisation consensus has brought in regimes which can only think of banning movement of both goods and people. Both of these threaten to inflict a serious supply shock to these countries, especially the US, and will likely inflict more pain than gain for even the underclass. This is exactly why even union leaders are physically resisting government agents out to deport illegal foreign workers in places like California. How did we reach this quagmire and is there a way out of it? The institutions which are expected to take a lead in resolving this situation seem to be delivering homilies rather than actual solutions. The Bank's latest Global Economic Prospects which flagged the statistical trends described above, for example, prescribes a three-pronged way out of the crisis: more trade liberalisation, more fiscal discipline and more employment generation. If the advanced economies are feeling a political pressure to shut their doors to Global South's exports rather than have more of them and if the rich countries are going to be diverting their funding from things such as climate finance and other kinds of development assistance towards defence spending and tax breaks for their citizens and companies, how exactly are non-rich countries expected to even pursue trade liberalisation and fiscal prudence? What is more important to keep in mind, and the Bank's latest report does an extremely good job of flagging it, is that things weren't exactly great even before Trump threw his MAGA 2.0 spanner in the wheels of the global economy. The euphoria surrounding globalisation and its benefits started losing steam in the aftermath of the 2008 global financial crisis which is now almost two decades behind us. Trump 2.0 and the rise of right-wing populism in many high-income counties is only a manifestation of this trend gaining political momentum. The key to solving this problem is not to prescribe do what we were doing before 2008 but to ask how 2008 happened? The root of the 2008 crisis lay in the state turning a blind eye to toxic financial innovation because it helped create demand without purchasing power (directly in the housing market and indirectly in the entire economy) in the world's largest economy, namely, the US. Too bad that the entire thing came crashing down. Everything else, the derailment of the income convergence journey of the Global South included, follows from there. While China managed to grow into an even bigger economic and technological giant (the latter is especially pronounced after the 2008 crisis) by making it a zero-sum game for a while, the situation seems to have become one where it is no longer tenable from at least the US's perspective. Also Read: GDP numbers a cause for worry So, what is to be done? Three key contradictions need to be worked upon. There is no doubt that free trade has created a large consumer surplus in terms of goods and services being produced or offered in the most cost-effective locations. However, the distribution of this surplus within the advanced countries needs to be examined far more critically than it has been so far. Trying to handle this contradiction by an ad infinitum reiteration of a doctrinaire defence of free trade is tantamount to asking the working class in the first world to accept that it should travel in the boot of a more expensive car and be happy about the car being better whereas it used to be on the passenger seat in a cheaper car before globalization took away their jobs. The best way to solve this problem is perhaps not to force companies to relocate production back to the rich countries. This is like throwing the baby out with the bathwater. What is more important is to rejig the surplus sharing arrangement between companies who are benefitting from such relocation and the workers who are now just consumers without stable and well paying jobs. This is one place where the MAGA coalition (although not necessarily Trump) actually has some valid points such as going after vested interests in American capitalism. The third, and perhaps the most provocative of the lot, is actually outside the realm of the economic. This was appropriately flagged in Gerard Baker's Free Expression column in the Wall Street Journal this week. 'The (Trump) Musk divorce is symbolic of the tension at the heart of the new Republican coalition. Mr. Trump's working- and middle-class multiethnic alliance is driving the highly successful cultural counter revolution on the border, race, sex and national security. But those same voters are none too keen on Mr. Musk's free-market approach to trade, migration, taxes and spending,' he wrote. Also Read: Riding high on the growth momentum The problem is best explained by borrowing from economic theory. Keynes, who is rightly considered the biggest modern economist in the world, earned this place because he convinced the world and policy making economists that their belief in the Say's Law (supply creating its own demand) was wrong. While economists learnt this lesson almost a century ago, politicians across the world, more so in the advanced world seem to be fixated on a Say's law of liberalism which is making them believe that ethnic, racial or other cultural tensions including a backlash against woke politics can be taken care of by pretending that they do not exist. The fight against the Say's law of economics – which is what the dogmatic defenders of globalisation are selling us – cannot be fought without getting rid of the misplaced belief in what can be described as Say's law of liberalism. Can the world get a politician who can take on both these dogmas? This is what will determine our fate in the days to come.
