Daily News - Monday, 9 December 2024

CII against aggressive fiscal consolidation (Financial Express)

The Confederation of Indian Industry (CII) has advised the government to avoid overly aggressive fiscal deficit reductions in the upcoming Budget, recommending a target of 4.9% of GDP for FY25 and 4.5% for FY26 to sustain economic growth. It suggested introducing a glide path to reduce central government debt below 50% of GDP by 2030-31 and below 40% in the long term, which could improve India’s sovereign credit rating and lower interest rates. To enhance fiscal planning, CII proposed instituting Fiscal Stability Reporting with annual assessments of fiscal risks under various scenarios, aiding better preparation for economic challenges and opportunities. 

⁠India, Norway discuss ways to ease investments under EFTA (Financial Express)

⁠India and Norway discussed investment opportunities under the Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA), focusing on sectors such as renewable energy, logistics, maritime, and technology during a business roundtable in Mumbai. Norwegian Ambassador May-Elin Stener highlighted plans to ratify TEPA by 2025, with EFTA members collectively committing $100 billion in FDI to India over 15 years, expected to generate one million jobs, in exchange for reduced tariffs on exports to India. The agreement includes provisions for India to review and potentially roll back tariff concessions if the investment commitments are not met.

⁠India flags trade line, China worry in FTA talks with Oman (mint)

⁠India has expressed concerns about China potentially using Oman as a channel to dump goods into the Indian market, complicating talks on the India-Oman Comprehensive Economic Partnership Agreement (CEPA), which currently includes over 200 trade lines but has stalled due to Oman’s demand for 500 trade lines. While the agreement aims to eliminate duties on key products like petroleum, textiles, and machinery, and support Oman’s economic diversification, India is cautious about granting expanded market access, especially for agricultural goods, processed foods, and plastics. The FTA is seen as a way to bolster India’s green manufacturing exports to counter the EU’s Carbon Border Adjustment Mechanism (CBAM), but India is wary of China’s attempts to bypass trade restrictions imposed by the EU and the US via intermediary nations. 

Govt proposes to decriminalize minor defaults on the part of MSMEs (mint)

The Union government is considering decriminalizing minor defaults under the MSME Development (MSMED) Act, such as submitting incorrect self-declaration memorandums and failing to disclose MSME dues in annual accounts, to ease the regulatory burden on MSMEs. Section 27 of the Act, which currently imposes penalties of ₹1,000–10,000 for non-disclosure of MSME registration details, often forces businesses into costly legal battles, further straining their limited capital. With over 55.8 million MSMEs employing 230 million individuals and struggling with limited credit access, the government aims to reduce these challenges through reforms like decriminalization, expanded supplier definitions, and schemes such as the Credit Guarantee Fund for micro and small enterprises. 

NGEL, Maersk talk green fuel (mint)

NTPC Green Energy Ltd. (NGEL), a subsidiary of NTPC, is in initial talks with global shipping giant A.P. Møller–Mærsk A/S to supply green methanol, a low-emission marine fuel produced by combining green hydrogen with captured carbon dioxide. This collaboration aligns with global maritime fuel standards like the EU’s Fuel Maritime Regulation, which mandates an 80% reduction in greenhouse gas intensity by 2050. NTPC plans to produce 2 million metric tonnes of green methanol annually at a proposed hub in Andhra Pradesh, supported by pilot projects like a 10-tonne-per-day CO2-to-methanol demonstration plant at NTPC-Vindhyachal. Maersk, seeking low-emission fuels for its growing fleet of dual-fuel vessels, sees India’s resources and policy framework as conducive for sourcing renewable fuels.