Category: Economy

Commerce and Industry Minister Piyush Goyal met with Singapore’s Deputy Prime Minister Gan Kim Yong on Tuesday to discuss ways to strengthen economic cooperation between India and Singapore, with a special focus on enhancing India’s shipping sector. The forum highlighted India’s strategic commitment to improving trade and transportation efficiency.

During his three-day visit, Goyal met with various prominent global leaders and business executives. His conversations included meetings with Fatih Birol, Executive Director of the International Energy Agency, Nigerian Trade Minister Jumoke Oduwole, French Economy and Finance Minister Eric Lombard, Valeo Group CEO Christophe Perillat, and Nicolas Hieronimus, CEO of L’Oréal Group. He emphasised India’s tremendous investment potential, particularly in the shipping, manufacturing, and infrastructure sectors.

Goyal stated on social media that his conversation with Gan Kim Yong focused on developing strong trade and investment relationships.

This year’s Union Budget prioritised the development of India’s maritime sector. It announced plans to create the Maritime Development Fund (MDF) to fund ship acquisitions and infrastructure developments with equity or debt securities. The plan seeks to boost India’s share of global cargo volume to 20% by 2047. By 2030, MDF aims to invest up to Rs 1.5 lakh crore in the shipping industry.

Thailand’s direct investments in Dubai have reached approximately US$626 million over the last five years, according to Mohamed Ali Rashed Lootah, Director General of Dubai Chambers. He voiced optimism for future growth, citing continuing efforts to strengthen economic collaboration between the two regions. Thailand is regarded as one of Dubai’s important trading partners in the ASEAN area, and expanded field presence is viewed as critical in strengthening private-sector engagement and enabling new economic prospects.

Non-oil trade between Dubai and Thailand has increased significantly in recent years. According to data, trade volume is expected to reach over US$6.5 billion, up 23% from US$5.3 billion in 2023. This spike demonstrates the positive trend in economic relations and emphasises Thailand’s strategic importance in Dubai’s international trade expansion objectives.

The deepening of links between Thailand and Dubai is consistent with broader regional economic plans. The UAE’s involvement in BRICS is projected to boost multilateral trade and investment opportunities, improve access to emerging markets, and facilitate the development of non-oil sectors. This integration helps the UAE achieve its goals of diversifying its economy and positioning itself as a global capital centre.

India has officially become the world’s third-largest domestic aviation market, behind the United States and China. Data from aviation analytics firm Official Airline Guide (OAG) indicated this huge shift, which was fuelled by robust fleet expansion by major carriers such as IndiGo and Air India. The country’s airlines have rapidly expanded to meet the growing demand for air travel.

In April 2024, India’s domestic airline capacity will be 15.5 million seats, up from 7.9 million seats a decade ago in April 2014. This expansion has propelled Brazil to fourth place, with 9.7 million seats, followed by Indonesia, which has 9.2 million.

India has also experienced the highest annual average capacity growth rate of 6.9% among the top five countries over the last 10 years. China experienced a 6.3% growth rate, while the United States saw a 2.4% increase.

India’s two largest airlines, IndiGo and Air India, currently account for nine out of every 10 domestic seats. According to the OAG, India has seen the fastest transition towards low-cost carriers (LCCs) of the top five markets.

In April 2024, LCCs accounted for 78.4% of India’s domestic airline capacity. This is significantly higher than Indonesia (68.4%) and Brazil (62.4%).

Singapore has been India’s top foreign direct investment (FDI) source for the past seven years, attracting almost $15 billion in 2024-25. According to the most recent government data, Singapore’s FDI inflows increased to $14.94 billion from $11.77 billion in the previous fiscal year. Singapore accounted for almost 19% of India’s overall FDI inflow. Singapore has regularly been the leading contributor of foreign direct investment to India since 2018-19, overtaking countries like Mauritius.

Overall, India experienced a 13% increase in overall FDI inflows, reaching $50 billion in 2024-25. Including reinvested earnings and other capital, overall FDI hit $81.04 billion, the highest level in three years. Mauritius, previously a top investor, contributed $8.43 billion in the previous fiscal year.

Other major sources of FDI included the United States ($5.45 billion), the Netherlands ($4.62 billion), the UAE ($3.12 billion), Japan ($2.47 billion), Cyprus ($1.2 billion), the United Kingdom ($795 million), Germany ($469 million), and the Cayman Islands ($371 million).

Experts attribute Singapore’s success to its standing as a worldwide financial centre, strong legal system, and strategic location as a hub for private equity and venture capital investments. The Double Tax Avoidance Agreement between India and Singapore increases its appeal.

FDI is critical to India’s economic growth, as it supports infrastructure projects and strengthens the rupee versus world currencies, particularly the US dollar.

Thai Prime Minister Paetongtarn Shinawatra submitted a projected 3.78 trillion baht budget for the fiscal year 2026, equivalent to 115.66 billion US dollars. The strategy, which was submitted to parliament, aims to rekindle economic momentum in the face of global trade uncertainty. The draft budget calls for a 0.7% rise in spending and forecasts an 860 billion baht deficit. This represents a 0.7% decline over the 2025 fiscal year, which ends in September.

Paetongtarn emphasised that her administration prioritises long-term recovery while maintaining fiscal discipline. The budget also seeks to develop national infrastructure and promote social equality. With revenue generation remaining a challenge, the administration has adopted a deficit-driven policy. Key areas include improving national security, increasing competitiveness, and investing in talent development.

The expected economic growth rate for 2025 and 2026 is between 2.3 and 3.3%. Inflation is predicted to range between 0.5 and 1.5%. Increased public investment, greater domestic demand, and a revival in tourism all contribute to the positive prognosis. However, issues remain due to high household and business debt. Geopolitical conflicts, US trade policy, and agriculture sector volatility are additional potential dangers.

