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First Post
4 days ago
- Business
- First Post
How modern trade agreements are powering fintech-led flows and digital economy
As global commerce becomes increasingly digital, fintech is no longer just a sector—it's an infrastructure, and trade agreements are becoming its enabler read more For fintech firms, especially in emerging markets, these modern agreements are creating smoother pathways for cross-border operations, compliance harmonisation, and access to capital. Representational image: Moneycontrol Trade agreements in the 21st century are no longer just about reducing tariffs. Increasingly, they are evolving into frameworks that facilitate data flows, digital services, and financial innovation. They are evolving into frameworks that facilitate data flows, digital services and financial innovation. According to the World Trade Organisation over 60 per cent of newly signed trade deals contained more provisions related to e-commerce and digital finance. For fintech firms, especially in emerging markets, these modern agreements are creating smoother pathways for cross-border operations, compliance harmonisation, and access to capital. STORY CONTINUES BELOW THIS AD As global commerce becomes increasingly digital, fintech is no longer just a sector—it's an infrastructure, and trade agreements are becoming its enabler. To a country like India, focusing on a viable strategy on the digital highway could mean more enterprises exporting services, ability for more financial organisations to provide capital elsewhere. Besides financial and diplomatic benefits, this is an immensely rewarding opportunity to innovative start-ups, fintechs and even Indian citizens to leverage. But, when money flows faster through the click of a button there are an equal number of challenges. And the global architecture of trade needs to reflect such economic realities and the associated solutions to such challenges. FTAs Tailored on Digital Aesthetics for Economic Diplomacy Free Trade agreements (FTAs) have been a way that countries have leveraged to improve their trade numbers. Digital economy focused trade agreements such as UK–Singapore Digital Economy Agreement (DEA) or UK–Australia Free Trade Agreement, or India-UK FTA, and scores of multilateral initiatives such as DEPA have been used as a stepping-stone towards a smarter and forward-looking approach. What makes such agreements particularly relevant is their capacity to unlock the potential of innovation, improvement of financial technology (fintech) and accessibility of digital finance. Several governments and businesses have sought resilience and inclusivity and perceive such trade agreements as viable tools to better their fintech cooperation, data interoperability, and even regulatory alignment. A classic example is the India-UAE CEPA (Comprehensive Economic Partnership Agreement) that includes dedicated chapters on digital trade, online consumer protection, and even digital identities allowing smoother regulatory alignment for Indian services platforms to offer value in the Gulf. The Digital Economy Partnership Agreement (DEPA), signed by Singapore, Chile, and New Zealand, is another example that goes further by introducing modular approaches to digital trade governance. What makes this deal strikingly unique are the chapters on fintech collaboration, digital identities, and data innovation - making it one of the first trade pacts designed from the ground up for a digitised economy. As a blueprint, DEPA shows how nations can align on principles while allowing flexibility for local regulations. STORY CONTINUES BELOW THIS AD Digital for Economic Diplomacy Focusing on digital nuances offers more opportunities to fintechs, financial enterprises and even countries. Fintech today is more than just a sector—it is a means of scaling financial inclusion, improving transparency, and enabling seamless business-to-business (B2B) and business-to-client (B2C) commerce. Trade agreements prioritising on fintech do more than promote commercial interests; they help build the financial plumbing of the future. Conversations hence around open finance frameworks, digital wallets, and interoperable payment can do more than just reduce friction for small and medium enterprises (SMEs). Countries that evaluate trade on such parameters enable their SMEs and organisations to participate meaningfully in the global economy. Smart trade agreements also realise that the game is not only about reducing tariffs but removing regulatory fragmentation, inconsistent cybersecurity standards, and even opaque cross-border data policies. However, addressing such issues requires more than goodwill—it also demands harmonised frameworks. Hence, provisions that support e-invoicing, electronic signatures, secure digital authentication, and real-time payment systems are not only technical footnotes but competitive advantages. Doing these may seem like too much. But the pursuit of such exercises creates a multiplier effect. It reduces transaction costs, increase access to credit for underserved businesses, and enables transparency that benefits regulators and participants alike. Smart trade architecture is therefore, not just pro-growth, it's also pro-governance. STORY CONTINUES BELOW THIS AD DNAs of a Modern Trade Agreement The most