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Donald Trump, the United States' president-elect, has once again fired a warning shot at India over its high tariffs on American goods. This latest warning comes months after Trump called India a “very big abuser” of tariffs, highlighting the persistent friction in the US-India trade dynamic.Reiterating his intention to impose reciprocal tariffs, Trump said Monday, “Reciprocal. If they tax us, we tax them the same amount. They tax us. We tax them. And they tax us. Almost in all cases, they're taxing us, and we haven't been taxing them.” This firm stance underscores Trump's broader strategy of ensuring parity in trade deals, a hallmark of Trump’s policies during his presidency from 2017 to 2021.Also Read: Trump says India charges a lot of tariff, threatens to impose reciprocal taxIndia, known for its protectionist measures, has often faced criticism for imposing high tariffs on American imports. In his latest comments, Trump specifically cited India and Brazil as nations with exorbitant tariffs, saying, “The word reciprocal is important because if somebody charges us—India, we don’t have to talk about our own—if India charges us 100 per cent, do we charge them nothing for the same?”During a news conference at Mar-a-Lago, Trump remarked that when other countries, such as India and Brazil, send a bicycle to the U.S., they impose high charges, often around 100 or 200. He stated that if they want to impose such fees, the U.S. would respond by charging them the same in return.This isn’t the first time Trump has flagged India’s tariffs. Trump has earlier referred to India as the "tariff king," citing specific cases like the high import duties on Harley-Davidson motorcycles. While India subsequently reduced these tariffs, Trump remained critical, stating, “India charges a lot.”Trump and India: A history of taiff tensionsUnder Trump’s first presidency, India-US trade relations were a mixed bag. While strategic ties flourished, the trade partnership faced significant hurdles. In 2019, India imposed retaliatory tariffs on several U.S. products after the US increased duties on steel and aluminum imports. Trump responded by withdrawing India’s preferential trade treatment under the Generalized System of Preferences (GSP), a move that impacted India’s exports to the US.India’s import and export relationship with the US is substantial. In 2023-24, imports from the US stood at $42.2 billion, while exports to the US reached $77.52 billion, making America India’s largest export destination. Any disruption in this trade flow could have significant economic implications for India, particularly for key sectors like IT, pharmaceuticals, and textiles.Trump 2.0: The likely impact on Indian tradeThe Trump administration, once in power, is likely to adopt US-centric trade policies, pushing India to lower its trade barriers. Howard Lutnick, Trump’s pick for Commerce Secretary, emphasised this approach, saying, “How you treat us is how you should expect to be treated.”This strategy could create challenges for India but may also offer opportunities. For instance, if Trump raises tariffs on Chinese goods, Indian exporters could step in to fill the gap in the US market. Historically, during Trump’s trade war with China, India benefited from an increased demand for its products as American companies sought alternatives to Chinese suppliers.Also Read: Should 'abuser' India expect trade twist after Donald Trump's election win?India must tread carefully though. Trump’s focus on “reciprocity” could lead to higher tariffs on Indian exports, making them less competitive in the lucrative US market. This would particularly affect industries like IT and textiles, which rely heavily on American customers. Moreover, the threat of tariffs could deter American companies from investing in India, potentially stalling the country’s economic growth.During Trump’s previous presidency, his administration’s tough stance on trade cost India its preferential trade status. The possibility of similar moves under a Trump 2.0 administration looms large, especially if India doesn’t address US concerns about market access and tariff barriers.Also Read: Trump’s trump card can actually aid India’s growthAny silver lining for India-US trade relation?Despite trade tensions, Trump’s first term saw a deepening of India-US strategic ties. Events like “Howdy Modi” in Houston and “Namaste Trump” in India showcased the growing camaraderie between the two nations. Both Trump and Indian Prime Minister Narendra Modi shared a common view of China as a strategic threat, which helped align their policies in the Indo-Pacific region.This alignment could work in India’s favor if Trump returns to power. A strong US-India partnership in defense and geopolitics could offset some of the trade-related tensions. However, India must be prepared to negotiate hard to safeguard its economic interests while leveraging its strategic importance to the US.India’s path forward requires a delicate balancing act. On one hand, it must protect its domestic industries through tariffs and other measures; on the other, it must ensure that its trade policies don’t alienate its largest export market.One way to achieve this balance could be through targeted tariff reductions and greater market access for American goods, which might help de-escalate tensions. At the same time, India should push for reciprocal concessions from the US, such as restoring its GSP status.Also Read: Trump 2.0: India braces for tough choices on Visas, Bangladesh and ChinaAdditionally, India must focus on diversifying its export markets to reduce its dependence on the US. Strengthening trade ties with other nations and regions could provide a buffer against any potential fallout from a US-centric trade policy under Trump.Donald Trump’s latest warning to India serves as a reminder of the challenges and opportunities that lie ahead. While his rhetoric on tariffs is concerning, it also presents India with an opportunity to recalibrate its trade strategies and strengthen its economic fundamentals.

