Daily News - Wednesday, 11 December 2024
S.Africa, Namibia, Turkey back India in opposing China-led WTO pact: Official (The Indian Express)
The China-led Investment Facilitation for Development (IFD) agreement, which claims to improve the global investment climate and attract FDI to developing nations, has gained the backing of 128 WTO member countries, including Pakistan, but India—alongside South Africa, Namibia, and Turkey—continues to oppose it, citing concerns about eroding policy space for weaker nations and the misconception among supporters about its benefits. Amid shifting global investment flows away from China due to the US-China trade war and weakening domestic demand, India argues that the IFD, originally proposed in 2017 by China and nations reliant on its investments, could restrict its ability to regulate foreign investments while the US, though not opposing it, has opted to stay out. Separately, India has proposed a per capita subsidy approach at the WTO to address overfishing and overcapacity, emphasizing its $35 annual fisheries subsidy per fisher compared to $76,000 in Europe, advocating for fairness and sustainability in fisheries subsidies while protecting the livelihoods of small-scale fishers.
‘Will do what’s best for economy’ (The Indian Express)
Sanjay Malhotra, set to officially assume office as the 26th RBI Governor for a three-year term on December 11, emphasized the importance of considering all perspectives and doing what is “best for the economy,” as he faces the critical challenge of balancing growth and inflation amid concerns of a cyclical slowdown in the Indian economy. With GDP growth hitting a near two-year low of 5.4% in the July-September quarter and the RBI reducing its FY25 growth forecast by 60 basis points to 6.6%, Malhotra inherits a complex economic environment where the central bank has opted to maintain a neutral monetary policy stance. As the successor to Shaktikanta Das, Malhotra’s tenure will be closely watched for strategies to stabilize the economy while addressing inflationary pressures and fostering sustainable growth.
Rupee settles at all-time low against dollar, nears 85 mark (The Indian Express)
The bond and forex markets showed contrasting reactions to Sanjay Malhotra’s appointment as the new Reserve Bank of India (RBI) Governor, as expectations of a potential rate cut in February led to easing bond yields but further pressure on the rupee. The 10-year benchmark yield fell 3 basis points intraday before closing 1 basis point lower at 6.71%, while the rupee depreciated by 0.14% to ₹84.852 against the dollar, with intraday lows at ₹84.866 amid concerns of continued monetary easing. Experts, including Nomura’s Sonal Verma, predict that Malhotra’s tenure may prioritize growth-oriented policies, with rate cuts potentially reaching 100 basis points by the end of 2025, while forex traders anticipate the rupee could fall further, potentially reaching ₹85.00 by December’s end and ₹85.50 by March due to global economic uncertainties.
PM to lay out plan for socio-economic growth (Financial Express)
Prime Minister Narendra Modi will convene a conference with chief secretaries from December 13-15 in Delhi to develop a unified social and development agenda aimed at accelerating economic growth, with discussions focusing on entrepreneurship, skilling, employment, manufacturing, MSMEs, renewable energy, and the green and circular economies. This platform will enable states to highlight key issues and share best practices while providing the Centre with inputs for swift policy actions, including refining incentives to boost manufacturing’s share in GDP, which has stagnated at around 16% since FY12 despite efforts to raise it to 25%. The conference, aligning with the “Team India” approach, will seek collaborative strategies for job creation, investment-driven growth, and sustainable development, with actionable outcomes to be jointly implemented by the Centre and states.
Industry body seeks separate policy for stainless steel sector (Financial Express)
The Indian Stainless Steel Development Association (ISSDA) has urged the government to create a separate policy for the stainless steel industry, citing positive engagement with the Ministry of Steel and submitting multiple drafts to support this proposal, according to ISSDA President Rajamani Krishnamurti. The stainless steel sector, currently grouped with the broader domestic steel industry, has shown significant growth, with consumption rising from 4.02 million tonnes in FY23 to 4.46 million tonnes in FY24 (an 11% increase) and per capita usage climbing from 2.25 kg in FY19 to 3.1 kg in FY24. ISSDA, the apex body for the sector, views this growth as a strong case for dedicated policy support to unlock further potential and address industry-specific needs.