forward-looking trade deals share a distinct set of traits: they treat data as a tradable asset, digital infrastructure as a public good, and fintech as a strategic growth lever. The UK–Singapore DEA exemplifies this shift. It ensures the free flow of data with strong privacy protections, removes unjustified data localisation requirements, and encourages cooperation in fintech and regtech. These aren't symbolic add-ons—they're foundational elements that enable real-time cross-border payments, digital identity verification, and compliance automation, which in turn reduces the cost of doing business internationally. Similarly, the UK–Australia FTA includes an innovation chapter—an uncommon but powerful feature. This dedicated space for dialogue on emerging technologies fosters collaboration in digital payments, open banking, and AI regulation. It recognises that trade today is as much about trust in digital standards as it is about trust in goods and services. Building a Digital Trade Commons As more countries prepare for next-generation trade agreements, the opportunity lies in building a shared digital trade commons—open, secure, and inclusive. Multilateral initiatives like SADEA (Singapore Australia Digital Economy Agreement) or the DEPA (Digital Economy Partnership Agreement) show that it's possible to design agreements that are agile, modular, and deeply attuned to the digital age. STORY CONTINUES BELOW THIS AD The next phase of global trade will be driven less by the movement of containers and more by the movement of code, artificial-intelligence, or even compliance standards and capital flow. To policymakers therefore, the choice is clear: integrate fintech and digital finance as central pillars of trade policy, or risk creating agreements that are out of sync with economic realities. Those countries that embed digital economy thinking into their trade frameworks will hence not only future-proof their economic strategy but will emerge as new hubs of economic power. As the digital economy expands, aggregators and technology would become pivotal — not just in connecting services, but in shaping how countries, companies, and consumers participate in the global financial system. This is not just an opportunity for growth; it's a responsibility to help build the backbone of a more open, agile, and inclusive global economy. Rohit Arora is CEO and Co-Founder of Biz2X and Biz2Credit. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost's views. STORY CONTINUES BELOW THIS AD
Reuters
21-05-2025
- Business
- Reuters
Greek gas supplier DEPA signs deal to build power plant in Larissa
ATHENS, May 21 (Reuters) - Greek gas supplier DEPA Commercial has signed an agreement for a 600 million-euro ($680 million) project to build a gas-fired power plant in Larissa, it said on Wednesday. Cyprus-based company Clavenia, which is owned by an Israeli real estate group, and two Greek companies, energy and telecommunications provider Volton and private equity EUSIF Larissa, will participate in the project. The 792 MW power plant has received all necessary permits and will be built in the industrial area of Larissa, in the central part of the country, DEPA said in the statement It will be built with Mitsubishi Heavy Industries technology. "This is a new natural gas-fired electricity production unit. A unit that will create new jobs, strengthen competition and lead to lower electricity prices for consumers," Greece's Minister for Environment and Energy Stavros Papastavrou said. Greece has ramped up renewables output from sun and wind for power generation as it aims to shut down all its coal-fired plants by next year. It still, however, relies heavily on gas imports for electricity. ($1 = 0.8820 euros)
Indian Express
17-05-2025
- Business
- Indian Express
India's IPL moment in AI: A bid for global leadership
Written by Vilas Dhar Sam Altman's AI-generated image of himself as a cricket batsman in India's iconic blues seemed like a playful social media moment. Yet, it highlighted an emerging truth: India's surging presence on the global AI stage. Many once doubted India's AI ambitions. Today, it stands as a serious contender for global leadership. The parallel with cricket is telling. The Indian Premier League (IPL) transformed cricket worldwide through clear vision, strategic investment, local talent development and welcoming global stars, all while making cricket exciting for diverse audiences. Within a decade, India created one of the world's most vibrant and valuable sporting ecosystems. India's approach to AI follows a similar blueprint. Here, too, India plays to win. India's Triple Advantage: Computing Power, Data, and Talent India's new AI computing resource gives 15 million developers access to powerful processing chips at half the global rate, less than $1.25 per hour instead of the typical $2.50-$3.00. This dramatically lowers barriers for entrepreneurs who previously couldn't afford the computing power needed for AI development. As part of this effort, the government has announced that Sarvam, a homegrown startup, will leverage this infrastructure to build India's first sovereign foundational model. Designed for deep reasoning and fluency in Indian languages, the model will serve the scale and diversity of India's population in real-world deployment. The country's 1.4 billion citizens