Category: Beyond

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Bitcoin faces sharp fall during market chaos

Bitcoin has fallen to its lowest level since the 2025 tariff shock, dropping roughly 7% to $76,500 before slightly recovering to $78,000, about 11% below early-year levels.

The decline highlights growing caution among investors as geopolitical tensions and expectations of tighter monetary policy weigh on markets.

Long seen as “digital gold,” Bitcoin is increasingly behaving like a risk-sensitive asset. The downturn has also affected major altcoins, prompting corporate and institutional investors to carefully reassess exposure and balance potential opportunities against market volatility.

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Viksit Bharat banking panel proposed in Union Budget

In her Union Budget 2026–27 speech, Finance Minister Nirmala Sitharaman announced the formation of a High-Level Committee on Banking for Viksit Bharat. The panel will conduct a comprehensive review of India’s banking sector and align it with the country’s long-term economic vision, especially towards 2047, the centenary of independence.

Sitharaman highlighted that India’s banks have made significant progress, demonstrating strong balance sheets, record profitability, better asset quality, and extensive financial coverage across the population. These achievements provide a solid foundation for further reforms.

The committee will focus on the banking sector’s structure, governance framework, credit delivery, technological adoption, risk management, and financial inclusion. Ensuring consumer protection while maintaining stability is also a priority.

The minister stressed that the panel’s recommendations will help design a reform roadmap for banks capable of supporting a larger, technology-driven economy, guiding future policy and regulatory decisions.

The budget also includes measures for non-banking financial companies (NBFCs), which are crucial in providing credit to underserved segments. It proposes restructuring major public sector NBFCs, including the Power Finance Corporation and Rural Electrification Corporation, to boost efficiency and scale.

Also Read: India extends GIFT City tax holiday to 20 years

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Seven new high‑speed rails announced in budget

The Union Budget 2026–27 unveiled an ambitious plan to build seven new high‑speed rail corridors, marking one of the largest infrastructure initiatives in recent years. Finance Minister Nirmala Sitharaman highlighted the corridors as a step toward faster, safer, and environmentally sustainable travel between India’s major cities.

The proposed routes include Mumbai–Pune, Pune–Hyderabad, Hyderabad–Bengaluru, Hyderabad–Chennai, Chennai–Bengaluru, Delhi–Varanasi, and Varanasi–Siliguri, covering nearly 4,000 kilometres in total. Officials describe these lines as “growth connectors,” expected to boost regional economic activity while reducing congestion on highways and flights.

The total estimated cost for these projects is ₹16 lakh crore, demonstrating the government’s focus on modernizing inter‑city transport. The corridors will slash travel times significantly; for example, Chennai to Bengaluru could take about 1 hour 15 minutes, while Bengaluru to Hyderabad may take around 2 hours.

The Budget allocates ₹2.93 lakh crore to Indian Railways, with ₹1.20 lakh crore earmarked for safety improvements, including advanced signalling systems, electrification, and automatic train protection technologies.

Alongside passenger corridors, the government announced a 2,052-km East–West Dedicated Freight Corridor connecting Dankuni in West Bengal with Surat in Gujarat, aimed at enhancing cargo efficiency and reducing congestion on passenger lines.

Also Read: Defence budget nears 2% of GDP, gets ₹7.85 lakh cr

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Defence budget nears 2% of GDP, gets ₹7.85 lakh cr

The Union Budget 2026-27 has delivered a strong push to India’s defence preparedness, with Finance Minister Nirmala Sitharaman announcing an allocation of ₹7.85 lakh crore for the Ministry of Defence. The outlay marks a 15 per cent increase over the previous year and brings defence spending close to 2 per cent of the country’s GDP, a level long recommended by strategic and military experts.

Defence continues to remain the single largest item in the Union Budget, accounting for nearly 15 per cent of total government expenditure. The increase reflects India’s intent to strengthen its armed forces amid evolving regional security challenges and rising geopolitical uncertainties.

