Daily News - Monday, 25 November 2024

Trump’s tariff proposal opens opportunity for India: Arvind Virmani (mint)

President-elect Donald Trump’s proposed tariff hikes—10% on all imports and 60% on Chinese goods—could present an opportunity for India to capture a larger share of the US market as global supply chains reorient away from China, according to Niti Aayog’s Arvind Virmani. While a uniform tariff increase may have minimal long-term global effects due to exchange rate adjustments, the relative disadvantage to Chinese goods could benefit alternative sourcing destinations like India, Vietnam, Thailand, and Mexico, as seen during the 2018 US-China trade tensions. To capitalize, India must enhance infrastructure, improve ease of doing business, and maintain robust engagement with the US, which is India’s largest export market and contributed to a $35 billion trade surplus in FY24. 

⁠India Says Climate Deal Falls Short (The Economic Times)

⁠India strongly opposed the COP29 agreement on climate finance, criticizing the $300 billion target by 2035 as “too little, too distant” and emphasizing that $1.3 trillion annually is needed by 2030 to address the urgent climate needs of developing countries. India also condemned the adoption process, calling it “stage-managed” and accusing the presidency of ignoring objections, with negotiator Chandni Raina highlighting that the agreement fails to address the priorities of vulnerable nations and provides insufficient resources for meaningful climate action. Civil society echoed India’s concerns, describing the outcome as a betrayal of vulnerable communities, offering “false hope” while abandoning those already suffering the impacts of climate change. 

Adani indictment will not disrupt US-India trade ties (Financial Chronicle)

Despite allegations against Adani Group chairman Gautam Adani in a US bribery case, India remains committed to strengthening trade and investment ties with the US, which is its largest trading partner and third-largest investor, contributing $66.70 billion in FDI since April 2000. Bilateral trade surpassed $190 billion in 2023, and gross FDI inflows into India, including US contributions, grew 25.7% year-on-year in H1FY25 to $42.1 billion, though net FDI moderated slightly due to increased repatriation. With sectors like manufacturing, energy, and financial services driving inflows, India sees potential for both nations to lead the global economy, leveraging shared values of freedom and openness while exploring defence manufacturing partnerships. 

Indian lab diamonds have highest carbon footprint (Financial Chronicle)

India and China dominate the global production of lab-grown diamonds, accounting for 72% of the market, with China producing 46% and India 26%, largely using coal-generated electricity, which significantly raises their carbon footprints. India employs the more energy-intensive Chemical Vapor Deposition (CVD) method, resulting in an average of 612 kg CO2e emissions per polished carat, higher than China’s 523 kg CO2e and the EU’s 260 kg CO2e, but this can be reduced to just 17 kg CO2e with 100% renewable energy. As the market grows from its current 15-20 million carats annually, adopting renewable energy in the production process becomes critical for sustainability, given the intensive energy and water requirements. 

⁠IIFCL SEEKS INFRA. TAG FOR SPACE SECTOR (Financial Chronicle)

State-owned India Infrastructure Finance Company Limited (IIFCL) has urged the government to include the space sector in the harmonized list of infrastructure to enable easier financing of satellite vehicle manufacturing and related activities. Through its subsidiary, IIFCL Projects Limited (IPL), the company has been actively supporting ISRO by facilitating the transfer of 13 satellites to NewSpace India Limited (NSIL), ISRO’s commercial arm, and providing advisory services for business planning and legal processes. Recognizing the space sector’s high-technology potential, IIFCL aims to expand its financing role, contingent on the government’s inclusion of space activities in its infrastructure mandate, which currently limits funding to sectors in the master list of infrastructure.