Daily News - Thursday, 8 January 2026

India Overtakes China as World’s Second‑Largest Diamond Market (Financial Express)

According to De Beers Group CEO Al Cook, India’s natural diamond demand grew 11% in 2025, the highest globally, positioning India as the company’s most critical growth engine. The Gem & Jewellery Export Promotion Council (GJEPC), under the Ministry of Commerce & Industry, reported India’s gems and jewellery exports at USD 28.5 billion (INR 2.41 lakh crore) in FY25, a decline of 11.7% due to weak demand in the US and China. Despite export challenges, domestic consumption surged, with India overtaking China as the second‑largest diamond market worldwide, behind only the US. De Beers’ Forevermark brand expanded aggressively, opening its largest store in Mumbai and planning to scale to 100 stores by 2030, reflecting confidence in India’s retail jewellery sector. Industry estimates suggest India’s diamond market could reach USD 20 billion (INR ~1.67 trillion) by 2030, supported by GDP growth of ~7% and rising middle‑class affluence. The sector employs over 5 million workers and contributes nearly 7% to India’s GDP and 15% of merchandise exports, making it a strategic industry for the Ministry of Commerce & Industry.

Lenovo Plans To Double India Business in 3 Years (Business Standard)

Lenovo Asia Pacific President Amar Babu announced that Lenovo aims to double its India business within three years, driven by strong growth in Motorola smartphones and infrastructure services. Lenovo India reported a 23% year‑on‑year revenue increase to USD 1.2 billion (INR ~10,000 crore) in the September 2025 quarter, supported by digitisation, premiumisation, and improved consumer sentiment after the GST rejig. The company’s Motorola smartphone division has more than doubled revenues in the past two years, making India one of Lenovo’s fastest‑growing markets worldwide. Lenovo’s infrastructure and services businesses are expanding at high double‑digit growth rates, with mainstream servers now being designed in India and significant software development for Motorola phones done locally. The expansion aligns with the Government of India’s Digital India initiative under the Ministry of Electronics and Information Technology (MeitY), as Lenovo positions India as both a domestic growth market and a global innovation hub. Lenovo plans to continue hiring aggressively in India, leveraging the country’s talent pool not only for local operations but also for global projects, reinforcing its “India for the world” strategy.

EU Becomes India’s 2nd‑Largest Trading Partner with USD 140 Billion Trade (Forbes)

India and the European Union (EU) are in the final stages of negotiating a Free Trade Agreement (FTA), which began in June 2022 after being stalled since 2013, with talks led by Commerce & Industry Minister Piyush Goyal and EU counterparts. The FTA is expected to generate real income gains of USD 3.5–5.16 billion (INR ~290–430 billion) in the short term for both sides, with India’s services exports projected to rise by 20%, compared to just 1% for the EU. The EU is already India’s second‑largest trading partner, accounting for USD 140 billion (INR ~11.5 trillion) in goods trade in 2024 (11.5% of India’s total trade), while India is the EU’s ninth‑largest partner, representing 2.4% of EU trade. The deal will reduce India’s 60% import duty on European cars, potentially boosting EU automobile exports by 50%, while benefiting India’s labour‑intensive sectors like textiles, garments, gems, and jewellery. Critical minerals are a key focus: under the EU’s Critical Raw Materials Act (CRMA), India’s Indian Rare Earths Ltd (IREL) produces 1,300–1,500 tons of neodymium oxide annually, positioning India as a strategic supplier amid China’s export restrictions. The FTA also aligns with reforms by India — including labour welfare, sustainability standards, carbon credit trading, and quality control orders, with EU’s approval of 102 Indian seafood facilities, which boosted shrimp exports by 20%.

India’s EXIM Bank Raises USD 1 Billion in First 2026 Bond Issue (Reuters)

The Export‑Import Bank of India (EXIM Bank) kicked off 2026 by raising USD 1 billion (INR ~83.5 billion) through a dual‑tranche U.S. dollar bond issue. The lender sold USD 500 million (INR ~41.7 billion) in 10‑year bonds at 5.00%, priced at a spread of 85 basis points over the 10‑year U.S. Treasury yield. Another USD 500 million (INR ~41.7 billion) was raised via 30‑year bonds at 5.75%, with a spread of 95 basis points over the comparable U.S. yield. Initial guidance was 115–140 basis points, but strong demand allowed aggressive pricing, with analysts at CreditSights noting fair value closer to 90–105 bps. The bonds are rated BBB– by Fitch Ratings, in line with EXIM Bank’s issuer rating, and will be listed in Singapore, London, and India. Proceeds will be used to fund overseas investment loans and capital goods imports, supporting India’s external trade financing under the Ministry of Finance and Ministry of Commerce & Industry.