Daily News - Tuesday, 8 April 2025

Govt hikes excise duty on petrol, diesel by ₹2 per litre (Financial Express)

The government has increased excise duties on petrol and diesel by ₹2 per litre each to generate about ₹35,000 crore in annual revenue, aiming to offset ₹43,000 crore in under-recoveries incurred by oil marketing companies (OMCs) due to unchanged retail fuel prices amid rising global crude costs. However, this duty hike will not be passed on to consumers, as petrol and diesel prices remain at ₹94.77 and ₹87.67 per litre, respectively, in Delhi. Additionally, LPG cylinder prices were raised by ₹50—now ₹853 for general users and ₹553 for Ujjwala beneficiaries—in response to high international LPG benchmark prices (Saudi CP rose from $415/MT to $712/MT between 2020–21 and 2022–23), which led to ₹28,000 crore in losses, partially compensated by a ₹22,000 crore one-time grant. The government says further reductions in petrol and diesel prices may occur if global crude prices stay low, while FY25 LPG losses are projected to exceed ₹41,338 crore, subject to revision if gas prices soften.

⁠Indian exports likely to see 6.4% hit from Trump tariffs (Financial Express)

⁠India’s exports to the US are projected to decline by $5.79 billion or 6.41% in 2025 due to reciprocal tariffs, with the steepest drops expected in fish and crustaceans (–20.2%), iron and steel articles (–18%), gems and jewelry (–15.3%), and auto components and electronics (–12% each), while high-value items like petroleum, solar panels, and pharmaceuticals—worth $20.4 billion in 2024—remain exempt from country-specific duties. Despite the setbacks, the Global Trade Research Initiative (GTRI) notes export gains may occur in textiles (4.2%), apparel (3.2%), ceramics (3.1%), enzymes and glues (3%), and pharmaceuticals (2.1%) where the US has raised tariffs on competitors. However, the major brunt falls on the remaining $67.2 billion export basket (74.8% of total trade), which now faces broad-based tariff hikes, especially on industrial goods like steel, aluminum, and automobiles, which are now subject to a 25% tariff. 

Niti: Urgent need to reimagine our R&D strategy (Financial Express)

⁠India’s R&D spending remains under $100 billion in 2024, significantly lower than China’s estimated $496 billion, with a NITI Aayog paper highlighting the urgent need for a strategic overhaul to improve commercial outcomes. The paper contrasts India’s diffused R&D efforts with China’s disciplined and industry-linked approach, citing the “Made in China 2025” initiative that initially received over $300 billion and later an additional $1.4 trillion post-COVID to boost high-tech manufacturing. Authors Debjani Ghosh and Sharad Sharma urge India to adopt a more focused, execution-driven strategy with stronger academia-industry collaboration to transform its innovation ecosystem. 

Govt to tighten refrigerant norms, match global standards (mint)

⁠The Indian government is tightening regulations on refrigerants by aligning with global standards to phase out high-global-warming-potential (GWP) gases like HCFC R-22 by 2030, with new rules soon coming into effect and non-compliance leading to penalties, licence cancellations, and product seizures. The Bureau of Indian Standards is revising packaging and safety norms to ensure all appliances become HCFC-free, as India’s cooling market sees rapid growth—refrigerators are projected to grow from $5.4 billion in 2024 to $12.09 billion by 2033 (CAGR 9.37%) and air conditioners from $3.38 billion in 2023 to $11.69 billion by 2032 (CAGR 14.78%). While manufacturers will face higher production costs due to retooling and R&D, the long-term benefits include improved energy efficiency, reduced environmental impact, and potentially lower electricity costs. 

⁠Gold price down ₹3,500 per 10 gm (Financial Chronicle)

⁠Gold prices in the international market fell by $180 per ounce on Monday, and in India, MCX gold dropped from ₹91,423 to ₹87,830 per 10 gm and Delhi spot prices from ₹94,350 to ₹91,000, as investors liquidated bullion to cover margin calls following a crash in global equity markets. Despite the sharp fall, analysts expect gold to rebound due to geopolitical tensions, recessionary fears, central bank and ETF buying, and a weaker dollar, with past crises showing similar trends—gold rose 39.56% after the 2008 crash and 32.48% during the 2020 pandemic, while it is already up 21.15% amid the current tariff war as the S&P 500 corrects 21.87%. Goldman Sachs maintains a bullish stance on gold, calling the dip a strong buying opportunity, while silver fell more sharply by 14.6%, as the gold-silver ratio crossed 100, a level it historically hasn’t sustained beyond 92.