Daily News - Thursday, 8 May 2025
FTA perks: UK gets to sell 22,000 premium EVs in India (The Economic Times)
The India-UK FTA allows the UK to sell 22,000 high-value EVs to India at a reduced 10% duty, while India gains quotas for low- and mid-range EV exports to Britain; ICE vehicle imports from the UK remain quota-bound, and EV imports outside the quota face no tariff reduction. India will cut automotive tariffs from over 100% to 10%, while Scotch whisky tariffs will drop to 75% immediately and 40% after ten years, potentially boosting FDI and UK expertise in spirits; however, sensitive items like diamonds, smartphones, and optical fibres are excluded from duty benefits. Despite no visa gains for India, the UK will permit 1,800 Indian professionals, including yoga instructors, musicians, chefs, and IT experts, to work annually under mobility commitments.
Scotch and gin may not get significantly cheaper for consumers in India despite tariff cuts: Industry (mint)
Despite the India-UK trade pact halving tariffs on British whisky and gin from 150% to 75%, Indian consumers are unlikely to see price reductions due to local tariffs and companies absorbing cost relief to protect margins, particularly in bottled-in-origin (BIO), bulk imports, and bottled-in-India categories. India consumed around 9 million cases of Scotch whisky and over 2 million cases of gin in 2024, with only 250,000 gin cases being imports, reflecting limited impact from tariff cuts. Historically, as seen in Maharashtra’s excise reduction from 300% to 150%, liquor companies raised billing prices instead of passing on savings, and any potential reduction is expected to be only 10–12%, insufficient to bridge price segment gaps.
U.S. FDA tightens scrutiny on suppliers to America (The Hindu)
The U.S. FDA will begin unannounced inspections of all foreign facilities manufacturing food, essential medicines, and medical products for U.S. consumers, expanding on its pilot program in India and China to match domestic oversight standards; India, with 650 U.S. FDA-compliant plants, is the largest supplier of generic medicines globally, contributing one-third of U.S. pharma imports, which rose 14.29% to $8.95 billion in the first 11 months of FY25. The U.S. FDA conducts about 12,000 domestic and 3,000 foreign inspections yearly, noting that foreign firms with advance warnings often showed double the deficiencies of U.S. manufacturers, highlighting gaps in compliance. The new approach includes refusing travel accommodations from regulated industries to maintain inspection integrity and uncover violations more effectively, addressing long-standing concerns over transparency and accountability in global pharma supply chains.
India requires $2.5 trn for climate finance (Financial Express)
India’s climate transition towards its net-zero 2070 pledge is projected to require $2.5 trillion by 2030, supported by a new “Climate Finance Taxonomy” to channel investments into climate-friendly technologies and prevent “green-washing”; power, mobility, buildings, agriculture, and hard-to-abate sectors like iron, steel, and cement will be prioritized for climate mitigation and adaptation. India has already exceeded its Nationally Determined Contribution (NDC) targets ahead of schedule, achieving 40% non-fossil fuel power capacity in 2021 (targeted for 2030) and reducing GDP emission intensity by 33% from 2005 levels by 2019, prompting a revised NDC aiming for 45% reduction by 2030 and 50% non-fossil fuel capacity. As of February 2025, India’s non-fossil fuel-based electricity generation capacity reached 222.85 GW, representing 47.4% of the total, indicating substantial progress in its climate goals.
Govt eases norms for coal supply to thermal units as power deficit looms (Financial Express)
The Indian government has introduced new measures to enhance coal supply to thermal power plants, approving fresh coal linkages for central, state, and independent power producers (IPPs) under the revised SHAKTI policy, now streamlined into two Windows: Window I for central/state gencos at notified prices and Window II for auction-based allocations with premiums for domestic and imported coal-based plants for up to 25 years. India’s installed power capacity reached 475 GW in 2024-25 with peak demand expected to hit 277 GW in 2025-26 and 334 GW by 2029-30; the new policy aims to reduce coal import dependence, lower power tariffs through coal source rationalization, and promote greenfield and brownfield thermal projects near coal sources. Additionally, the policy ensures coal availability through Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL), with benefits of import substitution being passed to consumers as regulated, marking a shift from nomination-based coal allocation to transparent auctions since SHAKTI’s inception in 2017.
