Daily News - Wednesday, 4 June 2025

⁠India’s Russian arms purchases ‘rubbed America the wrong way’; bilateral trade deal close: US Commerce Secretary Lutnick (The Indian Express)

⁠US Commerce Secretary Howard Lutnick acknowledged past tensions over India’s military purchases from Russia and its role in BRICS currency discussions but confirmed that both sides have since addressed these issues and are nearing a mutually beneficial trade deal. The agreement is expected to expand access for US businesses in Indian markets while boosting Indian manufacturing, especially in advanced sectors, as Washington seeks to diversify supply chains and reduce its trade deficit. Trade negotiators are set to meet in New Delhi on June 5–6, even as friction remains over India’s WTO notice challenging US tariffs on steel and aluminium, which the US defends as national security measures under Section 232 rather than safeguards. 

⁠WTO chief urges India to join investment pact (Financial Express)

WTO Director-General Ngozi Okonjo-Iweala urged India to join the Investment Facilitation for Development Agreement, backed by 90 of 126 WTO members and initially proposed by China, highlighting India’s leadership role among developing economies. India, however, remains opposed, citing concerns over reduced policy space on investment matters and arguing that WTO should stick to trade-focused issues, especially since making the deal a full WTO agreement would open it to dispute settlement. The request was made during a meeting with Commerce Minister Piyush Goyal on the sidelines of an OECD mini-ministerial in Paris, where broader WTO reforms and agricultural issues were also discussed ahead of the 14th Ministerial Conference in Cameroon next year. 

⁠Duty-free imports of yellow peas may depress local prices (Financial Express)

⁠The government’s move to allow duty-free imports of yellow peas until FY26 is expected to depress domestic chana prices, currently at Rs 5,200–5,500/quintal in key states, below the MSP of Rs 5,650/quintal, prompting fears that farmers may abandon chana cultivation in favour of more profitable crops. With over 3.5 million tonnes of yellow peas already imported since December 2023 at significantly lower rates (~Rs 3,400/quintal), and around 1 MT still in stock, traders warn of prolonged price pressure, especially since yellow peas are widely used as a cheap substitute in besan production. This decision follows a drop in chana output from 12.26 MT in 2022–23 to an estimated 11.33 MT in 2024–25 (or 9 MT per trade estimates), but industry bodies are urging for a 50% import duty to protect farmers and stabilize mandi prices.

India’s cotton crisis: A new mission takes shape to revitalise the common man’s fabric (mint)

India is preparing to launch a five-year National Cotton Productivity Mission aimed at reversing the steady decline in cotton yields, which have dropped from 33.7 million bales in 2022–23 to an estimated 30.7 million bales in FY25, with per-hectare productivity stagnating at 465 kg—far behind China’s 2,170 kg/ha. The plan focuses on crop diversification, mechanisation, high-yield seed varieties, and structural improvements at the farm level, with an ambitious target to more than double yields to 1,000 kg/ha across 11 states. Despite being the second-largest cotton producer globally with 25 million bales (21% of global output), India’s cotton economy has struggled to match technological advances, prompting the Centre to coordinate closely with state governments, farmer groups, and experts to rejuvenate the sector.

⁠India, UK sign trade deal with scope for renegotiation (Hindustan Times)

The India-UK Free Trade Agreement, concluded on 6 May, includes a safeguard mechanism allowing either side to renegotiate terms if the other offers better benefits to a third country—reflecting the UK’s concern about staying competitive as India accelerates trade deals with major partners like the US and EU. This clause, proposed mainly by the UK, is part of a broader effort to future-proof the FTA as India is projected to become the world’s third-largest economy by 2028; legal vetting and approvals are expected to take up to a year. The British policy paper underscores the ambition of the deal, noting India’s commitment to more than double tariff reductions over the next decade and enabling both nations to revisit terms in line with evolving global trade dynamics.