Daily News - Tuesday, 12 November 2024

Urgent redressal of India-Russia ‘one-sided’ balance of trade needed, says Jaishankar (The Indian Express)

⁠Indian External Affairs Minister S. Jaishankar called for addressing trade imbalances between India and Russia, emphasizing the removal of non-tariff barriers and regulatory challenges, as the two countries work towards a $100 billion bilateral trade target by 2030. He underscored the importance of national currency trade settlements, particularly through rupee Vostro accounts, to ease transactions amid current financial constraints, noting the current $66 billion trade level. Russian Deputy Foreign Minister Denis Manturov highlighted collaboration in key areas, including nuclear energy, renewable equipment, and LNG technologies, aligning with both nations’ strategic economic goals despite external challenges.

RBI issues new framework for reclassification of FPI to FDI (The Indian Express)

The Reserve Bank of India (RBI) has issued a directive requiring foreign portfolio investors (FPIs) to secure governmental and company-level approvals if their equity stake exceeds the 10% threshold, necessitating a reclassification from FPI to foreign direct investment (FDI). Under the 2019 FEMA (NDI) Rules, FPIs breaching this limit must either divest or reclassify their holdings as FDI within five trading days, adhering to entry route protocols, sectoral restrictions, and FDI-specific guidelines. Additionally, FPIs must gain concurrence from Indian investee companies to ensure compliance, particularly in sectors with restricted or prohibited FDI. 

FM Seeks AIIB Help for NextGen Reforms (The Economic Times)

⁠India’s Finance Minister Nirmala Sitharaman urged the Asian Infrastructure Investment Bank (AIIB), which has approved a total of $50.4 billion in financing to date, to expand its focus on climate resilience, infrastructure, and energy security while encouraging innovative financial models and private capital mobilization to support India’s reform agenda. As AIIB’s largest borrower with $10.45 billion across 48 projects, India, projected to grow at 7% this fiscal year and 6.5% next (far above global averages), offers a “sandbox” for testing new financing technologies. Sitharaman also called for governance reforms in multilateral development banks to better address current global needs, particularly for low-income countries, highlighting India’s digital infrastructure as a model for inclusive growth. 

Collective Efforts can Help Meet $2 t Exports Target: Goyal (The Economic Times)

Commerce Minister Piyush Goyal emphasized the need for a unified approach to reach India’s ambitious export target of $2 trillion by 2030, building on the expected $800 billion in exports for this fiscal year after a record $778 billion in 2023-24. Speaking at the Indian Institute of Foreign Trade, Goyal urged the study of non-tariff barriers to strengthen India’s position in future free trade agreements (FTAs) and highlighted the importance of expanding FTAs to benefit MSMEs and small traders. He encouraged utilizing these agreements to open new markets and opportunities for Indian businesses, which would, in turn, boost job creation. 

‘SPIEF plays key role in increased Russia-India trade’ (Business Standard)

Despite U.S. sanctions on Russia, attendance at Russia’s St. Petersburg International Economic Forum (SPIEF) has surged from 13,000 participants in 2021 to 21,000, reflecting resilient business interest, according to forum director Alexey Valkov. SPIEF, set for June 2025, is advancing the goal of boosting India-Russia trade to $100 billion by 2030, up from $65 billion last year, and last year alone saw deals worth 6.5 billion rubles. Sectors like IT, energy, and defense are key areas of cooperation, with the upcoming forum placing special emphasis on pharmaceuticals, cybersecurity, and urban development, alongside opportunities for expanding rupee-rouble trade.