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India is closely monitoring the implications of new US sanctions on Russian oil, imposed by the outgoing Biden administration, as it anticipates the incoming Trump administration's clarification on enforcement. A government official indicated that if the sanctions are strictly implemented, Indian ports may have to refuse entry to sanctioned Russian oil tankers, significantly impacting India's oil imports from Moscow. While India is not overly concerned about potential oil shortages due to alternative suppliers like Saudi Arabia and Iraq, losing access to Russia's cheap and reliable oil would be a setback. The sanctions target major Russian oil companies and vessels, affecting a significant portion of the 530 million barrels of Russian crude exported last year, with India being a key recipient. In the 2023-24 fiscal year, India's imports from Russia were valued at $61.15 billion, primarily in oil, underscoring the importance of this relationship. 
Published: Jan 15 2025, 9 pmeznews.inUnion Labour Minister Mansukh Mandaviya has called on the industry to develop indigenous models for assessing employment and skilling, emphasizing the need for data that reflects India's unique economic landscape rather than relying on foreign constructs. Speaking at the CII Conference on the Future of Jobs, he proposed establishing model career service centres in every university through public-private partnerships to enhance job creation. Mandaviya highlighted the importance of the National Career Service portal, advocating for a user-friendly interface to help job seekers navigate opportunities. He introduced a hub-and-spoke model for Employment Linked Incentives to improve management efficiency. The minister also stressed the need to redefine employment to include self-employed individuals, particularly women in agriculture, and suggested forming a task force for workforce analysis to better understand the job market. He concluded that creating a supportive ecosystem for wealth creators is essential for generating employment.
Published: Jan 15 2025, 9 pmeznews.inForeign Direct Investment (FDI) inflows into India decreased to $70 billion in FY24, down from $71 billion in FY23, as reported by the Global Trade Research Initiative. In response, the Department for Promotion of Industry and Internal Trade (DPIIT) is engaging with stakeholders, including private equity and venture capital firms, to discuss reforms aimed at boosting FDI to an ambitious annual target of $100 billion. DPIIT Secretary Amardeep Singh Bhatia emphasized the need for increased investment flows, noting that while current inflows range between $70 billion and $80 billion, the government is focused on enhancing India's attractiveness to foreign investors. Key sectors drawing FDI include services, telecommunications, and pharmaceuticals, with recent policy reforms allowing greater foreign ownership in sectors like defence and insurance. The government aims to liberalize FDI further, particularly in sensitive areas, to stimulate economic growth.
Published: Jan 15 2025, 9 pmeznews.inThe PHD Chamber of Commerce and Industry (PHDCCI) has expressed optimism about India's economic trajectory, projecting a GDP growth of 6.8% for the current fiscal year and 7.7% for the next. Ranjeet Mehta, CEO of PHDCCI, highlighted that the economy is on track to reach the $4 trillion mark this year and is expected to surpass Japan, becoming the world's fourth-largest economy by 2026. Chief Economist SP Sharma noted that the agriculture sector is likely to outperform the government's conservative estimates, while increased government capital expenditure and improved export performance are anticipated to bolster growth. PHDCCI is advocating for a 25 basis point interest rate cut in the upcoming Reserve Bank of India policy review. Additionally, the organization has urged the Finance Minister to lower the maximum personal income tax rate to 25% to support long-term economic goals.
Published: Jan 15 2025, 9 pmeznews.inTobias Meyer, CEO of DHL Group, highlighted the complexities of the geopolitical landscape in 2024, noting a contraction in certain trade lanes, particularly between China and the US, which has persisted for nearly five years. Despite these challenges, Meyer emphasized India's significance as a key market for DHL, where the company has expanded its local warehousing and distribution operations, investing over €200 million in Blue Dart's fleet and infrastructure. Recently, DHL opened a €20 million facility in Delhi featuring sustainable technologies, and plans to launch a larger hub in 2025. While DHL holds a 61% market share in international express services, it remains selective in the e-commerce sector, focusing on high-value shipments. Meyer also expressed interest in multimodal transport and acknowledged the impact of geopolitical tensions on global operations, particularly in Europe, but remains optimistic about India's domestic consumption-driven economy.