Time of India
13 minutes ago
- Time of India
Employee gets called out by the manager for viewing a senior's LinkedIn profile, asks, 'Am I wrong'?
In a surprising incident at an Indian workplace, an employee found himself at the receiving end of a senior's disapproval, all for simply viewing a colleague's LinkedIn profile. Sharing his experience on the subreddit Indian Workplace, the individual described how he had only browsed the profile of a senior team member. He had not interacted in any direct way—no messages, no connection requests—just a casual profile visit. However, the aftermath of this action came unexpectedly. The employee recounted receiving a sarcastic, passive-aggressive remark, implying that his behavior was inappropriate or invasive. Confused and slightly unsettled, he questioned whether such behavior could be deemed wrong in a professional setting. After all, LinkedIn is a networking platform where professionals are meant to explore each other's career journeys. The platform itself even highlights who's viewed one's profile—unless the viewer has intentionally chosen private browsing. This transparency led the employee to believe that what he had done was both normal and accepted in a workplace environment. Yet the reaction from his senior left him puzzled and wondering whether he had unknowingly crossed an invisible line. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Secure Your Child's Future with Strong English Fluency Planet Spark Learn More Undo The post soon gained traction on Reddit, with several users chiming in to support him. One user sarcastically remarked that if viewing a LinkedIn profile was inappropriate, professionals should just delete their accounts or mark all their experience as 'confidential.' Another pointed out that LinkedIn is, by design, a professional social platform made for looking up career histories and making connections. Some comments went deeper, hinting at a possible power dynamic in play. One user speculated that the senior's behavior could stem from insecurity or a need to assert control, especially if the person had a history of belittling others. The comment suggested that the senior might be using minor issues to demoralize colleagues simply to feel superior, possibly due to dissatisfaction in their own career. Others encouraged the original poster not to be discouraged or second-guess himself. They emphasized that using LinkedIn to browse profiles is entirely acceptable and is part of the reason the platform exists. The advice extended to reassuring him that he hadn't done anything wrong and that such awkward interactions are sometimes just a reflection of workplace toxicity rather than personal fault. Overall, the incident highlighted a broader issue—how workplace hierarchies and unspoken social rules can sometimes make even simple, acceptable actions feel like missteps. But in this case, public opinion strongly leaned in favor of the employee, validating that curiosity and professionalism don't need permission.
Indian Express
13 minutes ago
- Indian Express
RBI Explained – History, tools of monetary policy, and surplus transfer
UPSC Issue at a Glance is an initiative by UPSC Essentials aimed at streamlining your preparation for the prelims and mains examinations by focusing on current issues making headlines. Every Thursday, cover a new topic in a lucid way. This week we take you through the history, functions, monetary policy instruments and arrangements between the Reserve Bank of India and the government. Let's get started. If you missed the previous UPSC Issue at a Glance | India's Linguistic Landscape: From constitutional safeguards to endangered languages from the Indian Express, read it here. The Reserve Bank of India's six-member Monetary Policy Committee (MPC) has slashed the repo rate by a bigger-than-expected 50 basis points to 5.50 per cent, marking the third consecutive reduction since February 2025. Additionally, the Board of the RBI on May 23 approved a record surplus transfer, or dividend, of Rs 2.69 lakh crore to the Central Government for the accounting year 2024-25. It followed a meeting of the central board of directors of the RBI on May 15. In this context, it becomes essential to know about the RBI and its monetary policy comprehensively and understand how the relationship between the RBI and the government has evolved in the backdrop of the transfer of the RBI's surplus. (Relevance: UPSC Examination General Studies-III: Current events of national and international importance, Indian economy and issues relating to planning, mobilisation of resources, growth, development and employment. Every aspect of the RBI, from its origin, structure, and key functions to its evolving policies, holds importance for UPSC CSE. Previously, several questions have been asked on this topic. This year's UPSC Prelims also had a question on the RBI's functions (do check it in the post-read questions), which presents the RBI as an evergreen topic in the economy section that