Rajnath lays down ambitious defence production target

Defence Minister Rajnath Singh, speaking at a media seminar on defence production on Saturday, laid down an annual target of Rs 3,00,000 crore in aerospace and defence services and production by 2028-29. The annual export target for aerospace and defence services and production was also raised to Rs 50,000 crore in the same time frame. "Efforts towards jointness and integration have made our military ready to deal with every challenge together," said the defence minister. "The government is focusing on long-term gains and not short-term outcomes to make India 'Viksit Bharat' (Developed India) by 2047". "The aim is to manufacture high-end systems like aero-engines and gas turbines in India in the next five years," he said.Over the preceding years, indigenous defence production growth has been based on a 2018 Ministry of Defence (MoD) roadmap titled the Defence Production Policy of 2018, or DPrP 2018. The 2018 policy set out an annual target of Rs 1,70,000 crore (then $26 billion) in aerospace and defence services and production turnover by 2025. This would be achieved through an additional investment of nearly Rs 70,000 crores (then $10 billion), creating employment for nearly 2 to 3 million people. The 2018 policy also targeted exports of defence goods and services worth Rs 35,000 crores ($5 billion) by 2025. Rajnath said no military could protect its nation with imported weaponry. He said the "government's persistent efforts" towards self-reliance have increased defence production to Rs 1 trillion. "Earlier, India was known to be an arms importer. But today, under the leadership of the prime minister, we have come out of our comfort zone and found a place in the list of ttop 25arms-exporting nations. Seven-eight years ago, defence exports did not even touch Rs 1,000 crore. Today, it has touched Rs 16,000 crore. By 2028-29, annual defence production is expected to touch Rs 3 trillion and defence exports Rs 50,000 crore," said Rajnath. This was to be achieved by creating a tiered defence industrial ecosystem in the country that would achieve self-reliance by 2025 in the development and manufacture of fighter aircraft, medium lift attack and utility helicopters, warships, land combat vehicles, missile and gun systems, small arms, ammunition and explosives, surveillance systems, electronic warfare (EW) and communications systems, night fighting enablers, submarines, unmanned aerial vehicles (UAVs) and training systems such as simulators.  

RBI asks NPCI to look into One97 Communications plea to become TPAP for UPI usage 

The Reserve Bank of India on Friday said it has advised the National Payments Corporation of India (NPCI) to examine the request of One97 Communications Ltd (OCL), the parent of Paytm, to become a Third-Party Application Provider (TPAP) for UPI channel for continued UPI operation of the Paytm app, as per the norms. Unified Payments Interface is an instant real-time payment system developed by NPCI to facilitate inter-bank transactions through mobile phones.It said that in case, NPCI grants TPAP status to OCL, it may be stipulated that ‘@paytm’ handles are to be migrated in a seamless manner. "In the event of NPCI granting TPAP status to OCL, it may be stipulated that ‘@paytm’ handles are to be migrated in a seamless manner from Paytm Payments Bank to a set of newly identified banks to avoid any disruption. No new users are to be added by the said TPAP until all the existing users are migrated satisfactorily to a new handle," the RBI said in a notification on Friday. A TPAP license will ensure that Paytm users can continue to make digital payments via the Unified Payments Interface (UPI). NPCI is entrusted with the supervision with the regulation and the supervision of UPI and related financial services that work on the network. PSPs need to obtain a TPAP license from NPCI to run UPI services and facilitate merchant transactions through partner banks. "For seamless migration of ‘@paytm’ handle to other banks, NPCI may facilitate certification of 4-5 banks as Payment Service Provider (PSP) Banks with demonstrated capabilities to process high volume UPI transactions. This is in line with NPCI norms for minimising concentration risk1. For the merchants using PayTM QR Codes, OCL may open the settlement accounts with one or more PSP Banks (other than Paytm Payments Bank)," the bank said. The cenytra bank further added for seamless migration of ‘@paytm’ handle to other banks, NPCI may facilitate certification of 4-5 banks as Payment Service Provider (PSP) Banks.On the other hand, 22 entities, including Amazon Pay, Google Pay, Mobikwik, PhonePe, and WhatsApp, currently have a TPAP licence.  

