Daily News - Tuesday, 29 April 2025
EU, US, UK look to set up India supply-chain amid trade talks (mint)
The US, EU, and UK are working to build dependable supply chains in India alongside proposed Free Trade Agreements (FTAs), with sectors like manufacturing set to benefit from cost-effective, mutually beneficial collaborations; notably, Apple plans to source all US iPhones from India within two years. Many European multinationals are also considering setting up supply chains in India due to its cost competitiveness, skilled manpower, and stable rule of law, with FTAs ensuring investment protection. Commerce Minister Piyush Goyal, currently visiting London, Brussels, and Oslo, stated that FTA negotiations, with the US likely concluding first, followed by the UK and then the EU, are expected to be finalised by the end of 2025.
India inks deal to procure 26 Rafale-M from France (Financial Express)
India and France signed an Inter-Governmental Agreement for the purchase of 26 Rafale-M fighter jets (22 single-seaters and 4 twin-seaters)for the Indian Navy, valued at over ₹63,000 crore, including simulators, weapons, and performance-based logistics. The Rafale-M will feature India-specific enhancements such as ski jump compatibility for Short Take-Off But Arrested Recovery (STOBAR) operations aboard carriers like INS Vikrant, and will be equipped with indigenous ASTRA Mk1 Beyond Visual Range Missiles. The deal also provides for the transfer of technology to support integration of indigenous weapons into the fleet and includes additional systems for the Indian Air Force’s existing Rafale jets.
Target 1 billion UPI transactions per day in 2-3 yrs: FM (Financial Express)
Finance Minister Nirmala Sitharaman has set a target of achieving one billion UPI transactions per day within 2–3 years, up from the current daily average of 580 million, while also pushing for the internationalisation of UPI through interoperable frameworks and global payment acceptance. In a high-level meeting with the finance ministry, RBI, and NPCI, she stressed the need to enhance UPI’s scalability, infrastructure resilience, real-time monitoring, and cybersecurity to ensure uninterrupted services and build user trust. She also called for aggressive user and merchant onboarding to expand UPI’s domestic footprint and address existing infrastructure gaps.
Pak airspace closure: Govt working with airlines for solutions (Financial Express)
Civil Aviation Minister K. Rammohan Naidu stated that the government is thoroughly assessing the implications of Pakistan’s airspace closure, imposed after the Pahalgam terror attack that killed 26 people, and is coordinating with airlines to explore solutions. The closure has led to longer international flight routes from northern India, increasing operational costs and raising concerns about potential airfare hikes, all of which the ministry is monitoring closely. While no immediate policy has been announced, the minister confirmed that fare impacts and operational challenges will be evaluated, and appropriate action will be taken if disruptions persist.
Jewellers exported $500 mn goods before reciprocal tariff (Financial Express)
Indian jewellery exporters rushed $500 million worth of goods to the US between March 26 and April 2 (equivalent to a month’s output) to preempt a potential 10% reciprocal tariff, which has now been paused for 90 days, offering temporary relief to an already struggling diamond industry. The Gems and Jewellery Export Promotion Council (GJEPC) is advocating for a bilateral treaty with the US to rebalance import duties, noting current asymmetries: US imposes 7% duty on plain gold jewellery while India charges 20%, and US imports of Indian diamonds face zero duty versus a 5% duty for reverse exports. Amidst falling margins, rising costs, and pressure to service bank loans, many diamond polishing units have reduced wages, prompting calls for duty concessions on bullion and jewellery under a proposed US-India agreement.
