TRENDS
Key G7 panel recommends new body to monitor global trade in semiconductors, critical supplies
Given the fluctuations in trade, rising demand and growing scarcity of raw material, the proposed Critical Supply Forum will become significant for major users of semiconductors including India.
TRENDS
G7 summit: India to bat for global vaccine waiver, funding for global effort
Officials say the response by the 'world's richest club' to the ongoing pandemic will set the tone for global efforts for rest of 2021.
TRENDS
WTO decides to hold text-based negotiations on India's global vaccine waiver proposal
Developed nations like the EU, Australia and Singapore had initially refused to discuss India's revised proposal. The latest decision open the door for larger, more in-depth text based negotiation between all members. Next meeting on 17 June as India pushes for late-July deadline.
ECONOMY
Industrial oxygen: DPIIT further relaxes norms for mandatory diversion
From June 1 onwards, the government had temporarily permitted the resumption of oxygen supply for industrial use by key manufacturing sectors, pursuant to certain fixed limits. On June 8, the DPIIT further relaxed those targets allowing more oxygen for industrial use.
TRADE-2
Exclusive | Stage set for bigger India-US clash on Google Tax after new G7 tax plan
Last week, the US deferred by 6 months its move to place the proposed retaliatory tariffs on India, due to New Delhi's insistence on keeping its tax on digital earnings. Further negotiations are now set to become rougher as a global tax proposal by the G7 nations effectively aims to block national level digital taxes.
TRADE-2
Interview | Australia eyes big boost in business with India - senior trade official Catherine Gallagher
Under its 'India Economic Strategy to 2035’s, Australia aims to significantly expand business with India in diverse sectors such as food and grains, core minerals, and high tech equipment, Australia's senior most trade and investment commissioner in New Delhi told Moneycontrol. Raising the country's awareness of major reforms in India and the progress in ease of doing business remains the main focus right now, she said.
ECONOMY
INTERVIEW | Economic revival needs higher fiscal stimulus, not cash transfer: NITI Aayog VC Rajiv Kumar
Fiscal stimulus is needed for the economy to bounce back, but cash transfers may not be useful because people may keep the money in the bank instead of increasing consumption – a trend visible in the swelling balances in the Jan Dhan accounts of the poor, NITI Aayog Vice-chairman Rajiv Kumar told Moneycontrol.
TRENDS
EXCLUSIVE | Surprised at RBI cutting estimates, still see double-digit growth: Niti Aayog's Rajiv Kumar
In an interview with Moneycontrol, Kumar said that a fiscal stimulus is needed to 'revive animal spirits' of the economy, but added that direct income support would not be the way to do it. “You might see that in the third quarter, people who have reduced their estimates today will be revising them upwards again,” he said.
TRENDS
Trade talks with EU and UK on; formal negotiations to begin in next few months: Commerce Secretary
Talks on the proposed Free Trade Agreements with both UK and the EU are progressing at an 'expedited pace', Commerce Secretary Anup Wadhawan has said.
ECONOMY
SDG Goals – India improves score but falls in economic development and infrastructure
In 2020-21, Kerala and Bihar retained their top and bottom ranks respectively, in the Niti Aayog's SDG India Index 2020-21, which measures the progress of states and Union Territories on social, economic, and environmental parameters
ECONOMY
Services PMI falls for first time in 8 months as domestic demand disappears, export orders nosedive
Export orders nosediving to 6-month lows and lack of domestic demand led to the first decline in sales since September 2020 for services companies. As a result, the sector lost jobs for the sixth straight month.
TRADE-2
India's exports rise 67% in May on low base effect, imports surge by 68.5%
The headline numbers jumped high due to a severely low base as trade had crashed during May, 2020 when the COVID-induced lockdown was in full swing. But citing a nearly 8 percent growth after comparing with May, 2019, the government has expressed confidence that exports are well on their way towards recovery.
INDIA
Need 3-year global IPR waiver for COVID vaccines, drugs and health technology, India tells WTO
India’s updated proposal on the global IPR waiver has the support of 62 nations and aims to end the pandemic quickly, but it has been opposed by the European Union, the UK and Australia. It will be next discussed on June 8-9 by the TRIPS council of the WTO.
INDIA
Exclusive | Woes for manufacturing sector to continue, irrespective of jump in Q1FY22, say experts
Though the sector clocked a 6.9 percent growth in Q4FY21 in the IHS Markit India index, it was calculated on the low base of the previous year, they say. With domestic demand suffering a setback across the country, the challenges to manufacturing continue and are expected to exacerbate in the coming quarter.
ECONOMY
FICCI says direct income support measures urgently needed to boost demand
After two successive waves of the widespread COVID-19 pandemic and the resultant hit to incomes and jobs, domestic demand has tumbled as households scale back spending. FICCI has argued in favour of specific income support to rural India as well as urban poor, income tax reductions for the middle class, and temporary reductions in indirect taxes.
BUSINESS
India's manufacturing PMI at 10-month low in May as new orders dwindle
After falling to a 7-month low in March, manufacturing PMI had improved slightly in April. But as production tumbled in May and finances remained stressed, manufacturing companies again cut jobs. This was the 14th straight month of job losses in a row.
TRENDS
India FY21 GDP data: Major decline in private consumption even as government spending grows
Household consumption fell by a significant 9.1 percent in FY21 as compared to a 5.5 percent rise in FY20. However, public expenditure by the government rose 2.91 percent in FY21, much slower than the 7.88 percent rise seen in FY20.
TRENDS
Without immediate reform, future of GST at 'grave risk', Tamil Nadu FM told GST Council
Pointing to a broad cross section of issues, ranging from the design of the GST Network that he said makes it harder for MSME firms to integrate fully, an enforcement model fragmented between Union & State government inspectors, to the enacting of laws with 'draconian' enforcement actions, Thiagarajan repeatedly stressed the current GST model does not serve the interests of the taxpayers.
TRENDS
How Mehul Choksi became a citizen of Antigua
BUSINESS
GST Council Meet | Paid imported donations exempt from IGST, more talks on other items, compensation soon
On the row over GST compensation to the states, Finance Minister Nirmala Sitharaman said that a special session only to discuss the issue of compensation cess beyond July 2022 will be called soon.
TRENDS
Explained | What is the inverted duty structure and why is the GST Council talking about it?
Increasingly raised by domestic industry in a year marred by volatility in trade and rising costs, the issue of the inverted duty structure has re-acquired prominence. While everyone - from businesses, the Centre, state governments and tax authorities - unanimously think it's a problem, the responsibility of how to solve it has again been thrust upon the GST Council, the constitutional body that makes recommendations to the Union and state governments on issues related to GST.
TRENDS
Explained | How government plans to extradite fugitive diamantaire Mehul Choksi and how soon
A sudden move by Choksi to flee his Caribbean home in Antigua and Barbuda on May 25 seems to have given India the opportunity that nearly two years of diplomatic discussions didn't. Choksi's arrest in the neighbouring country of Dominica has now opened the way for him to be extradited to India and face the law, sources say.
ECONOMY
Exclusive | GST Council may take up issue of inverted duty structure on May 28
The structure leads to working capital challenges for businesses and creates additional compliance requirements and ultimately more costs. Demands from domestic industry to fix the anomaly has gained pace since the pandemic-induced industrial slowdown began.
TRENDS
COVID-19 | Here's the list of all foreign medical aid that have reached India till now and where they are headed
To help India battle COVID-19, foreign aid is pouring in. As the second wave of the pandemic continues to extract a hefty toll and leads to a crippling shortage of medical supplies, we track the assistance from the world over, and what more is soon expected to reach.
