• India
  • Friday , May 2 , 2025

Egypt’s Non-Oil Sector Rebounds After Three Years of Decline

Egypt’s non-oil private sector has finally resumed growth after three difficult years of decline. The S&P Global Purchasing Managers’ Index (PMI) for Egypt rose to 50.4 in August from 49.7 in July, indicating growth. This favourable shift is linked to higher demand, stronger economic conditions, and a major boost from increasing export activity.

Egypt’s recent $8 billion financial assistance agreement with the International Monetary Fund (IMF) has played a critical role in its recovery.

The IMF accord included major economic reforms like market-determined currency exchange rates and significant interest rate hikes, which have helped to restore investor confidence and stabilise the economy. While the new orders subindex remains slightly below the growth criterion at 49.4, the overall gain in the PMI suggests a more general economic stabilisation that is progressively taking root.

The PMI’s rise above 50.0 points to a positive shift in market dynamics, with gains in both employment and purchasing activity.

These elements point to a larger economic recovery, making Egypt a more appealing destination for investment. As businesses restore confidence, they increase capacity, adding to the positive cycle. The future output subindex, which rose to 57.1 from 54.6 in July, reflects greater optimism about ongoing economic growth, pointing to a larger positive trend in Egypt’s recovery.

India’s GST Collection Reaches $20.87 Billion in August, Up 10% YoY

In August, India collected 1.75 trillion rupees ($20.87 billion) in goods and services tax (GST), up 10% over the same month the previous year when the collection was 1.59 trillion rupees. Since being implemented on July 1, 2017, GST has altered India’s tax environment, replacing a variety of indirect taxes such as excise duty, VAT, and service tax.

GST has decreased the overall tax burden, simplified compliance, and increased transparency and economic growth, all of which accord with India’s vision of ‘Ek Bharat Sreshtha Bharat.’

As of August 23, India’s foreign exchange reserves were at a record $681.69 billion, up $7 billion from the previous week. The Reserve Bank of India, which manages these reserves, intervenes in the foreign exchange market to control rupee volatility. Reserves change as a result of RBI operations and foreign asset appreciation or depreciation. During the week, the rupee fluctuated between 83.7550 and 83.9650 before closing at 83.8625 on Friday, indicating its second straight monthly fall.

GST collections have grown significantly, with the fiscal year 2023-24 collections reaching 20.18 lakh crores, up from 18.08 lakh crores in 2022-23, indicating increasing compliance and economic stability.

UK to Join Trans-Pacific Trade Partnership by Mid-December

The United Kingdom reported that it had received the requisite sixth and final ratification to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) by December 15. This economic bloc covers five continents: Canada, Mexico, Japan, and Australia. With the UK’s participation, the CPTPP will now include approximately 600 million people.

Peru’s ratification represented the final step in the UK’s participation in the deal, which was launched under the Conservative Party and is now due to take effect under the new Labour government. Douglas Alexander, Minister of State for Trade Policy, urged businesses to investigate the potential benefits of the CPTPP and welcomed the countries that had already confirmed the UK’s membership.

The Department for Business and Trade (DBT) stated that once the agreement is implemented, over 99% of UK goods exports to CPTPP members will be tariff-free, hence enhancing trade and economic growth. The accord is expected to boost the UK economy by GBP 2 billion per year by 2040.

DBT is working with the remaining members to complete the process. The UK, as the first member to join after its inception, seeks to shape the bloc’s future and prospective expansion. Meanwhile, the UK is engaged in separate trade negotiations with India to improve its bilateral economic ties.

US Federal Reserve Explores Linking Banks with India’s UPI for Faster Payments

Christopher Waller, a member of the Federal Reserve Board of Governors, indicated that the United States may connect some private banks to India’s Unified Payments Interface (UPI) to create a speedier payment network. Speaking at the Global Fintech Fest in Mumbai, Waller stated that the United States now lacks a complete quick payment system due to risk management and regulatory concerns. Connecting with UPI could be a viable alternative, but it requires a solid value offer.

