Weekly News 14 - 18 August 2023
14 August 2023 – (Economic Time) India and Taiwan to boost supply chain partnership in new world trade order.[1]
Taiwan sees India as a reliable partner in the supply chain, with growing bilateral trade amounting to USD 8.45 billion in 2022. India is ranked as Taiwan's 14th largest export destination and 18th largest import source, offering opportunities for collaboration in sectors like electronics, medical devices, and energy storage.
The interactive meeting between the Taiwan Trade Mission and Indian counterparts highlighted the potential for enhanced economic ties. With Taiwan's expertise in high-tech manufacturing, such as semiconductors, and India's aspiration in this field, the two countries can foster collaboration and investment. Maharashtra is suggested as a promising entry point for Taiwanese firms due to its progressive environment and skilled workforce.
15 August 2023 – (Economic Times) India's imports from Russia doubled to USD 20.45 billion in April-July period.[2]
India's imports from Russia surged to USD 20.45 billion in the April-July period of FY24, doubling from the previous year, mainly driven by increased inflow of crude oil and fertilizers. Russia has now become India's second-largest import source, with its oil imports share rising from less than 1% to over 40% due to discounted rates amid the Russia-Ukraine conflict.
Conversely, India's imports from China, the US, UAE, and other countries have decreased during the same period, while exports to top destinations, including the US, UAE, and China, recorded negative growth rates. In July, India's exports contracted by 15.88%, resulting in a narrower trade deficit due to reduced imports, which declined by 17%.
16 August 2023 – (Hindustan Times) In Independence Day speech, Modi lays out blueprint for India as a developed country by 2047.[3]
Economic Aspiration: Indian Prime Minister Narendra Modi envisions India becoming the world's third-largest economy, emphasizing economic growth and increased government spending to elevate millions from poverty to the middle class.
Long-Term Vision: Modi's overarching goal is for India to achieve developed country status by its 100th Independence Day in 2047, with a focus on transparency, accountability, and tackling issues like corruption, nepotism, and appeasement in order to realize this economic vision.
16 August 2023 – (Gadgets 360) India, Thailand Emerge as Asia's Semiconductor Manufacturing Hubs Amid US-China Chip War: Report.[4]
India and Thailand Compete for Semiconductor Investments: India and Thailand are in a race to secure semiconductor manufacturing investments, driven by China-US chip tensions. India's Prime Minister Modi highlighted strengths at SemiconIndia 2023, with an investment of Rs. 76,000 crores for semiconductor development and a $2.75 billion Micron Technology unit. Meanwhile, Thailand offers expanded tax breaks, emphasizing advanced processes and plans to strengthen its electric vehicle sector.
Strategic Moves Amidst Chip Tensions: Amid the China-US chip conflict, India and Thailand vie for semiconductor investment. India's Modi touts strengths and major investments in chip manufacturing, while Thailand leverages tax incentives and focuses on advanced processes and EV industry integration. Both nations aim to secure a spot in the global semiconductor supply chain amidst shifting industry dynamics.
17 August 2023 – (Economic Times) Investment cycle gaining momentum, envisaged capex to jump over 80 pc in FY24: RBI Paper.[5]
Investment activity is gaining momentum and the envisaged capital expenditure is set to jump by over 80 per cent to Rs 1.71 lakh crore in the current fiscal, according to an article by Reserve Bank of India (RBI) staffers. The article by Shreya Bhan, Rajendra N Chavhan and Rajesh B Kavediya, which was published on Thursday, said improvement in capacity utilisation of the manufacturing sector, pick-up in credit demand and improving consumer sentiments are helping the capex cycle.
18 August 2023 – (Daily Excelsior)India brings ‘Mission LiFE’ to UN through special exhibition[6]
UN Exhibition on India's Mission LiFE: India is hosting a special exhibition at the UN headquarters focused on 'Mission LiFE' (Lifestyle for Environment), a collaborative initiative launched by Prime Minister Narendra Modi and UN chief Antonio Guterres. The initiative promotes sustainable living through small daily changes to collectively create a positive impact on the environment.
Goals of Mission LiFE: The exhibition highlights Mission LiFE's core themes, including energy and water conservation, reduction of single-use plastic, adopting sustainable food systems, waste reduction, embracing healthy lifestyles, and managing e-waste. The initiative encourages individuals to adopt a climate-friendly lifestyle and was jointly launched by Modi and Guterres in 2022 to foster a greener and more sustainable future.
18 August 2023 – (Economic Times) Investment cycle gaining momentum, envisaged capex to jump over 80 pc in FY24: RBI Paper.[7]
Investment activity in India is surging, with projected capital expenditure set to rise by over 80% to Rs 1.71 lakh crore in the current fiscal year. This growth is attributed to improved manufacturing sector capacity utilization, increased credit demand, and positive consumer sentiments.
The surge in capital expenditure is aided by improved balance sheets of corporations and banks, allowing for increased lending. While various sectors contribute to the projects, infrastructure, metals, construction, textiles, and food products are notable contributors. However, challenges such as global uncertainties and cost of capital increases could impact the sustainability of this investment cycle.
[1] https://economictimes.indiatimes.com/small-biz/trade/exports/insights/india-and-taiwan-to-boost-supply-chain-partnership-in-new-world-trade-order/articleshow/102720065.cms
[2] https://economictimes.indiatimes.com/news/economy/foreign-trade/indias-imports-from-russia-doubled-to-usd-20-45-billion-in-april-july-period/articleshow/102749014.cms
[3] https://www.hindustantimes.com/india-news/new-delhi-india-to-become-developed-country-by-2047-says-prime-minister-modi-in-independence-day-speech-101692120892600.html
[4] https://www.gadgets360.com/internet/news/india-thailand-chipmaking-manufacturing-race-investment-hub-asia-nikkei-report-4302021
[5] https://economictimes.indiatimes.com/news/economy/finance/investment-cycle-gaining-momentum-envisaged-capex-to-jump-over-80-pc-in-fy24-rbi-paper/articleshow/102811242.cms
[6] https://www.dailyexcelsior.com/india-brings-mission-life-to-un-through-special-exhibition/
[7] https://economictimes.indiatimes.com/news/economy/finance/investment-cycle-gaining-momentum-envisaged-capex-to-jump-over-80-pc-in-fy24-rbi-paper/articleshow/102811242.cms
