Category: Economy

Prime Minister Narendra Modi urged industries to come up with local innovative solutions. He aims to reduce the dependency on imports and said that soldiers can achieve an edge on the battlefield only via indigenous efforts.

During the past 4-5 years, India’s defense import bill has been reduced by over 21%, and it is on its way to becoming a major weapons exporter. The PM challenged the industry and forces to be prepared for the challenges of the future.

He said this was made possible due to the energetic involvement of the private sector and startups. While addressing the naval seminar in New Delhi, PM Modi revived the process of inducting 75 indigenous technologies and said, “Innovation is critical and it has to be indigenous.” Imported goods can’t be a source of innovation. “

The means of warfare are moving beyond land, sea, and sky and into cyberspace, economics, and social domains and urge India to establish itself on the global stage. The country achieved exports worth Rs. 13,000 crore through the defense, majorly due to private industry.

According to him, the Indian Navy will play an increasingly active role in the Indian Ocean Region in the coming years, adding that the country is on its way to becoming a major exporter of weapon systems.

On Thursday, Asia’s richest man Gautam Adani bought a controlling stake in Israel’s Haifa Port for more than 4 billion shekels which is a crucial trade hub on the country’s Mediterranean coast. Along with his local partner chemical and logistical giant Gadot, the industrialist won the contract on July 14th for the privatization of the port. The bis were initially placed for 4.1 billion shekels ($1.18 billion).

According to the reports, Israel hopes Gadot and Adani’s deal will lower import prices and shorten wait times at Israeli harbors, according to the agency. The tender process has lasted two years which the finance minister Avigdor Lieberman hopes will increase competition at the ports along with lowering the cost of living. 

Adani took his Twitter account saying, “Delighted to win the tender for the privatization of the Port of Haifa in Israel with our partner Gadot. Immense strategic and historical significance for both nations. Proud to be in Haifa, where Indian led, in 1918, one of the greatest cavalry charges in military history”.

The deal gives Adani a 70 percent stake and Gadot the remaining 30 percent. The new owners will face competition from a Shanghai International Port Group (SIPG)-run private port that debuted along the harbor last year.

On Saturday, US President Joe Biden is likely to announce $1 billion in assistance for food and security in the Middle East and North Africa. Biden is expected to announce the framework for a meeting in Jeddah.

The meeting with the leaders of the GCC+3 will include the heads of Saudi Arabia, Kuwait, Oman, Qatar, and Bahrain, along with the leaders of Iraq, Jordan, and Egypt.

In addition to arranging bilateral discussions with other leaders, Biden aims to improve regional cooperation against Iran’s rockets, drones, and missiles and against its proxies, as well, such as the Houthi rebels in Yemen. He also plans to urge the Gulf leaders to boost oil production and coordinate air defense systems against Iran. The discussion will center on the coordination of air defense systems, including the US-based THAAD system that the UAE already uses.

Biden told the media that Saudi Arabia, which leads the Organization of Petroleum Exporting Countries (OPEC), was committed to balancing the markets, but this won’t happen until the next few weeks.

Meanwhile, the Gulf nations are likely to announce investments worth $3 billion over the next two years to initiate support for US cooperation in international infrastructure and investment.

On Friday, India’s exports to the United Emirates of Arab rose by 16.22% to $837.14 million from May to June this year post the signing of the CEPA. A total of $135.27 million and $185.78 million in plain gold jewelry were shipped in the months of May and June, respectively.

The Comprehensive Economic Partnership Agreement (CEPA) pact covers domestic exporters from various sectors like agriculture, gems, jewelry, and dry fruits that are getting duty-free access to the UAE market. The total for the previous year was $72.31 million following the introduction of the free trade agreement.

A rise in gold jewelry exports has been one of the immediate results of the India-UAE CEPA, as per the Gems and Jewelry Export Promotion Council (GJEPC) chairman, Colin Shah.

He said, “I urge all exporters to maximize thrift returns and make optimum use of the benefits available through this pact.”

According to a source, “India’s exports to the UAE, which were in a negative growth trajectory post the outbreak of COVID-19 to April 2022, have witnessed a rebound since May 2022, post the signing of the agreement.”

Gem and jewelry exports to the United Arab Emirates (UAE) have shone post the implementation of the Comprehensive Economic Partnership Agreement (CEPA) between the two countries from May 1.

Plain gold jewelry exports increased 72% year-on-year in May to Rs 1,048.40 crore and 68.65% in the following month to Rs 1,451.58 crore.

80% of India’s plain gold jewelry exports and 20% of studded jewelry exports are to the UAE. The government has fixed a target for comprehensive goods export of $45.7 billion for the gem and jewelry sector for 2022-23, a surge of $40 billion from the last fiscal.

Under the CEPA, the UAE will exempt import duty from 90% of Indian products. In the next five years, trade between both countries is expected to reach $100 billion. As the UAE is the leading connection to West Asia and Europe, the agreement will be beneficial to the business community in both countries.

Other than the UAE, there was an immense demand for gems and jewelry in key markets such as the US, Hong Kong, Belgium, and Israel. “Plain gold jewelry exports have been the immediate beneficiary of the India-UAE CEPA. I urge all exporters to maximize their returns and make optimum use of the benefits available through this pact,” stated the chairperson of Gem & Jewellery Export Promotion Council (GJEPC), Mr. Colin Shah.

