Category: Economy

On Wednesday, Prime Minister Narendra Modi chaired the Indian Cabinet where he approved the proposal for signing a bilateral Memorandum of Understanding with the United Arab Emirates. The agreement will be done on cooperation in the field of industries and advanced technologies.

With nearly Rs.1.37 lakh crore investment, UAE became the eighth largest investor in India where India invests around Rs.6.48 lakh crore in UAE. On February 18, both nations signed a bilateral “Comprehensive Economic Partnership Agreement” to potentially increase trade from US$ 60 billion to US$ 100 billion in the next five years.

Economic and commercial relations between India and the UAE are growing, contributing to a rapidly diversifying and deepening bilateral relationship between the two. Trade between India and the UAE, valued at US$ 180 million (Rs.1373 crore) in the 1970s, has increased to US$ 60 billion (Rs.4.57 lakh crore) in 2019-20, making the UAE India’s third-largest trading partner after China and the US.

Research and innovation can be increased in all areas of mutual cooperation by implementing the MoU, especially in the fields of Renewable Energy, Artificial Intelligence, Industry Enabling Technologies, and Health and Life Science.

American President Joe Biden on Monday will waive tariffs for two years on solar panel imports from Cambodia, Malaysia, Thailand, and Vietnam but not China as the US is looking to augment the manufacturing of domestic clean energy, the White House said.

A fact sheet said the US would call on the Act to boost domestic production and use the procurements of the federal government to increase demand. Bloomberg reported that the step has been implemented to boost priorities such as combating climate change and raising the domestic solar manufacturing that has strived hard to compete with cheap imports.

Abigail Ross Hopper, chief executive officer of the Solar Energy Industries Association, said in a statement that Biden’s move is a much-needed respite from “this industry-crushing probe,” He further said that during the two-year tariff suspension period, the US solar industry can return to quick deployment while the Defense Production Act helps boost solar manufacturing in the country.

With the news of Biden’s plan, Chinese solar panel makers Longi Green Energy Technology Co. rose to 6.1 percent in Shanghai, Jinko Solar Co. jumped 8.9 percent, and Trina Solar Co.increased by 6.3 percent, Bloomberg added. China is excluded from the tariff suspension as the Commerce Department is trying to find if certain Chinese companies are avoiding US customs duties by assembling parts in the four countries.

India’s Commerce and Industry Minister Piyush Goyal participated in a virtual meeting on Tuesday with Canada’s Minister of International Trade, Export Promotion, Small Business, and Economic Development Mary Ng and both countries have welcomed the progress in negotiations towards the interim trade pact.

Ng had visited India in March this year and had decided upon The Early Progress Trade Agreement (EPTA). Canada’s foreign ministry said the two countries “continue to work towards a Comprehensive Economic Partnership Agreement”. The ministers discussed the status of negotiations on important issues, including goods trade and services and investment protection, and strongly stated their dedication to keeping the momentum going into the next round of negotiations, to take place in a few months. Goyal said in a tweet that both nations were working to pick out sectors for better collaborations and greater investments to provide gains to the businesses and people.

The bilateral engagement between the two countries has seen a significant improvement in recent times after a tough time since the visit of Canadian Prime Minister Justin Trudeau to India in February 2018. Last week, Canada’s Minister of Environment and Climate Change Steven Guilbeault and India’s Minister of Environment, Forest and Climate Change Bhupender Yadav signed an agreement to enhance bilateral cooperation on climate action, environmental protection, and conservation and described India as “a key partner in addressing climate change and environmental issues”.

On Thursday, Prime Minister Narendra Modi will inaugurate a two-day event of the Biotech Start-up Expo 2022 to mark ten years of setting up the Biotechnology Industry Research Assistance Council BIRAC at 10:30 a.m., at the Pragati Maidan, New Delhi. It will be held on the 9th and 10th of June. He will be addressing the gathering at the inaugural event themed ‘Biotech Startup Innovation: Towards Aatmanirbhar Bharat’.

Approximately 300 stalls will be set up to showcase the application of biotechnology in various sectors. The stall will include healthcare, biopharma, genomics, agriculture, industrial biotechnology, clean energy, waste-to-vale, etc.

It aims to connect and bridge the gap between entrepreneurs, investors, researchers, industry leaders, scientists, bio-incubators, regulators, manufacturers, government officials, and much more. Additionally, the event will showcase 75 biotech entrepreneurs and an e-Portal of 750 biotech products.

The first day of the expo will also witness a panel discussing the growth of the bio-economy and a consultation meeting after that with the stakeholders. After this, the expo will be opened to the general public and conduct open house interactions and networking sessions. The second day will be followed by a Start-up Pitching session.

On Tuesday, Saudi Arabia’s official data for the first quarter showcased a 9.9% growth in the Gross Domestic Product. The data is said to be the fastest in a decade, beating last month’s flash estimate of 9.6%. Gross domestic product growth on a seasonally-adjusted basis was 2.6%, while oil activity was up 2.9%.

According to the chief economist, Monica Malik at the Abu Dhabi Commercial Bank, this was the fastest increase since the third quarter of 2011. It was majorly due to oil production. Malik said that the nation is in a very strong position due to its limited oil capacity and high oil prices.

The increase showed a high percentage of oil activity of 20.3%. In the first quarter of 2022, GDP per capita amounted to 26,961 riyals ($7,187), up 33.8% from the same quarter last year.

