Daily News - Monday, 2 June 2025

New Delhi to flag long-standing WTO issues at ministerial meet in Paris (Financial Express)

⁠India, along with ministers from 24 other WTO member nations, will participate in an informal meeting in Paris on June 3 to address key global trade issues, particularly fisheries subsidies, dispute settlement reform, and investment facilitation, as part of early preparations for the WTO’s 2026 ministerial. Led by Commerce Minister Piyush Goyal, India will push for special exemptions for small-scale and artisanal fishing within 12–200 nautical miles, oppose China-backed investment facilitation proposals, and stress the need for restoring a functional WTO appellate body, which remains stalled due to a U.S. block on appointments. On the sidelines of the OECD Ministerial, Goyal will also hold bilateral talks with counterparts from the EU, France, UK, Singapore, Saudi Arabia, Israel, Nigeria, and Brazil to advance trade negotiations—including the fast-moving India-EU FTA—and will engage with top French firms and industry leaders before heading to Italy. 

⁠Centre eases approval process for Chinese FDI (Financial Express)

⁠India has streamlined its foreign direct investment (FDI) approval process for Chinese companies by ensuring regular meetings of the Inter-Ministerial Committee (IMC), chaired by the Home Secretary, and oversight by the Cabinet Secretary, significantly reducing application processing times. This follows restrictions imposed under Press Note 3 of 2020, which mandates government clearance for FDI from countries sharing land borders with India, originally aimed at preventing opportunistic takeovers during the COVID-19 market crash and later reinforced by the 2020 Galwan Valley clash with China. With global supply chains shifting and Chinese firms seeking new bases for fulfilling US and EU orders, India’s move toward a more pragmatic, transparent approval process could position it as a strategic destination for export-oriented Chinese investments, as recommended by the 2023–24 Economic Survey.

⁠‘Apples and shrimp can help sweeten trade deal with US’ (mint)

A NITI Aayog working paper has urged India to adopt a calibrated ‘give-and-take’ trade approach by offering greater market access to select American products like apples (50% duty), almonds, and pistachios (30% duty), which do not threaten domestic producers, in exchange for improved long-term access for Indian exports such as shrimp, rice, tea, and rubber. The paper warns that India—accounting for over 40% of US frozen shrimp imports—may lose its price edge due to a proposed 26% US tariff, especially when competitors like Ecuador and Argentina face only a 10% tariff, while Indonesia and Vietnam face higher rates of 32% and 46% respectively. With India exporting $409 million worth of rice to the US in 2024 and shrimp exports valued at $7–8 billion annually, stakeholders are pushing for a permanent resolution during ongoing trade talks to safeguard competitiveness and double export turnover within five years.

⁠India seeks financial details of pharmaceutical marketing practices, industry caught in a bind (mint)

The Centre has directed all pharmaceutical companies to submit detailed disclosures of their FY25 marketing expenditure by 31 July 2025 under the new Uniform Code for Pharmaceutical Marketing Practices (UCPMP) 2024, warning of action for non-compliance. This marks the first large-scale compliance exercise of its kind, aiming to curb unethical promotional tactics such as offering freebies to doctors, despite ongoing concerns that such practices persist. Industry leaders, including the Indian Drugs Manufacturers Association and the Indian Pharmaceutical Alliance, acknowledge the move is fostering greater caution and transparency across the sector.

Govt cuts natural gas price for CNG, cooking use for first time in 2 yrs (Business Standard)

⁠For the first time in two years, the Indian government has reduced the price of APM (Administered Price Mechanism) natural gas from legacy fields to $6.41 per mmBtu (on GCV basis) for June 2025, down from the earlier capped rate of $6.75, reflecting lower global crude prices which averaged $64 per barrel in May. This move, under the revised April 2023 pricing formula, benefits city gas distributors like Indraprastha Gas, Mahanagar Gas, and Adani-Total Gas, who rely on this gas for supplying CNG and piped cooking gas, which together form 60% of their sales volume. The price cut also affects gas from ONGC’s new wells—constituting 5 mmscmd or 10% of its total gas output—previously priced at a premium to cover capex, and comes as a relief amid volatile global energy prices and slowing demand.