A major highlight of the allocation is the sharp rise in capital expenditure, which is aimed at acquiring new platforms, weapons and military infrastructure. Around ₹2.19 lakh crore has been earmarked for modernisation, supporting purchases of fighter aircraft, aero engines, naval vessels and advanced equipment for the Army, Navy and Air Force.

The budget also reinforces the government’s commitment to Atmanirbhar Bharat in defence. Nearly three-fourths of the capital procurement budget has been reserved for domestic manufacturers, providing a strong boost to India’s defence industry and reducing reliance on imports. This move is expected to encourage private sector participation and strengthen defence exports.

Support for research and innovation has also been enhanced. Funding for the Defence Research and Development Organisation (DRDO) has been increased by about 9 per cent, underlining the focus on indigenous technology development and next-generation defence systems.

Apart from capital spending, a significant portion of the defence allocation will go towards revenue expenditure, including salaries, pensions, training, operations and maintenance, ensuring operational readiness and troop welfare.

Also Read: FedEx CEO warns of global trade shift

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India offers tax-free AI cloud incentive until 2047

The Union Budget 2026–27 unveiled a major tax incentive to attract foreign cloud providers and AI firms to India. Under the new policy, companies operating AI and cloud services from Indian data centres will pay zero corporate tax on revenues until 2047, provided they serve Indian customers through a locally incorporated reseller.

The government has also introduced a 15% safe-harbour tax regime for Indian data centre operators serving foreign clients. This ensures predictability for investors and encourages long-term infrastructure expansion. The measures are aimed at strengthening India’s digital backbone, boosting cloud and AI capacities, and making the country a global hub for advanced computing services.

Industry leaders have welcomed the move as a significant step to attract multinational technology firms to set up or expand data centre operations in India. Analysts predict that the policy could generate thousands of jobs, enhance technology transfer, and position India competitively against established AI and cloud markets in the US, Europe, and Asia.

However, experts have also flagged potential challenges, including ensuring sufficient power and water supply, handling cooling requirements, and streamlining regulatory approvals. The government will need to address these infrastructure and operational hurdles to make the policy fully effective.

By offering a 21-year tax holiday, India aims to provide certainty and long-term incentives for global firms to invest in local infrastructure, secure local market participation, and establish a durable technological presence.

This initiative is part of a broader push to expand India’s digital ecosystem, encourage private investment in data centres, and foster growth in emerging technologies such as AI, cloud computing, and machine learning.

Also Read: Oracle plans massive layoffs through AI funding crunch

 

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New Income Tax law from April to ease compliance

Income Tax Act, 2025, a comprehensive rewrite of the country’s six-decade-old tax law, will come into force on April 1, 2026, Finance Minister Nirmala Sitharaman announced in the Union Budget 2026–27. This legislation replaces the Income Tax Act, 1961, marking one of the most significant updates to India’s direct tax system in decades.

The new law is designed to simplify the tax system and reduce confusion for taxpayers, rather than alter existing tax rates. Individuals and businesses will continue under the same tax slabs and rates as before. The government says the overhaul will cut complexity, reduce litigation, and make tax compliance more intuitive. The Act uses clearer language, fewer provisions, and simpler processes to reduce ambiguity and make it easier for taxpayers to understand their obligations.

As part of the reforms, authorities will introduce updated tax forms and clear guidance ahead of implementation, allowing taxpayers to adjust to the changes smoothly. One major administrative change is the extension of deadlines for filing or revising Income Tax Returns (ITRs). The revision deadline has been moved from December 31 to March 31, with a small fee for late revisions, and different types of returns will have staggered filing timelines to ease the compliance burden.

Other taxpayer-friendly measures include lower Tax Collected at Source (TCS) rates for overseas education and travel-related payments, as well as simplified Tax Deducted at Source (TDS) procedures, particularly for smaller taxpayers and non-resident property transactions.

Also Read: Union Budget has growth, health, defence priorities

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Union Budget has growth, health, defence priorities

Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27 in Parliament on 1 February 2026, laying out a roadmap for economic growth, job creation, healthcare improvement, defence self-reliance, and tax simplification. The Budget seeks to maintain fiscal discipline while supporting investment-led development across key sectors of the economy.

