Daily News - Tuesday, 10 September 2024
Unilateral Digital, Carbon Plans Big Risks: WTO (The Economic Times)
The WTO’s World Trade Report 2024 warns that unilateral approaches to the digital economy and low-carbon transition could lead to trade tensions and economic distortions, particularly impacting vulnerable groups like low-income households, women, and MSMEs. It stresses the need for multilateral cooperation, highlighting that reforms such as the plurilateral Investment Facilitation for Development (IFD) agreement, though opposed by India, could benefit low-income economies, while digital trade could lower barriers for smaller players in the global market. The report also points out that unilateral trade reforms in developing economies have significantly boosted growth and income convergence with high-income economies.
Reduce reliance on imports: Goyal to auto parts makers (Financial Express)
Commerce Minister Piyush Goyal urged Indian auto component makers to reduce import reliance and increase local manufacturing, aiming for $100 billion in exports by 2030. He proposed reserving land in the new industrial cities for the auto component industry and encouraged companies to explore acquisitions abroad for new technologies, especially with potential investments from the European Free Trade Association. Goyal expressed concerns over imports from countries like Korea and China, emphasizing the need for India to become more self-reliant and boost exports in the growing auto industry.
India signs 5 pacts with UAE in energy sector (Financial Express)
India and the UAE signed five agreements to enhance energy cooperation, focusing on nuclear power, LNG supply, and crude oil storage, with a major deal between Emirates Nuclear Energy Company and India's Nuclear Power Corporation for the operation of the Barakah Nuclear Power Plant. The agreements include long-term LNG supply contracts with ADNOC and a concession for crude oil from Abu Dhabi's onshore block-one, boosting India's energy security. Additionally, a memorandum was signed for the development of food parks in Gujarat, further strengthening the economic partnership fostered by the CEPA and Bilateral Investment Treaty.
‘Revenue of jewellers may see 22-25% surge on gold duty cut’ (The Hindu)
Organized gold jewellery retailers are expected to see a 22-25% revenue growth this fiscal, boosted by lower import duties announced in the Union Budget, up from the previously estimated 17-19%, according to CRISIL Ratings. Although the recent price decline may cause some inventory losses, this will be offset by higher demand and reduced marketing expenses, especially with preparations for the festive and marriage seasons. While profitability may slightly dip to 7.1-7.2%, improved cash flows from higher revenues will support planned store expansions of 12-14% this fiscal year.
India, Japan talk working together in third countries (mint)
The second India-Japan Finance Dialogue in Tokyo brought together senior officials, including Japan’s Vice Minister of Finance for International Affairs, Atsushi Mimura, and India’s Secretary of the Department of Economic Affairs, Ajay Seth, to discuss financial cooperation, macroeconomic conditions, and international collaboration, with a focus on regulatory and policy initiatives. Representatives from India’s Ministry of Finance, Reserve Bank of India, Securities and Exchange Board of India, Pension Fund Regulatory and Development Authority, Insurance Regulatory and Development Authority of India, and International Financial Services Centres Authority joined Japan’s Financial Services Agency and financial industry leaders to explore ways to expand investment in India and strengthen bilateral ties. Despite Japan’s recent interest rate hike to 0.25%, Indian firms and the government continue to rely on Japanese loans due to historically favorable borrowing costs.
