Daily News - Friday, 25 October 2024

BRICS bloc endorses India’s stance on EU’s carbon tax; pushes for local currency settlements (The Indian Express)

The BRICS Kazan Declaration, led by Russia, rejected the EU’s carbon border adjustment mechanism (CBAM), echoing India’s concerns that the tax could raise export costs by 20-35%, particularly affecting India’s exports of iron, steel, and aluminium, over 25% of which went to the EU in 2022. BRICS also encouraged trade in local currencies, following India-UAE and India-Russia agreements, amid the decline in dollar reserves, with the IMF noting a reduction in the dollar’s share of global reserves without significant gains for the euro, yen, or pound. Additionally, BRICS criticized unilateral sanctions and trade measures, citing their impact on global trade and sustainable development goals. 

⁠Next Asean FTA review talks in Nov (Financial Express)

⁠India and ASEAN will meet in New Delhi from November 19-22 to advance the review of the Asean-India Trade in Goods Agreement (AITIGA), a process initiated in 2019 to address India’s growing trade deficit with ASEAN, which rose from $4.98 billion in 2010-11 to $38.4 billion in 2023-24. The review, which spans eight areas including market access, customs, and technical standards, aims to balance trade and curb potential misuse by third countries like China, whose integration with ASEAN’s supply chains has grown substantially. In parallel, Australia is set to visit in December to finalize aspects of the Comprehensive Economic Cooperation Agreement (CECA), with an emphasis on expanding services. 

Cabinet nod to ₹1,000-cr VC fund for space sector (Financial Express)

⁠India’s cabinet approved a new ₹1,000-crore venture capital fund to boost the space sector, managed by IN-SPACe, aiming to support around 30-35 startups by 2030 with funding for early and growth-stage companies. This fund will provide critical risk capital, with each startup receiving between ₹10-60 crore based on its growth stage, addressing traditional lenders’ reluctance in the high-tech space industry. With projected growth in the space sector to ₹35 lakh crore by 2033, the fund also aligns with broader initiatives like Startup India to support job creation and innovation in engineering, R&D, and manufacturing. 

⁠India Keeping Close Watch on IPEF Trade Pillar Talks (The Economic Times)

⁠India is closely observing the Indo-Pacific Economic Framework (IPEF) negotiations, particularly regarding the trade pillar, as the trade-off for binding commitments remains unclear, though it has joined the other pillars focused on supply chains, a clean economy, and fair economy. Officials remain cautious due to potential binding commitments without assured market access, with a decision on full participation likely after deal finalizations. Meanwhile, all 14 IPEF members, including India, have begun a dialogue on critical minerals, aiming to address regulatory and technological gaps and to strengthen cooperation in this sector. 

EU lender working with PSUs to fund Indian green hydrogen projects (mint)

⁠The European Investment Bank (EIB) is collaborating with Indian public sector units, Power Finance Corp. and Indian Renewable Energy Development Agency, to invest €1 billion in India’s green hydrogen projects, although no funds have yet been disbursed as projects must be bankable. EIB’s total investment in India has reached nearly €5 billion since 1993, including €3.25 billion for urban mobility projects outside the EU, as well as €1.7 billion for wind and solar, supporting over 1.8GW of generation capacity. Recently, EIB also approved water and sanitation investments in India, in partnership with the Asian Development Bank.