Daily News - Thursday, 22 May 2025
India seeks full exemption of 26% Trump tariffs in trade deal with US (Business Today)
India is actively negotiating a bilateral trade agreement (BTA) with the United States and has sought full exemption from the recently imposed 26% reciprocal tariff, aiming to finalise an interim deal before July 8 while the 90-day tariff suspension remains in effect. The agreement is expected to cover goods, non-tariff barriers, and select service sectors such as digital trade, with India pushing for tariff relief on labour-intensive exports like textiles, leather, gems, chemicals, and agricultural products, while the US seeks market access for sectors including EVs, dairy, wines, and GM crops. With bilateral trade valued at $131.84 billion and India holding a $41.18 billion goods trade surplus, both sides are keen to capitalise on this momentum to conclude the first phase of the BTA by fall 2025.
Assam challenges Meghalaya in concert economy race, announces major December event (India Today NE)
After Gujarat’s Coldplay concerts generated a ₹641 crore economic impact, including ₹392 crore infused into the local economy, ₹72 crore in GST, and 15,000 jobs created, Assam has launched a new concert economy policy aimed at rivaling Meghalaya, which saw a 65-fold jump in live event consumption and was featured in Ed Sheeran’s India tour. Assam’s Chief Minister Himanta Biswa Sarma announced that Guwahati, Jorhat, and Dibrugarh will be developed as major concert venues, with a large-scale music event slated for December to attract national attention. With India’s concert economy crossing ₹12,000 crore in 2024 and forecasted to grow at 19% annually, the Northeast is strategically positioning itself to capture this momentum through infrastructure upgrades and competitive event policies.
India Shines Even As Global Uncertainties Weigh Down Advance Economies: RBI (The Times of India)
Despite global economic headwinds from trade tensions, weak consumer sentiment, and financial market volatility, India has shown resilience with sustained industrial and services sector activity in April and record GST collections reflecting robust domestic demand. The Reserve Bank of India highlighted easing inflation, CPI fell for the sixth consecutive month to its lowest level since July 2019, alongside positive agricultural prospects due to a bumper rabi harvest and a favourable monsoon forecast for 2025. Although wholesale vehicle sales dropped 13.3% year-on-year due to base effects, rising tractor sales and a 2.9% increase in vehicle registrations indicate underlying momentum, positioning India as a relatively stable and attractive long-term investment destination.
Turkish Airlines partnership ‘fully compliant’ with Indian rules; up to govt to decide on Turkish aircraft leases, says IndiGo CEO (The Indian Express)
Amid growing political tension over Turkey’s support for Pakistan, IndiGo reaffirmed that its codeshare with Turkish Airlines and its damp-lease of two wide-body Boeing 777 jets are fully compliant with Indian regulations and fall within the India-Turkey bilateral air services agreement, which permits 56 weekly flights without seat caps. The lease, ending this month, awaits government renewal approval amid rising calls for a boycott of Turkish firms following Operation Sindoor and India’s cancellation of airport handler Celebi’s security clearance; IndiGo CEO Pieter Elbers noted the airline has contingency plans if the lease isn’t renewed. The high-capacity aircraft allow IndiGo to meet strong demand for Europe and North America routes via Istanbul, access it would otherwise struggle to provide with its standard narrow-body fleet.
Govt to boost production of Made-in-India merchant vessels, cut reliance on foreign ships (The Indian Express)
To strengthen India’s maritime resilience and reduce reliance on foreign vessels during emergencies, the Centre has launched a comprehensive initiative to expand a fleet of large ‘Made in India’ merchant ships and position India among the top five shipbuilding nations by 2047. Backed by a ₹25,000 crore Maritime Development Fund and the ₹18,090 crore Shipbuilding Financial Assistance Policy (SBFAP) 2.0, the plan includes incentives such as customs duty exemptions, 40% credit on ship scrap value, and financial support for domestic shipyards, aiming to unlock investments of up to ₹1.5 lakh crore by 2030. With India’s strategic location, cost advantage, and robust steel industry, the government sees shipbuilding as central to its developed nation vision by 2047, targeting global competitiveness and maritime self-sufficiency.