At the macroeconomic level, the government has set the fiscal deficit target at 4.3% of GDP, reflecting its commitment to gradual fiscal consolidation. Total expenditure has been increased, with a strong focus on capital spending, which has been raised to a record ₹12.2 lakh crore, signalling a continued emphasis on infrastructure development and long-term productivity.

Infrastructure remains a central pillar of the Budget. The government announced the creation of seven high-speed rail corridors connecting major urban and industrial hubs to improve connectivity and reduce travel time. A new Dedicated Freight Corridor from Dankuni to Surat is expected to enhance cargo movement, making trade faster and more cost-efficient. The development of 20 National Waterways aims to expand inland shipping and reduce the environmental impact of transport, while urban metro networks, road projects, and multimodal transport hubs will enhance last-mile connectivity. These investments are expected to generate employment and boost the efficiency of supply chains across the country.

The Union Budget also places strong emphasis on manufacturing and strategic industries. The India Semiconductor Mission 2.0 was announced to expand domestic chip manufacturing, research, and design capabilities, supporting India’s push for technological self-reliance. To reduce dependence on imports, Rare Earth Corridors will be developed in mineral-rich states, supporting clean energy, electronics, and defence industries. Additionally, the ₹10,000 crore Biopharma Shakti initiative seeks to position India as a global hub for biopharmaceuticals, with investments in vaccine production, biologics, and essential medicines. Measures to modernize textiles, container manufacturing, industrial parks, and promote startups are expected to generate employment and enhance exports.

Healthcare and social development received significant attention in the Budget. Expansion of cancer care infrastructure and early detection programmes was announced to improve access to treatment. Mental health services will be strengthened through district-level facilities, integration into primary healthcare, and expanded counselling and emergency support. The Budget also proposes the establishment of three new All India Institutes of Ayurveda to promote research, education, and the global outreach of AYUSH. Additional support has been allocated to public hospitals, life-saving medicines, and emergency care facilities, reflecting a comprehensive approach to health and wellness.

Defence and national security continue to be priorities. The Budget allocates higher funding for domestic defence manufacturing, research and exports under the ‘Make in India’ framework. Development of defence corridors and public-private partnerships is expected to reduce import dependence and strengthen India’s strategic autonomy.

The government has also taken measures to support farmers, rural communities, and MSMEs. Initiatives to improve productivity, promote high-value crops, strengthen fisheries, and enhance irrigation have been outlined, along with the use of digital platforms to improve access to markets and credit for farmers. MSMEs and startups are set to benefit from a proposed ₹10,000 crore Growth Fund, simplified compliance processes, and easier access to credit.

On the taxation front, the Budget introduces relief and simplification. A new Income Tax Act, effective from April 2026, will streamline forms and filing processes. Deadlines for revised returns have been extended, and penalties for minor defaults reduced. TCS rates on overseas education, medical treatment, and foreign travel have been lowered to 2%, while the Minimum Alternate Tax for companies has been cut to 14%. Tax incentives have also been provided to foreign cloud service providers operating from Indian data centres to attract investment in the digital economy.

The Union Budget 2026–27 seeks to balance fiscal prudence with growth-oriented reforms, focusing on infrastructure, manufacturing, healthcare, defence, rural development, and tax simplification.

Also Read: Sensex up over 100 points, Nifty above 24,800

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Gold at ₹1,60,570, Silver slides to ₹3,49,900

Gold and silver prices remained weak on 2 February 2026, extending losses after a sharp correction from recent record levels amid volatile market conditions.

On the Multi Commodity Exchange (MCX), gold traded lower at ₹1,60,570 per 10 grams, slipping further as investors continued to book profits. Silver prices also declined to ₹3,49,900 per kilogram, reflecting sustained selling pressure following last week’s steep rally.

The decline comes after both metals touched historic highs, driven by strong global cues and safe-haven demand. However, the rapid rise was followed by an equally sharp pullback as traders chose to lock in gains, triggering heavy volatility across commodity markets.

