Latest news with #MinistryofCommerceandIndustry
The Hindu
a day ago
- Business
- The Hindu
Steep decline: On the Index of Industrial Production
India's factory output performance measured monthly by the Index of Industrial Production (IIP) and released by the Ministry of Statistics and Program Implementation (MoSPI) slowed to an eight-month low of 2.7% in April, at the start of fiscal 2026. It also marked a steep decline, almost halving from last April's 5.2% growth. This correlates with the monthly gauge of the eight core sectors by the Ministry of Commerce and Industry, which posted a 0.5% growth in April, also an eight-month low. More significantly, it is a steep decline from last April's 6.9%. The eight core sectors make up about 40% of the weight of items included in the IIP. This comes on the back of a 4% growth in industrial output for the last fiscal, which was the lowest in the past four years. Of particular concern is the contraction in mining by 0.2%, the first since August 2024. While the absolute value of mining exports has risen in the past decade from $25 billion in FY15 to $42 billion in FY25, its share in exports has fallen from 8.1% to 5.1%. This still constitutes a not-so-insignificant share in India's overall goods exports at a time of great trade volatility. However, both manufacturing and power production also slowed to 3.4% (4.2%) and 1.1% (10.2%), respectively, in April. While trade and tariff-related uncertainties are most likely to have impacted goods output, the continuing contraction in consumer non-durables' output for the third consecutive month suggests persistently low rural consumption, as essentials such as food make up a significant portion of consumer non-durables. This is a clear indication that despite retail inflation hitting an almost 6-year low at 3.16% in April, it has not translated into higher spending power for rural communities, where consumer non-durables have the most demand. Food prices contracted for the sixth straight month to 2.14%, which led to below MSP rates for most staples at mandis. The government must focus on raising rural incomes by implementing MSPs for farm produce more systematically. This would aid in increasing rural consumption. However, a surge in capital goods output to 20.3% in April, albeit from a low base, indicates confidence in the domestic economy as investors continue with their plans to diversify exports, attempting to rely less on the U.S. With trade-related sectors expected to continue to stay volatile in the near-term, the Centre must push the private sector to increase capital expenditure at home. This will increase incomes, and aid in raising consumption demand. Export-oriented sectors must also aim to ring-fence themselves from tariff, price and supply chain shocks by ensuring a robust domestic presence, while also diversifying outside the traditional export regions of the U.S. and the EU.
Indian Express
3 days ago
- Business
- Indian Express
US court curbs Trump's tariff power: How it eases pressure on India
Weeks before India and the US were due to sign an interim trade deal to meet the July 8 deadline for reciprocal tariffs, the US Court of International Trade on Wednesday ruled that President Donald Trump does not have the authority to regulate imports into the US through tariffs under the International Emergency Economic Powers Act (IEEPA). 'The court holds, for the foregoing reasons, that IEEPA does not authorise any of the Worldwide, Retaliatory, or Trafficking Tariff Orders. The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs. The Trafficking Tariffs fail because they do not deal with the threats set forth in those orders,' the court stated. Notably, the ruling does not affect tariffs issued by the Trump administration under separate legal provisions, including 25 per cent duty on steel, aluminum and automotive parts where India exporters will continue to face higher tariffs. The New York Times reported White House spokesman, Kush Desai, stating that : 'It is not for unelected judges to decide how to properly address a national emergency,' and that Trump would use 'every lever of executive power to address this crisis.' Trump had announced 26 per cent reciprocal