India to review zero tariff imports of mobile phone parts from Asean (mint)
India plans to re-evaluate zero-tariff concessions for mobile phone imports in the upcoming review of its FTA with ASEAN nations, aiming to finalize revisions by the end of the year. The review, scheduled for July 29-31 in Jakarta, seeks to modernize the decade-old ATIGA, addressing India's trade deficit with ASEAN, which has grown to $14 billion annually. India's trade with ASEAN has increased significantly but remains skewed in favour of ASEAN, prompting a need for more tailored tariff arrangements to better protect and grow domestic industries.
Russia sweetens crude oil deal with India (mint)
Russia has offered to lower transaction fees charged by its banks for currency conversion and remittance to sweeten India's crude oil purchases, with Sberbank leading this initiative. Indian refiners typically pay for Russian oil in dirhams or rupees, and the high transaction fees for converting these currencies to roubles have been a barrier. Despite efforts to promote trade in rupees, the imbalance in trade volume, favouring Russian exports due to oil, and the lack of a rupee-rouble conversion mechanism have hindered progress.
Centre working on PLI for shipping-grade containers (mint)
India is developing a production-linked incentive (PLI) scheme for manufacturing shipping-grade containers to reduce dependence on imports from China, which dominates the global market. The scheme aims to address the ongoing global container shortage exacerbated by the Russia-Ukraine war and COVID-19 disruptions, which have increased freight rates and impacted trade. The initiative, possibly announced in FY25's budget, is part of broader efforts to boost domestic cargo transportation and support India's growing export market.
Centre’s power plant push in Arunachal near China border (Financial Express)
The Indian government plans to invest $1 billion to expedite the construction of 12 hydropower projects in Arunachal Pradesh, a move that may increase tensions with China, which claims the region. The finance ministry has approved up to ₹7.5 billion ($89.85 million) in financial assistance for each project to support northeastern states and expedite regulatory clearances. Announcements regarding these hydropower projects are expected in the FY25 Budget on July 23, following previous contracts awarded to state-run firms for an 11.5-gigawatt capacity development.
Textile sector on recovery path as domestic demand improves (Financial Express)
India's textile industry is experiencing a revival due to increased cotton yarn exports driven by lower domestic raw cotton prices and rising demand from the US and European markets. Official data shows that exports of readymade garments, cotton yarn, and fabrics from October 2023 to May 2024 reached $17.9 billion, up from $17.5 billion the previous year, with yarn exports growing by 51% in volume. However, industry experts warn that this recovery may not be sustainable without policy support, as recent increases in cotton prices and geopolitical uncertainties could impact long-term demand.
