Daily News - Thursday, 3 April 2025

Modi to visit Thailand, meet PM Shinawatra (Financial Express)

Prime Minister Narendra Modi will visit Thailand for two days to attend the 6th BIMSTEC Summit, where he will hold talks with Thai PM Paetongtarn Shinawatra and oversee the signing of a maritime cooperation agreement with leaders from Bangladesh, Sri Lanka, Nepal, Myanmar, and Bhutan. The summit, the first in-person BIMSTEC meeting since 2018, is expected to adopt the “Bangkok Vision 2030,” emphasizing a “Pro-active, Resilient, and Open BIMSTEC” under Thailand’s chairmanship, while Modi will also meet Thai King Maha Vajiralongkorn and Queen Suthida. Additionally, the Indian PM will visit the historic Wat Pho temple, marking a cultural engagement alongside discussions on regional security, economic collaboration, and disaster response, particularly in light of Myanmar’s recent earthquake.

⁠Factory output hits 8-mth high (Financial Chronicle)

⁠India’s manufacturing sector grew at its fastest pace in eight months as the manufacturing PMI surged to 58.1 in March, up from 56.3 in February, driven by strong domestic demand and a record new orders index of 61.5, despite a slight slowdown in international orders. The sharp expansion, the highest since July 2024, led to firms tapping into inventories, causing the fastest drop in finished goods stocks in over three years, while output inflation declined to its lowest level in a year. With business confidence remaining high, around 30% of firms expect increased production in the coming year, compared to less than 2% anticipating a slowdown, reinforcing robust economic momentum in the manufacturing sector.

Govt may cut tariff on EVs (Business Standard)

India plans to lower import tariffs on electric vehicles (EVs), rejecting domestic automakers’ requests to delay reductions until 2029, as New Delhi prioritizes a trade deal with the US, despite concerns from Tata Motors and Mahindra & Mahindra about increased foreign competition. Currently, EV import duties stand at nearly 100%, but the government is considering “significant” reductions, benefiting Tesla, which is set to enter the Indian market with showrooms in Mumbai and Delhi, while also seeking to ease trade tensions with US President Donald Trump, who has criticized India’s high tariffs. Domestic automakers worry this move could set a precedent for trade talks with the EU and UK, further opening India’s small but fast-growing EV market to global players.

Peace Clause Invoked 6th Time to Offer Rice Subsidies (The Economic Times)

India has invoked the WTO’s peace clause for the sixth time after exceeding the 10% subsidy ceiling on rice, reporting a total production value of $56.87 billion in 2023-24 while providing subsidies worth $6.81 billion (12%), defending its support as essential for food security rather than trade distortion. The country also granted $43.25 billion in input subsidies to low-income farmers—lower than the $48.13 billion provided the previous year—covering irrigation, fertilizers, and electricity, with 99.43% of farm holdings classified as resource-poor. Additionally, India notified $359.1 million in cotton subsidies and $2.27 million for yellow soybean while maintaining that any excess food stock is sold through e-auctions with a strict no-export clause to safeguard domestic needs.

‘Good progress in FTA talks’ (mint)

India and the EU have made significant progress in FTA negotiations, aiming for a deal by the end of 2025, driven by strong political commitment from both sides and concerns over US tariff threats, as highlighted during Ursula von der Leyen’s visit to India in February. The 10th round of talks in March, the first since her visit, saw advancements in key aspects of the agreement, with EU Ambassador Hervé Delphin emphasizing that while US tariffs create urgency, they do not dictate the negotiations. With high-level ministerial engagement and the next India-EU Summit as a deadline, both sides are pushing to finalize the deal after reviving talks in 2022 following a decade-long suspension.