Daily News - Thursday, 20 March 2025

Global economy under test (Financial Chronicle)

The Indian economy continues to show resilience despite global trade tensions and financial market volatility, driven by a strong agriculture sector and improving consumption, according to the RBI’s March bulletin. In February, India recorded net FPI outflows of $4 billion, including $5.4 billion in net equity outflows, but its macroeconomic strength is supported by a seven-month low CPI inflation of 3.6%, mainly due to falling food prices. The National Statistical Office revised India’s real GDP growth forecast for 2024-25 to 6.5% (up by 10 bps), with net exports rising by 120 bps to 7.1% and private final consumption expenditure by 30 bps to 7.6%.

US tops remittances to India, pips UAE (Financial Chronicle)

The US remained the largest source of India’s remittances, increasing its share to 27.7% in 2023-24 from 23.4% in 2020-21, followed by the UAE at 19.2% (up from 18%) and the UK at 10.8% (up from 6.8%), reflecting a shift towards skilled Indian diaspora migration. Maharashtra was the top recipient state, followed by Kerala, Tamil Nadu, Telangana, and Karnataka, while Maharashtra, Telangana, and Punjab accounted for the highest number of Indian students migrating abroad for education and employment. Large transactions over ₹5 lakh made up the highest share of remittances at 29% in 2023-24, according to the Reserve Bank of India’s remittance survey.

BHIM-UPI GETS ₹1,500-CRORE GOVT SUPPORT (Financial Chronicle)

The Indian government approved a ₹1,500 crore incentive scheme for 2024-25 to promote low-value UPI transactions (below ₹2,000) by covering the Merchant Discount Rate (MDR) for person-to-merchant (P2M) payments. The scheme, running from April 1, 2024, to March 31, 2025, aims to encourage digital payments among small merchants. Additionally, the government approved the establishment of a urea plant in Assam at a cost of over ₹10,600 crore with a 70:30 debt-equity ratio, as part of efforts to reduce urea imports and achieve self-sufficiency in this key crop nutrient.

'Biz linked to national security' (Business Standard)

External Affairs Minister S. Jaishankar highlighted at the Raisina Dialogue that business decisions are increasingly influenced by national security concerns, with countries using tariffs, sanctions, and economic activities as strategic tools. He emphasized the need for India to negotiate favourable trade deals with key partners like the EU, UK, and US, describing them as not just growth markets but also strategic and connectivity partners. Amid ongoing trade talks, US President Donald Trump has pressured India to reduce its $50 billion trade surplus with the US and encouraged the purchase of American defence goods worth billions of dollars.

Philippines wants India to join security grouping (Business Standard)

⁠The Philippines’ Chief of Staff, General Romeo S Brawner, called China the “common enemy” and expressed interest in India joining an emerging security grouping called the Squad, which includes the US, Japan, and Australia, aiming to counter China’s influence in the South China Sea. During the Raisina Dialogue, Brawner emphasized the importance of collaboration with India in sharing military intelligence and conducting joint operations, highlighting India’s growing defence ties with the Philippines. India previously delivered the first batch of BrahMos supersonic cruise missiles to the Philippines in April 2024 under a $375 million deal signed in January 2022, making the Philippines the first export customer for the jointly made India-Russia missile system.