Daily News - Friday, 28 February 2025

⁠India a trusted friend in era of conflicts: EU chief (Business Standard)

⁠India and the European Union (EU) are set to accelerate negotiations on a long-awaited free trade agreement (FTA) as European Commission President Ursula von der Leyen visits India, emphasizing strategic cooperation amid growing EU-US trade tensions, with bilateral trade in goods reaching $135 billion in 2023-24 (India’s exports: $76 billion, imports: $59 billion). Talks between Von der Leyen and Prime Minister Narendra Modi will cover trade, defence, technology, and climate change, with the EU pushing for tariff reductions on cars, wine, and agricultural products, while India seeks its own concessions, including deeper security cooperation and a security information agreement. The EU also aims to enhance maritime security collaboration by appointing a liaison officer at India’s Information Fusion Centre-Indian Ocean Region (IFC-IOR), underscoring the broader strategic partnership between the two sides.

Govt unveils consortium to operate global ports (Business Standard)

⁠India has launched Bharat Ports Global, a consortium of public sector companies—India Ports Global (IPGL), Sagarmala Development Corporation (SDCL), and Indian Port Rail and Ropeway Corp (IPRCL)—to expand its role in global maritime trade by enhancing port infrastructure, streamlining logistics, and boosting exports under Make in India. The initiative will focus on key global trade routes, including the 7,200 km International North-South Transport Corridor (INSTC), the India-Middle East-Europe Economic Corridor (IMEC), and the Eastern Maritime Corridor with Russia, with SDCL evolving into a maritime-focused NBFC to support financing. Additionally, the government has introduced Maitri (Master Application for International Trade and Regulatory Interface) to operationalize IMEC and later expand to BIMSTEC and ASEAN, leveraging AI and Blockchain to optimize trade flows and enhance security. 

India hunts for critical minerals in Congo, Zambia, Australia (Financial Express)

⁠India is expanding its search for critical minerals like lithium, cobalt, and copper in Zambia, Congo, Tanzania, and Australia, with companies like Coal India, NMDC, and ONGC Videsh leading exploration efforts to reduce import dependence and secure raw materials for energy transition technologies. The Zambian government has allocated 9,000 sq km to India for exploration, while domestically, the government is assessing lithium reserves in Jammu and Kashmir, where 5.9 million metric tonnes were discovered in 2023, though no bids have been received for mining rights. Additionally, India has extended the bidding deadline for 13 offshore mineral blocks, valued at over ₹1.5 trillion, by one month as part of its broader push to strengthen domestic and global mineral security. 

⁠IMF sees India’s economic risks rising amid global uncertainty (Financial Express)

India’s economic growth, projected at 6.5% for both the current and next financial year by the IMF, faces risks from geoeconomic fragmentation, volatile commodity prices, regional conflicts, and cyber threats, with the economic outlook “tilted to the downside.” The IMF warns that weaker-than-expected private consumption and investment, along with weather shocks affecting agriculture and food prices, could slow rural consumption recovery. To sustain long-term growth and achieve developed-country status, India must accelerate structural reforms, secure critical commodities, and avoid additional trade restrictions, while the government estimates GDP growth at 6.4% for this year and between 6.3%-6.8% for the next fiscal.

⁠Bilateral ties crucial for boosting trade, says Sitharaman (Financial Express)

With multilateralism declining, Finance Minister Nirmala Sitharaman emphasized that bilateral trade agreements will shape the future of global commerce, highlighting India’s ongoing negotiations with the US, UK, and EU to expand trade and investment strategically. She noted that traditional trade frameworks, including the WTO’s Most Favoured Nation (MFN) concept, are fading, necessitating India’s active role in the global economic reset through its technology, talent, and business-friendly policies. While pursuing structural reforms, fiscal prudence, and privatization in non-strategic sectors, the government is also encouraging states to compete in economic growth, positioning India as a key driver of global economic expansion.