generate about 20 per cent of the world's data, providing essential raw material for AI systems. The government has organised this advantage through AIKosha, a platform with hundreds of datasets and AI models that developers can use immediately. Unlike most countries, India has created a sophisticated framework that balances individual privacy with innovation. The Digital Personal Data Protection Act, 2023, has gained global recognition for balancing individual privacy with technological innovation. At the same time, the Data Empowerment and Protection Architecture (DEPA) is uniquely giving citizens control over how their personal information is managed and shared for technological advancement. Its approach gives citizens control over their personal information while allowing its use for technological advancement. As global data becomes more restricted, this Indian citizen-centred model becomes increasingly valuable. Perhaps most importantly, India boasts remarkable talent growth. In 2024, AI hiring increased by over 33 per cent, second only to the US. According to Stanford University research, India's AI talent pool has grown faster than any other country, expanding by 252 per cent. This reflects how quickly its workforce is adapting to AI opportunities. Each year, 25,000 engineers graduate from the prestigious Indian Institutes of Technology. India also produces the largest group of computer science master's students and the second-largest group of computer science PhD students from American universities. The government is now creating specialised AI research centres – Centres of Excellence – to attract both domestic and global experts. The Indian Approach: Openness and Collaboration What makes India different is its approach. Unlike China's state-directed AI strategy or America's private-sector dominance, India's model combines government infrastructure with open collaboration, creating a distinctly democratic path to AI development. While many tech ecosystems guard their innovations, India embraces openness. By promoting shared standards and inclusive development, India creates an environment where ideas can emerge from anywhere. Recent open-source AI breakthroughs show how this approach accelerates innovation and shares benefits widely. India's success with digital public infrastructure demonstrates this collaborative spirit. Its digital identity system now covers 1.3 billion people, while its payment system handles 17 billion transactions monthly for 450 million users. By 2030, these systems are expected to add 3-4 per cent to India's GDP. The same collaborative approach could give India an edge in AI development. From Potential to Reality With these foundations in place, India must now convert potential into concrete benefits for its citizens and the global community to demonstrate the possibilities of a new 'third way.' The transformation begins by extending AI beyond metropolitan centres through targeted literacy programs and region-specific solutions. This geographic inclusivity ensures all communities participate in and benefit from AI advancements, preventing the concentration of technological power in already-privileged areas. Simultaneously, India must balance cultivating homegrown expertise with attracting global talent. Competitive research fellowships and strengthened industry-academic partnerships can create a thriving ecosystem where domestic innovation flourishes alongside international collaboration. The country should leverage this intellectual capital to tackle fundamental research challenges that plague current AI systems. By addressing factual accuracy, reasoning capabilities and computational efficiency, India can position itself as a centre for meaningful innovation rather than incremental improvement. This focus on foundational breakthroughs would distinguish India's contributions in an increasingly crowded field where superficial advances often overshadow substantive progress. As AI computing demands grow, with data centres potentially consuming 21 per cent of global energy by 2030, India's leadership in renewable energy becomes strategically vital. With nearly half its power capacity already coming from clean sources, India can establish international benchmarks for sustainable AI development. Perhaps most importantly, India must pioneer governance frameworks that balance innovation with societal well-being. Drawing on its experience building inclusive digital systems, India can develop approaches that protect individual rights while promoting collective benefits. This balanced governance would ensure that AI advancement serves humanity while accelerating technological capacity, a distinction that could ultimately define India's contribution to global AI development. The Long Game When the IPL launched in 2008, few predicted its global impact. India's AI journey follows a similar path: the vision is clear, the talent is ready and the infrastructure is in place. Now comes the exciting part: building AI solutions that take India from a rising competitor to a global leader. When I heard Prime Minister Modi speak at the Paris AI Action Summit, one line stayed with me: 'No one holds the key to our collective future and shared destiny other than us.' Reflecting among global leaders and technologists, I was reminded that success in AI isn't about winning the first innings – or even the first match. It's about building the kind of pitch where everyone has a chance to innovate, contribute, and thrive. Vilas Dhar is a global AI policy expert and President of the Patrick J. McGovern Foundation, a philanthropy focused on exploration, enhancement and development of AI and data science for the common good. Views expressed are personal
