Daily News - Tuesday, 6 May 2025

FM for Reforms at ADB for Quicker Loans to Developing Economies (The Economic Times)

⁠At the ADB’s 58th Annual Meeting in Milan, India called for swift process reforms to cut approval times for sovereign and non-sovereign lending and urged early action on capital expansion measures like exposure exchange agreements and hybrid capital to ensure continued support for developing member countries (DMCs). Finance Minister Nirmala Sitharaman emphasised India’s readiness to support ADB’s digital transformation and positioned the country as a platform for piloting innovative financing models, while also discussing bilateral cooperation with Italy under the Joint Strategic Action Plan 2025–2029. Meanwhile, ADB President Masato Kanda stressed the need for bold, fast action amid climate, debt, and geopolitical challenges, and China’s Governor Lan Fo’an rejected U.S. concerns about China’s development status, citing ADB’s own 2023 assessment that China has not yet met all graduation criteria.

Bangladesh owes Adani Power Around $900 M (The Economic Times)

Adani Power currently has outstanding dues of around $900 million (₹7,500 crore) from the Bangladesh government, including a $136 million late payment surcharge, for electricity supplied from its 1,600 MW Godda plant in Jharkhand, which began operations in April and June 2023. Despite the arrears, Adani Power continues uninterrupted supply and has seen recent improvements in payment flows, with dues reducing by ₹500 crore in the March quarter. The company has announced a record capital expenditure of ₹13,307 crore for FY26, up from ₹8,000 crore last year, and plans to invest ₹1.2 lakh crore over six years to scale up its capacity from 17.55 GW to 30.67 GW by 2030, positioning itself for the largest private-sector expansion, while NTPC aims to add 30 GW by 2032.

⁠Interim Measure: Iyer to Represent India at IMF Board (The Economic Times)

⁠India has appointed Parameswaran Iyer, its executive director at the World Bank, as interim nominee director at the IMF after unexpectedly ending Krishnamurthy V Subramanian’s tenure six months early, just ahead of a key May 9 board meeting on a $1.3 billion loan to Pakistan. The credit line, tied to climate resilience, will also coincide with a review of Pakistan’s ongoing $7 billion bailout package, which India is expected to oppose amid heightened tensions following the April 22 Pahalgam terror attack that killed 26 tourists. With India holding a 2.6% vote share at the IMF compared to the US’s 16.5% and China’s 6.1%, any effort to block aid to Pakistan would require broader support, an unlikely outcome, as the IMF typically places proposals before the board only when approval is near-certain. 

⁠India proposes zero-for-zero tariffs on steel, auto, and pharma imports from US (mint)

As part of ongoing trade negotiations, India has proposed zero tariffs on select U.S. exports—steel, auto components, and pharmaceuticals—up to a certain import threshold, with regular duties applying beyond that limit, aiming to fast-track a bilateral trade deal expected by autumn. The move follows President Trump’s imposition of a 26% tariff on Indian exports, which was paused on April 9 to enable talks; Vice President JD Vance has since hinted India may be among the first to finalise a trade pact under the new U.S. trade framework. Despite Trump’s claims of imminent agreements and a July 9 deadline, no country has yet finalised a deal, and negotiations with India and others remain ongoing. 

⁠New template for trade deals: Govt to focus on tariffs, non-tariff barriers to clinch early agreements (mint)

India is shifting away from full-fledged free trade agreements (FTAs) in favour of short-term, limited-scope trade deals, termed “early harvest” agreements, with key partners like the US, UK, and New Zealand, aiming to expedite tariff and non-tariff negotiations while deferring sensitive issues like IPR and emigration. This strategic pivot comes amid rising global protectionism, particularly steep US tariff hikes, and is intended to secure sector-specific benefits more swiftly without the delays of comprehensive FTA talks. Experts have welcomed the practicality of this approach but caution against compromising India’s long-term interests, recalling how the sequential ASEAN deal weakened India’s leverage in service negotiations.