logo
India, China agree to resume direct flights, boost business links

India, China agree to resume direct flights, boost business links

Business Recorder14 hours ago
NEW DELHI: India and China agreed on Tuesday to resume direct flights and step up trade and investment flows as the neighbours rebuild ties damaged by a 2020 border clash.
The Asian giants are cautiously strengthening ties against the backdrop of US President Donald Trump's unpredictable foreign policy, staging a series of high-level bilateral visits.
The latest statements came at the end of Chinese Foreign Minister Wang Yi's two-day visit to New Delhi for the 24th round of talks with Indian National Security (NSA) Advisor Ajit Doval to resolve their decades old border dispute.
The border talks covered issues related to pulling back troops both countries have amassed on their Himalayan border, delimitation of borders and boundary affairs, the Indian foreign ministry said, without elaborating.
The talks appeared to have made no major breakthrough on those issues and Beijing said both countries agreed to meet again in China in 2026.
But it also said the two countries would resume direct flights and boost trade and investment, along with smooth facilitation of visas.
Direct flights have been suspended since the COVID-19 pandemic in 2020. No date was given for their resumption.
'Stable, predictable, constructive ties between India and China will contribute significantly to regional as well as global peace and prosperity,' Prime Minister Narendra Modi posted on X after meeting Wang. Modi is scheduled to travel to China at the end of this month to take part in the summit of the Shanghai Cooperation Organisation - his first visit to the country in more than seven years.
TIBET DAM
A readout from the Chinese foreign ministry said Wang told Doval that 'the stable and healthy development of China-India relations is in the fundamental interests of the two countries' people'.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

India panel proposes exempting taxes on health, life insurance
India panel proposes exempting taxes on health, life insurance

Business Recorder

time5 minutes ago

  • Business Recorder

India panel proposes exempting taxes on health, life insurance

NEW DELHI: A panel of Indian state ministers on goods and services tax (GST) has proposed exempting tax on health and life insurance premiums for individuals, two state ministers told reporters on Wednesday. The panel met days after Prime Minister Narendra Modi announced sweeping cuts to the GST to boost India's economy in the face of trade conflict with Washington. The panel of state ministers has proposed exempting health and life insurance premiums for individuals from the current 18%, the deputy chief minister of Bihar state, Samrat Chaudhary, said after the meeting in New Delhi. The final decision will be taken by the GST council, which is chaired by the federal finance minister and includes all state finance ministers as members. India's tax restructuring a 'huge reform', will boost competitiveness, Maruti Suzuki chair says The GST council meeting is expected in September or October, before the Hindu festival of Diwali, which is the country's biggest shopping season. The panel expects a revenue loss of 97 billion rupees ($1.11 billion) if health and life insurance premiums for individuals are exempted from GST, added Mallu Bhatti Vikramarka, a minister from the southern state of Telangana. In the next GST council meeting, the ministers are also expected to decide on the biggest overhaul of the tax regime since its introduction in 2017.

India rate panel says US tariffs key drag on growth, flags benign inflation outlook
India rate panel says US tariffs key drag on growth, flags benign inflation outlook

Business Recorder

time5 minutes ago

  • Business Recorder

India rate panel says US tariffs key drag on growth, flags benign inflation outlook

MUMBAI: India's monetary policy committee members flagged evolving risks from global trade tensions and tariffs as a key drag on growth but said the economy remains resilient with the inflation outlook benign, minutes of the August meeting showed on Wednesday. The Reserve Bank of India held its key repo rate steady at 5.50% earlier this month, after cutting rates by 100 basis points so far in 2025. The six-member Monetary Policy Committee voted unanimously to retain a 'neutral' stance, citing the need for flexibility amid domestic and global uncertainties. 'Growth projected at 6.5% is resilient,' RBI Governor Sanjay Malhotra wrote in the minutes, but added the projection was 'certainly lower than what we can achieve.' He warned that uncertainty in external demand, driven by tariffs and geopolitical tensions, remained a major drag on growth. India faces as much as 50% tariff on exports to the United States starting August 27 after U.S. President Donald Trump imposed an additional 25% tariff earlier in the month citing New Delhi's continued imports of Russian oil. Malhotra said the moderation in food inflation since the June meeting was larger than expected, but cautioned that the uncertainties around tariffs were still evolving. He added that the neutral stance would provide the necessary flexibility to respond to changing conditions. India panel proposes exempting taxes on health, life insurance India's retail inflation rate dropped to its lowest level in eight years in July, as falling food prices, especially vegetables and pulses, squeezed farmers' incomes. Deputy Governor Poonam Gupta said the moderation in inflation was not broad-based and was primarily driven by food prices falling. 'Core inflation is likely to remain above 4% in the near to medium term, barring any major negative shock to input prices,' she wrote. MPC member Ram Singh said the average CPI inflation outlook for 2025–26 had become 'very benign,' though core inflation was expected to stay above the target range. He flagged sustained growth in construction, trade and services, but warned of high uncertainty on both inflation and growth fronts. External member Nagesh Kumar said the case for stimulating private investments and urban demand remains strong while the benign inflation outlook also provides policy space. But considering trade policy uncertainties, it is better to wait and watch before looking at any policy decisions at the October meeting, he said. External member Saugata Bhattacharya said monetary policy has to address multiple, often conflicting, objectives andoptimise the consequent trade-offs. He highlighted the trade-off between loan and deposit rates as one of the key considerations. The central bank has a 4% inflation target, with a tolerance band between 2% and 6%. India reports GDP growth data on Friday.

Oil firms as investors await next steps in Ukraine peace push
Oil firms as investors await next steps in Ukraine peace push

Business Recorder

time7 minutes ago

  • Business Recorder

Oil firms as investors await next steps in Ukraine peace push

LONDON: Oil prices rose on Wednesday as the American Petroleum Institute reported a drop in U.S. crude inventories and investors awaited the next steps in talks to end the Ukraine war, with sanctions on Russian crude remaining in place for now. Crude fell more than 1% on Tuesday on optimism that an agreement to end the war seemed closer. However, U.S. President Donald Trump conceded that Russian President Vladimir Putin might not want to make a deal. Brent crude futures rose 71 cents, or 1.1%, to $66.50 a barrel by 1207 GMT. U.S. West Texas Intermediate crude futures for September delivery, set to expire on Wednesday, gained 84 cents, or 1.4%, to $63.19. 'It seems oil prices are thrown down one day, followed by a rebound the next day. The API report was on the positive side, so I assume some price support is coming from that,' said Giovanni Staunovo, an analyst at UBS. U.S. crude stocks fell by 2.42 million barrels, market sources said on Tuesday, citing American Petroleum Institute figures, ahead of official data at 1430 GMT. 'Not so sure about the peace deal - will have to see if something moves forward over the coming days,' Staunovo added. Trump said on Tuesday the United States might provide air support as part of a deal to end Russia's war in Ukraine. A day earlier, Trump said he was arranging a meeting between Putin and Ukrainian President Volodymyr Zelenskiy to be followed by a trilateral summit among the three presidents. Russia has not confirmed it will take part in talks with Zelenskiy. 'The likelihood of a quick resolution to the conflict with Russia now seems unlikely,' said Daniel Hynes, senior commodity strategist at ANZ, in a note on Wednesday. Oil also found support from flooding at a large U.S. refinery. BP said on Tuesday operations at its 440,000-barrel-per-day refinery in Whiting, Indiana, were affected by flooding after a severe thunderstorm, potentially weighing on crude demand at the facility - a key fuel producer for the Midwest market.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store