Daily News - Tuesday, 17 June 2025

Hopeful that discussions with China on rare earths will yield positive outcome: Commerce Secretary (The Hindu)

Commerce Secretary Sunil Barthwal said the government is currently engaged in diplomatic and commercial negotiations with Beijing to ease growing pressures on importers, especially in the auto sector, stemming from new Chinese export controls on rare earth metals and magnets. At the same time, he explained that the ministry is closely monitoring the conflict between Israel and Iran and is meeting with stakeholders, including shipping lines and container companies, to gauge potential impacts and address bottlenecks in the flow of trade. While the MEA and the Department of Commerce are involved in high-level conversations with their Chinese counterparts, Mr. Barthwal remained hopeful that these efforts would enable the continued delivery of essential materials and keep industrial operations on track.

FATF condemns Pahalgam terror attack, to dissect terror financing trends (mint)

The Paris-based Financial Action Task Force (FATF) strongly condemned the Pahalgam terrorist attack that killed 26 tourists in Jammu & Kashmir and made it clear it’s preparing a major report to expose the growing trends in terror financing, with state-sponsored funding for terrorism becoming a key concern for the first time. FATF, which guides over 200 jurisdictions in strengthening their defenses against money laundering and terrorism financing, is putting pressure on Pakistan, especially after it secured $2.4 billion from the IMF and $800 million from the ADB, to make sure these funds aren’t redirected toward unlawful activity instead of their intended financial and climate resiliency goals. This unusual rebuke by FATF, its third in a decade, reflects growing international alarm and signals that both financial institutions and regulators need to remain vigilant and collaborate more closely to cut off funding for terrorism.

India’s wholesale inflation drops to 14-month low in May (mint)

India’s wholesale price inflation fell to a 14-month low of 0.39% in May — much softer than the 0.8% economists had expected — as food, non-food manufacturing, and fuel prices cooled, following a drop in retail inflation to its lowest in over six years at 2.8%. The data, with 20 of 22 food items showing ease in their year-on-year inflation, reflects a favorable base alongside growing hopes for a normal monsoon and a rebound in agricultural output, which could ease food prices further in the months ahead. Meanwhile, drops in primary articles, especially vegetables, pulses, and crude petroleum, alongside weakness in manufactured prices, suggest that this downward trajectory might continue, adding to growing confidence that price pressures are stabilizing. 

Developing nations must ease FDI rules: World Bank (The Economic Times)

The World Bank is urging developing economies to ease FDI restrictions and collaborate more closely to reverse a dramatic downturn in investment flows, with FDI dropping to its lowest level since 2005 amid growing policy barriers. India stands out as a strong recipient, securing $28.1 billion in 2023 alongside China and Brazil, yet low-income countries collectively account for just 2% of total FDI, reflecting growing inequality in investment distribution. As World Bank’s Indermit Gill and Ayhan Kose warn, unlocking FDI is crucial for boosting employment, fostering sustained growth, and navigating mounting public debt across the developing world. 

Reviewing global oil supplies, have enough stocks: Minister (Financial Express)

Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, said India is closely reviewing the escalating conflict between Iran and Israel but there’s no immediate concern for its oil supplies, with sufficient domestic stocks acting as a buffer against potential disruptions. Rising tensions, however, pose a significant risk to energy prices and delivery routes — especially through the Strait of Hormuz, which handles over 20% of the world’s oil and LNG — while companies ranging from oil marketers like BPCL, HPCL, and IOC to sectors such as paints, automobiles, and cement could feel the ripple effects if the conflict worsens. At the moment, India’s petroleum product exports have rebounded, growing by 31% in May, and nearly 40% of its crude oil comes from Russia, adding a degree of diversification amid growing geopolitical uncertainty.