Daily News - Monday, 15 July 2024
Exports positive in April-June despite global challenges: Goyal (The Indian Express)
India's exports have shown robust growth in May and June, with merchandise exports rising by 9.1% in May and the first quarter of the fiscal year remaining positive despite global challenges, according to Commerce Minister Piyush Goyal. Growth in the services sector, bolstered by the Digital India mission and the rollout of 4G and 5G, is significantly contributing to the positive export performance. Despite high interest rates in developed economies, foreign portfolio investments in Indian equities surged by ₹26,565 crore in June, reflecting investor confidence, although FDI equity inflows slightly declined by 3.49% to $44.42 billion in 2023-24.
Need tax breaks for skills training, loans: NSDC to Finance Ministry (The Indian Express)
The National Skill Development Corporation (NSDC) has proposed to the Finance Ministry that tax breaks, currently available for education-related services, should also be extended to skill development training to boost employment in new sectors like electronics manufacturing. The NSDC has recommended amendments to the Income Tax Act and GST, suggesting that skill training institutes be included under the definition of educational institutions, enabling deductions for skill training fees and loans similar to those for higher education. Additionally, the NSDC has called for a reduction in GST rates for employment services from 18% to 5%, arguing that the current rate hinders sector growth.
Agro-chemical Sector Seeks Hike in Import Duties (The Economic Times)
The Crop Care Federation of India has requested the government to increase import duties on agrochemicals by 7.5% to counteract predatory pricing and monopolistic practices by Chinese exporters, aiming to protect the domestic chemical industry, which has recently reported a significant trade deficit. They also proposed the introduction of mandatory BIS standards for speciality and agrochemicals, expedited regulatory approvals, and a production-linked incentive (PLI) scheme to enhance domestic manufacturing and supply chain capabilities. The Indian chemicals sector, currently valued at $220 billion, aims to grow to $320 billion by 2027, requiring substantial annual investments to achieve a 9-11% CAGR.
India, South Korea talks this week to review trade deal (Financial Express)
India and South Korea will hold their 11th meeting in Seoul from July 17-19 to review and upgrade the bilateral Comprehensive Economic Partnership Agreement (CEPA), which has been under revision since 2016. South Korea is seeking further market access in sectors like automobiles, textiles, chemicals, and petrochemicals, while India aims for greater access to the Korean markets for steel, rice, shrimp, and clothing. Despite the CEPA's aim to reduce tariffs significantly on both sides, Indian exporters have faced challenges such as high safety standards and limited willingness from Korean industries to purchase competitively priced Indian goods, with total bilateral trade growing from $16.91 billion in 2011 to $27.5 billion in 2023.
Mohan Yadav urges executives to raise investment in MP (Business Standard)
Madhya Pradesh Chief Minister Mohan Yadav held meetings with industrialists in Mumbai to boost investment in the state and invited them to the Global Investor Summit 2025 and the Regional Industry Conclave (RIC) in Jabalpur on July 20. Yadav highlighted the state's favorable investment environment and potential in sectors like energy, tourism, health, and mining, emphasizing quicker project delivery and direct facilitation for investors. Notable proposals included Reliance's ₹50,000 crore investment in defense and renewable energy, Larsen & Toubro's investment in an IT complex and data center, and Parle Agro's investment in beverage and dairy production.