Waller noted that contemporary global payment systems are purposefully created with some frictions for compliance and risk management, which aid in the prevention of fraud and money laundering. The integration of UPI with US banks would pose more legal and regulatory hurdles than technological ones.

Waller praised the National Payments Corporation of India’s (NPCI) UPI technology, which processes over 10 billion transactions each month and was a driving force behind India’s digital payments revolution.

Furthermore, he emphasised the potential for public-private partnerships to improve cross-border payments, which is outlined in the G20’s roadmap for global payment system improvements. He acknowledged the importance of addressing legal, compliance, and operational issues in such endeavours.

UK Invests £10.5 Million to Prepare Ports for New EU Border Checks

The UK government has committed £10.5 million ($13.9 million) to help ports prepare for the European Union’s enhanced border security checks for UK citizens entering the EU. The funding is intended to reduce queues and delays when the EU implements its computerised Entry and Exit System (EES) this September.

This technology will remove manual passport scanning by requiring travellers from non-EU nations, including the United Kingdom, to register digitally at the border. The method entails scanning faces and collecting fingerprints to create a biometric record that is connected to travel documents.

The newly elected Labour government expressed alarm in July about the UK’s lack of preparation for the additional inspections, forecasting potential disruptions. The cash will be used to install essential equipment, develop kiosks, and hire and train personnel to handle the additional requirements.

The UK’s Minister for Migration and Citizenship, Seema Malhotra, stated, “We are working closely with the European Commission, member states, and ports to minimise any disruptions for Brits travelling into Europe.” The Port of Dover, Eurotunnel at Folkestone, and Eurostar at St Pancras station will each receive £3.5 million to help with these preparations.

Kuwait Signs Second 15-Year LNG Deal with Qatar to Boost Clean Energy

QatarEnergy and Kuwait Petroleum Corporation (KPC) signed a new 15-year LNG supply agreement on August 26, reflecting Kuwait’s growing demand for low-carbon fuel for power generation. Under the terms of the arrangement, Qatar’s Q-Flex and Q-Max ships will transport liquefied natural gas (LNG) to Kuwait’s Al Zour refinery LNG import facility.

This is the second arrangement between the two corporations, following a 3 million metric tonnes per year deal in 2022. According to a KPC source, this increased supply is necessary due to Kuwait’s growing domestic demand for cleaner energy. Unlike prior contracts, Qatar’s Energy Minister Saad al-Kaabi travelled to Kuwait to sign this one, emphasising the importance of the pact.

KPC CEO Sheikh Nawaf al-Sabah emphasised the importance of the relationship with Qatar, noting that it will help Kuwait shift to cleaner energy and achieve net-zero emissions by 2050. To fulfil rising power demand and reduce emissions, Kuwait is transitioning from fuel oil to gas for power generation.

The government began importing LNG in 2009 and signed a 15-year contract with Shell in 2017 for LNG supply beginning in 2020. Kuwait has also built the Al Zour refinery, the Middle East’s largest power generation facility, with a capacity of 615,000 barrels per day.

India’s Forex Reserves Surge by $4.54 Billion, Reach $674.66 Billion

The Reserve Bank of India (RBI) reported that India’s foreign exchange reserves climbed by $4.54 billion to $674.66 billion as of August 16. This increase comes after a $4.8 billion decline, which reduced reserves to $670.12 billion in the week ending August 9.

The RBI’s Weekly Statistical Supplement revealed that foreign currency assets (FCAs), the largest component of forex reserves, increased by $3.61 billion to $591.57 billion. These assets are priced in dollars and account for the impact of non-US currency appreciation or depreciation, such as the euro, pound, and yen.

Gold reserves increased by $865 million, reaching $60.1 billion. Special Drawing Rights (SDRs) climbed by $60 million, reaching $18.34 billion, while the International Monetary Fund (IMF) reserve position increased by $12 million, to $4.65 billion.