aspirants must prepare comprehensively.) The Reserve Bank of India is a central bank of India. While central banks in developed countries can be traced as far back as the 17th century, among developing countries, the Reserve Bank of India, established on April 1, 1935, is one of the oldest such institutions. It was established in accordance with the provisions of the Reserve Bank of India Act, 1934. The first Governor of the RBI was the Australian Sir Osborne Arkell Smith, one of the two managing governors of the Imperial Bank of India. Sir C. D. Deshmukh was the first Indian to become Governor of the RBI. The Central Office of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937. Following Partition, it was agreed that the RBI would cease to be the currency authority for Pakistan, and Indian notes would cease to be legal tender in Pakistan. Though originally privately owned, since nationalisation in 1949, the Reserve Bank has been fully owned by the Government of India. Functions of RBI Since it came into existence, RBI has navigated and managed the several transitions the country has undergone — from a time when the planning process held sway to a more market-orientated economy and now an increasingly digital economy. Notably, the Preamble of the RBI describes the basic functions of the Reserve Bank as 'to regulate the issue of banknotes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy; and to maintain price stability while keeping in mind the objective of growth.' In simple terms, the RBI is responsible for monetary stability, currency management, inflation targeting, regulating the banking system, setting interest rates, and managing the currency and payment systems. Monetary policy refers to the use of monetary instruments under the control of the central bank to influence variables, such as interest rates, money supply and the availability of credit, with a view to achieving the objectives of the policy. The monetary policy is used by the RBI to maintain price stability while keeping in mind the objective of growth. Notably, in May 2016, the RBI Act was amended to provide a legislative mandate to the central bank to operate the country's monetary policy framework. The framework, according to the RBI website, 'aims at setting the policy (repo) rate based on an assessment of the current and evolving macroeconomic situation and modulation of liquidity conditions to anchor money market rates at or around the repo rate.' Instruments of Monetary Policy Various direct and indirect instruments are used by the RBI for implementing monetary policy, including Repo Rate, Reverse Repo Rate, Marginal Standing Facility (MSF) under the Liquidity Adjustment Facility (LAF), Bank Rate, Cash Reserve Ratio (CRR), Open Market Operations (OMOs) and Market Stabilisation Scheme (MSS). 📌 Liquidity Adjustment Facility (LAF): The LAF refers to the RBI's operations through which it injects or absorbs liquidity into or from the banking system. LAF is a facility extended by RBI to the scheduled commercial banks (excluding regional rural banks) and primary dealers to avail of liquidity in case of a requirement or park excess funds with RBI in case of excess liquidity on an overnight basis against the collateral of G-Secs, including state development loans (SDLs). 📌 Repo Rate: It is the interest rate at which the Reserve Bank provides overnight liquidity to banks against the collateral of government and other approved securities under the LAF. It is the policy rate decided by the Monetary Policy Committee (MPC). 📌 Reverse Repo Rate: It is the interest rate at which the Reserve Bank absorbs liquidity, on an overnight basis, from banks against the collateral of eligible government securities under the LAF. 📌 Marginal Standing Facility (MSF) Rate: It is the rate at which a bank can borrow, on an overnight basis, from the RBI in an emergency situation when inter-bank liquidity dries up completely. It is typically placed at 25 basis points above the policy repo rate. 📌 Standing Deposit Facility (SDF) Rate: It is the rate at which the RBI, on an overnight basis, accepts uncollateralised deposits from all liquidity adjustment facility (LAF) participants. The SDF is also a financial stability tool in addition to its role in liquidity management. It was introduced in 2022 to replace the fixed-rate reverse repo (FRRR) as the floor of the liquidity adjustment facility corridor. 📌 Main Liquidity Management Tool: To manage the frictional liquidity requirements, a 14-day term repo/reverse repo auction operation at a variable rate is conducted to coincide with the cash reserve ratio (CRR) maintenance cycle. 📌 Bank Rate: In case of shortfalls in meeting the reserve requirements (cash reserve ratio and statutory liquidity ratio) by the banks, the Reserve Bank provides to buy or rediscount bills of exchange or other commercial papers at a rate which is called 'bank rate'. 