Category: Economy

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.

The US surpassed China and became India’s biggest trading partner with $119.42 billion for the fiscal years 2021–2021, compared with $80.51 billion in 2020–2021. With a trade deficit of $72.9 billion with China, India’s trade surplus accounted for $32.7 billion with the US.

According to the data, a major increase was seen in exports, which amounted to $76,111.33 billion in 2021–2022 from $51.62 billion in 2020–21 and imports rose from $29 billion in 2020–21 to $43.31 billion. Meanwhile, India’s merchandise exports reached a new record high in April by crossing $40 billion, representing a 30% increase over April 2021.

The annual trade between the US and China was $115.42 billion in 2021–2022 compared to $86.4 billion in 2020–2021, in which exports showed a marginal increase from $21.18 billion to 21.25 billion. However, imports rose from $65.21 billion in 2020–2021 to $94.16 billion in 2021–2022.

The data reflects the deepening trade ties and growing bilateral trade between India and the US in the coming years. Both nations are focusing on strengthening their economic ties.

From 2013 to 2021, China was India’s biggest trading partner, and before that, the UAE was India’s biggest trading partner.

New Zealand Prime Minister Jacinda Ardern has asked the United States to return to a regional trade deal it quit in 2017, in the latest signal by an Asia-Pacific leader that US President Biden’s economic engagement with the Indo-Pacific region is not up to the mark.

The New Zealand leader, who is currently in the US said that the trade agreement, now known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), was the “gold standard” for boosting economic ties. She added that if the United States was keen on economic engagement in the region, then CPTPP was the place to do it. The Biden administration has been unwilling to return to the agreement due to concerns about U.S jobs being shipped overseas.

Arden’s US trip is aimed primarily at boosting exports and tourists as the country sets off to reopen its borders completely after more than two years of restrictions due to the Coronavirus pandemic. Ardern will be traveling to New York, Washington, DC, Boston, San Francisco, and Seattle, and would hold meetings with the U.N Secretary-General Antonio Guterres and senior officials from Twitter, Microsoft, and Amazon. Ardern, who is on a road to recovery from a recent case of COVID-19, has until now not announced plans to visit the US president at the White House, due to strict pandemic protocols.

The Quad summit comprising India, the US, Japan, and Australia agreed to invest $50 billion for “tangible benefits to the region” as part of a series of initiatives. The leader agreed to offer infrastructure development in the Indo-Pacific region for the next five years.

In particular, these four nations have identified vulnerabilities in global semiconductor supply chains and resolved to collaborate to create a market that is both diverse and competitive by using their strengths.

Additionally, the Quad released a Common Statement of Principles on Vital Technology Supply Chains that boost cooperation in semiconductors and other critical technologies and reduce regional risks. The countries have also agreed to broaden their collaboration in 5G technology by signing a memorandum of understanding (MoU) on supplier diversification and interoperability standards.

Prime Minister Narendra Mod said that this will ensure “open and secure telecommunications technologies in the region” and called the structure “effective”.

A joint statement was released from the leaders on the infrastructure front, “We are committed to working closely with partners and the region to drive public and private investment to bridge gaps.” To achieve this, Quad will seek to extend more than $50 billion of infrastructure assistance and investment in the Indo-Pacific over the next five years.”

As equity rallied in India on Wednesday, the rupee appreciated by five paise to 77.52 against the dollar (21.12 against the UAE dirham) in the opening trade, but the increase in oil prices and unabated capital outlaws increased investor sentiments.

India’s interbank foreign currency rates versus the US dollar opened at 77.54 and then jumped to 77.52, up to five paise from the previous closing. The dollar index that measures the greenback’s strength against a basket of six currencies was up 0.06% higher at 101.92.

Early trades ranged from 77.54 to 77.51. Against the American dollar, the rupee closed at 77.57 in the previous session. The 30-share Sensex rose by 242.62 points, or 0.45 percent, to 54,295.23 points, while the broader NSE Nifty rose by 68.85 points, or 0.43 percent, to 16,194 points.

Brent crude futures surged 1.20 percent to $114.92 per barrel, the benchmark price for global oil. The government announced a record reduction of Rs 8 per liter in petrol excise duty and Rs 6 per liter in diesel excise duty on Saturday.

Prime Minister Narendra Modi who is on a two-day visit to Japan to participate in the Quad Summit met the leaders of large and successful business organizations namely Softbank, Suzuki, NEC Corp and Uniqlo.

Modi met the founder and  board director of Softbank Corporation, Masayoshi Son and lauded his company’s role in the start-up sector. They talked about the future possibilities of the company’s participation in vital zones such as technology, finance and energy. The discussion also centered around the numerous changes that have been made in order to make business between two countries easy and schemes developed whereby Japan could make more investments in India.

The PM also had a talk with the senior advisor of the Suzuki Motor Corporation Mr Osamu Suzuki and looked back on Suzuki’s connection and contributions in Japan. The conversation also dealt in topics like future investment opportunities in India such as building manufacturing facilities for electrically and battery operated vehicles as well as setting up of centers for recycling. They also discussed plans to help grow indigenous technology, including skill development by way of collaborating with Japan- India institutes of Manufacturing(JIM) and Japanese Endowed Courses ( JEC).

PM Modi also met leaders of Industry Giants like NEC Corporation, Fast Retailing and Uniqlo.