Weekly News 03 - 07 July 2023
Domestic
3 July 2023 – (Zee Business) 70% work of India-Myanmar-Thailand Trilateral Highway complete, says Union Minister Nitin Gadkari[1]
Around 70 per cent work of the project is completed," the minister of Road Transport & Highways told PTI in reply to a question on the progress of the project.
The highway will connect Moreh in Manipur, India with Mae Sot in Thailand via Myanmar. The minister did not provide details on the timeline for completion and operationalisation of the trilateral highway.
4 July 2023 – (Mint) India's June palm oil imports jump 49% from May over lowest prices in 28 months.[2]
India's palm oil imports surge to three-month high: In June, India's palm oil imports rose by 49% compared to the previous month, reaching the highest level in three months. Buyers took advantage of lower prices and increased purchases, supporting Malaysian palm oil futures and helping Indonesia and Malaysia reduce their inventories.
Soyoil imports also rise, sunflower oil imports decline: Alongside palm oil, India's imports of soyoil surged by 35% in June, while sunflower oil imports plummeted by 36%. The demand for palm oil may ease in the second quarter due to reduced cost advantages, weaker domestic consumption, and inventory buildup, according to market insights.
5 July 2023 – (Wion News) Road trip to Thailand from India? International highway project nears completion.[3]
Union Minister of Road Transport and Highways, Nitin Gadkari, has said that construction work on the India-Myanmar-Thailand Trilateral Highway is almost completed. The highway would connect India with Southeast Asian countries by road. Nitin Gadkari told PTI that around 70 per cent of work on the trilateral highway is completed. The highway will connect the ASEAN countries by land and help in encouraging trade, business, tourism, education and health ties among the countries.
The highway will link Moreh in Manipur to Mae Sot in Thailand through Myanmar. Although the project was to be completed by December 2019, it has been delayed. The minister has not provided any completion date yet. The project is aimed at boosting trade between the three countries. The highway is about 1,400 kilometres long, and will also offer travellers an option that is quick and more affordable than flights.
The project will also help India in boosting its economy. As per reports, the incremental GDP is expected to increase by $70 billion and incremental aggregate employment by 20 million annually due to the connectivity.
6 June 2023 – (Economic Times) Imports of low ash Met Coke under Safeguard duty probe scanner.[4]
DGTR initiates investigation on safeguard duty for low ash metallurgical coke imports into India: DGTR (Directorate General of Trade Remedies) has launched a probe into the sudden increase in imports of low ash metallurgical coke (Met Coke) into India. The investigation follows complaints from domestic companies alleging serious injury to the domestic industry and a threat of further harm. Met Coke is extensively used as a primary fuel in various industries including steel, chemical, Ferro alloy, and pig iron plants.
Imports surge and alleged injury to domestic industry: The applicants claim a significant rise in Met Coke imports, resulting in a 40% increase during April to December 2022 compared to the previous year. They argue that factors such as the Russia-Ukraine conflict, coal price hikes due to sanctions, and freight advantages enjoyed by China have contributed to the surge in imports. The applicants have sought the imposition of a safeguard duty for one year to protect the domestic industry from further harm.
7 June 2023 – (Economic Times) Modi’s push to take Indian rupee global gets off to a slow start.[5]
Despite facing challenges, India's initiative to boost the international role of the rupee in cross-border payments reflects its aspirations for a bigger global presence and reduced dependence on the dollar. While progress has been limited, India's efforts align with its rapid economic growth and positioning as an alternative to China in the post-Covid era. Enhancing the rupee's internationalization could help reduce currency risk for Indian businesses and make the economy less vulnerable to global currency shocks.
Although the rupee still faces obstacles such as capital controls and a chronic current account deficit, India's long-term potential as a global economic contributor should not be underestimated. While comparisons to China's internationalization of the yuan highlight differences in global finance influence, India's focus on facilitating the rupee as a currency of transaction and payments holds potential benefits. By fostering a more open capital account and expanding investible assets, India could pave the way for a larger role for the rupee in global transactions and potentially reduce the need for maintaining large forex reserves.
7 July 2023 – (Vietnam Net Global) “Modern infrastructure linked to social justice,” says PM Modi as he launches projects worth over Rs 7,000 cr in Chhattisgarh’s Raipur. [6]
Prime Minister Narendra Modi inaugurated and laid the foundation stone for multiple infrastructure projects worth over Rs 7,000 crore in Chhattisgarh. These projects include the development of national highways and the doubling of the Raipur-Khariar Road Rail Line, aiming to enhance connectivity and promote the progress of the state.
PM Modi emphasized the significance of these projects in bringing modern infrastructure to previously neglected areas, promoting social justice and driving economic growth. He also highlighted the government's efforts in providing healthcare benefits under the Ayushman Bharat scheme and financial assistance to the youth through the Mudra Yojna, while acknowledging the advancements made in road connectivity in tribal villages through the Pradhan Mantri Gramin Sadak Yojana.
