Business
Fallout of rupee breaching 90 mark: Get ready to pay higher for consumer goods; here’s what may become costlier – The Times of India
Consumers may soon have to brace for higher prices! The depreciation of the rupee beyond Rs 90 against the US dollar could force various sectors including consumer electronics, beauty products, and automobile manufacturers to increase their prices. This increase may end up eating into the benefits after the recent GST rate cuts. This potential price rise might neutralise the positive sales momentum these sectors saw after recent tax reductions.Companies dependent on imported components or complete imported products are seeing concerns. Several companies had postponed their price increase plans, despite escalating raw material costs, due to potential government oversight following the GST reductions effective September 22.
Rupee hits new low: Will prices rise?
Manufacturers of smartphones, laptops, televisions and major appliances have indicated plans to hike prices by around 3-7% starting December-January, according to an ET report.The price hikes aim to compensate for increased costs of memory chips, copper and additional components resulting from rupee depreciation. The imported materials constitute between 30-70% of manufacturing expenses across these product categories.“The advantages of reduced GST rates will be nullified by currency devaluation and increasing component costs,” said Avneet Singh Marwah, chief executive at Super Plastronics, which manufactures Kodak, Thomson and Blaupunkt TVs.
Currency push
“Memory chip prices have increased more than six times in the past four months. We anticipate demand might decline again after the brief recovery from the GST reduction,” said Marwah according to the ET report.Also Read | Rs 90 to a dollar: What’s driving the fall and why it matters to you – explainedIndustry leaders noted they had calculated costs expecting the rupee to remain at 85-86 against the dollar, but its sharp fall to Rs 90 necessitates new calculations. Several firms had postponed regular price adjustments since October despite rising material costs, wary of being accused of profiteering after GST implementation.Presently, firms have begun notifying retailers about forthcoming price increases. Havells has indicated a 3% increase in LED TV prices, whilst Super Plastronics plans 7-10% higher prices, and Godrej Appliances will raise prices by 5-7% for air-conditioners and refrigerators from January.They indicated that a single-level change in energy efficiency ratings from January will create additional challenges. “The stricter energy rating requirements and weakening rupee necessitate price adjustments from January. Should the rupee weaken further, additional increases may be needed in the March quarter,” said Kamal Nandi, business head at Godrej Appliances. “The GST reduction benefits will be completely negated, but we have no alternative.“Consumer goods manufacturers have privately informed government officials that they cannot continue to absorb rising costs.The rapidly expanding beauty market in India, with international brands like Shiseido, MAC, Bobbi Brown, Clinique and The Body Shop, faces potential challenges due to rising import costs. Furthermore, the GST on cosmetics remains at 18%, with no provisions to offset currency-related cost increases.Also Read | ‘Not losing sleep’: CEA Nageswaran on rupee touching 90 mark versus US dollar; ‘falling rupee is not affecting…’“A weaker rupee does increase our landed cost since a significant share of beauty products across fragrances, cosmetics and skincare are imported and dollar-denominated,” said Biju Kassim, chief executive at Shoppers Stop Beauty. “For distributors like Global SS Beauty, this creates margin pressure that becomes hard to sustain long-term unless partially offset. We work closely with our global brand partners to optimise costs and hedge currency exposure, but some price correction on high-end imported portfolios may eventually be unavoidable.“The declining value of the rupee poses risks to the recent positive trend in vehicle sales, following price reductions implemented by companies on two-wheelers and cars after GST reduction benefits.Mercedes-Benz India’s managing director Santosh Iyer stated, “We estimate the positive effect of the price drop on demand for luxury vehicles to gradually wean away in the mid- to long-term, as prices of luxury cars will rise from current levels owing to deteriorating forex movement. We are mulling a price correction from January 26.”The competitor Audi India is currently evaluating its position in the market.Audi India’s head Balbir Singh Dhillon commented, “The rupee depreciation impacts the company directly and fully, but as of now, the company has not decided on the price increase or its quantum.”The government’s decision to reduce GST on compact automobiles and two-wheelers from 28-31% to 18% resulted in actual price reductions of 8.5-9.9%. This led to increased sales of 17% and 19% in October and November respectively, following a sluggish first half of the financial year. However, the current currency fluctuations might neutralise this surge in demand.
ReutersDenmark’s Prime Minister Mette Frederiksen says “Europe won’t be blackmailed” by Donald Trump’s tariff threats over Greenland.
