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Rare earth elements (REEs) have emerged as a significant geopolitical issue, crucial for high-tech industries, including batteries, computer chips, artificial intelligence, and defence equipment. Goldman Sachs has raised alarms about the risks to global supply chains, highlighting China's overwhelming control—69% of mining, 92% of refining, and 98% of magnet manufacturing. Following recent export curbs by China, which added five new elements to its restrictions, the bank warned that a mere 10% disruption in REE-dependent industries could lead to $150 billion in economic losses. Specific elements like samarium, lutetium, and terbium are particularly vulnerable, with Western producers like Lynas Rare Earths and Solvay struggling to meet demand. Efforts to establish independent supply chains face geological, technological, and environmental hurdles, as developing new mines can take up to a decade. Goldman Sachs also noted rising risks for other commodities, including cobalt and oil, amid escalating geopolitical tensions. 
Published: Oct 21 2025, 11 ameznews.inA new 40 per cent trans-shipment tariff announced by US President Donald Trump is set to create significant compliance challenges for companies in India and the ASEAN region, particularly affecting sectors such as machinery, electrical equipment, and semiconductors, according to Moody's Ratings. The tariff targets goods believed to be transshipped through third countries to circumvent existing tariffs, primarily impacting products originating from China. Moody's report highlights the ambiguity surrounding the definition of trans-shipment, which could lead to varying interpretations by the US administration. A narrow interpretation may limit economic repercussions, while a broader one could severely disrupt the Asia-Pacific supply chain. The tariff will necessitate increased due diligence and certification for exporters to demonstrate "substantial transformation" of goods to avoid penalties. Trans-shipment, a common logistical practice, can enhance supply chain efficiency but may also be exploited to evade tariffs amid ongoing US-China trade tensions.
Published: Oct 21 2025, 2 pmeznews.inThe Indian economy has demonstrated resilience amid global uncertainties, according to a study by Reserve Bank of India (RBI) staff in its latest monthly bulletin. Key factors contributing to this stability include low inflation, strong corporate and banking balance sheets, and sufficient foreign exchange reserves. Despite rising protectionism and fiscal risks in advanced economies, the International Monetary Fund (IMF), Organisation for Economic Cooperation and Development (OECD), and World Bank have all raised India's growth forecasts for the current financial year, reflecting robust domestic demand. High-frequency indicators suggest a revival in urban and rural economic activity, with manufacturing and services sectors showing strong performance. Headline inflation fell to 1.5% in September, the lowest since June 2017, primarily due to deflation in food prices. The RBI has adjusted its GDP growth and inflation projections for 2025-26, indicating a positive outlook for the economy.
Published: Oct 21 2025, 1 pmeznews.inIndia's trade deficit with China has surged to USD 99.2 billion in the fiscal year 2024-25, as exports to China fell by 14.5% to USD 14.25 billion, while imports rose by 11.52% to USD 113.45 billion. In response, China has lodged a complaint with the World Trade Organization (WTO), alleging that India's Production Linked Incentive (PLI) schemes for electric vehicles and advanced battery manufacturing violate global trade rules. Beijing claims these measures favour domestic over imported goods, contravening the SCM, GATT, and TRIMs agreements. The complaint specifically targets three Indian programmes aimed at boosting local manufacturing in the automotive and renewable energy sectors. As both nations seek consultations under WTO dispute mechanisms, China's complaint underscores its intent to expand its electric vehicle exports to India, a key market amid declining domestic sales. The Indian government has implemented various initiatives to enhance domestic EV production and reduce import reliance.
Published: Oct 21 2025, 12 pmeznews.inAs the global transition to clean energy intensifies, a strategic competition for Rare Earth Elements (REEs) is emerging, with these 17 essential metals being dubbed the "new oil" of the 21st century, according to a Kotak Mutual Fund report. India, holding approximately 6% of the world's REE reserves, is positioning itself as a significant player in this billion-dollar market, despite currently contributing less than 1% of global production. The National Critical Mineral Mission aims to enhance exploration and processing of these resources, while the removal of IREL (India) Ltd from the US export control list facilitates international collaboration. With demand for REEs projected to surge by up to 700% by 2040, India's initiatives, including the KABIL project and participation in the US-led Mineral Security Partnership, could reshape the global supply chain, traditionally dominated by China, and bolster India's role in clean-tech manufacturing under the 'Make in India' initiative.
