Daily News - Wednesday, 30 April 2025

U.S. puts India back on IPR watch list (The Hindu)

The U.S. has once again placed India on its ‘Priority Watch List’ in the 2025 Special 301 Report, citing continued challenges in intellectual property (IP) protection and enforcement, particularly around patents, trade secrets, and copyright violations like unauthorised file sharing and commercial-scale photocopying. Despite some improvements in IP office procedures, the report notes a lack of consistent progress and criticises India’s high customs duties on IP-intensive imports such as ICT products, medical devices, and pharmaceuticals. These concerns, shared by stakeholders, may influence future U.S. trade negotiations, especially amid broader discussions on tariffs and non-tariff barriers. 

⁠India may Oppose $1.3 b IMF Loan to Pakistan (The Economic Times)

⁠India is considering opposing a proposed $1.3 billion IMF climate resilience loan to Pakistan at the May 9 board meeting, citing concerns over Pakistan’s support for cross-border terrorism and potential misuse of funds, especially following the April 22 terror attack in Pahalgam that killed 26 civilians. While India previously abstained from voting on a $7 billion bailout deal agreed in July 2024, it may now vote against further disbursements, challenging both the legitimacy of fund usage and technical compliance with policy milestones. The IMF board is set to review progress on the $7 billion extended fund facility and decide on the release of the next $1 billion tranche alongside the proposed climate loan. 

⁠India, US Eye Early Trade Wins (The Economic Times)

⁠India and the US are advancing toward finalising the first phase of a multi-sector Bilateral Trade Agreement (BTA) by fall 2025, with in-person sectoral negotiations set to begin in late May following productive talks in Washington between April 23–25. The proposed BTA, covering around 19 chapters—including goods, services, non-tariff barriers, and dispute resolution—aims to secure “early mutual wins,” especially during the 90-day tariff pause granted by the Trump administration, which has suspended 26% reciprocal tariffs on India until July 9. Both sides are pushing for a “win-win” interim deal and ultimately seek to double bilateral trade to $500 billion by 2030 as part of broader economic and supply chain cooperation. 

⁠Iron, steel exports to EU see hurdles (Financial Chronicle)

⁠India’s exports of iron, steel, aluminium, and related products to the EU have already slowed sharply—aluminium exports fell 73% in February and 34% in March, while iron and steel exports dropped 62% and 48% respectively—well ahead of the EU’s 2026 implementation of the Carbon Border Adjustment Mechanism (CBAM) and deforestation rules. These regulations, targeting high greenhouse gas (GHG) emitters, put India at a disadvantage due to its high emission intensity (21–22 tCO2/t Al vs. Europe’s 6–7 tCO2/t Al), especially affecting small and medium producers who are ill-prepared to meet compliance standards. While India negotiates a free trade agreement (FTA) with the EU, exporters are shifting focus to alternative markets such as West Asia, Northern Africa, and Latin America, as CBAM charges (20–35%) will negate any parity gained through tariff reductions under the FTA. 

⁠‘Indian economy resilient amid global uncertainties’ (mint)

India’s economy remains resilient, with Q3 FY25 GDP growth rising to 6.2% from 5.6% and indicators such as higher GST collections, e-way bills, manufacturing output, and improved consumer sentiment pointing to sustained momentum heading into Q4, though full-year growth must reach 6.5% to meet revised targets. Retail inflation fell sharply to a six-year low of 3.34% in March 2025 (from 4.85% a year earlier), and food inflation eased to 2.69%, aided by favourable harvests and policy measures, while the government continues to focus on fiscal consolidation to lower the cost of capital and boost private investment. However, global risks remain, with the IMF, ADB, S&P Global, and Moody’s revising India’s FY26 growth forecast down to 6.2% due to US tariffs, prompting calls for timely policy action to maintain domestic demand and investment momentum.