In this week’s wrapup, we talk about India borrowing in Japanese Yen, a three-decade old mineral tax dispute, Aditya Birla Group’s jewellery retail foray, the middle-income trap and Paris’ €1.4 billion Seine River clean up.

Here’s a recap.

Why is India borrowing in Japanese Yen

Last month, the RBI (Reserve Bank of India) dropped a nugget about India’s external debt, which is at a hefty $660 billion. And it’s not too surprising that over half of this debt is in US dollars. That’s because US dollar is the most commonly used currency in international trade and lends stability to transactions.

But here’s a twist. According to Livemint, in December 2023, the Union government snagged a hefty $250 million from the Asian Development Bank for the Delhi-Meerut Rapid Transit project. Tamil Nadu also scored big in April 2024, securing $300 million from the World Bank to upgrade its urban water and sanitation services. And guess what? These big loans have been in Japanese Yen.

Curious about why this is happening? Check out Monday's newsletter for the full scoop.

The mineral tax dispute is over. Or is it?

A few days ago, the Supreme Court settled a 30-year battle over who gets to tax minerals.

The winners?

State governments, who can now boost their revenues by taxing mineral resources within their borders.

But here’s the twist. It might not be all sunshine and rainbows for the economy. This ruling could lead to higher mineral prices, impacting everything from electricity to consumer goods.

So, what kicked off this saga, and what does it mean for the future of mining? Dive into Tuesday’s newsletter to find out.

The jewellery retail market has a new competitor

Last week, the Aditya Birla Group sparkled its way into the Indian jewellery market with its brand-new venture, Indriya, under the Novel Jewels banner. With a dazzling ₹5,000 crore investment, it aims to be among the top three jewellery retailers in the country within five years.

Now, this move is a natural extension for a conglomerate with deep roots in fashion retail. But can Indriya truly shine in a market dominated by trusted names like Tanishq?

Read Wednesday’s newsletter to find out.

Can India avoid the middle-income trap?

India’s dream of becoming a fully developed nation by 2047 is more than just a lofty goal. It’s a strategic move to dodge the ‘middle-income trap’. With the World Bank already classifying us as a middle-income country since 2007, the challenge now is to boost our per capita income from $2,400 to $19,000. And GDP from $3 trillion to $27 trillion.

NITI Aayog’s recent paper titled ‘Vision for Viksit Bharat @ 2047’ outlines a roadmap to achieve this, focusing on economic inclusivity and avoiding the pitfalls of income inequality. Curious about how India can make this leap? We wrote about it in Thursday’s newsletter. You can click here to read it.

Inside Paris’ insane effort behind the Seine

Imagine taking a romantic dip at the foot of the Eiffel Tower. Dreamy, right? Unfortunately, for nearly a century, the Seine River has been too polluted for such fantasies. Thanks to untreated sewage and human waste.

But recently, triathletes at the Paris Olympics dove into these waters, which were deemed safe at the last minute despite often murky conditions worsened by heavy rains.

Why, you ask? Well, Paris is determined to make the Seine swimmable again, spending €1.4 billion to clean it up, aiming for a greener 2024 Olympics. So on Friday we wrote about the epic cleanup and its impact. You can read it here.

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That’s it from us this week. Have a great weekend!

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