The Securities and Exchange Board of India (SEBI) is expected to hold a crucial board meeting today, 18th December 2024, to discuss significant regulatory reforms, including tightening regulations for small and medium enterprise (SME) IPO listings and expanding insider trading norms, sources told ET Now.SME ListingOne of the key areas of focus is the SME listing framework. SEBI is considering reforms to enhance transparency and investor protection in this segment. Suggestions received in response to SEBI’s November 2024 consultation paper include increasing the minimum application size from the current Rs 1,00,000 to either Rs 2,00,000 or Rs 4,00,000 and introducing a draw-of-lots methodology for High Net-Worth Individuals (HNI) or Non-Institutional Investors (NII).Additionally, the NII category may be segmented into small and large investors. To limit promoter exits, the Offer for Sale (OFS) portion might be capped at 20%-25% of the total issue size, while the minimum number of allottees could be increased to 200 from the existing 50. These measures are aimed at making the SME listing process more robust and investor-friendly.Insider TradingAnother important topic on the agenda is the potential expansion of insider trading regulations. SEBI is exploring the inclusion of additional categories under Unpublished Price Sensitive Information (UPSI) to address evolving market dynamics. This could include company ratings changes, proposed fundraising activities, agreements impacting management control, evidence of company fraud, and changes in Key Managerial Personnel (KMP). These additions aim to strengthen the regulatory framework and mitigate risks associated with insider trading.Also Read: Hot Stocks: 3 stocks that may give returns between 19-39%Specified Digital Platforms (SPFs)The meeting will also address the regulation of specified digital platforms (SPFs). SEBI had earlier proposed a framework through which a digital platform can hope to be recognised as an SPF. The framework includes various requirements that the platform has to meet, such as the ability to take specific preventive and curative measures, a policy to work in collaboration with SEBI, and a policy on transparency and accountability including a policy to submit periodic reports to the regulator on information on the identification and action taken by the platform related to frauds, impersonation and so on.In this Board meeting, the regulator could present this framework for consideration too. Any progress on this front will be highly awaited both by brokerages and content creators or finfluencers.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Elon Musk and his rocket company, SpaceX, have repeatedly failed to comply with federal reporting protocols aimed at protecting state secrets, including by not providing some details of his meetings with foreign leaders, according to people with knowledge of the company and internal documents. Concerns about the reporting practices -- and particularly about Musk, who is SpaceX's CEO -- have triggered at least three federal reviews, eight people with knowledge of the efforts said. The Defense Department's Office of Inspector General opened a review into the matter this year, and the Air Force and the Pentagon's Office of the Under Secretary of Defense for Intelligence and Security separately initiated reviews last month. The Air Force also recently denied Musk a high-level security access, citing potential security risks associated with the billionaire. Several allied nations, including Israel, have also expressed concerns that he could share sensitive data with others, according to defense officials. Internally, SpaceX has a team that is expected to ensure compliance with the government's national security rules. Some of those employees have complained to the Defense Department's Office of Inspector General and other agencies about the lax reporting, which goes back to at least 2021, four people with knowledge of the company said. SpaceX was awarded at least $10 billion in federal contracts with the Pentagon and NASA from 2019 to 2023, making it a major contractor. Musk is facing scrutiny as he wields increasing power around the world through his myriad businesses -- particularly SpaceX but also the social media company X and the electric carmaker Tesla. While the 53-year-old has long blown past norms and conventions that do not suit him or his companies, the stakes are arguably higher when it comes to national security matters. For years, SpaceX workers responsible for upholding disclosure rules grudgingly allowed Musk to disregard many of the reporting procedures, as they did not want to lose their jobs, the people with knowledge of the company said. But the issue has reached a tipping point, as Musk's influence is set to escalate. An ardent supporter of President-elect Donald Trump, he was named last month to help lead an effort to winnow the federal bureaucracy and has joined calls that Trump has held with foreign leaders. Some SpaceX workers have become concerned about Musk's ability to handle sensitive information, especially as he posts openly on X about everything from video games to diplomatic meetings, the people said. The fears have been compounded because Musk has a top secret security clearance at SpaceX, which makes him privy to classified material such as advanced U.S. military technology. Under security clearance rules, Musk must