Daily News - Monday, 7 October 2024
Trade not just globalised, but it’s also now weaponised: Jaishankar (The Indian Express)
External Affairs Minister S. Jaishankar highlighted that globalisation over the past 25 years has led to job losses and dissatisfaction, and trade has not only become globalised but also weaponised, causing countries to adopt protectionist measures for national security. He emphasized that the Ukraine and West Asia conflicts have diverted attention from crucial issues like Multilateral Development Bank reforms, climate change, and the India-Middle East-Europe Economic Corridor (IMEC). Despite these shifts, Jaishankar reaffirmed that IMEC remains a priority, especially in collaboration with Saudi Arabia and the UAE, with its importance growing amidst rising technological risks.
IT, bank, pharma to see rise in revenues (Financial Chronicle)
The IT, banking, and pharma sectors are expected to show revenue and profit growth in the upcoming earnings season, with IT benefiting from stable demand and increasing deal closures, though discretionary spending remains subdued. Banks are predicted to see healthy loan growth, stable asset quality, and slight variations in net interest margins, while NBFCs are anticipated to experience sequential growth with stable credit costs. In contrast, sectors like cement, building materials, and consumer durables are likely to be affected by monsoon-related demand slowdowns, and oil refiners may face lower refining margins due to falling crude prices.
New rules to boost container lines, SCI (mint)
India’s shipping ministry is set to implement new rules requiring international container lines operating in Indian seas to reserve 5% of their cargo space for domestic operators, aiming to boost Indian shipping lines and non-vessel operating common carriers (NVOCCs). Vessel-sharing agreements must also allocate 5% for domestic cargo ships, benefiting state-owned Shipping Corp. of India, which plans to expand its fleet. These changes, aimed at enhancing fair competition and increasing India’s share in global trade, will be reviewed after three years and are tied to exemptions from the Competition Act.
‘To break into global supply chains, India must move fast’ (mint)
Economist Jagdish Bhagwati believes India can become a developed economy in the next 25 years if it continues with current reforms, emphasizing that India’s geopolitical stability and strong growth prospects give it an advantage over many Western nations. He stresses the urgency for India to rapidly build and integrate into global supply chains, warning that delays could allow other nations to dominate these spaces. Additionally, Bhagwati advocates for lowering tariffs to enhance India’s competitiveness, arguing that easier imports of raw materials and components are crucial for building reliable supply chains and boosting exports.
India can sustain high growth, become developed by 2047: John Lipsky (mint)
Economist John Lipsky believes India has the potential to achieve developed status by 2047 through reforms in regulation, infrastructure, legal frameworks, and education, leveraging its young workforce to sustain high growth. He acknowledges that while India’s reforms are incomplete, they have already made it the fastest-growing G20 economy, and further improvements could enhance efficiency. Lipsky also notes that ongoing geopolitical tensions, such as the Israel-Hamas conflict, have had limited economic impact so far but warns that an escalation could affect energy prices, while rising protectionism globally risks fragmenting the world economy.