Published: Jan 15 2025, 9 pmeznews.inAs India faces economic slowdown and declining consumption, industry leaders are set to meet with Reserve Bank of India (RBI) Governor Sanjay Malhotra on January 22 to advocate for a cut in policy rates ahead of the February 5-7 monetary policy review. This meeting marks Malhotra's first engagement with industry representatives since taking office in December 2024. Economists, however, anticipate that the RBI will prioritize inflation control and liquidity management over rate cuts, especially following the last reduction to 6.5% in February 2023. Standard Chartered Bank has revised its expectations, pushing back anticipated repo rate cuts to the April-June period, citing a widening liquidity deficit. The bank predicts that the RBI will focus on enhancing liquidity rather than adjusting rates in February, potentially reducing the Cash Reserve Ratio (CRR) by 50 basis points to address the tight liquidity scenario.
Published: Jan 15 2025, 7 pmeznews.inIndia's goods exports in December 2024 fell by 1% year-on-year to $38.01 billion, marking a second consecutive monthly decline, primarily due to reduced shipments of petroleum products and gems and jewellery, according to the Commerce Department. In contrast, imports rose 4.9% to $59.95 billion, leading to a widening trade deficit of $21.94 billion, up from $18.76 billion in December 2023. Notably, gold imports dropped significantly to $4.7 billion from November's $9.8 billion, although this figure was 55.39% higher than the $3.02 billion recorded in December 2023. Commerce Secretary Sunil Barthwal assured that new standard operating procedures are being developed to enhance data accuracy, following issues with double counting in precious metals imports. The government is also exploring an AI-driven data analytics platform to improve trade insights. For the April-December 2024 period, exports increased by 1.6% to $321.71 billion, while imports rose 5.15%.
Published: Jan 15 2025, 8 pmeznews.inAs the Reserve Bank of India's Monetary Policy Committee (MPC) prepares for its next meeting, concerns over imported inflation are mounting due to a weakening rupee, which has depreciated approximately 3% since Donald Trump's election victory in November. Economists suggest that the MPC may delay any rate adjustments until further inflation data is available, particularly as the rising import costs for essential commodities like pulses, edible oils, and crude oil could significantly impact inflation rates. The rupee recently closed at 86.36 against the US dollar, marking its best single-day rise since June 2024. Analysts predict that the swift depreciation will primarily affect Wholesale Price Inflation (WPI) before trickling down to Consumer Price Index (CPI) inflation, with sectors such as electronics and energy likely to experience margin compression due to increased input costs. WPI-based inflation rose to 2.37% in December, while retail inflation moderated to 5.2%.
Published: Jan 15 2025, 8 pmeznews.inFarmers in India are reportedly making advance purchases of fertilisers for the upcoming kharif season, contributing to a record 21% increase in sales during the October-December quarter, a crucial period for the rabi season. Urea sales reached 111.14 lakh tonnes, up 13.3% from the previous year, while Di-ammonium phosphate (DAP) and Muriate of Potash (MOP) also saw significant increases. Experts attribute this surge to farmers stocking up due to previous shortages and companies anticipating subsidy cuts. The government has already reduced potash subsidies, leading to higher prices, and similar adjustments may occur for urea and DAP. The nutrient-based subsidy scheme has seen potash subsidies drop dramatically, raising concerns about future pricing. While the current sales figures reflect a recovery from last year's low, experts warn that the long-term impact of government policies remains uncertain.
Published: Jan 15 2025, 8 pmeznews.inBoeing CEO Kelly Ortberg is on his inaugural overseas trip to India, where he is engaging with key stakeholders, including Union Finance Minister Nirmala Sitharaman, during a three-day visit. Ortberg's discussions focus on strengthening Boeing's partnership with India, which currently operates over 280 Boeing aircraft and has over 600 orders pending, including models like the 737 Max and 787. Salil Gupte, president of Boeing India, emphasized the company's commitment to India's Atma Nirbhar Bharat initiative. Boeing aims to expand its defense operations and increase local sourcing, currently valued at $1.25 billion annually, alongside a $200 million investment in Bengaluru. This visit comes as Boeing seeks to recover from a significant downturn, with 348 aircraft deliveries last year, compared to Airbus's 766. Additionally, Boeing faces challenges from escalating trade tensions with China, where it remains a major player in the aviation sector.
Published: Jan 15 2025, 7 pm
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