Daily News - Tuesday, 13 May 2025
India-Pakistan tensions rock hospitality business (Financial Express)
The hospitality sector in India is facing a severe downturn, with over 50% of hotel bookings cancelled in key cities like Mumbai, Delhi, Bangalore, and Chennai due to rising India-Pakistan tensions, resulting in a projected 40% business slump for May. Key players like Indian Hotels Company (IHCL) and Ventive Hospitality are experiencing significant financial hits, with IHCL estimated to lose ₹1–1.5 crore daily and Ventive Hospitality around ₹50 lakh per day, driven by declines in international tourism, corporate travel, and event cancellations, including the suspension of the IPL tournament, which further affected hotel contracts. In response, hotels are implementing cost-control measures like hiring freezes, HLP (heating, lighting, and power) optimizations, and restricting room bookings to specific floors to manage expenses amid falling demand.
Land selected for shipbuilding, repair centres in Andhra Pradesh, Tamil Nadu & Gujarat (The Economic Times)
India is advancing its shipbuilding sector with identified land in Andhra Pradesh, Tamil Nadu (Thoothukudi), and Gujarat for mega shipbuilding and repair centres, alongside a likely ₹10,000 crore investment partnership between Cochin Shipyard Limited (CSL) and South Korea’s HD Hyundai, pending finalization. This aligns with the Finance Ministry’s Expenditure Finance Committee’s appraisal of an enhanced financial assistance policy worth ₹18,090 crore and a maritime development fund of ₹25,000 crore, aimed at boosting India’s global shipbuilding market share from under 1% to top 10 by 2030 and top five by 2047. Additionally, Bharat Container Line is set to reduce dependency on foreign-flagged vessels, while foreign interest from the Netherlands, France, and Middle East firms suggests growing international collaboration in India’s maritime sector.
U.S.-China trade agreement a mixed bag for India, say trade experts (The Hindu)
The temporary trade agreement between the U.S. and China, effective from May 14, 2025, reduces U.S. tariffs on Chinese goods from 145% to 30% and Chinese tariffs on U.S. goods from 125% to 10% for 90 days, potentially boosting high-value trade in electronics, machinery, and chemicals. While some experts see this as an opportunity for India to expand its exports in pharmaceutical APIs, gems and jewellery, engineering goods, organic chemicals, and IT-enabled services, others warn that reduced tariffs may prompt investments back to China, weakening India’s gains from the “China Plus One” strategy. Additionally, trade economists suggest that this shift could lessen the dumping of Chinese goods in markets like India and Vietnam, possibly altering competitive dynamics in those regions.
Telangana Got Rs.3 Lakh Crore Investments in 17 Months (Deccan Chronicle)
Telangana has secured investments worth ₹3 lakh crore, creating over one lakh private sector jobs in 17 months since the Congress government took office in December 2023, with ₹1.78 lakh crore alone generated during the WEF summit in Davos, establishing the state as India’s top destination for both domestic and international investments. Chief Minister A. Revanth Reddy attributed this growth to pro-business policies and international outreach, highlighting Hyderabad’s emergence as a Global Capability Centre hub with expansions in AI, software, life sciences, and manufacturing, and ambitious projects like the “Future City,” a dry port with connectivity to Andhra Pradesh, and large-scale entrepreneurial programs for women and youth. Telangana also leads in policing, job creation, inflation management, and inclusivity, becoming the first Indian state to recruit transgenders into the Hyderabad Traffic Police force, reflecting its commitment to holistic development and representation.
Tariff troubles ahead? India proposes retaliatory duties against US over steel and aluminium in WTO (mint)
India has approached the WTO with a proposal to impose retaliatory tariffs on U.S. products amounting to $7.6 billion in response to President Donald Trump’s steel and aluminium tariffs, which India argues violate the GATT 1994 and the Agreement on Safeguards (AoS), with projected duty collections of $1.91 billion. The proposed suspension of concessions would target selected U.S. products, mirroring the adverse trade effects, while India reserves the right to escalate the matter if necessary. This move comes as both nations are in talks for a Bilateral Trade Agreement (BTA), with Indian officials set to visit the U.S. for discussions this week.
