Daily News - Friday, 18 October 2024
India to be 3rd-Largest Economy by ‘30, but Population Poses Challenges: S&P (The Economic Times)
India is expected to become the third-largest global economy by 2030, driven by robust annual growth of 5.9% between 2024 and 2035, and emerging markets like India will contribute significantly to global economic expansion. However, rising population pressures are creating challenges for basic services and productivity, while investment in infrastructure and fiscal reforms, such as India’s entry into JP Morgan’s bond index, aims to bolster long-term growth. Despite this promising outlook, current economic indicators show signs of a slowdown, with passenger vehicle sales, consumer goods output, and merchandise exports declining, contributing to a projected GDP growth drop to 3% by September.
Plan in Works to Merge Coastal Shipping with Inland Waterways (The Economic Times)
The government is preparing legislative changes under the proposed Coastal Shipping Bill, 2024, to integrate coastal shipping with inland waterways and impose stricter licensing norms for foreign ships, prioritizing domestic objectives like crew citizenship and vessel build. The bill removes licensing requirements for Indian vessels and introduces measures to regulate foreign ships in India’s coastal waters, enhancing safety, security, and environmental safeguards. These changes aim to boost the domestic coastal shipping economy and promote Indian business participation, both directly through vessel ownership and indirectly through ancillary services.
India Pitches for Dispute Settlement Fund at WTO (The Economic Times)
India, along with 48 countries, has proposed at the WTO the creation of a Dispute Settlement Fund or reimbursement mechanism to cover litigation costs for developing and least-developed countries in trade disputes. The fund, suggested by India and backed by South Africa and others, could be financed through the WTO budget and voluntary contributions, aiming to address the high costs of expert appointments, data collection, and economic analysis during disputes. Additionally, India emphasized the need for comprehensive accessibility measures, including capacity building, technical assistance, and a focus on dispute settlement procedures, while voicing concerns about limited progress on appeal and review mechanisms.
GSI to re-explore lithium reserves in J&K (Business Standard)
The Ministry of Mines has tasked the Geological Survey of India (GSI) with re-exploring the 5.9 million-tonne lithium block in Jammu and Kashmir after two failed auction attempts, primarily due to insufficient exploration data. The ministry aims to reach the G2 exploration level within six months to enhance the block’s appeal and attract more bidders. While the government seeks to expedite the process, industry experts warn that detailed exploration is crucial, with some cautioning that rushing the auction could lead to further setbacks without sufficient clarity on the lithium reserves.
Rupee plunges to record low of 84.06 against dollar (Financial Chronicle)
The Indian rupee fell to a record low of 84.06 against the US dollar, driven by foreign portfolio outflows and a strong dollar, as well as volatile oil prices due to escalating tensions between Israel and Iran. The rupee has weakened by 0.3% in October 2024, but experts believe India’s strong macroeconomic fundamentals and the Reserve Bank of India’s substantial forex reserves will prevent further sharp depreciation. With the dollar index rising 2.5% and global currencies like the euro and yen weakening, the rupee is expected to stay range-bound between 83.9 and 84.1/USD for the rest of the month.