International
3 July 2023 – (Swarajya) With Focus On India's Growing Demand, Thai Airways To Double Fleet Size.[7]
Thai Airways International plans a strong comeback by doubling its fleet size and focusing on improving routes to India, capitalizing on the country's large population and tourism potential. The airline's shift from restructuring to expansion follows improved business performance and increased passenger demand as travel restrictions ease post-COVID.
Thai Airways aims to increase its fleet from 65 to 113 planes by 2027 airline sees India as a significant opportunity, with strong tourist inflows and collaboration between public and private sectors to attract visitors. The expansion plan includes integrating management with subsidiary Thai Smile to enhance domestic service efficiency and calls for legal reforms to streamline aircraft purchase approvals.
5 July 2023 – (BW Business Word) India, Japan, South Korea's Equity Markets Gain From China's Slowdown. [8]
India, Japan, and South Korea outperforming in equity markets amid China's economic slowdown: As China's economy faces challenges, investors are turning to other countries for better returns. India, Japan, and South Korea have benefited from this trend, attracting Foreign Institutional Investor (FII) flows and experiencing significant equity market gains.
Global economy faces slowdown concerns, while India shows resilience: Global economies are grappling with slower growth, elevated inflation, recession fears, and central bank rate hike cycles. In contrast, India's domestic macro fundamentals have remained resilient, with positive surprises in Q4FY23 GDP and the RBI retaining a growth projection of 6.5% for FY24. This resilience has made India an attractive investment destination and part of the growth story, while the global economy is expected to moderate to 2.8% growth in CY23 according to the IMF.
6 July 2023 ( The Economist- Mint) Investors have reason to fear a strong economy.[9]
Contradictory signals from different markets are creating confusion and uncertainty, with traders expecting rate hikes and cuts while bond yields indicate a potential recession. The stock market has remained resilient despite recession fears, but bank stocks continue to struggle.
A scenario of a robust economy and sustained high interest rates could disrupt investors' positions across all markets. This would negatively impact bond prices, rate expectations, and investments in sectors such as big tech. However, this scenario is unlikely, and ongoing tight monetary policy and political risks add further complexities to the economic landscape.
7 July 2023 – (Travel Biz Monitor) TTM+ 2023: Showcasing Thailand’s Effort Toward Sustainable Tourism.[10]
TTM+ 2023 showcases business opportunities in Thailand's travel industry: The Thailand Travel Mart Plus (TTM+) 2023, a leading B2B travel show, highlighted new business prospects for global buyers seeking unique travel experiences in Thailand and the ASEAN region. The event emphasized sustainable tourism and leveraged the country's soft-power foundations such as food, film, festival, fight, and fashion.
Focus on sustainability and technology: The TTM+ featured discussions on building a sustainable future for tourism through innovation and technology. The event underscored Thailand's commitment to sustainability with initiatives like the Sustainable Tourism Goals (STGs) and the development of a STAR system to certify sustainable tourism businesses. The exhibition also showcased tourism-related products, DIY workshops, and promoted sustainable practices in the industry.
[1] https://www.zeebiz.com/economy-infra/news-nitin-gadkari-union-minister-nitin-gadkari-india-myanmar-thailand-india-myanmar-thailand-trilateral-highway-70-work-complete-242434
[2] https://www.livemint.com/economy/indias-june-palm-oil-imports-jump-49-from-may-over-lowest-prices-in-28-months-check-details-11688469684083.html
[3] https://www.wionews.com/photos/in-pics-road-trip-to-thailand-soon-major-international-highway-project-nears-completion-611500/#nitin-gadkari-611453
[4] https://economictimes.indiatimes.com/news/economy/foreign-trade/imports-of-low-ash-met-coke-under-safeguard-duty-probe-scanner/articleshow/101544367.cms
[5] https://economictimes.indiatimes.com/news/india/modis-push-to-take-indian-rupee-global-gets-off-to-a-slow-start/articleshow/101557344.cms
[6] https://www.thestatesman.com/india/modern-infrastructure-linked-to-social-justice-says-pm-modi-as-he-launches-projects-worth-over-rs-7000-cr-in-chhattisgarhs-raipur-1503197955.html
[7] https://swarajyamag.com/business/with-focus-on-indias-growing-demand-thai-airways-to-double-fleet-size
[8] https://www.businessworld.in/article/India-Japan-South-Korea-s-Equity-Markets-Gain-From-China-s-Slowdown/04-07-2023-482850/
[9] https://www.livemint.com/money/investors-have-reason-to-fear-a-strong-economy-11688631499268.html
[10] https://travelbizmonitor.com/ttm-2023-showcasing-thailands-effort-toward-sustainable-tourism/
