In this week’s wrapup, we look at whether the Indian rupee is overvalued, the impact of space technology on today's global economy, India’s IT hardware import restrictions and opportunities, farm loan waivers, and why Trump loves tariffs.

For the markets edition, we wrote about the Niva Bupa Health Insurance Company’s ongoing IPO.

The company is one of India’s largest and fastest-growing health insurers, covering about 14 million lives. Its revenues have shot up from around ₹1,800 crores in FY22 to over ₹4,000 crores in FY24, and it’s also turned profitable.

But is the IPO price justified? That’s what we explored in this week’s edition by looking at some business and valuation metrics. You can read it here.

We also posted a video on Finshots TV on an alarming issue - about how 30% medicines in India are fake. Yep! You very well might ask how we got here, and what can be done. Check out this special video for all the answers.

Meanwhile, here’s a recap of what we wrote over the week.

Should RBI let the rupee fall?

Reuters says the Indian rupee is overvalued, with a real effective exchange rate (REER) of about 105. This means you’d need 105 rupees to buy what would typically cost one U.S. dollar.

The U.S. also believes the RBI might be keeping the rupee’s value artificially steady.

So, in our Monday story, we broke down how currency exchange rates actually work, the RBI’s role in all of this, and most importantly, whether letting the rupee fall could help boost our exports.

You can catch the full scoop here.

Will the space economy drive global growth?

In 2023, NASA added nearly $75 billion to the U.S. economy.

It's surprising and it’s all because of the space technology that has taken the world by storm.

Think of your favorite ride-hailing apps. Those wouldn’t work without satellite-based GPS, and satellite-based internet is all the rage these days. And experts believe space tech's applications are only going to expand in the coming years.

But every leap comes with challenges.

Check our Tuesday story, where we dive into the space tech's promises and the hurdles it faces.

India’s got a hardware import problem – and an opportunity within!

India is eager to boost its manufacturing output and cut reliance on imports, especially for smartphones, laptops, and PCs. And it has made some impressive strides already. Local smartphone production has shot up from just 20% to over 95% in the past decade.

Now, the focus is shifting to laptops and PCs and is considering a stricter import ban on IT hardware to push global giants to shop in India.

But will this strategy pay off? Find out in our Wednesday story.

Who benefits from farm loan waivers?

You may be convinced that writing off farmers' loans works in their favor.

In a country like ours, where farm outputs are significantly influenced by erratic weather and uncertain rainfall patterns, it seems perfectly reasonable to provide farmers with some relief from time to time.

The critical question is whether these measures truly benefit the farmers. And more so, how do they impact the financial institutions that extend these loans to farmers?

Check out our Thursday newsletter, where we dive deep into who actually gains from farm loan waivers.

Why Trump likes tariffs

Donald Trump is back as the President of the United States of America.

And do you know what his favorite word is? It’s tariffs!

Basically, these are extra taxes on goods countries export to the US.

Trump plans to lower the income and corporate taxes in the U.S., and hopes to make up for it with tariff revenues.

But will this work? Because higher tariffs can very well backfire. We explore what could this means for India in our Friday story and you can check it out here.

Finshots Weekly Quiz 🧩

Here’s your chance to win some exclusive Finshots merch. All you have to do is click on this 👉🏽 link, answer all the questions correctly by 12 noon on November 16, 2024 (Saturday) and tune in to our Sunday newsletter aka Sunny Side Up next week to check if you got lucky.

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

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