Daily News - Thursday, 13 June 2024
Govt readying new incentive plan for toy manufacturing (Financial Express)
The government plans to introduce an incentive scheme to boost domestic toy manufacturing, enhancing employment and reducing reliance on imports. Recent measures, such as increased import tariffs and stricter quality norms, have significantly decreased toy imports and moderately increased exports. The scheme, potentially part of the ₹1.97-trillion PLI initiative with a proposed ₹3,489 crore outlay, aims to further stimulate local production and leverage e-commerce opportunities for growth in the sector.
Imports of bulk drugs from China on the rise (Financial Express)
India's reliance on importing bulk drugs from China has increased, with 72% of these imports coming from China in FY24, up from 66% in FY21, despite government efforts to reduce dependency. This rise is due to cost advantages and availability, as importing remains cheaper than domestic production. Initiatives like the PLI scheme aim to boost local manufacturing of critical drug intermediates and APIs, with significant investments already made, yet India's pharmaceutical industry remains vulnerable to supply chain risks and price fluctuations due to its heavy reliance on China.
Food inflation at 8.69%; veggies, chicken costlier (Financial Express)
Retail food inflation in India remained steady at 8.69% year-on-year in May 2024, similar to April's 8.7%, with prices of vegetables, pulses, and cereals remaining high. Despite this, the consumer food price index (CFPI) saw a month-on-month decline of 0.73%, though May 2023's food inflation was significantly lower at 4.31%. Key factors included a 55.43% increase in potato prices, ongoing deflation in edible oils, and rising prices for pulses and cereals, while meat, fish, and spice prices showed some easing.
Airlines among top foreign cos opening shop in India (mint)
In FY24, 59 foreign companies, including airlines like Italia Trasporto Aereo and SalamAir, and engineering firms such as Pini Group SA and Dainichi Consultant Inc., registered to start operations in India, compared to 50 in FY23. Other sectors attracting foreign businesses include IT and consulting, electronics, and education, with notable entries like Uganda National Airlines, Airbus Defence and Space, and Vietnam Airlines driven by strong aviation sector growth. Japan High-Speed Rail Electric Engineering Co Ltd also commenced operations, partnering on the Mumbai-Ahmedabad bullet train project, fueled by the government's increased capital expenditure on infrastructure.
Domestic Mkt Access for SEZs, SOP for Trade Pacts Pacts Likely in 100-Day Plan (The Economic Times)
The commerce department is formulating a 100-day action plan to allow SEZs to sell in the domestic market, create a comprehensive trade information platform, standardize FTA negotiation procedures, and establish e-commerce export zones. The proposed Trade Connect e-Platform aims to assist new exporters by providing information on non-tariff barriers, product identification for export, updated tariff schedules, and FTA benefits, modeled after platforms in the US and Australia. Additionally, the plan includes developing e-commerce export hubs and aiming to boost India's goods and services exports to $2 trillion by 2030, building on the record $778.2 billion in FY24.
