Daily News - Thursday, 17 October 2024
India faces ‘tariff asymmetry’ in ASEAN agreement, says official (The Indian Express)
India is pushing for a review of the India-ASEAN free trade agreement (FTA) by 2025 to address tariff asymmetry, where India faces higher tariff eliminations for ASEAN nations, particularly from less-developed economies. This imbalance has contributed to a rising trade deficit, which reached $44 billion in FY23, up from $8 billion in FY13, amid concerns that Chinese goods are being rerouted through ASEAN under the FTA. India aims to negotiate more balanced terms, possibly adopting a country-specific approach, while ASEAN typically follows a single set of concessions across its 10-member bloc.
‘India must cut tariffs, ease FDI norms’ (mint)
India is well-positioned to benefit from global supply chain shifts, especially due to the “China Plus One” strategy, but it needs to reduce high tariffs and ease foreign direct investment (FDI) restrictions to fully capitalize on this opportunity. With its current average tariff above 15% and restrictions on trade and investment, India risks missing out on accelerated growth, despite improving its global Logistics Performance Index. The World Bank sees India as a key player in global trade diversification, yet emphasizes that India must act swiftly in an increasingly competitive global landscape.
India to lead global power use growth over next 25 years: IEA (mint)
India is set to lead global electricity consumption growth over the next 25 years, driven by rising demand for household cooling during heatwaves, industrial needs, and electric vehicle adoption, according to the International Energy Agency (IEA). India’s electricity demand is projected to grow at over 4% annually, outpacing the global average, making it the third-largest electricity consumer by 2050, behind only China and the US. This surge, particularly fueled by cooling appliances, will put significant pressure on power grids, especially during peak demand periods.
Goods trade deficit shrinks to 5-month low in September (mint)
India’s trade deficit narrowed to $20.78 billion in September, its lowest in five months, due to a modest rise in merchandise exports, though sequential export declines signal fragile momentum. Imports also dropped to their lowest since May, reflecting weakened domestic demand, with September’s imports standing at $55.36 billion, down from $64.36 billion in August. Despite global challenges, engineering goods and sectors like chemicals, plastics, and pharmaceuticals have bolstered India’s exports, showcasing resilience in the face of volatile global demand.
FACE: Fintechs involved in cryptos can’t be members (Financial Express)
The Fintech Association for Consumer Empowerment (FACE), India’s first self-regulatory organization for fintech, has excluded cryptocurrency service providers from its membership, focusing solely on regulated fintechs. FACE’s decision aligns with the Reserve Bank of India’s (RBI) concerns over the high risks associated with cryptocurrencies, which could threaten financial stability. The organization, recognized by the RBI, is expanding its membership and studying the fintech sector, with a broader mandate beyond lending to cover various fintech categories and support industry growth.
