Daily News - Thursday, 14 November 2024

Asean FTA review: India to seek interim relief from import surge (Financial Express)

As India engages in ongoing negotiations to review the ASEAN-India Trade in Goods Agreement (AITIGA), it is likely to push for an interim mechanism to protect sectors heavily impacted by a surge in imports, particularly in light of India’s $38.4 billion trade deficit with ASEAN in FY24, down from $43.5 billion the prior year. The upcoming talks, scheduled in New Delhi from November 19, aim to address India’s trade imbalance and prevent potential misuse of the FTA by third countries, particularly given China’s deep integration into ASEAN supply chains and its substantial investments used to indirectly access markets. The review, covering eight areas like tariff flexibility, rules of origin, and trade remedies, is anticipated to make substantial progress with hopes of concluding by 2025. 

Medtech sector to touch $20 bn by FY27, govt scheme a booster (Financial Express)

India’s newly launched MedTech scheme, with a 500 crore INR budget over three years, aims to boost the sector’s value from $14 billion to $20 billion by supporting local manufacturers in producing both medical devices and raw materials, reducing dependence on imports (currently 70%). Unlike the previous Production Linked Incentive (PLI) scheme, which primarily benefited large companies, this initiative focuses on medium, small, and micro enterprises, addressing key areas such as infrastructure, skills development, and market expansion. Experts predict a 5-7% reduction in medical device costs due to lower import margins and anticipate increased business stability for domestic manufacturers, enabling long-term contracts with buyers and potential entry into international markets. 

India boosts pharma output to reduce imports (Business Standard)

India has launched two greenfield plants under its Production Linked Incentive (PLI) scheme, aiming to reduce import dependence on critical pharmaceutical ingredients, specifically Penicillin G, 6-APA, and Clavulanic Acid—molecules previously sourced primarily from China. Lyfius Pharma’s facility in Andhra Pradesh is set to produce 15,000 metric tonnes (MT) of Penicillin G, with 3,000 MT allocated for domestic sales and 12,000 MT to manufacture 6,000 MT of 6-APA, while Kinvan Private Limited (KPL) has started producing Clavulanic Acid at its 400-MT plant in Himachal Pradesh. This initiative, representing a ₹2,500 crore investment, is projected to decrease India’s import reliance on Penicillin G and 6-APA by 50 percent, with China currently holding a 77-94.1 percent share of these imports. 

⁠Centre weighs ₹1,000 cr green scheme for MSMEs (mint)

⁠India’s Ministry of Power is set to launch a ₹1,000 crore scheme under the Bureau of Energy Efficiency’s Assistance in Deploying Energy Efficient Technologies in Industries & Establishments (ADEETIE) initiative next month to incentivize energy efficiency in small and medium-sized businesses, aligning with the nation’s net-zero carbon goals for 2070. This scheme will provide interest subvention—approximately 5% for small enterprises and 3% for medium enterprises—on loans to adopt energy-efficient technologies, such as automation systems, combustion control, and methane capture. The Power Finance Corporation (PFC) will serve as the nodal agency, reimbursing interest monthly for PFC-financed loans and annually for others, with the scheme targeting significant emission reductions in line with India’s climate commitments.

⁠ISRO Proposes to Build Earth Observation Satellite for Mexico (The Economic Times)

The Indian Space Research Organisation (ISRO) plans to launch the NASA-ISRO Synthetic Aperture Radar (NISAR) Earth Observation Satellite with NASA early next year and is exploring a potential collaboration to build an Earth Observation satellite for Mexico in 2025, strengthening the countries’ 75-year diplomatic relationship. During a meeting in Bengaluru, Mexico’s Ambassador to India, Federico Salas, and ISRO Chairman S. Somanath discussed expanding cooperation with Mexico’s space agency (AEM) and the Latin American and Caribbean Space Agency (ALCE) for peaceful space exploration. ISRO’s support for Mexico includes technology for forest fire and agricultural drought monitoring, with prior initiatives like a forest fire monitoring app and a recent workshop for Mexican officials on space systems.