Arvind’s Newsletter

1.India makes history as Chandrayaan-3 mission lands spacecraft near moon’s South Pole (reports from New York Times, Financial Times and BBC)

India has landed an uncrewed probe near the Moon’s unexplored South Pole, a milestone in the country’s efforts to become an international power in space exploration.

Wednesday’s successful controlled landing of the $75mn Chandrayaan-3 mission made India only the fourth country to land a craft on the Moon, after the US, China and Soviet Union, and the first to reach its South Pole.

The high-profile mission came days after a Russian attempt to land at the South Pole, Moscow’s first lunar mission since 1976, ended in failure. The uncrewed Luna-25 spacecraft spun out of control and crashed into the surface on Sunday.

The cost of India’s space missions is back in focus after the country’s Chandrayaan-3 made a successful soft landing on the Moon. The mission costs 6.1bn rupees ($75m). This is less than half the $200m cost of Russia’s Luna-25 spacecraft which crashed on Sunday.

India’s previous Moon and Mars missions were also carried out at a modest cost, according to reports by Indian media. They attribute this to Isro's efforts to prevent “wastage of products”.

As India looks out into the solar system, its space agency is taking a star turn from an earlier era of space exploration. While the national government looks like a hero, private companies that are increasingly important players in the country’s space program operate quietly behind the scene.

2.GeM has transformed government procurement

Government e-Marketplace (GeM) has taken the marketplace by storm in last 4 years. From a procurement level of Rs 7,027 crore in FY20, it grew exponentially to Rs 45,928 crore in FY21, Rs 1.06 lakh crore in FY22 and around Rs 2 lakh crore (~USD 24 Bn) in FY23. It has surpassed ₹1 lakh crore in gross merchandise value (GMV) in a record 145 days of the current financial year.

While the e-commerce sector of retailers Flipkart and Amazon cannot be directly compared to GeM, which works on a B2B model, the rapid growth is eye-catching.

With more than 11,500 product categories, 3.2 million listed products, 280 service categories and more than 2. 8 lakh service offerings, GeM, catering to more than 67,000 government buyer organisations, is a developed marketplace.

This growth was only possible with strict rules imposed by the government on central public sector enterprises (CPSEs). The finance ministry has told them to ensure 100 percent procurement through the portal.

3.U.A.E. Cashes In on Russia’s Economic Woes reports the Wall Street Journal

A year and a half into the Ukraine conflict, few countries have capitalized on the economic opportunities quite like the United Arab Emirates, giving Russian President Vladimir Putin’s war effort a lift while boosting this Persian Gulf state.

Banks here are poaching talent from Moscow to manage a gusher of Russian money. Dubai traders are moving more Russian oil and gold than ever before. And Russian buyers fuel this city’s real-estate boom, often dealing in cash.

The warming ties have disturbed the U.A.E.’s closest security partner, the U.S., but Russian money has become too important to the Emirati economy to turn down.
The U.A.E. has condemned the invasion of Ukraine at the United Nations several times including this year, but it is among a large number of countries that openly don’t enforce many of the U.S. and European sanctions imposed on Moscow’s companies and elite. The sanctions have taken a toll on the Russian economy, with the U.A.E. helping Russians trying to get their money out, get their goods to global markets or just flee altogether.

Tens of thousands of Russians have moved here in the past year, turning the Russian-speaking community into one of the most visible in a country of roughly nine million people. Most Russians settling here aren’t sanctioned.

4.Five of the best countries for expats in 2023

A new survey on living and working abroad has revealed the best countries for expats to live. From Malaysia to Mexico, residents explain what makes them love their new home.

5.A wave of international rulemaking threatens Caribbean tax havens

The Economist reports that the British Virgin Islands (BVI) is losing its mojo as a tax haven. The population of companies registered there has dropped by a fifth since 2011. Other financial enclaves, such as the Cayman Islands, where hedge funds roost, and insurer-favourite Bermudas, have also lost their popularity. BVI was great for incorporation services.

While a global crackdown on money laundering alongside the United States’ post-9/11 hunt for terror financiers played a part, the latest blow was an initiative by the Organisation for Economic Cooperation and Development (OECD) to introduce a global minimum corporate tax of 15%. It was largely driven by the US, which was smarting at several of its hugely profitable companies, such as Apple, Google, and Meta, hiding profits in tax havens.

But money simply moved to other destinations with liberal tax regimes, such as Dubai and Singapore. Delaware in the US has emerged as a preferred destination for incorporation. OECD’s global corporate tax is not yet final, and a change in the White House could set it back.