The Association of Southeast Asian Nations (ASEAN) has published a five-year strategy plan to accelerate economic integration among its 10 member states. The 41-page statement, released during a key leaders’ summit in Malaysia, sets clear goals for ASEAN to become the world’s fourth-largest economy by 2045.

The strategy prioritises trade standards harmonisation, cross-border investment facilitation, regulatory reforms, and greater freedom of movement for enterprises and workers. It also suggests sustainable strategies for agriculture, mining, and industry to promote long-term growth. This agenda prioritises improved energy security, transportation networks, and resilient supply chains.

The bloc, which comprises Indonesia, Malaysia, Singapore, the Philippines, Thailand, Vietnam, Brunei, Cambodia, Laos, and Myanmar, is determined to strengthen internal economic relations. Leaders recognised that sticking with obsolete techniques would be insufficient in today’s quickly changing global landscape.

ASEAN faces numerous complex challenges, including rising geopolitical tensions, trade realignments, technological disruptions, and climate change. Demographic transitions in the region also present structural challenges to long-term stability.

To solve these challenges, the strategic plan emphasises agility, collaboration, and forward-thinking policies. With a shared economic vision, ASEAN aims not just for growth but also for global significance, financial resilience, and increased competitiveness in the next decades.

A top economic delegation from the United Arab Emirates visited Abidjan, the capital of Côte d’Ivoire, to strengthen bilateral ties and develop trade collaboration. The UAE Ministry of Foreign Affairs organised the tour in collaboration with the Federation of UAE Chambers of Commerce and Industry. The mission was led by His Excellency Humaid Mohamed Ben Salem, the FCCI’s Secretary General.

UAE officials met with various top ministers and government leaders from Côte d’Ivoire. Discussions centred on enhancing economic cooperation and fostering trade between the two countries. Renewable energy, tourism, financial services, and banking were among the most popular topics.

A key outcome of the visit was the signing of an MoU to form a cooperative business council. The MoU was signed by H.E. Ben Salem and H.E. Faman Touré, President of the Côte d’Ivoire Chamber of Commerce and Industry.

The UAE delegation included leaders from the government and major corporations such as ADNOC, First Abu Dhabi Bank, EDGE Group, AMEA Power, Infinity Power, Arabian Falcon, Presight, and Space42. H.E. Ali Yousef Al Nuaimi, UAE Ambassador to Côte d’Ivoire, also attended, highlighting the significance of this diplomatic and economic partnership.

Businesses operating as unincorporated partnerships in the UAE can now choose to be taxed as full legal entities, according to a recent Cabinet Decision issued by the Ministry of Finance. This optional amendment permits eligible partnerships to apply to the Federal Tax Authority (FTA) for approval to be regarded as corporations for tax purposes.

According to existing regulations, the majority of UAE partnerships are tax-transparent. This means that, while the partnership is not taxed, each member is responsible for reporting and paying taxes on their portion of the revenue. However, following a recent modification, partnerships can now request status as a separate taxed person.

Once approved, the partnership becomes a legal entity under the tax system. It would then be subject to corporate tax directly and may be eligible for multiple exemptions and reliefs under the UAE’s Corporate Tax Law.

The Ministry emphasised that this development contributes to national aims of increasing tax transparency, streamlining corporate operations, and fostering a fair, competitive commercial environment. It also clarifies how these partnerships should calculate taxable income under the new structure.

Importantly, the transition does not occur automatically. Before moving to this corporate tax regime, partnerships must apply to the FTA and receive permission.

Prime Minister Narendra Modi opened a cutting-edge locomotive manufacturing plant in Dahod, Gujarat, a key step towards modernising India’s railway system. This facility, created by Indian Railways, is expected to increase the country’s freight transportation and export capability. During the opening, Prime Minister Modi also launched the plant’s first electric locomotive.

He was joined by Union Railway Minister Ashwini Vaishnaw and Gujarat Chief Minister Bhupendra Patel. According to the Prime Minister’s Office, the Dahod facility exemplifies the government’s objective to improve national connectivity and provide world-class transportation infrastructure. It will produce 9,000 HP electric locomotives for both domestic and international markets.

These advanced locomotives have regenerative braking technology, which reduces energy consumption and promotes environmental conservation. Following the inauguration, PM Modi is slated to dedicate development projects worth over ₹24,000 crore, including railway enhancements and Gujarat government initiatives.

In addition, he will launch two new train services: the Veraval-Ahmedabad Vande Bharat Express and the Valsad-Dahod Express. On his two-day visit to Gujarat, the Prime Minister performed a roadshow in Vadodara, where he was greeted enthusiastically by citizens.

Prime Minister Narendra Modi will visit Gujarat to inaugurate and lay the groundwork for approximately ₹77,000 crore in development projects. The projects cover vital areas such as trains, power, ports, urban development, and tourism.

The Prime Minister will also visit Dahod, where he will dedicate a cutting-edge Locomotive Manufacturing Plant to the nation and launch an electric locomotive. He will launch projects worth ₹24,000 crore in the region and address a public event.

In Bhuj, PM Modi will announce infrastructure projects worth over ₹53,400 crore. These include large investments in electricity generation and transmission, road improvements, and port expansion. He will launch new substations in Babarzar and Kansumra, and more than 250 MW of solar PV power in Morbi, Kutch, and Jamnagar.

Kandla Port will open Oil Jetty No. 8, new storage godowns, personnel housing, and a Centre of Excellence at Gandhidham. Future projects include an 800 kV HVDC line from the Khavda RE Zone as well as a green hydrogen production plant.

PM Modi will inaugurate over 22,000 PMAY housing units in Gandhinagar, kicking off Urban Development Year 2025.