Published: Oct 21 2025, 12 pmeznews.inTwo low-pressure systems are currently influencing the north-east monsoon rains over South India, with one located in the Arabian Sea and the other in the Bay of Bengal. The India Meteorological Department (IMD) has forecast very heavy rainfall for Tamil Nadu, Kerala, and Coastal Karnataka over the next few days, as a new low-pressure area develops in the south-west Bay of Bengal. The existing low-pressure system in the Arabian Sea is expected to intensify into a depression, while the new system may also strengthen and move towards the Tamil Nadu-Andhra Pradesh coast. Rainfall is anticipated across various regions, including Coastal Andhra Pradesh and Rayalaseema, with isolated heavy showers expected in several areas. Additionally, thunderstorms and strong winds are predicted, particularly in South Interior Karnataka. The IMD has noted that these systems are competing for easterly flows, which may affect their development and movement.
Published: Oct 21 2025, 10 ameznews.inA recent report by Crisil Ratings highlights that the implementation of a uniform 5% Goods and Services Tax (GST) on apparel priced below ₹2,500 is expected to enhance revenue growth for organised apparel retailers by approximately 200 basis points this fiscal year, maintaining a steady topline growth of 13-14%. This shift from a dual GST structure—5% for items under ₹1,000 and 12% for those between ₹1,000 and ₹2,500—has broadened the consumption base, particularly benefiting the mid-premium and fast fashion segments. However, the increase in GST from 12% to 18% on apparel above ₹2,500 has negatively impacted premium categories, which constitute about 35% of organised sales. The timing of the GST cut coincides with the festive season, likely boosting demand as middle-class spending rises. Retailers may absorb some of the GST hike on premium items to sustain demand during this peak buying period.
Published: Oct 20 2025, 8 pmeznews.inThe Reserve Bank of India (RBI) has acknowledged the challenges posed by global economic fluctuations, noting that the Indian economy remains resilient amid these pressures. In its latest monthly bulletin, the RBI raised its growth forecast for India to 6.8% for the current year, citing low inflation and robust corporate and banking balance sheets as key factors. Despite external uncertainties, the report emphasized that domestic structural reforms are helping to mitigate the impact of weakening global demand. Additionally, while India faces punitive tariffs on exports to the U.S., linked to President Trump's demands regarding Russian oil purchases, the RBI downplayed the overall impact of these tariffs on growth. However, it did note a significant decline in exports to the U.S. in September as the tariffs took effect. The report also highlighted that current macroeconomic conditions provide room for further policy measures to support growth.
Published: Oct 20 2025, 8 pmeznews.inA recent report by Grant Thornton highlights the transformative potential of the Free Trade Agreement (FTA) between the UK and India, with 72% of UK businesses now viewing India as a crucial market for international growth, up from 61% last year. The India-UK Comprehensive Economic and Trade Agreement (CETA), signed during Prime Minister Narendra Modi's visit in July, is anticipated to bolster the £44.1 billion bilateral trade once ratified by the British Parliament. Currently, only 28% of UK firms operate in India, but 73% of those without a presence plan to enter the market, with 13% aiming to do so within the next year. Key drivers for this interest include India's fast-growing economy and large consumer market. However, challenges such as regulatory hurdles and infrastructure gaps remain. The report underscores the importance of local insight and adaptability for UK businesses seeking success in India’s dynamic market.
Published: Oct 20 2025, 5 pmeznews.inIndia is navigating a complex diplomatic landscape as it seeks to strengthen ties with both the United States and Russia while pursuing a significant trade deal with President Donald Trump. During a recent press conference, Trump indicated that Prime Minister Narendra Modi had suggested India would cease purchasing oil from Russia, a key US demand. However, India's response was non-committal, emphasizing its need for cost-effective energy sources. Currently, India imports about a third of its oil from Russia, and a complete halt is deemed impractical. Indian refiners are expected to increase imports of US liquefied petroleum gas, potentially boosting US oil purchases by $15 billion. Despite previous tensions over Russian oil purchases, recent discussions between Modi and Trump have rekindled hopes for a trade agreement. Analysts suggest that any thaw in US-Russia relations could provide Modi with greater flexibility in balancing these crucial partnerships.
Published: Oct 20 2025, 4 pm
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