tariffs on India and pushed for the opening up of politically sensitive sectors, such as agriculture, during the ongoing trade deal negotiations. However, with the court order casting doubt on Trump's ability to impose unilateral tariffs, India may no longer need to negotiate under the pressure of reciprocal tariffs. A section of officials in the Ministry of Commerce and Industry had expressed concerns about India's willingness to open up most sectors in order to avoid reciprocal tariffs. New Delhi had already announced several duty cuts—such as on bourbon whiskey and motorbikes—during the Union Budget presentation. The pressure to sign a trade agreement with the US was high as India has agreed to a terms of reference (ToR) that will kickstart trade deal negotiations just before the implementation of reciprocal tariffs on April 2, The Indian Express had reported. Experts said that with concessions on reciprocal tariffs no longer on the table, India can now seek better market access for its goods from the US under the trade deal, and may also recalibrate its stance on sensitive issues such as data localisation to address domestic concerns. While Trump had been pushing India to liberalise the movement of data and provide better access for Big Tech companies, a 2018 United Nations Conference on Trade and Development (UNCTAD) report, Power, Platforms, and the Free Trade Delusion, highlighted that access to and control over data has long been a source of 'market power' and can create barriers to entry for new players. A Standing Committee on Finance report (2022–23) concerning anti-competitive practices by Big Tech firms also observed that Google Play, as the dominant source for downloading apps on Android, mandates the use of its payment system for paid apps and in-app purchases. 'It appears that Google controls a significant volume of payments processed in this market,' the report stated. The report also said that Google unfairly privileges Google Pay by prominently placing it on the Play Store, Android operating system, and Android-based smartphones, while skewing search results on the Play Store in favour of its payment app. The Competition Commission of India (CCI), in a preliminary order, observed that manipulating such features could act as a potent tool to divert traffic to Google's app, thereby undermining 'competition on the merits'. According to the United States Trade Representative's (USTR's) Report on Foreign Trade Barriers, the US continues to encourage India to adopt an 'open skies' satellite policy to allow consumers the flexibility to select the satellite capacity provider that best suits their business requirements. This comes as DOGE chief Elon Musk, a close confidant of President Donald Trump, is a promoter of the Starlink satellite communication service. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
New Indian Express
4 days ago
- Business
- New Indian Express
FDI inflows up 14% to $81 billion; Singapore top contributor
Amid concerns over India's net foreign direct investment (FDI) plummeting 96% to just $0.4 billion in 2024–25, data from the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, paints a more nuanced picture. It shows that gross FDI inflows into India actually rose 14% to $81 billion during the year, up from $71.25 billion in 2023–24. Of the total FDI in 2024–25, around $50 billion came through the automatic or government approval routes, $23.5 billion was reinvested earnings, and another $6.5 billion came in as other capital. The services sector emerged as the top recipient of FDI equity, attracting 19% of total inflows, followed by computer software and hardware (16%) and trading (8%). FDI into the services sector rose sharply by 40.77% to $9.35 billion from $6.64 billion in the previous year. Meanwhile, FDI into manufacturing increased 18% to $19.04 billion compared to $16.12 billion in 2023–24. Among states, Maharashtra attracted the largest share of FDI equity inflows at 39%, followed by Karnataka (13%) and Delhi (12%). On the source country front, Singapore led with a 19% share, followed by Mauritius (10%) and the United States (7%). Inflow from UAE showed the highest growth of almost 50% to $4.3 billion.
