Daily News - Friday, 6 December 2024

Do business with China but be careful, foreign minister tells India Inc. (Hindustan Times)

External Affairs Minister S. Jaishankar emphasized the need for India to maintain a balanced approach in business relations with China, given ongoing border tensions and the risks of over-reliance on a single supply chain, particularly in sectors like MSMEs. While recent agreements with China on border disengagement have made progress, Jaishankar stressed the importance of weighing long-term implications and avoiding market dominance by Chinese products, as nearly a third of global manufacturing originates in China. On the U.S. front, Jaishankar noted India’s favourable position to deepen ties with the incoming Trump administration, highlighting shared political goodwill and opportunities to align with America’s focus on manufacturing, despite potential challenges in specific transactions. 

⁠India launches commercial space mission for Europe (mint)

⁠India’s PSLV successfully executed its 59th commercial mission on Thursday, launching Europe’s Proba-3 satellite, marking India’s first collaborative commercial space mission with Europe and showcasing its reliability as a global launch partner. The mission, led by ISRO’s commercial arm NSIL, follows a June agreement with Australia for a $18 million satellite launch by 2026 and aligns with India’s ambition to grow its space sector from $8 billion to $44 billion by 2033. Experts noted the PSLV’s proven track record, combined with geopolitical factors such as limited reliance on the U.S. and exclusions of Russia and China, positions India as a preferred partner for scientific and commercial missions, though scaling frequency to rival SpaceX remains a key challenge.

India exposed to US’ trade policy shift: UN (Financial Express)

⁠India, along with other major economies, is highly exposed to potential shifts in U.S. trade policy, which could disrupt global value chains and affect key trading partners. According to UNCTAD, global trade is set to reach a record $33 trillion in 2024, but the 2025 outlook is uncertain due to the risks of trade wars and the impact of broader tariffs that could trigger retaliation and affect industries across supply chains. Countries most vulnerable to changes in U.S. trade policy include China ($280 billion trade surplus), India ($45 billion), the European Union ($205 billion), Vietnam ($105 billion), Canada ($70 billion), Japan ($70 billion), Mexico ($150 billion), and the Republic of Korea ($50 billion). This disruption is expected to weaken trade, investment, and economic growth, with global trade growing by 3.3% in 2024, driven by a 7% rise in trade in services contributing $500 billion to the overall expansion. 

⁠Russia Keen to Set Up Factories in India (The Economic Times)

Russian President Vladimir Putin expressed readiness to establish manufacturing operations in India, citing the profitability of investments and praising initiatives like “Make in India” and the “India-first” policy for fostering stable growth conditions. At the VTB Russia Calling Investment Forum, he highlighted Rosneft’s $20 billion investment in India and noted FY25 trade statistics, with India’s exports to Russia at $2.61 billion and imports at $32.23 billion, showcasing robust economic ties. Putin also emphasized the role of BRICS cooperation, Russia’s import substitution program, and the importance of rapid dispute resolution for SME growth, particularly as new Russian brands emerge in IT, high-tech, and consumer goods sectors. 

⁠India, Pak Join Hands at WTO Against Attempt For Facilitator-led Farm Talks (The Economic Times)

⁠India, Sri Lanka, and Pakistan raised objections at the WTO against appointing facilitators to oversee stalled agriculture negotiations, emphasizing the importance of consensus over convergence in WTO decision-making. They argued that the proposed facilitator-led approach undermines ministerial mandates, sets a problematic precedent for WTO procedures, and lacks consensus among members, citing issues like permanent stockholding, special safeguards, and cotton trade that require transparent and inclusive negotiation. The three countries proposed accelerating discussions on mandated agricultural issues within the Committee on Agriculture while urging adherence to formal channels and opposing unilateral facilitator appointments.