report information about his private life and foreign travel, among other details, to the Defense Department as part of a process known as "continuous vetting." That allows the government to evaluate whether someone with a high-level security clearance should continue handling sensitive information. But since at least 2021, Musk and SpaceX have not adhered to those reporting requirements, the people with knowledge of SpaceX said. He and his team have not provided some details of his travel -- such as his full itineraries -- and some of his meetings with foreign leaders, they said. He has also not reported his use of drugs, which is required even with a prescription, they said. It is unclear why Musk did not report some of this information to the government, especially since he sometimes posts on X about matters that he does not relay to the Defense Department. It is also unclear if Musk instructed SpaceX to not report the information. No federal agency has accused him of disclosing classified material. Still, "to have someone who has major contracts with the government who would be in a position to pass along -- whether deliberately or inadvertently -- secrets is concerning," said Sen. Jeanne Shaheen, D-N.H. and a member of the Senate Committees on Armed Services and Foreign Relations. Last month, Shaheen asked the Air Force and the Defense Department's Office of Inspector General to investigate whether Musk was having inappropriate communications with foreign leaders, including President Vladimir Putin of Russia. The Air Force and the Pentagon's Office of the Under Secretary of Defense for Intelligence and Security initiated their reviews in response to questions from Shaheen and another lawmaker. On Friday, a day after The New York Times asked the secretary of the Air Force, Frank Kendall, about the matter, he responded to Shaheen, saying federal privacy laws prohibited him from discussing Musk's case. "The Department of the Air Force takes security matters very seriously, and I share your concerns," he said. Whether the federal reviews will affect Musk or SpaceX is unclear. Some of the SpaceX employees who complained about the privately held company's reporting practices have been fired or forced out, the people with knowledge of the rocket maker said. Two defense officials said senior Pentagon leaders had given directives to avoid discussing the matter so they would not become targets of Musk, who has promised to cut government workers and budgets in his new role in Washington. As a matter of constitutional law, Trump could grant a security clearance to anyone after his inauguration, even if others in the government object. Musk, a lawyer for Musk and SpaceX did not return requests for comment. In a post on X after this article was published, Musk said, "Deep state traitors are coming after me, using their paid shills in legacy media." He added, "I prefer not to start fights, but I do end them … " A Defense Department spokesperson declined to comment. A spokesperson for the department's Office of Inspector General, which is a quasi-independent watchdog arm, said the office could "neither confirm nor deny the existence of an ongoing investigation." Kendall declined to comment on Musk but said the Pentagon was serious about security clearance rules. "We depend upon enforceable and executable contracts, and we enforce them," he said in an interview at the Pentagon. Top Secret Musk's security clearance has been fraught for years, three people with knowledge of the matter said. Until about 2018, he held a midlevel secret clearance at SpaceX, they said. That year, the company applied for a higher level of clearance known as "top secret" on his behalf. Many SpaceX employees hold some level of security clearance since the company is a defense contractor that puts NASA astronauts into orbit and provides its Starlink satellite internet service to the military. It is also helping the federal government build a new constellation of spy satellites. Security clearances are critical for the government to protect intelligence and state secrets. Officials examine an applicant's financial background and personal relationships, interviews the applicant's friends and family and collects documents outlining the person's history. The Defense Counterintelligence and Security Agency, which is in charge of vetting individuals seeking access to classified information, took more than two years -- an atypical length that was more than double the average time -- to approve Musk's top secret security clearance, three people with knowledge of the matter said. Top secret is the highest clearance through the security agency, but some government departments offer separate levels of access to classified materials that can be higher. During that period, Musk was filmed on Joe Rogan's podcast smoking pot, which remains illegal at the federal level and is prohibited under security clearance rules. His business interests in China, where Tesla has a factory, were also a concern, the people familiar with the matter said. Musk ultimately received the clearance. A spokesperson for the Defense Counterintelligence and Security Agency said he could not address any questions related to Musk. Those holding a security clearance must self-report certain details of their lives during the continuous vetting process. The Air Force, as part of its contracts with SpaceX that include classified work, pays