Govt allows onion exports to Bangladesh, Mauritius, Bahrain and Bhutan

The government on Thursday permitted traders to export 54,760 tonnes of onion to Bangladesh, Mauritius, Bahrain and Bhutan till March 31.  We have allowed export of 50,000 tonnes of onion to Bangladesh, 1,200 tonnes to Mauritius, 3,000 tonnes of Bahrain and 560 tonnes to Bhutan with immediate effect," Consumer Affairs Secretary Rohit Kumar Singh told PTI. Traders are allowed to export this quantity till March 31. The modalities are being worked out, he said.  Singh said the decision has been taken following a recommendation from the external affairs ministry. Currently, there is a ban on onion exports till March 31. The ban was imposed on December 8, 2023, in order to boost the domestic supply and check price rise.   

Govt hits 79% of revised EV targets under FAME II as of February 18

The Ministry of Heavy Industries has achieved 79 per cent of its revised target for the number of electric vehicles (EVs) — in two-, three-, and four-wheelers — that it had to support under Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India II (FAME II) as of February 18 (including vehicles under processing for subsidy). The revised number of vehicles across the three segments was pegged at 1.73 million in the five years of the scheme (previously 1.5 million) which ends on March 31. Based on segments, the target achieved in electric two-wheelers is 78 per cent, for electric three-wheelers 88 per cent, and for electric four-wheelers much lower at 56 per cent. The details were divulged by the ministry in a FAME II conclave held on February 20 with EV original equipment manufacturers (OEMs) from these three segments.However, the government has to process 514,064 EVs, accounting for 37 per cent of the total number of vehicles under the scheme whose application for subsidy under FAME II is still pending until February 18. Since 2019-20, as many as 1.36 million EVs have applied for subsidy under the scheme. The revised outlay for subsidy for the three segments for five years was at Rs 7,048 crore — which includes Rs 5,311 crore for electric two-wheelers, Rs 987 crore for electric three-wheelers, and Rs 750 crore for electric four-wheelers. Of this, the government has spent and distributed Rs 4,047 crore until February 18, or 57 per cent of the total money earmarked. In 2023-24 (FY24), the disbursements until February 18 have been Rs 2,167 crore.The scheme’s total funding was enhanced from Rs 10,000 crore to Rs 11,500 crore, which includes electric buses, charging stations, and grants for creating capital assets.The ministry said that the subsidies for demand incentive would be eligible for two-, three-, and four-wheelers until March 31, 2024, or until the funds are available.   

India Accepts All Foreign Investment In The Space Industry

In an effort to facilitate business in the nation, the Indian government approved an amendment on Wednesday that permits 100% foreign direct investment (FDI) in the space sector. The government stated in a statement that the FDI policy reform will encourage growth in investment, income, and employment. The government stated in a statement that the FDI policy reform will encourage growth in investment, income, and employment. 

Onion export ban to continue till Mar 31 to keep prices under check: Govt

The ban on export of onion will continue till its previously announced deadline of March 31 as the government is keen to keep prices under check and ensure domestic availability, a top official said on Tuesday. On December 8, 2023, the government had banned export of onion till March 31. Ban on onion exports has not been lifted. It is in force and there is no change in the status," Consumer Affairs Secretary Rohit Kumar Singh told PTI. The government's supreme priority is to ensure enough domestic availability of onion at reasonable prices to consumers, he added. On reports of lifting of the export ban on the commodity, the modal wholesale onion prices shot up 40.62 per cent to Rs 1,800 per quintal on February 19 in Lasalgoan, the country's largest wholesale onion market, from Rs 1,280 per quintal on February 17. Ahead of general elections, the ban is unlikely to be lifted even after March 31 as rabi (winter) onion production is expected to be lower due to less coverage of area especially in Maharasthra, sources said. In the 2023 rabi season, onion production was estimated to be at 22.7 million tonnes. The Agriculture Ministry officials will assess the rabi onion coverage in key growing states of Maharsthra, Madhya Pradesh and Gujarat in the coming days. Meanwhile, the export of onion to friendly countries is allowed on a case-to-case basis after approval from the inter-ministerial group.  

