Daily News - Monday, 19 May 2025
Port curbs on Bangladesh imports may create Rs 1,000 crore biz for textiles (The Economic Times)
India’s ban on garment imports from Bangladesh via land ports, while allowing shipments through Kolkata and Nhava Sheva, is projected to boost the domestic textile industry by over ₹1,000 crore, potentially replacing ₹1,000-2,000 crore worth of imports with local manufacturing. Industry experts believe this move will not only strengthen India’s textile sector but also curb the backdoor entry of Chinese fabrics that previously entered duty-free through Bangladesh, which accounts for 35% of India’s garment imports. However, this shift may lead to short-term supply disruptions for both Indian and global brands that source 20% to 60% of their apparel from Bangladesh, possibly causing a 2-3% price increase in items like T-shirts and denims.
US Remittance Tax Proposal May Impact Indian Households, Rupee: GTRI (Deccan Chronicle)
The proposed 5% US tax on remittances sent abroad by non-citizens, part of ‘The One Big Beautiful Bill’ introduced on May 12, could significantly impact India’s foreign currency inflows, which totaled $120 billion in 2023–24, with 28% originating from the US, according to GTRI. A potential 10–15% drop in remittance flows may cause a $12–18 billion annual shortfall, tightening US dollar supply in India’s forex market and possibly weakening the rupee by ₹1–1.5 per dollar, prompting more frequent RBI interventions. States heavily dependent on remittances like Kerala, Uttar Pradesh, and Bihar may face reduced household consumption, while India’s WTO proposal to lower cross-border remittance costs gains greater urgency amid this looming challenge.
Smartphone exports grow 55% to $24 billion in FY 25 (Financial Express)
India’s smartphone exports have experienced remarkable growth, surging 55% year-on-year to $24.14 billion in FY2024-25, surpassing traditional sectors like diamonds, apparel, and rice, and marking a shift in India’s export dynamics. Spearheaded by government initiatives like the Production-Linked Incentive (PLI) scheme, exports rose from $11 billion in FY2022-23 to $15.6 billion in FY2023-24, and further to $24 billion in FY2024-25, with the US alone witnessing an 89.65% increase, growing from $2.2 billion to $10.6 billion. Japan marked the most dramatic growth with a 530% surge, escalating from $0.08 billion in FY2023-24 to $1.2 billion in FY2024-25, highlighting India’s emergence as a major player in the global smartphone market.
India, EU conclude another round of talks on free trade pact; to reach deal in two phases (Press Trust of India)
India and the EU concluded the 11th round of FTA negotiations on May 16, agreeing to a two-phase approach due to global trade uncertainties, focusing initially on core trade issues like market access for goods, services, and investment. The EU is pushing for significant duty reductions in sectors like automobiles, medical devices, wines, spirits, meat, and poultry, alongside a stronger intellectual property regime, while India aims to enhance competitiveness for its key exports like garments, pharmaceuticals, steel, and electrical machinery. Commerce Secretary Sunil Barthwal emphasized prioritizing critical trade elements first, mirroring India’s phased negotiation strategy used with Australia and proposed for the US.
In nuclear energy push, Govt to allow private operators, limit their liability (The Indian Express)
The Indian government is set to propose two critical amendments in the upcoming monsoon session of Parliament aimed at reforming the civil nuclear sector by easing provisions of the Civil Liability for Nuclear Damage Act, 2010, and amending the Atomic Energy Act, 1962. The first amendment seeks to cap the liability of equipment vendors to the original value of the contract and introduce a time frame limitation, addressing concerns that have previously deterred foreign companies like GE-Hitachi and Westinghouse from investing in India’s nuclear projects. The second amendment aims to open up nuclear power generation to private companies, with potential for foreign minority stakes, marking a major shift from the sector’s state-controlled status and aligning with broader Indo-US trade negotiations, positioning India to capitalize on the commercial aspects of the Indo-US civil nuclear deal signed nearly two decades ago.