the company to hire a special staff to ensure these requirements are honored. SpaceX's team that reports such information for its employees, including Musk, was until recently overseen by Terrence O'Shaughnessy, a retired four-star Air Force general and a top lieutenant to the billionaire, four people with knowledge of the team said. Musk has recommended O'Shaughnessy for a position in the new Trump administration. Musk was required to learn the rules related to security clearances to receive one and was given annual tests reminding him of the rules, three people said. Yet at least as of 2021, Musk and his team began not providing some details of his meetings and travel plans, five people said. His private security employees who travel with him report some of his activities to SpaceX, which in turn reports the information to the government. But often, not all the details of each trip are divulged -- such as what was discussed in meetings -- while some appointments are not mentioned at all, the people said. At the same time, Musk posts about his activities on X and has been heavily covered by the media. When SpaceX employees asked whether personal details that Musk had written on X and the media coverage should be officially reported, senior managers sometimes instructed them not to do it, often without giving a reason, the people said. Government agencies "want to ensure the people who have clearances don't violate rules and regulations," said Andrew Bakaj, a former CIA official and lawyer who works on security clearances. "If you don't self-report, the question becomes, 'Why didn't you? And what are you trying to hide?'"'A Wild Card' Other governments have also grown increasingly wary of Musk's ability to handle classified information. Nine countries, including in Europe and the Middle East, have raised security questions about him in meetings with U.S. defense officers in the past three years, two defense officials said. In meetings about Starlink between Israeli military intelligence officers and U.S. defense officials in early 2023, the Israeli Ministry of Defense called Musk "a wild card," two people with knowledge of the conversations said. Israeli officials were concerned that he could pass sensitive data about Israel to others, though they eventually allowed Starlink into the country this year. Israel's Ministry of Defense did not respond to a request for comment. In August 2023, Musk wrote on X that he took ketamine, an anesthetic with psychedelic properties, when his "brain chemistry sometimes goes super negative." He has said he has a prescription for the drug. Any drug use is supposed to be disclosed to the Defense Department, but SpaceX and Musk did not report it at the time, three people with knowledge of the company said. Around that time, the Air Force denied Musk a high-level security access -- the so-called Special Access Program status, which is reserved for extremely sensitive classified programs -- four people with knowledge of the rejection said. Without that access, federal law would prohibit Musk from participating in certain SpaceX meetings where classified Air Force programs were discussed. One Pentagon official said Musk had been rejected because of potential security risks such as his extensive contacts with foreign officials, his foreign investments and a "lack of explanation" related to some of the foreign contacts. SpaceX executives assured the Defense Department that they kept Musk out of the most sensitive classified discussions, the official said. Yet Pentagon officials remain concerned that Musk has joined some meetings where such matters were discussed, even without the special clearance, the official said. Kendall, the Air Force secretary, said a Special Access Program denial did not necessarily mean the individual had been deemed a security risk. Such programs are "controlled on a strict need-to-know basis," he said. "So the fact that somebody might or might not have gotten access to a program doesn't really imply anything about that person." Rep. Jim Himes of Connecticut, the senior Democrat on the House Intelligence Committee, said Musk, like anyone with a security clearance, must honor the rules. "He doesn't get a bye just because he's the world's richest man," Himes said. But Rep. Doug Lamborn, R-Colo., who is on the House Armed Services Committee, said Musk was "obviously a patriotic American and I don't think would ever knowingly give aid or comfort to an adversary of the United States."Danielle Brian, the executive director of the Project on Government Oversight, a nonprofit that examines Pentagon contracts, said the debate over Musk's compliance with security rules was the first clear conflict of interest that had emerged over his roles as a defense contractor and Trump adviser. "He is creating a very threatening environment for government institutions that we rely on to reveal wrongdoing when it happens," she said. "It is going to break our system of accountability and checks and balances."Inside SpaceX At SpaceX, some employees have been concerned for years that the company lets top executives like Musk avoid reporting some information to the government while rank-and-file workers must strictly follow the rules. That gap worsened this year when SpaceX hired Daniel Collins, a former Defense Department official, to help run the team that works on continuous vetting, the people with knowledge of the company