Daily News - Thursday, 10 October 2024
European Union’s carbon tax is arbitrary, a barrier to trade: FM Sitharaman (The Indian Express)
India has criticized the European Union’s Carbon Border Adjustment Mechanism (CBAM) as “unilateral and arbitrary,” viewing it as a trade barrier that will disproportionately impact Indian industries, particularly in iron, steel, and aluminium exports. Finance Minister Nirmala Sitharaman stated that while the issue won’t affect ongoing free trade agreement (FTA) talks, India will continue to express its concerns, especially as CBAM could raise export costs by 20-35%. India’s retaliation follows the EU’s extension of steel tariffs, and Indian exporters are worried about the burden and risks of sharing sensitive data under the new regulations.
GST Relief for Foreign Airlines, Edu Institutes (The Economic Times)
A government notification exempts foreign airlines operating in India from GST on services provided by their head offices to branch offices, effective from October 10, 2024, provided they obtain a civil aviation certificate. Academic institutions receiving research grants will also be exempt from GST. Additional relief measures include waivers on penalties and interest for taxpayers who settle outstanding demands by March 2025, along with a rectification window for correcting past input tax credit discrepancies to reduce litigation.
WB’s Gill: India’s rise as high-income developed nation ‘not guaranteed’ (Business Standard)
World Bank Chief Economist Indermit Gill warned that India’s transition to a high-income country is not guaranteed, as many nations with similar growth trajectories have stagnated at middle-income levels. To avoid this middle-income trap, India must focus on increasing economic freedom, improving education quality, and ensuring equal opportunities for women. He also noted that India’s potential growth rate is around 6.5%, but to reach high-income status by 2047, it would need sustained growth of 7-10% for 20-30 years.
Biotech to usher in next industrial revolution: Singh (Financial Express)
India’s biotechnology sector is emerging as a lucrative market, with the number of biotech startups growing from 50 in 2014 to 6,000 today, thanks to supportive government policies and venture funds, according to Minister Jitendra Singh. The bio-economy has expanded from $10 billion in 2014 to $100 billion, with projections of reaching $150 billion by 2030. Singh emphasized the need for stronger public-private collaboration and an inclusive innovation ecosystem to drive the next industrial revolution, focusing on biotechnology, intellectual property, and clinical trials.
Cabinet extends free supply of fortified rice (Financial Express)
The Cabinet approved the continuation of fortified rice distribution under key government schemes, including Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), Integrated Child Development Service (ICDS), and PM POSHAN, until December 2028, costing ₹17,082 crore as part of the food subsidy budget. This initiative, aimed at combating anaemia and micronutrient deficiencies, will continue to provide fortified rice, enriched with iron, folic acid, and Vitamin B12, to 800 million beneficiaries. The rice fortification program has been found to improve nutritional security, with an estimated annual savings of ₹49,800 crore in healthcare costs due to its health benefits.
