Daily News - Monday, 10 February 2025

⁠Indian firms keen on Saudi’s $63 bn Diriyah giga project (Business Standard)

Several Indian firms, including Tata and Oberoi, are investing in Diriyah, a $63.2 billion Saudi Arabian giga-project backed by the Public Investment Fund, which aims to develop a historic and cultural hub with over 40 luxury hotels, 1,000 shops, 150 restaurants, and extensive residential and commercial spaces for 200,000 people. India, one of Saudi Arabia’s largest trading partners with a bilateral trade volume of $52.8 billion in 2022-23, already has over 3,000 companies operating in the Kingdom across construction, IT, energy, and telecommunications, reinforcing economic ties. Indian investors, particularly in the hospitality sector, are actively participating, with Taj set to open its 250th property and Oberoi developing a hotel near the equestrian and polo centre, while Diriyah offers a wide range of investment opportunities across multiple asset classes.

⁠Easier visa norms to boost medical tourism (Business Standard)

⁠India’s medical tourism sector, valued at $7.69 billion in 2024, is projected to grow to $8.71 billion in 2025, driven by visa relaxations announced in the Union Budget and renewed international patient inflows, particularly from Bangladesh, which previously accounted for 50-60% of the market but saw a 25-40% decline due to political unrest. Major hospital chains like Fortis Healthcare, which experienced a 35% drop in Bangladeshi patients, are expecting up to 20% growth, while HCG Hospitals anticipates a 45% increase in international patients, with its revenue from foreign patients expected to rise from ₹13 crore to ₹20 crore. The sector’s optimism is also fueled by government tie-ups with nations such as Iraq, Mauritius, Tanzania, Kenya, Bangladesh, and Ethiopia, alongside expanded digital outreach, institutional partnerships, and international accreditations. 

Customs reforms to avert tax disputes like Volkswagen (Financial Express)

The Indian government has introduced a two-year time frame for finalizing provisional customs assessments in the FY26 Budget to provide tax certainty and prevent prolonged disputes, such as Volkswagen India’s $1.4 billion tax demand stemming from a decade-long provisional assessment. Volkswagen allegedly misclassified its Completely Knocked Down (CKD) kits as individual parts to pay a lower 10-15% duty instead of the 30-35% applicable to CKD imports, prompting customs authorities to issue the massive tax demand, which the company is now challenging in the Bombay High Court. A similar case was reported last year when Kia India faced a $150 million tax notice for alleged misclassification of imported components, highlighting broader scrutiny of automotive import practices under India’s Customs Tariff Act. 

⁠Govt to ease procedural norms to attract FDIs (Financial Chronicle)

⁠The Indian government is exploring procedural relaxations to attract more Foreign Direct Investment (FDI), with the Department for Promotion of Industry and Internal Trade (DPIIT) conducting stakeholder consultations across various sectors, though specific sectors under review remain undisclosed. Key suggestions include allowing FDI in inventory-based e-commerce for exports, easing Press Note 3 restrictions by defining beneficial ownership, and modifying policies for single-brand retail trading, particularly for investors from countries sharing land borders with India. India’s FDI inflows have surpassed $1 trillion since April 2000, with a 45% year-on-year increase to $29.79 billion in April-September 2024, driven by sectors such as services, IT, telecom, construction, automobiles, chemicals, and pharmaceuticals. 

⁠Indian pharma exports poise to double by 2030 (Financial Chronicle)

⁠India’s pharmaceutical exports are projected to double to $65 billion by 2030 and reach $350 billion by 2047, securing a top-five global position by shifting from volume-driven to value-led growth through innovation in speciality generics, biosimilars, and novel products. Currently, the largest supplier of generic drugs worldwide but ranking 11th in export value, India must strengthen its Active Pharmaceutical Ingredients (API) industry, develop bulk drug parks, and improve infrastructure, including energy supply and waste management, to enhance competitiveness. Industry experts emphasize that government-private sector collaboration, regulatory advancements, and global market access will be key to achieving this ambitious export growth, with pharmaceuticals already accounting for 6% of India’s total merchandise exports.