Natural gas and crude petroleum majorly contributed to the GDP by 32.4%, oil by 3.7%, and government activities increased by 2.4% yearly. However, there was a fall in government activity of 0.9% in the fourth quarter.

The General Authority for Statistics said, “All economic activity recorded positive annual growth rates in the first quarter of 2022”.

The United States and Germany proposed on behalf of the G7 an Indian-G7 partnership to fund decarbonization. They are keen to support India’s transition from a “fossil-based economy to a carbon-neutral economy” and will do so at the G7 Summit, where India was invited later this month.

As per sources, the vision is to create an India-specific ‘Just Energy Transition Partnership (JETP)’ that will correlate India’s position in order to ensure climate justice while addressing global climate challenges, as well as its undertakings to increase the share of renewable energy in its electricity sector. South Africa, which has indicated its intention to decommission coal-fired power plants in favor of lower-emission options, has already agreed to a similar $8.5 billion transition plan with the G7.

A two-phased approach is suggested in the JETP paper for India, which is now being considered by the government. In the first phase, India’s “carbon intensity” will be reduced by deploying renewable energy in power generation. This would necessitate specialized expenditures in modern power networks, energy storage, and the implementation of new green technology.

Additionally, the G7 has taken extra steps to delay the development of thermal power plants and gradually close coal mines.

On Tuesday, Israel signed a major free trade agreement with the United Arab Emirates. It is the first big trade aimed to boost trade between the two Middle East nations that was signed in Dubai after months of negotiation.

Israel’s Ambassador to the UAE Amir Hayek said on Twitter, “Done” replying to his previous post, “the UAE and Israel will sign FTA in the next hour”.

Dorian Barak, President of the UAE-Israel Business Council said that the FTA states the tax rates, imports, and intellectual property that will encourage Israeli companies to set up their offices in UAE, especially in Dubai.

He said, “The domestic market doesn’t represent the entirety of the opportunity. The opportunity is really set up in Dubai, as many companies have, in order to target the broader region”.

According to the council, there might be 1,000 Israeli companies working in UAE by the end of the year involved in business with South Asia, the Far East, and the Middle East.

The agreement is signed amid Israeli-Palestinian violence. Ahead of the deal, the economy mister of Israel said the accord will remove tariffs on agriculture, food, cosmetics, medical equipment, and medicines.

South Africa’s unemployment rate has declined for the first time since 2020, falling to 34.5 percent in the first quarter of 2022 from 35.3 percent at the end of 2021. The last time the jobless rate fell was in the second quarter of 2020, when job seekers could not find jobs due to the lockdown imposed to curb the spread of Covid-19. Unemployment according to a broader definition, which includes people who were available for work but not searching for a job, fell to 45.5% from 46.2% in the last three months of 2021.

According to a report by the official statistics agency released in Pretoria, 370,000 jobs were created, resulting in the fall of 60,000 in the number of jobless people. Most of the new jobs created were in the community and social services, mining, manufacturing, and trade. The manufacturing and mining industries increased jobs to meet the need for commodities that were in deficit due to the war between Russia and Ukraine, and the government provided work to more people through its public-works program.

Even after 30 years of the end of Apartheid, poverty, unemployment, and inequality are strongly prevalent in South Africa.

Singapore is raising its investments in quantum computing with the introduction of two new programs targeted at improving talent development and providing greater access to the growing technology.

A statement released by Deputy Prime Minister Heng Swee Keat on Tuesday (May 31) declared the launch of the National Quantum Computing Hub, which will pick up knowledge, skill, and resources from the Centre for Quantum Technologies, the National Quantum Fabless Foundry, and other institutions.

The parts and materials needed to make quantum computers and devices will be developed by the Foundry. The hub will host the first quantum computer created by Singapore and allow access and direct testing to companies and government agencies that will reduce lead time and lag.

Mr. Heng stated in his opening address at the second Asia Tech x Singapore (ATxSG) summit that the investment in quantum computing and quantum engineering is in a way an approach to foresee the future and shaping the future of their dreams.

With the help of the new hub, users in companies or government institutions will become more quantum-literate and understand the potentials and restrictions of quantum computing technology. Building a quantum computer will also help Singapore understand the problems that come along with making and maintaining quantum computers.

After five months of negotiations, Israel and the United Arab Emirates finalized a free trade deal which is regarded as a “significant and historic milestone.” As per a statement released by the ministry, customs duties will be abolished on 96 % of products such as agriculture, food, cosmetics, medicine, and medical equipment. Many products will get immediate custom duty exemption while others gradually. Israel’s Economic Ministry said that the free trade agreement to be signed between both countries on Tuesday would help boost trade and foster economic relations between both countries.

Free trade talks started in November 2021. In December, Israeli Prime Minister Naftali Bennett visited Abu Dhabi and discussed the free trade talks with the then Crown Prince Sheikh Mohammed bin Zayed Al Nahyan (MBZ), the current president of UAE. The two leaders decided to be quick with further discussions. The trade deal makes it Israel’s first with an Arab country.

Israeli PM Bennett said in a statement that the good relations that have already been created between UAE and Israel are being strengthened in the form of a free trade deal, which will significantly improve the economic cooperation for the good of the citizens of both countries.