Weekly News 24 - 28 July 2023
Domestic
24 July 2023 – (Economic Times) Startups to get airfare support for export promotion.[1]
India's declining exports have led to the introduction of incentives and relaxed compliance norms for startups and new exporters, as well as a 20% increase in the ceiling for existing exporters, under the Market Access Initiatives (MAI) Scheme.
The MAI Scheme offers financial assistance and airfare reimbursement for export promotion activities, aiming to boost exports and encourage new entrepreneurs to enter the export field. India also plans to host mega trade fairs for various industries to achieve a 12% growth in goods exports by 2030.
25 July 2023 – (Economic Times) India's economic narrative brighter; takes charismatic lead in global economic evolution: K M Birla[2]
India's economic narrative is optimistic as private sector capital expenditure surges, driven by the government's focus on infrastructure and pragmatic policies, creating a multi-year boom.
UltraTech Cement's Chairman, Kumar Mangalam Birla, believes India's advantageous position in the global economy is further strengthened by its resilient economy, easing inflation, and a young and skilled workforce, making it an attractive destination for investment and growth.
26 July 2023 – (Economic TImes) India can be Key Player in Energy Transition and Leader in Green H2.[3]
International Energy Agency (IEA) executive director Fatih Birol told ET in an interview, India could play a pivotal role in the energy transition and lead in green hydrogen production due to its low-cost renewable energy generation. It can inspire other nations with successful interventions and share its expertise.
India's strong energy demand requires foreign investments in green energy. Simplifying bureaucratic procedures can attract significant foreign investment. International financial institutions must prioritize reducing the cost of capital for clean energy in developing countries to support the transition.
27 July 2023 – (Economic Times) ‘India Will be Among Top 3 Economies in NDA 3rd Term’.[4]
Prime Minister Narendra Modi predicts that India will rank among the top three economies in the world during the third term of the National Democratic Alliance (NDA), with a faster pace of progress after 2024. Currently, India is the world's fifth-largest economy, projected to be the fastest-growing major economy in FY24.
The Prime Minister inaugurated the International Exhibition-cum-Convention Centre (IECC) complex, Bharat Mandapam, at the Pragati Maidan complex, which will host the G20 summit in September under India's G20 presidency. He also announced the construction of the world's largest museum in Delhi. The complex is India's largest MICE destination and was developed at a cost of about Rs 2,700 crore, covering approximately 123 acres.
27 July 2023 – (Economic Times) India-ASEAN free trade agreement most ill-conceived: Piyush Goyal.[5]
India's Commerce and Industry Minister Piyush Goyal criticised the previous governments for not doing enough stakeholder consultations on free trade agreements, saying the India-ASEAN FTA was "most ill-conceived" and unfairly favoured imports. Goyal also said India opened its markets to Japan and Korea but has not seen an increase in exports to those countries.
28 July 2023 – (Economic Times) FM: PLI Scheme Likely for Chemicals & Petrochem.[6]
Finance Minister Nirmala Sitharaman announced that the government is considering a production-linked incentive (PLI) scheme for the chemicals and petrochemicals sector in India to promote manufacturing and reduce import dependency. This move aims to make India a manufacturing hub and attract global manufacturers seeking to diversify their production capabilities.
The government is committed to green growth, focusing on energy efficiency and renewable energy commitments, including the National Green Hydrogen Mission. India aims to achieve energy independence by 2047 and net-zero emissions by 2070. The chemicals and petrochemicals industry's potential and size are seen as critical to achieving these goals, and the industry must improve sustainability, recycling, skilling, and technology adoption to attract partnerships with big petrochemical companies.
International
25 July 2023 – (Bangkok Post) Bimstec: A new force of the Global South.[7]
Bimstec, a regional organization consisting of countries around the Bay of Bengal, has gained prominence and momentum after an informal retreat in Bangkok attended by foreign ministers from the member states. They agreed to meet more frequently to strengthen cooperation on various issues, including food, health, energy security, and technology.
The Bay of Bengal's strategic significance, with its vast resources and growing geopolitical competition, has led Bimstec countries to work towards revitalizing the organization, establishing crisis response mechanisms, and promoting regional well-being and prosperity through increased trade and investment.
26 July 2023 – (Indian Express) IMF raises India growth forecast for FY24 to 6.1%.[8]
The International Monetary Fund (IMF) raised its forecast for India's GDP growth for the current fiscal year to 6.1 per cent, up from the previous prediction of 5.9 per cent made in April. This revision is attributed to stronger domestic investments that led to better-than-expected growth in the fourth quarter of 2022.
The IMF also increased its baseline forecast for global growth in the year to 3 per cent from 2.8 per cent in April, indicating a gradual recovery from the pandemic and reduced risks of financial sector turmoil. However, the IMF still sees risks to financial stability due to higher interest rates, slower recovery in China, debt distress in emerging economies, and threats to trade from geo-economic fragmentation.
28 July 2023 – (Mint) Micron’s investment will boost India’s tech chops and spur economic growth.[9]
India's electronics consumption is projected to reach $300 billion by 2026, with semiconductors making up $80 billion of this, signifying India's position as the fastest-growing electronics market globally, contributing 8% to global demand and 7% to India's GDP.
Micron's investment in India's semiconductor industry is expected to have significant positive impacts, including job creation and skill development, boosting the Indian economy, fostering innovation and technological excellence, and elevating India's position in the global semiconductor industry. Collaborative efforts between the private sector and the government will be essential to maximize the benefits of the investment.
[1] https://economictimes.indiatimes.com/news/economy/foreign-trade/startups-to-get-airfare-support-for-export-promotion/articleshow/102064826.cms
[2] https://economictimes.indiatimes.com/news/economy/indicators/indias-economic-narrative-brighter-takes-charismatic-lead-in-global-economic-evolution-k-m-birla/articleshow/102076344.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
[3] https://economictimes.indiatimes.com/epaper/delhicapital/2023/jul/26/et-comp/india-can-be-key-player-in-energy-transition-and-leader-in-green-h2/articleshow/102117034.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
[4] https://economictimes.indiatimes.com/epaper/delhicapital/2023/jul/27/et-front/india-will-be-among-top-3-economies-in-nda-3rd-term/articleshow/102150457.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
[5] https://economictimes.indiatimes.com/news/economy/foreign-trade/india-asean-free-trade-agreement-most-ill-conceived-piyush- goyal/articleshow/102179658.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
[6] https://economictimes.indiatimes.com/epaper/delhicapital/2023/jul/28/et-corp/fm-pli-scheme-likely-for-chemicals-petrochem/articleshow/102182311.cms?utm_source=newsletter&utm_medium=email&utm_campaign=ETepaper_paid&utm_content=economy-sports&ncode=4804a3645515abe5b193fbdf4dca2803ebffa8e180e42be7ddc84a038cf486ea4d130ee9befc1996f8b131e1763ffeac0b1e0a8df0bc023bef96e57e91563b5df731645e8ab188bdee1528ba293f0c38
[7] https://www.bangkokpost.com/opinion/opinion/2617223/bimstec-a-new-force-of-the-global-south
[8] https://indianexpress.com/article/business/economy/imf-projects-indian-economy-to-grow-at-6-1-per-cent-in-2023-8860049/#:~:text=Global%20growth%20is%20projected%20to,in%20both%202023%20and%202024.&text=The%20International%20Monetary%20Fund%20(IMF,due%20to%20stronger%20domestic%20investments.
[9] https://www.livemint.com/opinion/first-person/microns-investment-will-boost-india-s-tech-chops-and-spur-economic-growth-11690534578272.html