She and other European leaders issued a joint statement on Sunday saying the plan risks a “dangerous downward spiral” with the US.
Early on Monday morning, Trump said, “NATO has been telling Denmark, for 20 years, that “you have to get the Russian threat away from Greenland.” […] Now it is time, and it will be done!!!”
The US president has said he will impose new taxes on eight US allies in February if they oppose his proposed takeover of the autonomous Danish territory.
Trump insists Greenland is critical for US security and has not ruled out taking it by force – a move that has drawn widespread criticism.
In a post on Truth Social in the early hours of Monday morning, Trump said that Nato has been telling Denmark to “get the Russian threat away from Greenland” for 20 years. Denmark, he continued, “has been unable to do anything about it”.
The new tariffs would be imposed on Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden and the UK.
In their joint statement, the eight countries said that “tariff threats undermine transatlantic relations”, reiterating that they “stand in full solidarity with the Kingdom of Denmark and the people of Greenland”.
The countries stressed they are “committed to strengthening Arctic security as a shared transatlantic interest” as members of the Nato military alliance.
“We stand ready to engage in a dialogue based on the principles of sovereignty and territorial integrity that we stand firmly behind,” the statement reads.
Separately, Frederiksen wrote on Facebook: “We want to cooperate and we are not the ones seeking conflict. And I am happy for the consistent messages from the rest of the continent: Europe will not be blackmailed.”
“It is all the more important that we stand firm on the fundamental values that created the European community.”
Meanwhile, UK Prime Minister Sir Keir Starmer said he had had phone calls on Sunday with Frederiksen, as well as European Commission President Ursula von der Leyen and Nato Secretary-General Mark Rutte, before speaking to Trump.
A spokeswoman for Starmer’s office said he had reiterated his position that Greenland’s security was a priority for all Nato members. “He also said that applying tariffs on allies for pursuing the collective security of Nato allies is wrong,” the spokeswoman added.
Trump has threatened to impose a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland, which would come into force on 1 February, but could later rise to 25% – and would last until a deal was reached.
“These Countries, who are playing this very dangerous game, have put a level of risk in play that is not tenable or sustainable,” he wrote, adding: “This is a very dangerous situation for the Safety, Security and Survival of our Planet”.
The US president insists Greenland is critical for US security and has said previously that Washington would get the territory “the easy way” or “the hard way”.
Greenland is a sparsely populated but resource-rich and its location between North America and the Arctic makes it well placed for early warning systems in the event of missile attacks and for monitoring vessels in the region.
US Treasury Secretary Scott Bessent on Sunday told NBC News’ Meet the Press that “Greenland can only be defended if it is part of the US, and it will not need to be defended if it is part of the US”.
“I believe that the Europeans will understand that this is best for Greenland, best for Europe and best for the United States,” he said.
Speaking to BBC Newshour, Norwegian Foreign Minister Espen Barth Eide said mutual respect for sovereignty is the “non-negotiable” core principle of international law and co-operation.
“If we are to live in peace and if we are to be able to co-operate on shared problems, we have to start by the mutual recognition of each others sovereignty and territorial integrity,” she added.
It is still unclear how the tariffs will affect those Trump has already imposed on the UK and EU. French President Emmanuel Macron, who is working to co-ordinate the European response to the tariff threats, said he would request that the EU activate its “anti-coercion instrument” if Trump does impose them.
The US president is due to speak at the World Economic Forum in Davos, Switzerland on Wednesday on the theme “how can we co-operate in a more contested world?” Macron, as well as the leaders of Germany and the EU, will also be attending the annual conference.
Canadian Prime Minister Mark Carney, who will also be there, said his country was “concerned by the recent escalation” and that it would be “significantly increasing Arctic security — strengthening our military and investing in critical infrastructure”.
“Canada strongly believes that the best way to secure the Arctic is by working together within Nato,” he also wrote on X.
Mark Rutte, meanwhile, said he had spoken to Trump “regarding the security situation in Greenland and the Arctic”.
“We will continue working on this, and I look forward to seeing him in Davos later this week,” he added.
EPA/ShutterstockPublic anger in both Denmark and Greenland at Trump’s threats over Greenland appears undiminished. Demonstrations against Trump’s takeover plans were held in Greenland’s capital, Nuuk, on Saturday – before the tariff announcement – as well as in Danish cities.