said. Collins, who reported to O'Shaughnessy, has allowed some executives who did not have the proper clearance into classified meetings, they said. He also discouraged reporting violations of security clearances, including by Musk, they said. O'Shaughnessy referred questions to SpaceX. Collins did not return requests for comment. Some SpaceX workers said they feared speaking up since the company had fired employees who raised concerns to the National Labor Relations Board about Musk. But on Nov. 2, Cody Miller, an Army veteran who worked on security clearances at SpaceX, emailed senior executives and accused them of picking and choosing which government rules to follow, according to a copy of the message viewed by the Times. SpaceX has a "let's push it till we are caught mentality," Miller wrote, adding that top executives followed the rules only "when convenient for senior leaders." That same day, SpaceX's human resources department called Miller and pushed him to leave, three people with knowledge of the company said. Miller agreed to resign. (This article originally appeared in The New York Times)

Mumbai: Liquidity constraints in the money market have raised the weighted average call rate (WACR), an overnight gauge at which banks lend to one another, by up to a fifth of a percentage point above the policy rate of 6.5% even after the regulator reduced cash reserve requirements, anticipating inadequate systemic liquidity toward the year end.The WACR rose to 6.70% on Tuesday as against 6.67% on Monday, money market traders said.One basis point is a hundredth of a percentage point.Reserve Bank of India (RBI) data showed liquidity in the banking system was at a large deficit of ₹1.1 lakh crore on December 16 due to quarterly advance tax outflows. Liquidity in the system was also drained on RBI interventions in the foreign exchange market, as it was seen selling dollars to stem a sharp fall in the rupee.In anticipation of tightening liquidity conditions, RBI announced a 50 basis point cut in cash reserve ratio and the first tranche of 25 bps cut has infused ₹58,000 crore from December 14."The CRR cut did not have a large impact because they broke it up into two parts, which reduces its impact in terms of liquidity infusion," said Gaura Sen Gupta, chief economist, IDFC First Bank. "A key factor of the tight liquidity conditions is RBI's foreign exchange intervention, with the RBI net selling dollars since October. Balance of payments (BoP) for the third quarter is deep in the negative."116415618Gap Unlikely to NarrowSystem liquidity is expected to remain in deficit for the next few days on GST outflows on December 20 and the government's back-loaded expenditure toward the end of the month, economists said.In the first half of December, the average system liquidity was in a surplus of ₹43,317 crore, sharply lower than an average surplus of ₹1.38 lakh crore in November and ₹1.50 lakh crore in October. In anticipation of tight liquidity, the RBI had conducted variable rate repo auctions (VRR) of ₹3.25 lakh crore to infuse liquidity this month, while it did not conduct any auctions to absorb liquidity. Typically, the RBI does two-way operations to align the call rate near the policy repo rate.Foreign exchange interventions have drained core liquidity. As of December 6, core liquidity is ₹50,000 crore as against ₹4.6 lakh crore in September. The RBI's foreign exchange reserves also fell by $50 billion, after touching a peak of $704 billion in September."The RBI must supply dollars in the market to prevent excess volatility in the currency, which is draining INR liquidity. At this moment, they (RBI) will have to choose the pace of currency depreciation, keeping in mind the drain on foreign exchange reserves and INR liquidity in the banking system," Sen Gupta said.The rupee hit a record low of 84.93/$1 during the day, before closing at 84.895 per US dollar on Tuesday, due to widening trade deficit and outflows from local equities. Interventions from the RBI helped cap excess weakness in the currency, traders said.

Brokerages recently initiated coverage on Delhivery, Quess Corp, and Piramal Pharma. These stocks are expected to return between 19% and 39% as per analyst price targets.Quess Corp BROKERAGE: ANTIQUE Price Target: Rs 1,000 CMP: Rs 719 Upside: 39% Stock outperforming the broader index, with demand and margin outlook starting to improve PLI (Performance Linked Incentives) and China-Plus-One strategy will keep the growth momentum strong Revenue expected to grow 12-14% on a compounded basis over FY24-27Piramal Pharma BROKERAGE: JM FINANCIAL Price Target: Rs 340 CMP: Rs 260 Upside: 30.5% Stock trades at a 38% discount to the average of listed peers CDMO (Contract Development and Manufacturing Organization) focus should drive earnings and could bridge stock valuation gap to listed peers Steady cash generation led by 23% compounded growth in EBITDA (earnings before interest tax depreciation and amortization) will improve net debtDelhivery BROKERAGE: EQUIRUS SECURITIES Price Target: Rs 459 CMP: Rs 384 Upside: 19.5%After posting losses since inception till FY24, company achieved quarterly profitability recently; profit growth to pick up further Premiums stock valuations to sustain given company’s rapid growth, market share gains and transition to profitability Company outperformed its B2B express/PTL (Partial Truckload) peers across parameters over last six quarters