Daily News - Friday, 4 April 2025
‘Looking forward to intensifying ties with India’ (mint)
German Ambassador Philipp Ackermann affirmed that despite an upcoming change in government, Germany’s strong political and economic engagement with India will remain unchanged, with an emphasis on deepening ties in the coming years. He expressed confidence in concluding the EU-India Free Trade Agreement (FTA) by the end of 2025, calling it a “game-changer” that would boost European investment in India. The commitment to the FTA and enhanced strategic partnership was reinforced by recent high-level engagements, including the 7th India-Germany Intergovernmental Consultations and a February visit by EU Commission President Ursula von der Leyen.
Thailand, India for rules-based order in Indo-Pacific (mint)
India and Thailand have agreed to upgrade their bilateral ties to a Strategic Partnership, with a focus on strengthening cooperation in trade, investment, MSMEs, tourism, culture, education, and security, particularly between India’s Northeast and Thailand. Prime Minister Modi highlighted mutual support for a free, open, and rules-based Indo-Pacific, backing ASEAN Centrality and unity, while underscoring a shared vision of “vikaasvaad” (development) over “vistaarvaad” (expansionism). Both leaders also announced plans to initiate a ‘Strategic Dialogue’ between security agencies and celebrated cultural exchanges, including Thailand issuing a commemorative stamp on India’s Ramayana mural and presenting Modi with the Tripitaka.
Pharma biz exempted from reciprocal tariffs (Financial Chronicle)
The US has exempted pharmaceuticals from President Trump’s new reciprocal tariff policy, offering temporary relief to India’s pharma sector, which exports $8.2 billion worth of products to the US—accounting for 30% of its total $27 billion pharma exports. While the White House excluded pharmaceuticals along with copper, semiconductors, and certain critical minerals, experts caution that this exemption may not be permanent due to potential future policy shifts. Despite a basic 10% import tariff still applying, industry leaders stress that higher tariffs on Indian generics would significantly impact US consumers by driving up drug prices.
Gems and jewellery units to take a big hit (Financial Express)
The US’s proposed 27% reciprocal tariff will raise total customs duties on Indian studded and gold jewellery exports to 32–34%, while diamond products—previously tariff-free—will now attract a 27% duty, threatening India’s $10 billion gems and jewellery exports to the US (comprising $4 billion in jewellery and $6 billion in diamonds). With India contributing 30% of the US’s total gems and jewellery imports, exporters are rushing shipments before the tariffs take effect, while industry leaders warn that prolonged high tariffs could halt trade, push firms toward new markets, and severely impact employment in a sector that supports over 5 million people. Stakeholders urge a “wait and watch” approach as bilateral trade talks continue but acknowledge that India’s competitiveness may be at risk if rival exporters secure more favourable terms.
Industry sees India better placed than China, Vietnam on electronics (Financial Express)
With the US imposing a 27% reciprocal tariff starting April 9, India finds itself in a relatively strong position compared to competitors like Vietnam (46%), Thailand (36%), and China (54%), especially in electronics and smartphone exports, where India currently exports $7 billion worth to the US. The tariff gap, combined with India’s Production-Linked Incentive (PLI) scheme, makes Indian goods more cost-competitive, although lower duties in countries like Turkey (10%), Brazil (10%), and the Philippines (17%) still pose challenges. Industry leaders stress that the key to long-term stability and growth lies in swiftly concluding a bilateral trade agreement (BTA) with the US to ensure predictable tariffs, market access, and sustained supply chain integration.
