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In a statement to the Lok Sabha, India's External Affairs Minister S. Jaishankar emphasized that maintaining peace and tranquility in border areas is essential for the development of bilateral ties with China. Following the conclusion of the disengagement phase at the border, Jaishankar noted that India can now approach other aspects of its relationship with China in a measured way, while prioritizing national security. He highlighted a recent meeting with Chinese Foreign Minister Wang Yi, where it was agreed to convene Special Representatives and Foreign Secretary level discussions soon. Jaishankar reiterated that the 2020 Galwan Valley clashes, which stemmed from troop buildups in eastern Ladakh, underscored the need for effective management of border activities. He expressed a commitment to engage with China to establish a fair framework for boundary settlement, asserting that normal relations cannot exist without peace along the border. 
Published: Dec 03 2024, 7 pmeznews.inThe Indian services sector demonstrated robust growth in November, as indicated by a private survey's Purchasing Managers’ Index (PMI) score of 58.4, despite ongoing inflationary pressures. Notably, employment in the sector surged at its fastest rate since the survey's inception in 2005, driven by increased business confidence and rising new orders. The services sector, which accounts for 53% of Gross Value Added (GVA), continued to expand its operational capacities through extensive recruitment. However, firms faced significant cost pressures, with inflation reaching its highest level in 15 months, prompting service providers to raise their charges. While total sales growth slowed compared to October, it remained above the long-term average, bolstered by improving international demand, particularly from clients in Asia, Europe, and the US. Despite these challenges, service providers expressed optimism for future business activity, with confidence levels rising to their highest since May.
Published: Dec 04 2024, 11 ameznews.inIn a recent ruling, West Bengal's Authority for Advance Rulings (AAR) determined that standalone catering services provided to in-patients do not qualify for Goods and Services Tax (GST) exemption. The case involved Bampada Jana, a catering service supplying food to the South Eastern Railway’s Central Hospital in Kolkata. The AAR clarified that while the hospital offers food as part of its healthcare services, the catering service is a separate supply and thus taxable. The ruling emphasized that the hospital's outsourcing of food preparation does not constitute a composite supply of healthcare services, as the food is not directly provided by the hospital itself. Currently, healthcare services by clinical establishments, authorized medical practitioners, and paramedics are exempt from GST, except for room rents exceeding ₹5,000. The AAR's decision highlights the complexities of GST classifications between composite and standalone supplies in the healthcare sector.
Published: Dec 04 2024, 10 ameznews.inBond yields in India experienced a decline on Friday and Monday, following a significant slowdown in economic growth, with the country's GDP hitting a seven-quarter low of 5.4% last quarter. As traders await the Reserve Bank of India's (RBI) monetary policy decision later this week, yields are expected to remain stable, with the benchmark 10-year yield projected to fluctuate between 6.70% and 6.73%. The recent economic data has also led to a drop in overnight index swap rates, indicating a potential easing of monetary policy, possibly through a reduction in the cash reserve ratio (CRR) for banks. Analysts suggest that a 50 basis-point cut in CRR could inject over 1.1 trillion rupees ($12.99 billion) into the banking system. Meanwhile, longer-dated U.S. Treasury yields rose slightly amid positive labor market indicators, with Brent crude prices holding steady at $73.60 per barrel.
Published: Dec 04 2024, 8 ameznews.inIron ore prices are projected to face ongoing downward pressure, potentially extending through 2026, primarily due to weak demand from China's sluggish property sector. Currently, prices have risen to over $105 per tonne amid speculation of upcoming stimulus measures from China, but analysts from BMI and the World Bank predict a decline to an average of $80 per tonne in 2025 and $76 per tonne in 2026. Despite a brief rally in September following Chinese stimulus announcements, prices struggled to maintain momentum, reflecting a broader trend of underperformance against other commodities. The World Bank highlights that increased production from major suppliers like Australia and Brazil, coupled with a 3.6% year-on-year drop in China's crude steel production in the first nine months of 2024, will further suppress prices. The market remains sensitive to potential stimulus announcements, with the future of iron ore prices hinging on developments in China's economic policies.
Published: Dec 04 2024, 9 ameznews.inNegotiations for the proposed India-EU Free Trade Agreement (FTA) are set to prioritize investment liberalization, focusing on Foreign Direct Investment (FDI) rules, while excluding investment protection and arbitration, which will be addressed separately in a bilateral investment treaty (BIT). Unlike the recent FTA with the European Free Trade Association (EFTA), which included minimum investment commitments, India is unlikely to secure similar guarantees from the EU due to legal constraints that place such matters under individual member states' jurisdiction. The Finance Ministry advocates for separate BIT negotiations to avoid complications from international arbitration, a stance shaped by past losses in arbitration cases. The EU seeks a distinct investment protection pact to expedite finalization regardless of FTA progress. Since resuming FTA talks in June 2022 after a nine-year hiatus, both parties have been clarifying the relationship between the FTA and the investment protection agreement.
