Daily News - Thursday, 15 May 2025
India’s travel boycott rocks Turkey, Azerbaijan tourism industry (Financial Express)
Indian tourists are increasingly avoiding Turkey and Azerbaijan due to their perceived alignment with Pakistan amid the India-Pakistan conflict, resulting in a dramatic 60% drop in bookings and a 250% surge in cancellations for both destinations, as reported by MakeMyTrip, while travel bodies like TAAI and TAFI have announced a formal boycott. In 2024, Turkey attracted 274,000 Indian visitors, a 20.7% increase from the previous year, while Azerbaijan welcomed 243,589 Indian tourists, with average spending of $1,280 per visitor; however, recent geopolitical tensions have shifted preferences towards Georgia, Serbia, Greece, Thailand, Vietnam, and Southeast Asian countries like Malaysia and Singapore, known for affordability and ease of travel. Domestic tourism is also affected, witnessing a 60% decline, prompting travel platforms to offer full refunds and alternative destinations, with Indian travellers now favouring Kerala, Karnataka, Tamil Nadu, and Southeast Asia as safer, budget-friendly options.
India emerges as top Asian market choice for fund managers (The Economic Times)
India has overtaken Japan as the top Asian stock market pick for fund managers, driven by expectations of benefiting from global supply chain realignments amid trade tensions, according to BofA Securities’ latest monthly survey, which saw 42% of fund managers overweight on India compared to 39% for Japan and just 6% for China. The survey, which included 109 panellists managing $234 billion in assets, highlighted infrastructure and consumption as key themes attracting investor interest in India, reflecting market confidence in its domestically driven economy amid global tariff-induced volatility. This shift underscores India’s growing appeal as a resilient investment destination, capitalising on supply chain adjustments and reduced reliance on exports.
India likely to export 24 million tonnes rice in 2025-26, says USDA (Business Standard)
India is projected to export around 24 million tonnes of rice in the 2025–26 marketing year, capturing 40% of the global market share, driven by strong production estimates of 121 million tonnes in the 2024–25 Kharif season, 7% higher than last year, and substantial foodgrain stocks of 66.16 million tonnes as of April 2025, according to the USDA. This surge in exports is expected to solidify India’s dominance in global rice markets, outpacing other Asian exporters, with competitive pricing and robust supplies bolstered by a predicted strong monsoon by the IMD. Despite previous export restrictions in 2022 aimed at controlling domestic prices, including bans on non-basmati white rice and duties on parboiled rice, India’s expanded production and pricing strategy are set to reclaim its top exporter status.
Cabinet approves Rs 3,706 cr HCL-Foxconn semiconductor JV in Uttar Pradesh’s Jewar (The Indian Express)
The Union Cabinet has approved a joint venture between HCL and Foxconn to establish a chip assembly and packaging unit near Jewar Airport in Uttar Pradesh under the Rs 76,000 crore India Semiconductor Mission, with a total investment of Rs 3,706 crore, including Rs 1,500 crore in government incentives; the facility is projected to manufacture 20,000 wafers per month, producing 36 million display driver chips monthly for various electronic devices and meet 40% of India’s local demand by 2027. This marks Foxconn’s second attempt at India’s chip production after its previous venture with Vedanta failed in 2023 due to technology acquisition challenges, but since then, India has attracted $18 billion in investments for five chip manufacturing and assembly plants, including Tata-PSMC’s $11 billion fab, Micron Technology’s assembly plants, and others in Gujarat and Assam, all expected to begin production soon. Additionally, the Indian government has laid out a $15 billion blueprint for Phase 2 of the India Semiconductor Mission, aiming to boost raw materials and gas supplies for chip manufacturing, following the $10 billion Phase 1 launched in December 2021.
MSMEs call for easing Fema curbs over exports, imports (mint)
The proposed consolidation of Fema regulations for exports and imports aims to simplify trade processes by merging two directives into one, requiring Export Declaration Forms (EDFs) for goods, services, and software; however, MSMEs, which contribute 45% to India’s exports, argue that the draft’s one-size-fits-all approach and procedural intensification disproportionately burden small businesses, particularly in the digital and direct-to-customer e-commerce sectors. Industry bodies representing over 98,000 MSMEs have raised concerns over inflexible timelines, discretionary powers of Authorized Dealers, and a lack of provisions for digital exports, highlighting that most MSMEs are micro enterprises with limited financial resources to handle compliance challenges. Despite claims of enhancing ease of business, stakeholders like the India SME Forum and legal experts warn that the 2025 regulations, expected to replace the 2015 norms, could escalate operational difficulties for smaller exporters, hindering their ability to compete globally.