On Thursday, the I2U2 formally kicked off at the summit where. Two key takeaways were announced during the meeting, namely a 300 MW hybrid renewable power project in Gujarat and a $2 billion investment by the UAE to develop an integrated food park in India.

As part of the I2U2 Group, a hybrid renewable energy project in Gujarat will utilize 300 MW of wind and solar capacity, coupled with battery energy storage.

The summit included PM Narendra Modi, Israel PM Yair Lapid, UAE President Mohammed bin Zayed Al Nahyan, and Us President Joe Biden. Despite increased global uncertainties, Modi stated that particle groupings are a good model for particle cooperation and called it practical, progressive, and positive.

According to Vinay Kwatra, India’s foreign secretary, the announcement of a food park or a food corridor between India and the United Arab Emirates will have an important impact on crop yields and farmers’ incomes, in addition to enhancing food security in South Asia.

Even as Biden said in his opening remarks that Russia’s “brutal and unprovoked attack against its neighbor” had made growing food insecurity and volatile energy markets worse, the joint statement failed to mention the Ukraine crisis specifically.

On Wednesday, US Vice President Kamala Harris launched a significant push into the Pacific with funds of $600 million for a critical regional summit.

According to her, the nation will open its embassies in Tonga and Kiribati. This announcement was made during an unprecedented address to the Pacific Island Forum in Fiji. A comprehensive national strategy for the Pacific will be launched, and the US will nominate its first ever ambassador to the Pacific.

During a recent interview with US President Joe Biden, Harris acknowledged the Pacific had not received sufficient attention. She said, “We are going to change that and significantly deepen our presence in the pacific region.”

Bringing together leaders from the strategically critical Pacific, this year’s forum has been influenced by the US-China rivalry. Earlier this year, the Solomon Islands signed a controversial security pact with China. This is the first meeting of regional leaders since that agreement was signed.

Aside from providing $60 million in economic assistance to the Forum Fisheries Agency, she said the US would also relaunch the Peace Corps in the region. US officials want to collaborate on disaster relief, maritime security, and infrastructure projects that do not result in insurmountable debt.

India’s imports from China reached a record $57.51 billion in the first half of 2022, as per China’s trade data released on Wednesday, July 13.

The India-China trade is all set to exceed USD 100 billion for the second consecutive year as it has gone up to USD 57.51  billion in the first half of this year during a big surge of Chinese exports.

Imports from China are up by 34.5 percent from last year, while Indian exports to China declined to USD 9.57 billion, a fall of 35.3 percent compared to last year

China’s all-inclusive export performance in June showed a recovery, up 13.2%, with a total trade up 14.3% in June. The trade deficit, after six months, stood at USD 47.94 billion. In 2021, the trade deficit for India increased by USD 69.38 billion.

In May, China declared it is still India’s biggest trade partner in 2021-22 according to its figures, referring to news that the US has dislodged it to take the first position.

“China remains the largest trade partner of India and for the first time the bilateral trade exceeded USD 100 billion in 2021,” Foreign ministry spokesperson Zhao said.

The euro stands at par with the United States dollar, and stock markets fell as the investors are no longer anxious about the possibility of the central bank tightening further and about the health of the global economies.

On Tuesday at 10:00 GMT, the euro was at a low of $1, its weakest in over two decades.

The US dollar’s fame as a reliable currency for investors worried about the economic outlook has recently improved, with the US currency reaching a 20- year high against various currencies. The euro has been in peril due to the effect of a sharp increase in natural gas prices on the regional economy and the Russian invasion of Ukraine.

Mizuho analysts stated that parity was happening as “recession in the eurozone is priced in” and said the backdrop showed almost nothing to improve risk sentiment.

SG Futures described this as a “catastrophe” for the European Union as energy imports carry the risk of becoming more expensive. “Energy supply is already unaffordable, and as we head into winter, it’ll likely get even worse,” it added on a tweet.

The largest single pipeline transporting Russian gas to Germany, the Nord Stream 1, began its yearly maintenance on Monday, with energy flows expected to stop for ten days.

Several GCC countries, including Saudi Arabia and Oman, may sign a Comprehensive Economic Partnership Agreement with India ahead of the maiden West Asian Quad Summit scheduled for July 14. Oman is India’s oldest strategic partner in the region.

In the course of President Joe Biden’s tour to Israel and Saudi Arabia, the US, Israel, UAE, and India will host a virtual summit. On May 1, the UAE and India signed the CEPA, with the first consignment of goods arriving from India with tariff exemptions. This will help the West Asian Quadrilateral in its economic projects.

As per a senior official in UAE, the nation might welcome a wider GCC-India CEPA/FTA that includes a clause in UAE-India CEPA for allowing this.

Undersecretary of the Ministry of Economy of UAE Abdalla Al Saleh said, “We wanted to move quickly to deliver a new generation of trade and investment deals that will open new markets, secure supply chains, and spur greater economic growth for our nation and the region and, now that three such deals have been concluded, we believe they can provide the framework for future deals with GCC”.