Daily News - Friday, 20 December 2024
Premium travel rises on growing aspirations (Financial Chronicle)
India’s premium consumer segment, fueled by affluent spending, is driving growth across travel, hospitality, and consumer goods, even as inflation impacts the middle class. According to MakeMyTrip, business class bookings surged 50% during the Christmas season compared to 2023, with international flights seeing an 80% rise and premium hotel rooms priced above ₹10,000 per night increasing their domestic share to 22% and international share to 57%. This “premiumisation” trend is bolstered by younger, internet-savvy travellers seeking memorable experiences, highlighting a shift toward higher-end services across industries despite economic challenges like inflation and slower wage growth.
Environment demands more electric cars: Govt (Financial Chronicle)
Union Minister Nitin Gadkari emphasized the transformative potential of India’s electric vehicle (EV) sector, projecting a market size of ₹24 lakh crore and the creation of 5 crore jobs by 2030, addressing concerns over air pollution (40% attributed to the transport sector) and fossil fuel imports worth ₹22 lakh crore annually. Speaking at the 8th Catalyst Conference on Sustainability of E-Vehicle Industry, Gadkari highlighted EVs as crucial for environmental sustainability and economic resilience, with India’s automobile sector currently valued at ₹22 lakh crore. Former NITI Aayog CEO Amitabh Kant also stressed EVs as the future, urging entrepreneurs to leverage production-linked incentives and accelerate penetration into global markets like the US and Europe.
UK PM hosts Indian business leaders to boost investments (Financial Express)
UK Prime Minister Keir Starmer hosted 13 Indian companies at 10 Downing Street to strengthen the UK-India Comprehensive Strategic Partnership and promote investments, with discussions emphasizing economic growth, innovation, and the proposed Free Trade Agreement (FTA) worth £42 billion annually, supporting over 600,000 jobs. Indian business leaders, led by Sunil Bharti Mittal, highlighted India’s position as the fastest-growing large economy, with a $5 trillion GDP target by 2027, and stressed opportunities in bilateral trade and economic collaboration. Collectively, the delegation, including Reliance Industries, Tata Steel, and Biocon Group, has invested over £10 billion in the UK and employs tens of thousands across the country.
No sugar exports for now: Official (Financial Express)
The government has postponed a decision on sugar exports despite a projected surplus of 1 million tonnes in the 2024-25 season, prioritizing domestic supply and ethanol production; current sugar production is estimated at 32 million tonnes (MT) against a domestic demand of 27 MT, with 4 MT allocated for ethanol. India’s ethanol blending has reached 15.83% as of July 2024, and the government aims for a 20% blending target by 2025-26, supported by a 3.2 MT rice allocation priced at ₹22.8/kg, though industry groups claim this cost is unviable. India, the second-largest sugar producer globally, exported 6 MT in 2022-23 but has withheld quotas for 2024-25, with ISMA requesting export allowances for 2 MT to manage surplus stocks.
India, US need to work together to lower tariffs: US Ambassador (Business Standard)
US Ambassador to India Eric Garcetti emphasized the need for India and the US to work together to lower tariffs, calling India the “highest tariff” major economy and advocating for fair and equal trade to boost bilateral commerce, which has grown tenfold. At a USIBC event, Garcetti highlighted the importance of talent and training to meet business needs across the Indo-Pacific and confirmed the US commitment to open a consulate in Bengaluru next month, with Ahmedabad to follow. Meanwhile, former President Donald Trump criticized India’s tariffs as excessive, signaling potential reciprocal tariff measures, reflecting a broader focus on “reciprocity” in US trade policy.
