Daily News - Wednesday, 31 July 2024
Why don’t you have your own carbon tax, EU tells India (mint)
The European Union has proposed that India implement its own carbon tax as an alternative to the EU's Carbon Border Adjustment Mechanism (CBAM), which imposes a green tariff on carbon-intensive imports. India's Commerce and Industries Minister, Piyush Goyal, stated that India will consider the suggestion, which comes as part of ongoing discussions about an India-EU free trade agreement. The CBAM, set to take effect in 2026, could result in a 20-35% tax on certain imports to the EU, potentially impacting $7.4 billion worth of India's exports in sectors such as steel, cement, and aluminium, while Goyal expressed concerns about its economic impact on the EU.
US firm Lubrizol to invest $200 mn for new plant in India (mint)
American speciality chemicals maker Lubrizol plans to invest $200 million in India over the next four years to establish a new manufacturing facility in Aurangabad, driven by the increasing demand for vehicles in the Indian market. This investment, aimed at expanding its manufacturing capacity, will make the new plant Lubrizol's second-largest globally and is part of the company's broader strategy to capitalize on India's fast-growing economy. This follows a $150 million investment announced in 2023 for various projects in Gujarat and a Global Capability Centre in Pune, with the new investment being partially funded through the company's India unit accruals.
FM: ‘India not safe for investors’ a conspiracy (Business Standard)
Union Finance Minister Nirmala Sitharaman warned of a conspiracy to portray India as unsafe for foreign investors and discredit Indian institutions, emphasizing that this negativity is damaging the entrepreneurial culture and small and medium enterprises essential for the country's growth. She highlighted the flawed nature of the Global Hunger Index that ranked India 111th out of 125 countries, questioning its credibility given the country's substantial efforts in providing free food grains to millions. Addressing concerns about household savings and debt, Sitharaman noted a significant shift towards physical asset investments and a rise in household participation in financial markets, underscoring the FY25 Budget's balanced approach to growth, employment, welfare, capital investment, and fiscal consolidation.
PM to India Inc: World’s eyes on India, don’t miss this ‘golden chance’ (The Indian Express)
Prime Minister Narendra Modi emphasized the eagerness of global investors to invest in India, urging the Indian industry to seize this "golden chance" during the inaugural session of the Journey Towards Viksit Bharat conference by the Confederation of Indian Industry. Modi encouraged states to create "investor-friendly charters" and called on India Inc. to collaborate with the government to achieve the goal of Viksit Bharat, highlighting the comprehensive employment package announced in the 2024-25 Budget. He noted that India's policies, steadfastness, and ongoing investments are becoming the foundation for global progress, with world leaders expressing positivity towards India.
Goyal Rules Out Rethink on Chinese Investment Norms (The Economic Times)
Commerce and Industry Minister Piyush Goyal clarified that India is not considering easing norms for Chinese investment despite suggestions from the Economic Survey, which advocated for such investments to enhance India's global supply chain participation and boost manufacturing and exports. Goyal emphasized that the survey's proposals represent new ideas from the chief economic adviser and are not binding on the government. The Economic Survey also highlighted concerns about trade re-routing and economic coercion by China, such as blocking India's access to certain solar equipment, underscoring the complexity of easing investment norms from China.