India’s foreign reserves reached a record high of $675 billion on August 2 before dipping on August 9. The RBI carefully regulates market liquidity, periodically selling dollars to prevent the rupee’s severe devaluation. Instead of focusing on specific exchange rates, the central bank’s operations try to maintain orderly market conditions and reduce excessive volatility.

SEBI Proposes New ESG Instruments to Boost India’s Sustainable Finance

India’s Securities and Exchange Board (SEBI) plans to enhance the sustainable finance framework in the securities market by launching new ESG-labeled instruments. The proposed framework comprises sustainable securitised debt instruments, sometimes known as “green securitisation,” to diversify investment possibilities for sustainable financing.

According to SEBI’s consultation document, issuers may soon raise funds using social bonds, sustainable bonds, and sustainability-linked bonds, in addition to existing green debt securities. This shift is likely to direct more financing towards initiatives that address environmental, social, and governance (ESG) issues.

Xuan Sheng Ou Yong of BNP Paribas Asset Management in Singapore sees this as a positive move, as it opens up additional potential for directing fixed-income funds into projects other than green bonds.

India’s ESG debt issuance has already surpassed $15.6 billion this year, exceeding the previous high set in 2021. The proposed modifications will allow issuers to seek finance for a broader range of sustainable operations, including renewable energy and water management. SEBI will continue its consultations until September 6, which could result in significant regulatory changes.

These improvements are reasonable, helping Prime Minister Narendra Modi’s green economic goals and potentially mitigating the global downturn in ESG bond issuances, particularly in China.

Govt Calls for Bids for AI Infrastructure in Rs 10,372 Crore IndiaAI Mission

The cabinet approved the IndiaAI mission in March, and now the government is seeking proposals to recruit AI service providers for the project. The mission’s value is Rs 10,372 crore. The initiative is looking for data centres and cloud providers to supply cutting-edge artificial intelligence computing resources, such as storage, accelerators, GPUs, and TPUs, to organisations in the academic, startup, and government sectors. Competitive rates will be decided through a bidding procedure, and these services will be offered at those rates.

The Digital India Corporation is leading the charge under MeitY’s IndiaAI Mission, which will provide access to more than 10,000 GPUs to foster the growth of an AI ecosystem. A Request for Empanelment (RFE) was released for service providers to accomplish this aim.

Such infrastructure is more important than ever before because of the increasing worldwide demand for graphics processing unit (GPU)-powered servers, which process data more efficiently than CPU-based servers. Compared to nations with a strong GPU presence, the alleged cost of GPU-based cloud services in India is twice as high. 

Selected vendors will supply critical HPC, networking, and storage capabilities to back projects like building big language models and AI apps like ChatGPT, as stated in MeitY’s bid document.

India Commits $10 Billion to Boost Semiconductor Industry

The Indian government has announced a $10 billion investment under the Semicon India Program, which aims to strengthen the country’s semiconductor and display manufacturing ecosystem. This approach is consistent with the Aatmanirbhar Bharat goal and would position India as a major player in the global semiconductor market, which is expected to reach $110 billion by 2030.

The initiative provides a 50% reduction in project costs for semiconductor and displays fabrication facilities, including compound semiconductor and Outsourced Semiconductor Assembly and Test (OSAT) facilities. These incentives are intended to attract large-scale investments and foster a sustainable environment for India’s semiconductor industry, while also encouraging self-reliance and technological leadership.

In addition to international investments, the initiative helps the domestic semiconductor ecosystem by providing up to 50% reimbursement on eligible expenses for design firms, startups, and MSMEs. A deployment-linked reward of 4% to 6% of net sales turnover over five years promotes more local innovation.

The effort also focuses on research, development, and workforce training. A specialised institution will be established to boost R&D and cultivate talent, while a comprehensive training program seeks to develop 85,000 semiconductor engineers, assuring a trained workforce to support the industry’s expansion.