Daily News - Wednesday, 7 August 2024
Apparel exporters see global orders partly shifting to India amid crisis in Bangladesh (The Indian Express)
Political unrest in Bangladesh has severely disrupted its garment industry, leading to speculation that global textile orders could temporarily shift to India. However, despite the potential opportunity, India's apparel industry is already strained by domestic demands, making it challenging to meet additional global orders, with Vietnam possibly benefiting more from the shift. The disruptions in Bangladesh's supply chain could have broader implications for global retail markets, affecting inventory levels and production timelines, while S&P Global reports that Bangladesh's economic growth is slowing due to inflation and policy challenges, despite its strong long-term growth outlook.
Pharma companies seek new pricing policy (Financial Express)
Pharmaceutical companies in India have proposed several revisions to the Drug Prices Control Order (DPCO) 2013, advocating for a balance between affordability and innovation in drug pricing policy. Key suggestions include incentivizing the use of domestically produced active pharmaceutical ingredients (APIs) to reduce dependency on imports from China, easing price revision norms to avoid costly stock recalls, and streamlining approval procedures for drug combinations to expedite market entry. The industry also calls for measures to boost research in India-specific treatments and novel drug delivery systems, with the new policy expected later this year.
‘Low-cost batteries needed to push EV adoption in India’ (mint)
Reducing the cost of manufacturing electric vehicle (EV) batteries, which currently make up about 40% of EV costs, is crucial for faster adoption in India, according to Nikhil Thomas, CEO of Gentari Green Mobility India. Innovations in battery technology could lower vehicle prices by 20%, while the government’s push for localization in battery manufacturing is expected to gradually reduce costs and drive mass EV adoption. With current EV penetration at just 5-10%, achieving the 30% target by 2030 will require a combination of improved battery affordability and supportive government schemes like PLI-Auto and FAME India.
Meal costs up on rising vegetable prices (mint)
In July, the cost of a vegetarian thali surged by 11% and a non-vegetarian thali by 6% compared to the previous month, driven primarily by a sharp rise in tomato prices due to poor rainfall and heatwave conditions. The price of a vegetarian thali increased from ₹29.60 in June to ₹32.60 in July, with tomatoes alone contributing to 7% of the rise, while the non-vegetarian thali increased from ₹58 to ₹61.40. Although these costs were lower than in July 2023, the increase highlights ongoing food inflation in India, with food prices rising 8.4% year-on-year in June, according to the Reserve Bank of India.
Despite PLI push, electronics imports top $20bn for 5th qtr (Business Standard)
In Q1FY25 (April-June 2024), India's electronic goods imports exceeded $20 billion for the fifth consecutive quarter, with electronic components and computer hardware making up more than half of these imports. Despite growth in domestic manufacturing, India remains heavily reliant on high-value imports like chips and display modules, prompting experts to call for a production-linked incentive (PLI) scheme specifically for components to further localize production. While the share of consumer electronics and telecom instruments in overall imports has declined, electronic goods imports still constitute over a fifth of India's total import bill, underscoring the need for targeted manufacturing incentives.