Published: Dec 03 2024, 9 pmeznews.inIn a recent update to the Lok Sabha, HD Kumaraswamy, Minister for Heavy Industries and Steel, revealed that as of November 28, no disbursements have been made to the 82 approved applicants under the Production Linked Incentive (PLI) Auto scheme, which was launched in September 2021 with a budget of ₹25,938 crore. The scheme aims to enhance the manufacturing of Advanced Automotive Technology (AAT) products and promote localization in India. Additionally, no funds have been disbursed under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), initiated in March 2024, or the PLI scheme for Advanced Chemistry Cells (ACC), approved in May 2021. Kumaraswamy noted that the SPMEPCI offers reduced customs duties for imported electric cars, while the ACC scheme is still in its gestation period, expected to conclude by December 2024. The government continues to promote the purchase of domestically produced electric vehicles through various initiatives.
Published: Dec 03 2024, 9 pmeznews.inTraders in West Bengal have called off their strike over the sale of potatoes to other states following assurances from the state government that it will consider lifting restrictions on inter-state trade. The decision to resume operations means that cold storages will begin releasing potatoes from Wednesday night, with normal market conditions expected to return by Thursday, according to Lalu Mukherjee, secretary of the Paschim Banga Pragatishil Alu Byabsayee Samiti. The strike was initiated after an inconclusive meeting with Agriculture Marketing Minister Becharam Manna, which had led to a halt in potato supplies and a subsequent rise in retail prices, which had already been around ₹35-40 per kg. The Mamata Banerjee-led government imposed the restrictions to manage stock levels and control prices, as West Bengal typically exports 20-25 lakh tonnes of potatoes annually to states like Odisha, Bihar, Jharkhand, and Assam.
Published: Dec 03 2024, 8 pmeznews.inThe Indian government has unveiled a draft "National Policy Framework on Agricultural Marketing," aimed at enhancing market access for farmers and ensuring they receive optimal prices for their produce. This initiative is seen as a continuation of agricultural reforms following the controversial withdrawal of three farm laws in 2021. The framework encourages states to develop their own policies aligned with national guidelines, promoting a unified market through improved efficiency and competition. Key proposals include the establishment of an "Empowered Agricultural Marketing Reform Committee" to foster consensus among states and the integration of various market types with the e-NAM portal, enabling farmers to sell directly across the country. While the current minimum support price (MSP) system remains unaffected for now, the government is seeking public feedback on the draft by December 10, 2024, as it aims to create a more transparent and competitive agricultural marketing ecosystem.
Published: Dec 03 2024, 8 pmeznews.inThe Food Safety and Standards Authority of India (FSSAI) has issued a directive to e-commerce platforms, including quick commerce firms, mandating that they ensure compliance with food safety regulations. In an advisory released on December 3, 2024, the FSSAI emphasized the need for e-commerce players to align product claims with physical labels and implement mechanisms to adhere to the Labelling and Display Regulations 2020. The authority highlighted the importance of training delivery personnel in hygiene practices to prevent food contamination and stressed that food and non-food items must be delivered separately. Additionally, the FSSAI requires platforms to display valid FSSAI licence and registration numbers prominently and ensure that food products have a minimum shelf life of 30% or at least 45 days before expiry at the time of delivery, to maintain consumer confidence and safety in the growing online food sector.
Published: Dec 03 2024, 8 pmeznews.inIn a recent meeting with the Finance Commission, West Bengal's Chief Minister Mamata Banerjee advocated for an increase in the vertical devolution of central taxes to states from 41% to 50%. The Chairman of the 16th Finance Commission, Arvind Panagariya, noted that many states have echoed this demand, with some suggesting a rise to 45%. Additionally, the government proposed incorporating "urbanisation" as a new criterion for the horizontal distribution of central tax shares. West Bengal has requested a 7.5% weightage for urbanisation and an increase in the demographic weightage from 12.5% to 20%. Banerjee also raised concerns about the financial burdens placed on states by centrally-aided schemes. Panagariya assured that the Commission would thoroughly assess these proposals after consulting all 28 states, while the panel also engaged with trade bodies and political representatives during the discussions.
Published: Dec 03 2024, 8 pm
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