The sell-off spilled over into the equity segment as well. Gold and silver exchange-traded funds (ETFs) extended their losses, with silver ETFs bearing the brunt of the fall. Some silver-linked funds dropped close to 20 per cent, while gold ETFs fell by up to 10–11 per cent, mirroring the sharp correction in underlying prices.

Market analysts attributed the weakness to profit-taking, global uncertainty and movements in the US dollar, which tends to influence prices of dollar-denominated commodities. They noted that prices had risen sharply in a short period, making a correction unavoidable.

Also Read: Sensex up over 100 points, Nifty above 24,800

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US offers Venezuelan oil as India cuts Russia

The United States has approached India with a proposal to explore crude oil imports from Venezuela as New Delhi steadily cuts back on purchases from Russia, sources said. The move comes amid changing global energy flows, rising geopolitical pressures and India’s ongoing efforts to diversify its oil supply basket.

India significantly increased Russian oil imports after the Ukraine war in 2022, taking advantage of lower prices. At one point, Russian crude accounted for nearly 40% of India’s total oil imports, with volumes touching around 1.2 million barrels per day (bpd). However, this trend is now reversing. Imports from Russia are expected to decline to about 1 million bpd in February and further to nearly 800,000 bpd by March 2026. Officials indicate that volumes could fall even further in the coming months.

The U.S. outreach is closely linked to trade and tariff concerns. Washington has imposed higher tariffs on countries importing Venezuelan oil, while also tightening trade measures on nations continuing large purchases of Russian crude. India has been among the countries affected by these tariff actions. By proposing Venezuelan oil as an alternative, the U.S. is seeking to reduce India’s reliance on Russian supplies while reshaping energy partnerships.

The offer also reflects a shift in Washington’s approach towards Venezuela following recent political developments there. The U.S. has indicated that Indian refiners could resume buying Venezuelan crude, which had largely stopped in recent years due to sanctions and payment challenges. Venezuelan oil, known for its heavy grade, is suitable for several Indian refineries configured to process such crude.

It is still unclear whether supplies would come directly from Venezuela’s state-run oil company PDVSA or through global commodity traders. Indian refiners are evaluating options based on pricing, logistics and long-term supply stability.

Meanwhile, India has already begun broadening its crude sourcing strategy. As Russian imports decline, refiners have increased purchases from the Middle East, Africa and South America. Recent data show Russian oil shipments to India have dropped to their lowest level in nearly two years, while the share of OPEC crude in India’s overall imports has risen sharply.

The petroleum ministry has reiterated that India’s primary focus remains energy security and affordability. Officials stress that sourcing decisions are driven by commercial considerations and global market conditions.

Also Read: Google India profit ₹1,437 cr as revenue falls 3.2%

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Rupee up 9 paise after record low ₹92

The Indian rupee recovered slightly on Friday after falling to its weakest level in history against the US dollar. It gained 9 paise to trade around ₹91.90 per dollar, supported by a decline in global crude oil prices, which eased some pressure on India’s import bill.

Earlier in the session, the rupee touched an all-time low of ₹92.02 per dollar. Traders said the intraday rebound was due to lower crude and commodity prices, which reduced immediate demand for dollars from importers. By the close of the day, the rupee settled near ₹91.97–₹91.93, showing a modest recovery.

Despite the short-term gains, the currency remains under pressure. The US dollar remains strong, and foreign portfolio investors (FPIs) continue to withdraw money from Indian equities, keeping overall market sentiment cautious. Analysts said sustained capital outflows and corporate demand for dollars are key reasons behind the rupee’s weakness.

January has been particularly challenging for the currency, with the rupee falling more than 2%, marking its worst monthly performance in over three years. The Reserve Bank of India (RBI) has intervened at times to prevent further sharp declines and curb volatility.

Market watchers are now looking ahead to the upcoming Union Budget, which could influence investor sentiment and currency trends. While falling oil prices provide some relief, experts say the rupee’s trajectory will largely depend on foreign investment flows and the global dollar trend in the coming weeks.

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