📌 Cash Reserve Ratio (CRR): It is the percentage of a bank's net demand and time liabilities (NDTL) that is required to be maintained in liquid cash with the RBI as a reserve. The RBI determines the CRR percentage from time to time. 📌 Statutory Liquidity Ratio (SLR): Every bank is required to maintain Indian assets, the value of which shall not be less than such a percentage of the total of its demand and time liabilities in India as of the last Friday of the second preceding fortnight, in the form of liquid cash, gold, and government and state government securities. 📌 Open Market Operations (OMOs): These include outright purchases or sales of government securities by the Reserve Bank for injection or absorption of durable liquidity in the banking system. 📌 Market Stabilisation Scheme (MSS): This instrument for monetary management was introduced in 2004. Surplus liquidity of a more enduring nature arising from large capital inflows is absorbed through the sale of short-dated government securities and treasury bills. Depending upon the nature of the surplus liquidity (long-term/short-term), the securities under MSS (long-term dated securities/short-term CMBs) are issued. The cash so mobilised is held in a separate government account with the Reserve Bank. Monetary Policy transmission through the Repo Rate According to the official site of the RBI, 'Monetary transmission is the process through which monetary policy impulses in the form of policy rate changes by a central bank are transmitted to the entire spectrum of interest rates, such as money market rates, bond yields, bank deposit and lending rates and asset prices, such as stock prices and house prices.' Let's understand how the repo rate change affects the liquidity in the economy and transmits the objective of the monetary policy. When the RBI wants to encourage economic activity in the economy, it reduces the repo rate. Doing this enables commercial banks to bring down the interest rates they charge (on their loans) as well as the interest rate they pay on deposits. This, in turn, incentivises people to spend money, because keeping their savings in the bank now pays back a little less, and businesses are incentivised to take new loans for new investments because new loans now cost a little less as well. When the RBI wants to control inflation, it increases the repo rate. Banks thus have to pay more interest to borrow from the RBI, which means they will charge more interest to their borrowers. At a macro level, this inhibits people from borrowing money as well as from spending, which in turn reduces the amount of money in the market, and thus negates inflation. Monetary Policy Committee Under Section 45ZB of the amended RBI Act, 1934, the central government is empowered to constitute a six-member Monetary Policy Committee (MPC) to determine the policy interest rate required to achieve the inflation target. It lays down that 'the Monetary Policy Committee shall determine the Policy Rate required to achieve the inflation target', and that 'the decision of the Monetary Policy Committee shall be binding on the Bank'. The first such MPC was constituted on September 29, 2016. Section 45ZB says the MPC shall consist of the RBI Governor as its ex officio chairperson, the Deputy Governor in charge of monetary policy, an officer of the Bank to be nominated by the Central Board, and three persons to be appointed by the central government. The last category of appointments must be from 'persons of ability, integrity and standing, having knowledge and experience in the field of economics or banking or finance or monetary policy'. (Section 45ZC) The MPC is required to meet at least four times per year. The MPC meets with a quorum of four members. Each member of the MPC has one vote, and in the event of an equality of votes, the Governor has a second or casting vote. Do you know who the members of the RBI's Monetary Policy Committee (MPC) are? In 2017, UPSC asked a question on it. Do check it in the post-read questions. Both monetary policy and fiscal policy serve as critical tools for managing the economy of our country; thus, it becomes crucial to understand the differences between these policies for comprehending how economic decisions are made and impact various sectors. One key distinction between monetary and fiscal policy lies in their implementation authorities and tools. Monetary policy is formulated and implemented by the RBI, which primarily focuses on regulating the money supply, interest rates, and inflation levels. The RBI uses monetary policy instruments such as the repo rate to manage liquidity in the financial system. On the other hand, the government makes decisions pertaining to fiscal policy, and the Ministry of Finance plays a central role in formulating budgets, tax policies, and expenditure plans. The government employs fiscal policy to manage aggregate demand, promote growth, and address socioeconomic challenges. Additionally, monetary policy tends to affect borrowing costs and financial markets more immediately, which affects investment and consumption patterns. Fiscal