Day after rejecting proposal, farmers ask Centre to accept their demands

Farmer leader Sarwan Singh Pandher on Tuesday sought that the Centre accept their demands, including a legal guarantee on the minimum support price (MSP) for crops and farm loan waiver, and said they will head to Delhi on Wednesday. On Monday evening, SKM (Non-Political) leader Jagjit Singh Dallewal had said, "After holding discussions on two of our forums, it has been decided that the Centre's proposal is not in the interest of farmers and we reject it. Asked if their call for a march to Delhi still stands, Pandher had said, "We will move to Delhi peacefully at 11 am on February 21.The protesting farmers have been staying put at the Shambhu and Khanauri border points between Punjab and Haryana, after their "Delhi Chalo" march to press the BJP-led Centre for various demands, including a legal guarantee on the MSP for crops, was stopped by security forces. The Samyukta Kisan Morcha (Non-Political) and the Kisan Mazdoor Morcha are spearheading the "Delhi Chalo" march. Talking to reporters at the Shambhu border point between Punjab and Haryana on Tuesday, Pandher, who represents the Kisan Mazdoor Morcha, said the farmers have three big demands -- a legal guarantee on the MSP for all crops, the implementation of the "C2 plus 50 per cent" formula as recommended by the Swaminathan Commission and loan waiver. Replying to a question, Pandher said at the meeting with the Union ministers, the farmers proposed that a law on the MSP be enacted by convening a special session of Parliament. On the issue of loan waiver, he said according to government reports, farmers have a total debt to the tune of Rs 18.5 trillion.  

Indias economic growth may exceed 6% for rest of the decade: Goldman Sachs

India’s economic growth may exceed 6 per cent for the rest of the decade, driving more investments from China into the South Asian country, Goldman Sachs Group Inc.’s India economist said. Potential growth is an estimate of the pace an economy can grow at withoucuts ausing excess inflation. India’s central bank governor last month estimated the nation’s potential growth rate was around 7 per cent.Goldman Sachs expects the private sector in India to accelerate investments after nationwide elections. Businesses have deleveraged aggressively and their balance sheets are among the “cleanest that we have seen India in the last 20 years or so,” he said.  The Reserve Bank of India is expected to wait for the Federal Reserve to move before adjusting monetary policy, he said, adding that the RBI’s actions will come in three phases, including easing liquidity, a change in the policy stance followed by interest rate cut.   

India, UK trade pact talks at advance stage; we want a fair deal: Govt

The negotiations for the proposed India-UK free trade agreement are at an advanced stage, and both sides are working to iron out differences on the remaining issues, a top government official said on Thursday. Commerce Secretary Sunil Barthwal said the negotiations are taking time because "we want" to safeguard India's interest. India should commercially gain out of it and we should also be able to safeguard the interest of our farmers, PLI (production linked incentive) scheme goods. So, we are there to see that the deal is a fair deal," he told reporters here. Additional Secretary in the Commerce Ministry L Satya Srinivas said the talks are at an advanced stage and going on at a "very" high level to iron out differences. The 14th round of talks started on January 10.The investment treaty is being negotiated as a separate agreement between India and the UK.The bilateral trade between India and the UK increased to $20.36 billion in 2022-23 from $17.5 billion in 2021-22.On the India-European Union (EU) free trade agreement, the ministry informed that the seventh round of talks is scheduled from February 19-23 here. In June 2022, India and the EU restarted the negotiations for the long-pending trade and investment agreement on Friday after a gap of over eight years.On the India-Pacific Economic Framework for Prosperity (IPEF), Additional Secretary in the ministry Rajesh Agrawal said that legal scrubbing of text on clean and fair economy agreements is underway. He said the supply chain resilience pact will come into force from February 24 this year. To implement this, he said, action plans are being developed to optimise participation in institutional structures under the supply chain pact.  

