Call on lifting sugar export curbs based on crop yields: Joshi (Financial Express)
The Indian government will soon decide on lifting sugar export restrictions, contingent on the monsoon's progress and sugarcane yield, according to Food Minister Pralhad Joshi. Despite initial low production expectations for the 2023-24 and 2024-25 seasons, favourable rains in western and southern India have led to an optimistic outlook for sugar production, potentially reaching around 32 million tonnes this season. This anticipated production should not only satisfy domestic demand but also support ethanol production, aligning with India's goal of increasing ethanol blending with petrol from over 12% to 20%.
Moscow & Delhi work on PM visit to Russia, first since Ukraine war (Financial Express)
Prime Minister Narendra Modi is preparing for a possible visit to Moscow on July 8-9, his first since Russia's invasion of Ukraine in February 2022, highlighting India's delicate diplomatic balancing act between Moscow and the West. Modi's visit underscores India's strategic dependence on Russia for defence supplies and discounted oil while maintaining a nuanced stance on the Russia-Ukraine conflict by abstaining from UN votes against Russia and calling for investigations into specific incidents. The visit follows Modi's recent attendance at the G7 summit and precedes another potential visit for the BRICS summit in October, signalling ongoing high-level engagement between India and Russia.
Water stress to hurt India’s credit strength: Moody’s (Business Standard)
India's growing water shortage, driven by rapid economic growth and urbanization, threatens its credit health and industries reliant on water, such as coal power and steel manufacturing, potentially causing high food inflation and social unrest. The Moody's report emphasizes that inadequate water supply can disrupt agriculture and industry, undermining economic stability and increasing vulnerability to shocks. While investments in water infrastructure and renewable energy, supported by India's expanding sustainable finance market, could mitigate these risks, the current market for green bonds remains small, and extreme climate events further exacerbate the water scarcity issue.
‘Improve exports R&D, ease of doing biz’ (mint)
During pre-budget consultations, trade and services leaders urged Finance Minister Nirmala Sitharaman to enhance the ease of doing business, make the transfer pricing regime more competitive, and tighten tariffs on Chinese imports. Discussions focused on boosting service sector exports, protecting domestic industries from Chinese dumping, and increasing fiscal support for research and development to drive exports. Leaders also proposed developing a globally reputed Indian shipping line, reflecting a broader strategy to strengthen India's export capabilities amidst recovering global markets and geopolitical challenges.
