Moody's Investors Service has warned that India, along with the Philippines, Thailand, and Vietnam are highly vulnerable to volatile food and energy prices in the Asia-Pacific region as the Russia-Ukraine conflict continues to disrupt supplies and raise the cost of agricultural products, especially cereals and vegetable oils, as well as fertilizers and other agricultural inputs. This is so because these countries have a higher weighting of energy and food prices in their consumer price index (CPI) baskets, Moody's said in its report released on Tuesday. The weighting of energy and food in overall Indian CPI stands at over 55 per cent.
The simultaneous decline of several trade-related indicators should put policy makers on guard for a sharper slowdown.
Foreign direct investments into the country is on the rise, jumping to $12.1 billion in May this year, Commerce and Industry Minister Piyush Goyal said on Monday. He also said the government is working on a mission mode to achieve exports target of $400 billion in 2021-22. "India has received the highest ever FDI inflow in 2020-21. "It surged by 10 per cent to $81.72 billion and FDI during May 2021 is $12.1 billion, i.e. 203 per cent higher than May 2020," he said while addressing a meeting of different industry associations on promoting exports.
On the final day of Prime Minister Narendra Modi's visit to the US, that country on Tuesday extended its Defence Cooperation Agreement with India by another 10 years. The pact, which was to expire in June next year, will now be in force till 2025.
India's recent move to remove additional 'retaliatory' duty on eight products from the United States (US), including apples and walnuts, would not have any negative impact on the domestic producers, the government clarified, even as the issue threatened to snowball into a political slugfest between the ruling and Opposition parties. The move would, in fact, result in competition in the premium market segment, ensuring better quality at better prices for consumers, especially for apples, a senior government official said. "There were certain concerns that were being raised on the mutually agreed solution that has come in, more specific to seven-eight agriculture products where we had levied additional import duties in retaliation to the steel and aluminum measures (imposed by the US)," Peeyush Kumar, additional secretary in the commerce department, told reporters in a briefing.
Sitharaman also highlighted the steps taken by the government to achieve ease of doing business by digitisation of approvals and making more stable policies to make India a favourable destination for investors.
'Its people are either victims of corruption or witnesses to it.'
The declining exports would have implications for the job market.
Expressing deep concerns over India's policy of preferring domestically manufactured information and communication technology goods, the apex body of US telecom industry has told lawmakers that this will have negative impact on exports and economic competitiveness.
'Within India, people want high-quality, personalised banking services, and the demand for such services has exploded.'
President Trump, forcefully pursuing his 'America first" policy, has previously described India as a "tariff king" for imposing "tremendously high" tariffs on American products, also expressed dissatisfaction over the US-India trade ties. "Well, we can have a trade deal with India, but I'm really saving the big deal for later on," Trump, who is scheduled to visit India on February 24 and 25, told reporters at the Joint Base Andrews outside Washington on Tuesday when asked whether he expects a trade deal with India before the visit.
In the case of Iran, the lifting of sanctions has paved the way for direct relations.
While an official in the Commerce Department indicated a trade war was in the offing, till now the government has been in wait-and-watch mode.
Adverse IPR report expected this week;Poor labelling could take fight to WTO
'There is not any negative connotation associated with it.'
Biden expressed the support of the US to India in a telephonic conversation with Prime Minister Narendra Modi, during which the two leaders discussed the pandemic situation in their countries, including India's ongoing efforts to contain a second wave of COVID-19 through expedited vaccination efforts, and ensuring supply of critical medicines, therapeutics and medical equipment.
India continues to apply import quotas on marble.
While India does not figure in the top 10 export destinations for Pakistani goods, it serves as a crucial channel for select goods such as leather hides and cheaper variants of fertilisers that are generally procured by importers at short notice.
Why can't the Indian government propose to the Chinese a corridor circumambulating the Holy Mountain where people from both sides could perform the yatra again? asks Claude Arpi.
United States President Donald Trump, who has come under fierce criticism for his handling of the coronavirus crisis, has alleged that the Chinese government was either incompetent in preventing the deadly virus from spreading globally or did it for a reason.
Commerce minister makes strong case for food subsidy to poor.
'Trump's disregard for norms and institutions could prove very costly for America's social fabric.'
In days of smart, networked technology and no shame over collateral damage, what will blow up next -- cars, mobile phones, TV sets, refrigerators? And where?, asks Shyam G Menon.
According to data released by the commerce and industry ministry, exports stood at $25.01 billion in the month. The fall is only the second time exports contracted in the past year.
Removal of this status means India can now enhance customs duties to any level on goods coming from Pakistan.
Flaring of tempers comes atop much simmering trouble on clashing views; these stands might now get frozen.
At the World Bank Banga will be replacing David Malpass, a former Trump treasury official, reports axios.com. Malpass had already announced that he will resign by July, months ahead of his term expired. "Ajay is uniquely equipped to lead the World Bank at this critical moment in history," President Biden said in a statement. Banga, 63, currently serves as vice chairman at General Atlantic.
A day after lambasting e-commerce players for predatory pricing, Union Commerce Minister Piyush Goyal on Thursday said he is not against online platforms but India wants such entities to be "fair and honest" in their conduct. Speaking with reporters in the financial capital, the outspoken Union minister said the rule of the law should be followed in letter and spirit, and made it clear that consumer preferences should not be influenced by algorithms.
The government said that far from targeting any US entity, the purpose was to ensure fairness, healthy competition, and to exercise the ability of governments to tax businesses having a nexus with the Indian market through digital operations.
Under the TFA, a proposal of developed countries, WTO members are negotiating ways to facilitate trade, simplify and harmonise customs rules and reduce transactions cost. Although India is willing to negotiate on TFA, it has raised few concerns over the proposed agreement.
'As the markets are expected to remain jittery in the near term, we advise investors to use this opportunity to enter quality largecaps from a long-term perspective.'
Global rating agency Moody's on Monday raised India's growth forecast for 2024 calendar year to 6.8 per cent, from 6.1 per cent estimated earlier, on the back of 'stronger-than-expected' economic data of 2023 and fading global economic headwinds. India's real GDP expanded 8.4 per cent year-over-year in the fourth quarter of calendar year 2023, resulting in a 7.7 per cent growth for full-year 2023. Capital spending by the government and strong manufacturing activity have meaningfully contributed to the robust growth outcomes in 2023, Moody's Investors Service said.
The government believes that WTO's push for initiating negotiations on substantive obligations related to e-commerce will oblige India to permanently accept the current moratorium on imposing customs duties on products traded electronically.
Should we not stop uncritically celebrating NRIs' elevation without regard to what kind of companies they are getting to run, and the nature of their products or business practices, asks T N Ninan.
In an interaction with a group of Indian journalists, the three-time prime minister and president of the ruling Pakistan Muslim League-N described Jaishankar's visit as a "good opening" and said both sides should now engage and move forward.
He conveyed India's position to visiting Director General of the Food and Agriculture Organization Jose Graziano da Silva whom he urged to take the lead in protecting the interests of the poor and farmers at the World Trade Organisation.
The first global trade reform since the creation of the World Trade Organization is ready for agreement by ministers from the body's 159 member countries later on Friday, sources involved in the talks said.
'If because of El Nino, the monsoon is affected adversely in the current year, naturally it will affect income projections and consequently Budget numbers.'
The importance of China as India's top trading partner cannot be understated.
The intelligence wing of Central Board of Excise and Customs has 532 officers and staff, he said, adding, the staff strength of DRI will double when cadre review is completely rolled out.
