Daily News - Thursday, 9 January 2025
PMO working on blueprint to industrialize North India (mint)
The government is addressing the North-South industrialization divide by designing a ₹10,037 crore “Unnati-2024” scheme to boost manufacturing and infrastructure in underdeveloped northern states over 10 years, focusing on regions like Kanpur and Jammu & Kashmir with high potential for textiles, leather, and handicrafts. Key departments, including MSME and DPIIT, are identifying district-specific product lines and offering incentives for industrial hubs to scale up domestic and foreign-demanded production, while addressing southern states’ grievances about their smaller share of central tax revenue despite contributing significantly to GDP. Experts highlight the cyclical benefits of industrial growth across regions but caution that competitive costs for raw materials and logistics are critical for the success of manufacturing hubs.
Gold import revision trims Nov’s record trade deficit by $5 billion (mint)
India’s November trade deficit has been revised downward to $32.8 billion from $37.8 billion due to a $5 billion correction in gold import data, which was recalculated at $9.8 billion after resolving a double-counting error. This adjustment reduced total goods imports for November 2024 to $64.95 billion (from $69.95 billion) while goods exports declined to $32.11 billion, reflecting a 4.9% y-o-y fall, and services exports recorded a surplus of $18 billion. For April-November 2024, total exports grew 7.61% y-o-y to $536.25 billion, despite pressures on the trade balance caused by a 27% surge in goods imports compared to November 2023.
Rise in Govt Capex and I-T Relief Can Boost Growth: CII (The Economic Times)
Confederation of Indian Industry (CII) President Sanjiv Puri has called for a 25% increase in government capital expenditure from ₹11.11 lakh crore (FY25) in the upcoming budget to enhance economic competitiveness, along with income tax relief, measures to boost manufacturing, and integration into global value chains. He emphasized the importance of maintaining a balanced fiscal path to avoid dampening investments, while projecting GDP growth to recover to 7% in FY26 after an estimated 6.4% in FY25. CII’s recommendations include a National Mission on Water Security, rural industrial hubs, climate-controlled infrastructure for small farmers, and increased MGNREGA wages to boost rural and urban consumption, which Puri highlighted as the largest contributor to GDP growth.
Sops in Works for Organic Farming to Double Exports (The Economic Times)
The government plans to incentivize organic and natural farming in the upcoming 2025-26 budget to double organic exports to $1 billion by FY26, addressing challenges like rising fertilizer costs and strict Maximum Residue Limits (MRL) in global markets. This initiative, part of a rework of the 2018 Agriculture Export Policy, seeks to support farmers’ transition to organic farming while improving compliance with MRL norms affecting key exports like basmati rice, spices, and tea. With India’s total agricultural exports projected at $50 billion for FY25, the government is also pushing for WTO guidelines on default MRLs to prevent non-tariff trade barriers that disproportionately impact exporters from developing nations.
‘Tech, Climate to Shape Jobs in India by 2030’ (The Economic Times)
A World Economic Forum (WEF) report highlights that by 2030, job trends in India will be shaped by increased digital access, geopolitical tensions, and climate-mitigation efforts, with companies investing heavily in AI, robotics, and autonomous systems. Fast-growing roles will include Big Data specialists, AI and machine learning experts, and security management professionals, with Indian firms focusing on diverse talent pools and skills-based hiring. With 96% of organizations in India running AI programs and strong demand for AI skills, India and the US are leading in generative AI training, while 35% of employers expect transformation through semiconductors and computing technologies.
