Daily News - Tuesday, 18 February 2025

India will Continue to Review & Rationalise its Trade Tariffs: FM (The Economic Times)

⁠India is continuously reviewing and rationalizing its trade tariffs, including customs and anti-dumping duties, to enhance investor appeal and align with its economic goal of "atma nirbharta (self-reliance)", with Finance Minister Nirmala Sitharaman noting that past duty rates as high as 150% were unsustainable. The FY26 budget has streamlined the customs structure by reducing the number of duty slabs from 15 to 8, with 6,000 out of 8,000 industrial goods tariff lines now below 10% and key US imports into India facing duties between 0% and 2.5%. While India has already undertaken substantial tariff rationalization, negotiations with the US on reciprocal duty adjustments remain ongoing, with specific trade agreement details yet to be finalized.

Global aerospace firms turn to India amid supply chain crisis (Financial Express)

Global aerospace giants like Airbus, Collins Aerospace, Pratt & Whitney, and Rolls-Royce are increasingly sourcing parts from India, boosting the country’s aerospace sector and pushing local firms to scale up operations. Bengaluru-based Hical Technologies aims to double its aerospace revenue to $57.57 million in three years, while IIG Aero rapidly grew from $2 million to $20 million in just six years, reflecting India’s rising prominence in the Asia-Pacific aerospace market, which is projected to be 54% above 2019 levels, outpacing North America and Europe. With India being one of the world’s largest aircraft buyers but contributing only 1% to the global aerospace supply chain, massive aircraft orders from IndiGo and Air India are accelerating domestic manufacturing growth, attracting Western manufacturers seeking alternatives amid global supply chain disruptions. 

Schemes under export mission in the works (Financial Express)

The Indian government is set to launch inter-ministerial consultations to finalize schemes under the Export Promotion Mission, which has been allocated ₹2,250 crore in the FY26 Budget, primarily to address export credit shortages for MSMEs and promote alternative financing instruments like factoring. India’s total export credit requirement for $437 billion worth of exports in 2023-24 was $284 billion, but only $124.7 billion was provided, prompting the government to explore reduced collateral mechanisms and support for factoring services, which allow exporters to sell receivables at a discount. Additionally, the mission will support MSMEs in complying with non-tariff barriers by reimbursing costs for certifications, inspections, and machinery upgrades, enabling businesses to meet global standards such as EU carbon taxes, halal certifications, and permissible pesticide levels for agricultural exports.

⁠NTPC plans to spend ₹5.27L cr on 30 GW of nuclear power (Financial Express)

⁠State-run NTPC plans to build 30 GW of nuclear power capacity over the next two decades—three times its initial target—at an estimated cost of ₹527,000 crore, following the government’s decision to open the sector to foreign and private investment. India aims for 100 GW of nuclear capacity by 2047, with NTPC leading the expansion alongside Nuclear Power Corporation of India (NPCIL), which currently operates nearly 8 GW. NTPC is already constructing two 2.6 GW nuclear plants in Madhya Pradesh and Rajasthan and is seeking land in eight states, including Gujarat, Uttar Pradesh, and Tamil Nadu, for 50 GW of potential capacity. Its subsidiary, NTPC Parmanu Urja Nigam, will spearhead investments, with potential foreign partnerships including France’s EDF, General Electric (US), Holtec International (US), and Russian firms. 

‘Heavy selling by FPIs likely due to India’s good returns’ (mint)

Finance Minister Nirmala Sitharaman attributed the recent heavy selling by foreign portfolio investors (FPIs), who have net sold $12 billion in Indian equities this year, to profit-booking rather than a large-scale exit, emphasizing that India remains an attractive investment destination. Despite the Nifty 50 losing 12.4% since its peak in September and the MSCI India index underperforming the broader MSCI Emerging Markets index (5.88% vs. 15.35% one-year return), officials stressed that India’s equity markets remain resilient amid global uncertainties, including U.S. tariff hikes and rising bond yields. With India’s economic growth slowing from 8.2% in 2023-24 to an estimated 6.4% due to lower capital expenditure and declining household consumption, the government plans to rationalize duties and maintain an investor-friendly environment to sustain long-term growth.