Hans India
4 days ago
- Business
- Hans India
India's FDI inflows jump 14 per cent to cross $81 billion in 2024–25
New Delhi: India's FDI inflows increased to $81.04 billion in FY 2024-25, marking a 14 per cent increase from $71.28 billion in FY 2023–24, according to a statement issued by the Ministry of Commerce and Industry on Tuesday. There has been a steady rise in the annual flow of FDI into the country over the last 11 years, from $36.05 billion in FY 2013-14, due to the investor-friendly policy, under which most sectors are open for 100 per cent FDI through the automatic route, the statement said. The services sector emerged as the top recipient of FDI equity in FY 2024–25, attracting 19 per cent of total inflows, followed by computer software and hardware (16 per cent), and trading (8 per cent). FDI into the services sector rose by 40.77 per cent to $9.35 billion from $6.64 billion in the previous year. India is also becoming a hub for manufacturing FDI, which grew by 18 per cent in FY 2024–25, reaching $19.04 billion compared to $16.12 billion in FY 2023–24. Maharashtra accounted for the highest share (39 per cent) of total FDI equity inflows in FY 2024–25, followed by Karnataka (13 per cent) and Delhi (12 per cent). Among source countries, Singapore led with a 30 per cent share, followed by Mauritius (17 per cent) and the United States (11 per cent). Over the last eleven financial years (2014–25), India attracted FDI worth $748.78 billion, reflecting a 143 per cent increase over the previous eleven years (2003–14), which saw $308.38 billion in inflows. This constitutes nearly 70 per cent of the total $1,072.36 billion in FDI received over the past 25 years. Additionally, the number of source countries for FDI increased from 89 in FY 2013–14 to 112 in FY 2024–25, underscoring India's growing global appeal as an investment destination. In the regulatory domain, the government has undertaken transformative reforms across multiple sectors to liberalise FDI norms. Between 2014 and 2019, significant reforms included increased FDI caps in defence, insurance, and pension sectors, and liberalised policies for construction, civil aviation, and single-brand retail trading, the statement said. From 2019 to 2024, notable measures included allowing 100 per cent FDI under the automatic route in coal mining, contract manufacturing, and insurance intermediaries. In 2025, the Union Budget proposed increasing the FDI limit from 74 per cent to 100 per cent for companies investing their entire premium within India, the statement added. FDI inflows India, Foreign Direct Investment 2024-25, Services sector FDI, Manufacturing FDI growth, Maharashtra FDI share, Global investment trends
India.com
4 days ago
- Business
- India.com
Indias FDI Inflows Jump 14% To Cross $81 Billion In 2024–25
New Delhi: India's FDI inflows increased to $81.04 billion in FY 2024-25, marking a 14 per cent increase from $71.28 billion in FY 2023–24, according to a statement issued by the Ministry of Commerce and Industry on Tuesday. There has been a steady rise in the annual flow of FDI into the country over the last 11 years, from $36.05 billion in FY 2013-14, due to the investor-friendly policy, under which most sectors are open for 100 per cent FDI through the automatic route, the statement said. The services sector emerged as the top recipient of FDI equity in FY 2024–25, attracting 19 per cent of total inflows, followed by computer software and hardware (16 per cent), and trading (8 per cent). FDI into the services sector rose by 40.77 per cent to $9.35 billion from $6.64 billion in the previous year. India is also becoming a hub for manufacturing FDI, which grew by 18 per cent in FY 2024–25, reaching $19.04 billion compared to $16.12 billion in FY 2023–24. Maharashtra accounted for the highest share (39 per cent) of total FDI equity inflows in FY 2024–25, followed by Karnataka (13 per cent) and Delhi (12 per cent). Among source countries, Singapore led with a 30 per cent share, followed by Mauritius (17 per cent) and the United States (11 per cent). Over the last eleven financial years (2014–25), India attracted FDI worth $748.78 billion, reflecting a 143 per cent increase over the previous eleven years (2003–14), which saw $308.38 billion in inflows. This constitutes nearly 70 per cent of the total $1,072.36 billion in FDI received over the past 25 years. Adding further, the number of source countries for FDI increased from 89 in FY 2013–14 to 112 in FY 2024–25, underscoring India's growing global appeal as an investment destination. In the regulatory domain, the government has undertaken transformative reforms across multiple sectors to liberalise FDI norms. Between 2014 and 2019, significant reforms included increased FDI caps in defence, insurance, and pension sectors, and liberalised policies for construction, civil aviation, and single-brand retail trading, the statement said. From 2019 to 2024, notable measures included allowing 100 per cent FDI under the automatic route in coal mining, contract manufacturing, and insurance intermediaries. In 2025, the Union Budget proposed increasing the FDI limit from 74 per cent to 100 per cent for companies investing their entire premium within India, the statement added.