Services trade surplus hits record $44.9 billion in December quarter

India’s services trade surplus shot up to a record $44.9 billion in the October-December quarter (third quarter, or Q3) of 2023-24 (FY24), growing 16 per cent year-on-year, showing resilience amid strong global headwinds. This is likely to reduce the current account deficit (CAD) in Q3. According to the Reserve Bank of India (RBI) data, services exports grew 5.2 per cent to $87.7 billion during Q3, while services imports contracted 4.3 per cent to $42.8 billion during the same period. India’s CAD moderated to 1 per cent of gross domestic product (GDP) in the first half (April-September) of FY24 from 2.9 per cent of GDP during the same period of 2022-23 (FY23), on the back of a lower merchandise trade deficit and higher net services receipts. Fitch Ratings has projected CAD to narrow to 1.4 per cent of GDP in FY24 and 2024-25 from 2 per cent of GDP in FY23. IDFC Bank has revised downward its CAD estimate to 1.2 per cent of GDP from 1.5 per cent, incorporating a higher monthly services surplus. In the Economic Review released ahead of the Interim Budget, the finance ministry last month said services exports, with a compound annual growth rate (CAGR) of 7.1 per cent during 2011-12 through FY23, combined with the CAGR of remittances of 4.5 per cent during the same period, enabled India’s current account balance to remain within a comfortable range. India’s services exports range from information technology to services provided by doctors and nurses abroad. While the RBI doesn’t release monthly disaggregated services exports data, its classification of services exports released quarterly with balance of payment data includes transport, travel, construction, insurance and pensions, financial services, telecommunications, computer and information services, and personal, cultural and recreational services, and other business services. While software exports dominate India’s services exports, “other business services” exports that primarily include global capability centres (GCCs) have seen a strong ramp-up recently, accounting for 26.4 per cent of the total services exports in the first half (April-September) of FY24, from 19 per cent in 2013-14.  

Dilli Chalo protest: Farmers call ceasefire for now, say will try again tomorrow

Farmers are demanding a law on minimum support price for crops and have said it will march towards Delhi after their talks with a team of union ministers failed on Monday. Farmer leaders on Tuesday evening declared a temporary ceasefire for today and said they would continue with their protest from tomorrow morning. Addressing the media on Tuesday, the farmers said they are worried about the well-being of their members. “Around 60 of our men have sustained injuries. The government is provoking us by attacking us with tear gas shells and rubber bullets,” they said. Farmers are demanding a law on minimum support price for crops and have said it will march towards Delhi after their talks with a team of union ministers failed on Monday. Earlier in the day, farmers began to remove the barricades at the Punjab-Haryana (Shambhu) border, following which the Haryana police fired rounds of tear gas to disperse them. After the confrontation between the farmers and the police at the Shambhu border (Haryana-Punjab), the Tikri border was sealed by the Delhi Police, according to news agency PTI. Additionally, all entry and exit points of the surrounding streets and villages that connect to the highway near Tikri Metro Station were also closed. 'Delhi Chalo' agitation is spearheaded by SKM splinter group Samyukta Kisan Morcha (Non-Political) and the Kisan Mazdoor Morcha.  It urged all like-minded farmer organisations to unite and take part in the February 16 Gramin Bharat Bandh called by the central trade unions. News agency PTI said SKM has written to Prime Minister Narendra Modi demanding Minimum Support Price for crops, slamming action on the farmers' 'Dilli Chalo' march and accusing the government of trying to "project" division among farmer bodies.  

Moodys has a change of heart after a year, revises outlook on 4 Adani companies

The global ratings agency has revised the outlook on Adani Green Energy, Adani Green Energy Restricted Group (AGEL - RG-1), Adani Transmission Step One, and Adani Electricity Mumbai to “stable” from “negative”. Moody's Investors Service on Tuesday revised its outlook on four Adani Group companies to 'Stable', a year after downgrading them to 'Negative' following the damning report by American short-seller Hindenburg. The global ratings agency has revised the outlook on Adani Green Energy, Adani Green Energy Restricted Group (AGEL - RG-1), Adani Transmission Step One, and Adani Electricity Mumbai to “stable” from “negative”. Moody’s has affirmed “Stable” outlook on Adani Ports and SEZ, Adani International Container Terminal Pvt Ltd, Adani Green Energy Restricted Group (AGEL RG-2), and Adani Energy Solutions Limited Restricted Group 1 (AESL RG1). In February 2023, Moody's revised the outlook on the firms to negative reflecting concerns over their access to capital and a potential increase in capital costs following the release of the Hindenburg report, which led to significant and rapid declines in the market value of the Adani Group companies securities. In the ensuing period, the Group has completed a number of debt transactions, including refinancing as well as obtaining new loan facilities, demonstrating its continued access to debt capital at a reasonable cost, Moody's said in a release. "Several high profile equity transactions by large institutional and strategic investors, such as GQG and Qatar Investment Authority, also demonstrated the Group's continued equity market access".