Daily News - Tuesday, 21 January 2025
‘Drill, baby, drill’: Trump vows to pump, export more oil, lower prices (The Indian Express)
In his inaugural speech as the 47th President, Donald Trump declared a “national energy emergency,” introducing the slogan “Drill, baby, drill” to emphasize boosting US oil and gas production, reducing energy prices, and expanding energy exports, which could further pressure global oil prices. For India, which imports over 85% of its crude oil and counts the US as its fifth-largest supplier, increased US exports could help reduce import costs and trade deficits, positively impacting inflation and foreign exchange reserves. However, Trump’s push for aggressive drilling, revocation of electric vehicle mandates, and potential tariffs on imports, particularly from China, may disrupt global oil demand and supply dynamics, necessitating a balanced approach to avoid market volatility and ensure American production remains viable.
Trump announces trading system ‘overhaul’; new external revenue service to collect tariffs from foreign countries (The Indian Express)
US President Donald Trump announced the creation of an external revenue service to collect tariffs on foreign goods, emphasizing a shift towards protecting American workers by taxing imports, with potential impacts on trade relationships, especially with BRICS nations. His threat to impose 100% tariffs on countries like India, labelled as the “tariff king,” highlights concerns over trade imbalances and aligns with his prior tariff measures, such as the 25% on steel and 10% on aluminium during his first term. Despite these tensions, the US remains India’s largest trade partner, accounting for 18% of India’s exports in FY23, with bilateral trade reaching $120 billion, offering diversified export opportunities in industries like textiles, electronics, and engineering.
Globalisation is set to grow at slower pace than before: CEA Nageswaran (The Indian Express)
Chief Economic Advisor Anantha Nageswaran highlighted that globalisation is slowing due to rising protectionism and geopolitical fragmentation, with significant headwinds anticipated in the manufacturing and service sectors, despite India’s efforts to raise its manufacturing GDP share and dominance in IT-enabled services. He emphasized the growing importance of agriculture and food security, noting that agricultural exports, diversification in farming, and allied sectors such as fisheries, poultry, and dairy are crucial for economic and geostrategic growth. However, challenges like India’s lowest per capita land availability in the G20 and restrictive land regulations hinder productivity in agriculture and industrialization, necessitating reforms to optimize land use.
‘Insurance premium to grow, as economy expands’ (mint)
Moody’s projects India’s GDP to grow by 7% in FY2024, down from 8.2% in the previous year, with per capita GDP at purchasing power parity rising 11% to $10,233 in FY2023, indicating robust economic expansion. This growth is driving a 16% rise in insurance premiums in the first eight months of 2024, with increasing average incomes and greater consumer risk awareness bolstering demand for health and other insurance products, pushing insurance density to $95 in FY23 from $92 in FY22. Moody’s expects continued premium growth to improve the profitability of India’s insurers, despite pressure on capital adequacy from increased underwriting exposure and regulatory reforms in the state-dominated sector.
Row over used med device import ban (mint)
The recent ban on imports of refurbished medical devices, enforced by the Central Drugs Standard Control Organization (CDSCO), has sparked a debate among domestic healthcare and medtech sectors. While some support the ban as a move to strengthen local manufacturing, others argue for a clear policy to regulate imports, citing safety and efficacy concerns. Refurbished devices, often costing 30-70% less than new equipment like MRIs and CT scans, are crucial for healthcare providers in tier III and IV cities, making them more accessible but raising issues related to the regulation of imports under the Medical Devices Rules, 2017.
