Daily News - Friday, 27 December 2024

$25 billion opportunity in US: Exporters seek ₹750 crore marketing fund (The Economic Times)

Exporters have urged the government to establish a ₹750-crore marketing fund over three years to target an additional $25 billion in US exports and to raise the cap for interest subvention benefits under the Interest Equalisation Scheme (IES) to support sectors like textiles, electronics, and engineering. At a pre-budget consultation, they highlighted opportunities to replace China as a key supplier in sectors like electronics ($10 billion export potential), garments, chemicals, and furniture, especially amid potential US tariffs on Chinese goods. With India’s goods exports contracting 4.9% year-on-year in November, stakeholders also pushed for expanding production-linked incentive schemes and reducing import duties on critical components to enhance competitiveness. 

India-US critical mineral partnership step forward, China nods to some fish imports: Govt (The Economic Times)

⁠India’s proposed Critical Minerals Partnership Agreement (CMPA) with the US aims to leverage the October MoU on Critical Minerals Supply Chains, potentially qualifying India for benefits under the US Inflation Reduction Act (IRA), including EV tax credits of up to $7,500 per vehicle. The agreement could position India as a preferred manufacturing hub for EV components, fostering foreign investments and reducing reliance on non-FTA nations. On trade, India is negotiating FTAs with the UK, EU, and others, while reviewing the ASEAN-India Trade in Goods Agreement (AITIGA) to address industry concerns, with completion targeted by 2025. The Export Credit Guarantee Corporation’s enhanced scheme now covers export credit up to ₹80 crore, expected to support 1,000 new exporters, while ₹954 crore was recovered under an amnesty scheme for pending authorizations. 

⁠Anti-dumping probe into LNG vessels from China (Financial Express)

India’s Directorate General of Trade Remedies (DGTR) has initiated an anti-dumping investigation into LNG fuel tanks (200-751 liters) imported from China following a complaint by Inox India. Imports of these tanks rose to $93.6 million in FY24 from $84.7 million in FY23, with $42.7 million already imported during April-October FY25. If the probe confirms below-cost imports harming domestic industry, the DGTR may recommend anti-dumping duties, which will be enforced by the Central Board of Indirect Taxes and Customs (CBIC) under the Ministry of Finance. 

⁠Rice exports surge after curbs eased (Financial Express)

⁠India’s agricultural and processed food exports rose by over 8% to $14.01 billion during April-November FY25, driven by a 13% surge in rice exports to $7.31 billion following the removal of restrictions on basmati and non-basmati rice shipments. Other key export categories also saw growth: buffalo meat, dairy, and poultry exports increased by 9% to $3.13 billion, while fresh fruits and vegetables grew by 5% to $2.31 billion, and cereal preparations rose by over 10% to $2.03 billion. With a robust global demand for Indian products like rice, mangoes, and processed vegetables, APEDA has set an ambitious export target of $26.56 billion for FY25, reflecting India’s dominance in global agri-trade. 

New uncertainties emerging: FinMin (Financial Chronicle)

The Finance Ministry’s monthly economic review highlighted that India’s GDP growth moderated to 5.4% in Q2 FY25, but the outlook for H2 FY25 appears stronger, supported by robust rabi sowing conditions, high-frequency indicators for October-November, and industrial activity gaining momentum. The report attributed the H1 slowdown partly to structural factors, the central bank’s monetary stance, and restrained urban consumption due to hiring and compensation trends, though the recent cut in the cash reserve ratio from 4.5% to 4% is expected to revitalize credit growth. Looking ahead, uncertainties in global trade, elevated stock markets, a strong US dollar, and policy rate shifts in the US pose challenges for economic stability.