Daily News - Friday, 31 January 2025

⁠Wind sector seeks favourable policies for 500 Gw target (Business Standard)

India’s wind energy sector is urging budgetary support to strengthen transmission infrastructure, ensuring the country meets its 500 GW renewable energy target by 2030, as industry leaders warn that inadequate grid capacity could become a major bottleneck. Despite wind installations reaching a seven-year high in 2024 due to government support and a strong domestic supply chain, industry experts highlight a policy imbalance favouring solar energy, with production-linked incentives and Make-in-India initiatives primarily benefiting solar while wind remains overlooked. To accelerate growth, leaders recommend integrating electricity into the GST framework at a rationalized 12% rate, introducing a preferential tax structure for capital equipment needed for larger wind turbines, and ensuring equal policy focus on wind and solar to prevent long-term cost and infrastructure challenges. 

⁠‘G20 should address trade, tariff war’ (mint)

⁠India’s G20 Sherpa, Amitabh Kant, emphasized the need for the G20 to address rising trade and tariff wars, as the US threatens increased tariffs on India, China, Mexico, and Canada, while the EU has already imposed up to 45% tariffs on Chinese electric vehicles. Highlighting India’s presidential achievements—such as integrating the African Union into the G20 and forging a green development pact—Kant identified three key challenges: geopolitical conflicts (Russia-Ukraine and the Middle East), disruptions in global supply chains due to tariffs and China’s overcapacity, and the transformative yet conflict-prone rise of AI and emerging technologies. While security remains under the UN’s domain, he asserted that the G20 must take the lead in shaping international regulations on AI, free trade, and economic growth, ensuring these issues remain central under Brazil and South Africa’s leadership. 

⁠Reforms for medical devices sector soon (Financial Express)

⁠India’s medical devices industry is set to double to $30 billion by 2030, with its global market share projected to rise from 1.65% to 10-12%, driven by strong exports of $3.8 billion last year and increasing domestic manufacturing capabilities. Government initiatives, including policy reforms and restrictions on refurbished medical device imports, aim to reduce dependence on imports and establish India as a global leader in affordable, high-quality medtech, similar to its “pharmacy of the world” status. Additionally, India’s affiliate membership in the International Medical Device Regulators Forum (IMDRF) is a strategic step toward influencing global regulatory policies and expanding its footprint in the international medical technology market. 

⁠FM may launch ₹1,000-cr fund for climate-resilient farming (Financial Express)

The government is set to launch a ₹1,000 crore Nabventures Fund-II in FY26 to support startups in agriculture and allied sectors, focusing on climate-smart and climate-resilient farming solutions, building on the success of the ₹598 crore Nabventures Fund-I, which facilitated ₹3,000 crore in agribusiness loans and rapid soil testing for over 100,000 farmers. Additionally, the ₹750 crore AGRI-SURE fund, launched last year in collaboration with NABARD and the agriculture ministry, is now being operationalized to scale up 85 startups over five years, with ₹300 crore earmarked for direct startup investment and ₹450 crore as a fund of funds. AGRI-SURE aims to strengthen rural infrastructure, reduce post-harvest losses, and empower farmers by funding warehouses, cold storage, and supply chain improvements, reducing dependency on intermediaries and boosting India’s agricultural economy. 

Urban-Rural Spending Gap Narrows in FY24 (The Economic Times)

Spending inequality between rural and urban areas, as well as among social groups, declined in 2023-24, with the rural-urban expenditure gap narrowing to 69.7% from 71.2% in 2022-23 and 83.9% in 2011-12, while rural per capita monthly expenditure rose by 9.2% to ₹4,122 and urban expenditure increased by 8.3% to ₹6,996. Non-food items remained the dominant component of monthly expenses, though their share slightly declined, with food expenditure rising to 47% in rural areas and 39.7% in urban areas. Spending growth was higher among Scheduled Tribes, Scheduled Castes, and Other Backward Classes, as well as casual labourers and self-employed individuals in both rural and urban areas, with agricultural workers seeing a greater rise in consumption compared to non-agricultural workers.