Gulf Today
16-05-2025
- Business
- Gulf Today
Foreign trade of China's pilot FTZs up 2.2% in first quarter
Foreign trade of China's pilot free-trade zones (FTZs) reached 2 trillion yuan (about $416.26 billion) in the first quarter of this year, up 2.2 per cent year-on-year, a spokesperson for the Ministry of Commerce said in Beijing. Speaking at a press conference, He Yongqian, the spokesperson, said that amid the current complex and severe international situation, the development of the country's pilot FTZs has demonstrated remarkable resilience. According to China Central Television (CCTV), the Ministry of Commerce will continue to advance the strategy to enhance free trade zones and improve the quality of their development. 'Benchmarking against high-standard rules such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA), we will carry out broader, deeper and more vigorous institutional opening-up trials in developing service trade and facilitating cross-border data flows among other areas,' she added. Meanwhile the 90-day tariff truce agreed by the United States and China during trade talks in Switzerland last weekend is too short, China's state-backed Global Times said on Friday, as envoys from the world's two biggest economies regrouped in Korea. During the Geneva summit, the US agreed to cut the extra tariffs it imposed on Chinese imports last month to 30 per cent from 145 per cent for the next three months, while China commited to cutting duties on US imports to 10 per cent from 125 per cent. 'The window for mutually beneficial cooperation should extend far beyond a mere 90-day period,' said the Global Times, which is owned by the newspaper of the ruling Communist Party, People's Daily, and has often been first to report China's next steps in trade disagreements over the last few years. 'Hopefully, the US side will build on the outcomes of the recent talks and continue to meet China halfway.' Beijing also agreed to pause or remove the non-tariff countermeasures it has imposed against the US since April 2, although China so far has only paused its decision to add around 50 US firms to various lists restricting their ability to trade and invest. In addition to easing the curbs, China agreed to lift export countermeasures issued after April 2, raising prospects for the lifting of restrictions on rare earth minerials, which Beijing has not yet clarified its position on. Analysts say Beijing is unlikely to rush to announce how exactly it will meet all of its pledges. 'There is no point in China clarifying the non-tariff barriers it plans to lift to give itself the flexibility it wants,' said Dan Wang, China director at Eurasia Group. 'The tariffs will likely go back up 90 days and China may sign some purchase agreements, but the non-tariff barriers will be important in future talks,' she said. China's commerce ministry did not respond specifically to questions on what non-tariff barriers it would lift - rather than pause - during a regular Thursday news conference. US Trade Representative Jamieson Greer met Chinese trade envoy Li Chenggang on Thursday on the sidelines of an Asia-Pacific Economic Cooperation meeting on South Korea's Jeju Island. Neither side has provided details on the substance of that meeting. New rules for Chinese active funds unveiled this month that are set to drastically change fund flows in the country's stock markets have prompted immediate action from some of the biggest players in the industry to introduce fresh products. China Asset Management (ChinaAMC), China Merchants Fund and E Fund Management Co said they have applied or will soon apply to launch so-called variable-fee products, where fees are tied to the performance of investments. Variable-fee investment products - currently rare in China - more closely align the interests of fund managers with investors. Fees can rise if a fund does well and fall if it underperforms. The new rules, which are in the words of China Securities Regulatory Commission Wu Qing, aimed at promoting Warren Buffett-style longer-term value investing, represent the biggest overhaul of China's $4.5 trillion mutual fund industry in decades. Chinese active funds have long been criticised for chasing profits from fees and focusing on short-term investments rather than concentrating on performance and creating longer-term value. 'Previously, many mutual fund managers put their own interest ahead of investors... contributing to irrational market fluctuations,' said Dong Baozhen, chairman of Beijing-based asset manager Lingtong Shengtai. In addition to forcing the introduction of variable-fee structures, the rules mandate big pay cuts for portfolio managers who underperform benchmarks by 10 percentage points or more in a three-year time frame. 'This would nudge a fund manager to switch to a more suitable benchmark or build a more balanced portfolio' to avert outsized underperformance,' said Yu Zhanchang, a fund manager at Penghua Fund Management.