policy measures, on the other hand, such as tax reforms or infrastructure spending, may have longer-term and more extensive effects on economic development and growth. An independent central bank plays a critical role in the macroeconomic management of the country. Coordination between monetary and fiscal policies is critical for the economy and for creating a 'Viksit Bharat'. — Express View on 90 years of RBI The RBI as a central bank is not only mandated to keep inflation or prices in check through monetary policy, but it is also supposed to manage the borrowings of the Government of India and state governments; supervise or regulate banks and non-banking finance companies; and manage the currency and payment systems While carrying out these functions or operations, the RBI registers profits. Generally, the central bank's income comes from the: (i) Returns earned on its foreign currency assets, which could be in the form of bonds and treasury bills of other central banks or top-rated securities, and deposits with other central banks. (ii) Interest on its holdings of local rupee-denominated government bonds or securities, and while lending to banks for very short tenures, such as overnight. (iii) It claims a management commission on handling the borrowings of state governments and the central government. Whereas, RBI's expenditure is mainly on the printing of currency notes and staff, besides the commission it gives to banks for undertaking transactions on behalf of the government across the country, and to primary dealers, including banks, for underwriting some of these borrowings. As the RBI isn't a commercial organisation like the banks or other companies that are owned or controlled by the government – it does not, as such, pay a 'dividend' to the owner out of the profits it generates. Although the RBI was promoted as a private shareholders' bank in 1935 with a paid-up capital of Rs 5 crore, the government nationalised it in January 1949, making the sovereign its 'owner'. What the central bank does, therefore, is transfer the 'surplus' – that is, the excess of income over expenditure – to the government, in accordance with Section 47 (Allocation of Surplus Profits) of the Reserve Bank of India Act, 1934: After making provision for bad and doubtful debts, depreciation in assets, contributions to staff and superannuation fund [and for all other matters for which] provision is to be made by or under this Act or which are usually provided for by bankers, the balance, of the profits shall be paid to the Central Government. The Central Board of the RBI does this in early August, after the July-June accounting year is over. Malegam committee In 2013, a technical committee of the RBI Board, headed by Y. H. Malegam, reviewed the adequacy of reserves and a surplus distribution policy and recommended a higher transfer to the government. Earlier, the RBI transferred part of the surplus to the Contingency Fund, to meet unexpected and unforeseen contingencies, and to the Asset Development Fund, to meet internal capital expenditure and investments in its subsidiaries, in keeping with the recommendation of a committee to build contingency reserves of 12% of its balance sheet. But after the Malegam committee made its recommendation, in 2013-14, the RBI's transfer of surplus to the government as a percentage of gross income (less expenditure) shot up to 99.99% from 53.40% in 2012-13. (1) Which of the following are the sources of income for the Reserve Bank of India? (UPSC CSE 2025) I. Buying and selling Government bonds II. Buying and selling foreign currency III. Pension fund management IV. Lending to private companies V. Printing and distributing currency notes Select the correct answer using the code given below. (a) I and II only (b) II, III and IV (c) I, III, IV and V (d) I , II and V (2) If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do? (UPSC CSE 2020) 1. Cut and optimize the Statutory Liquidity Ratio 2. Increase the Marginal Standing Facility Rate 3. Cut the Bank Rate and Repo Rate Select the correct answer using the code given below: (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 (3) Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? (UPSC CSE 2017) 1. It decides the RBI's benchmark interest rates. 2. It is a 12-member body including the Governor of RBI and is reconstituted every year. 3. It functions under the chairmanship of the Union Finance Minister. Select the correct answer using the code given below : (a) 1 only (b) 1 and 2 only (c) 3 only (d) 2 and 3 only (Sources: 90 years of the RBI, Knowledge Nugget: RBI's Monetary policy instruments, , RBI approves record transfer 'surplus' to govt: Why does this transfer happen, and how?) Subscribe to our UPSC newsletter. Stay updated with the latest UPSC articles by joining our Telegram channel – Indian Express UPSC Hub, and follow us on Instagram and X. 🚨 Click Here to read the UPSC Essentials magazine for May 2025. Share your views and suggestions in the comment box or at
