Daily News - Thursday, 26 June 2025
After magnets, China now plants agriculture barrier for India (The Economic Times)
China has halted exports of specialty fertilisers to India for the past two months, disrupting supplies of critical non-subsidised inputs like micronutrient and water-soluble fertilisers, of which India imports nearly 80% from China. This informal blockade, likely linked to rising geopolitical tensions and trade retaliation, poses risks to India’s high-value horticulture output, especially during the June–December peak import season when 150,000–160,000 tonnes are typically brought in. With the domestic market for specialty fertilisers projected to exceed $1 billion by 2029 and local production still unviable due to technology gaps, Indian firms may now accelerate investment in manufacturing while seeking alternative import sources like Jordan or Europe to avoid supply shocks.
Farmer bodies renew opposition to tariff relief plan for US (Financial Express)
As India and the US move closer to finalizing a first-stage trade deal by July 9, concerns are mounting within India’s agriculture sector over potential duty cuts on sensitive products like soybean, corn, apples, and dairy, which could severely impact over 6 million small farmers due to stark cost differences—US soybean is priced at $390/tonne, far below India’s MSP of $620/tonne. Industry bodies like SOPA and the Indian Dairy Association have strongly opposed the proposed concessions, citing economic infeasibility and the threat to rural livelihoods, especially given India’s ban on genetically modified (GM) food crop imports and its dependence on smallholder farms averaging just 2.7 acres. While the US seeks broader access, India remains firm on protecting domestic producers through tariffs and regulatory safeguards, even as talks of a full bilateral trade agreement continue into year-end.
India among top fintech hotspots globally: WEF study (Deccan Herald)
India has been named one of the top global fintech hubs alongside the US and UK, with over 10 major firms and a thriving sector contributing to inclusive financial access, especially for MSMEs, low-income groups, and women. According to a WEF-Cambridge study covering 240 firms, global fintech revenue grew by 40%, profits by 39%, and customer bases stabilized at 37%, with 83% of companies reporting improved user experience through AI adoption. While macroeconomic and funding concerns have eased sharply since 2024, the report notes that sustainable growth will depend on improving capital access and regulatory frameworks, especially in emerging markets.
Indian economic activity stays resilient amidst trade policy and geopolitics uncertainties, says RBI Bulletin (Business Standard)
Despite global headwinds from trade tensions and geopolitical instability, India’s economy remained resilient in May 2025, with strong industrial, services, and agricultural output, and headline inflation staying below target for the fourth straight month. In response to easing inflation and subdued global growth impulses, the RBI’s Monetary Policy Committee cut the policy repo rate by 50 basis points to 5.50% in June, marking a total 100 bps reduction since February to spur private consumption and investment. However, with limited room for further easing, the MPC shifted its stance from accommodative to neutral, signaling a cautious, data-driven approach amid ongoing global uncertainty.
‘Great economies are not built in calm waters’: Piyush Goyal says, ‘India to become third largest economy by 2027’ (mint)
India is on track to become the world’s third-largest economy by 2027, with Union Minister Piyush Goyal projecting the country’s GDP to hit USD 5 trillion within the next three years, backed by strong macroeconomic fundamentals and low inflation—currently around 3%. Speaking at an MCCI webinar, Goyal highlighted how India has transitioned from the “fragile five” to a top-five global economy, crediting the unified push from government, industry, and citizens toward the Viksit Bharat 2047 vision. He also stressed that India has skillfully navigated global trade challenges, defending sensitive sectors while leveraging areas of competitive advantage, and urged stakeholders to seize this critical growth window despite global uncertainty.