These rallies coincide with a visit to Copenhagen by a delegation from the US Congress. Its leader, Democratic Senator Chris Coons, described Mr Trump’s rhetoric as “not constructive”.
The island’s representative to the US has said that the last time Greenlanders were asked if they wanted to be part of the US, in January 2025, only 6% were in favour of doing so, while 85% were against.
A recent poll suggests that most Americans also oppose US control of Greenland. A Reuters/Ipsos poll, which was released last Wednesday, indicated just 17% of Americans support the US taking Greenland, compared to 47% who said they opposed Trump’s push to acquire the island.
Business
Top stocks to buy: Stock recommendations for the week starting January 19, 2026 – check list – The Times of India
Stock market recommendations: According to Motilal Oswal Financial Services Ltd, the top stock picks for the week (starting January 19, 2026) are 360 One, and Canara HSBC Life. Let’s take a look:
360 One360 One WAM is a structural growth story given tailwinds from India’s expanding wealth pool, new team onboarding, and synergies from recent acquisitions which underpin long-term growth visibility. It delivered a strong 3QFY26, driven by robust inflows and operating leverage. Operating revenue grew 33% YoY, led by a sharp 45% YoY rise in ARR income, while disciplined cost control reduced the cost-to-income ratio by 320bp YoY to 49.6%, supporting healthy profit growth. PAT grew 20% YoY despite a sharp decline in other income. Growth was fueled by strong net ARR inflows of ₹147b, with record AMC inflows and sustained momentum in wealth management driven by wallet share gains and carry income-led retention improvement. Management remains confident of further CI ratio improvement toward 45–46% as ET Money and HNI businesses move toward breakeven. Management guides for 22–24% AUM growth, translating into 21%/22% revenue/PAT CAGR over FY25-28.Canara HSBC LifeCanara HSBC Life Insurance represents a compelling banca-led compounding story, underpinned by strong distribution moats and significant headroom for efficiency-driven growth. The insurer has consistently outperformed the industry over the past decade by leveraging its deep bancassurance partnerships, led by Canara Bank and complemented by HSBC, which together provide access to a large, sticky, and increasingly segmented customer base.With penetration among Canara Bank customers still very low and branch productivity materially below private-bank peers, incremental gains from better analytics, digital enablement, and branch activation offer a long runway for growth at low acquisition cost. HSBC adds a high-quality layer through affluent, NRI, salary, and corporate customers, supporting superior persistency and value accretion. Alongside this, gradual diversification into agency and other channels improves reach and reduces concentration risk without materially diluting long-term economics. A favorable shift in product mix toward non-par and protection, improving operating efficiency, and rising scale are driving steady expansion in value creation metrics, positioning Canara HSBC Life as a structurally improving, capital-efficient life insurer with sustained growth visibility and strong return potential over the medium term.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
China’s economy grew by 5% last year, as record exports helped the world’s second largest economy meet its annual target.
Beijing had set a goal of “around 5%” economic growth in 2025, despite struggles to boost domestic spending and a prolonged property crisis.
China reported the world’s largest-ever trade surplus last week – the value of goods and services sold overseas compared to its imports – of $1.19tn (£890bn), driven by a rise in exports to markets outside the US, as President Donald Trump continued his tariffs policy.
But official figures released on Monday also showed that China’s economic growth slowed to a rate of 4.5% in the final three months of 2025 compared to a year earlier.
As well as China’s exporters moving away from the American market, China’s economic resilience was helped by lower-than-expected US tariffs after Beijing and Washington agreed a tariffs pause.
While China’s manufacturers continued to boost exports, the country is grappling with a number of issues in its domestic economy.
The country has been struggling with an ongoing property crisis and rising local government debt, which has made businesses more hesitant to invest and consumers cautious about spending.
Other new data on Monday showed that new home prices continued to fall in December, as the government struggled to stabilise the property market. Prices dropped 2.7% last month compared to a year earlier, the sharpest decline in five months. Property investment also fell 17.2% last year.
At the same time retail sales rose by just 0.9% in December, the slowest rate in three years.
But the country’s factory output increased by 5.2% in December from a year earlier, beating the 4.8% growth in November.
China’s leaders have pledged “proactive” policies this year as they look to increase domestic spending and shift reliance away from exports and investments.
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