Daily News - Friday, 8 November 2024
India should join China-led RCEP: Niti Aayog CEO (Financial Express)
India’s Niti Aayog CEO, B.V.R. Subrahmanyam, advocated for India’s entry into the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), highlighting that India could gain from reduced trade barriers and economic integration, despite the government’s 2019 decision to opt out of the China-backed RCEP. Citing underutilized “China-plus-one” opportunities, he noted that countries like Vietnam and Indonesia have benefited more, while India’s high tariffs, averaging higher on both industrial and agricultural goods, limit its global trade potential. In 2023, China had a significant trade surplus within the RCEP framework, with the Association of Southeast Asian Nations (ASEAN) trade deficit with China rising to $135.6 billion from $81.7 billion in 2020, while India’s own trade deficit with China reached $85 billion within a $118 billion bilateral trade. (Financial Express)
ISMA urges govt to allow sugar exports to save on carrying costs (Financial Express)
The Indian Sugar Mills and Bio-Energy Manufacturers Association (ISMA) has requested government approval for 2 million tonnes (MT) of sugar exports this season (October-September) to prevent mills from bearing the cost of surplus storage due to high harvest expectations and sufficient opening stocks of 8.47 MT. Although sugar production is estimated to dip slightly to 33.3 MT (from 34.1 MT last season), increased sugarcane yield and improved recovery due to a strong monsoon will boost overall availability to 41.7 MT, against anticipated domestic consumption of 29 MT. With 4 MT set aside for ethanol production and 5.5 MT for a two-month safety stock, around 3-3.3 MT of surplus remains; lack of export opportunities could lead to losses and delay payments to farmers, contrasting with the previous season’s 6 MT export level.
India, US likely to bolster energy cooperation during Trump 2.0 (Financial Express)
With Donald Trump’s anticipated second term, India is expected to see increased US cooperation in the energy sector, particularly with a focus on oil and gas; Trump’s policies to boost US oil production could stabilize oil prices, benefiting India’s economy and its crude supply chain. In Trump’s first term, initiatives such as Petronet LNG’s $7.5 billion MoU with Tellurian Inc. indicated strong bilateral energy ties, and Trump’s pro-business stance may further drive trade and investment, including in sectors demanding skilled Indian workers and fostering digital and sustainable development. However, Trump’s trade policies might challenge Indian clean technology efforts, contrasting Biden’s tenure which emphasized renewable energy commitments with a $1 billion investment goal across clean energy sectors like solar, wind, and nuclear, and advancing critical minerals supply chains under the Minerals Security Partnership.
India, Japan may gain on Trump’s anti-China pose (Financial Chronicle)
Donald Trump’s election victory is expected to redirect money flows toward Indian and Japanese equities, as investors anticipate potential tariffs on Chinese goods, with Trump previously threatening tariffs up to 60% on imports from China. Morgan Stanley and other analysts view India as a prime beneficiary due to its appeal as a manufacturing alternative to China and its domestic-driven economy, while Japan could gain indirectly from Trump’s economic policies that support growth. The ongoing risk of tariffs complicates China’s economic recovery efforts, already hindered by recent stimulus limitations, prompting analysts to maintain an “overweight” stance on India and Japan and “underweight” on China, with India potentially benefiting from further outflows from Chinese stocks.
RITES eyes Africa for export of used railway locomotives (mint)
RITES Ltd, India’s state-run railway consultancy, is expanding its international reach by exporting surplus diesel locomotives to Africa and targeting markets in Southeast Asia, West Asia, and Latin America, with successful deals including two orders worth ₹90 crore from South Africa. With a strong order inflow of ₹2,000 crore in the first half of FY24—equivalent to total orders in FY23—the company expects exports to contribute 20-25% of revenue in the next few years, especially as diesel locomotives are phased out from India’s electrified 70,000 km railway network. Despite a 27.85% decline in Q2 profits year-over-year, RITES anticipates revenue growth by FY26 with its ₹6,580 crore order book, aided by recent successes in Bangladesh and strategic bids across Southeast Asia, reducing its reliance on Exim Bank-supported projects.
