Daily News - Wednesday, 2 April 2025
China willing to buy more Indian goods, says envoy (mint)
China has expressed readiness to import more Indian products and enhance trade cooperation, as Ambassador Xu Feihong emphasized ahead of new US tariffs, highlighting efforts to mend bilateral ties after the 2020 border clash. Both nations recently agreed to resume direct flights and strengthen economic collaboration, with President Xi Jinping urging closer ties while Beijing encourages Indian businesses to expand in China, despite India’s existing restrictions on Chinese investments. Meanwhile, India continues tariff reductions to appease US concerns, as former President Trump labelled the country a “tariff king” and threatened retaliatory measures.
US flags ‘Make in India’ as trade barrier (mint)
The US has once again criticized India’s trade policies, highlighting high tariffs (such as 150% on alcoholic beverages and 100% on walnuts and raisins), restrictive non-tariff barriers, and digital trade regulations in the 2025 National Trade Estimate report, complicating bilateral trade agreement negotiations. Concerns include India’s “Make in India” initiative, which prioritizes local manufacturers, and its defence offset policy mandating 30% local investment by foreign contractors, both seen as trade hurdles by the US but essential for India’s economic self-reliance. As India pushes for fair trade practices, US officials, led by Brendan Lynch, recently concluded talks in New Delhi, with virtual negotiations set to continue amid looming reciprocal tariffs from President Trump.
Net GST collection in March jumps 7.3% to ₹1.77 tn (mint)
India’s GST collections in March 2025 stood at ₹1.77 trillion, marking a 7.3% year-on-year increase after refunds, while FY25 GST revenues surged 8.6% to ₹19.56 trillion, with total refunds amounting to ₹2.52 trillion for the year. Net domestic GST revenue grew 9.3% annually to ₹1.38 trillion, whereas IGST revenue from imports remained flat at ₹38,830 crore, reflecting the impact of import substitution policies like Atma Nirbhar Bharat and Production Linked Incentive (PLI) schemes. Before refunds, total March GST collections were ₹1.96 trillion (up 9.9% annually), and for FY25, gross GST revenues hit ₹22 trillion (up 9.4%), underscoring India’s strong consumer spending and domestic economic resilience despite global uncertainties.
Commercial LPG, jet fuel prices slashed (Financial Express)
State-owned oil marketing companies have reduced the price of 19-kg commercial LPG cylinders by ₹41, bringing the cost down to ₹1,762 in Delhi, ₹1,713.50 in Mumbai, ₹1,868.50 in Kolkata, and ₹1,921.50 in Chennai, effective April 1, while domestic LPG prices remain unchanged. This revision follows a ₹6 increase in March and a ₹7 decrease in February, with prices fluctuating based on global crude oil trends. Additionally, aviation turbine fuel (ATF) prices were slashed by 6.1%, with a ₹5,870.54 per kilolitre cut in Delhi, reducing the rate to ₹89,441.18 per kilolitre after consecutive hikes in February and March.
India to lead G20 nations with 6.5% growth: Moody's (Financial Express)
India’s projected 6.5% GDP growth for FY25 is set to be the highest among G20 economies, driven by tax incentives and continued monetary easing, according to Moody’s Ratings, which also highlighted India’s resilience due to its low external vulnerability indicator (61%), moderate external debt-to-GDP ratio (19%), and limited export dependence on the US (2% of GDP). The Centre’s move to raise the income tax exemption limit from ₹7 lakh to ₹12 lakh under the new tax regime is expected to leave ₹1 lakh crore in taxpayers’ hands, boosting consumption and demand, while the RBI’s 25 bps rate cut to 6.25% in February signals further easing. Despite US tariff risks, Moody’s expects emerging market growth to slow but remain strong, with Asia-Pacific leading, though its deep global trade ties make it vulnerable to external shocks.
