Prime Minister Modi and the President of Cyprus convened a roundtable with business leaders, emphasizing India's economic transformation and opportunities for Cypriot companies. Discussions highlighted India's growth in sectors like aviation, shipping, and digital payments. Agreements were forged to enhance financial services and cross border payments, fostering stronger economic ties and trilateral cooperation. Prime Minister Shri Narendra Modi along with the President of Cyprus, Nikos Christodoulides on Sunday night held a Roundtable interaction with business leaders from Cyprus and India in Limassol. The participants represented diverse sectors such as banking, financial institutions, manufacturing, defense, logistics, maritime, shipping, technology, innovation, digital technologies, AI, IT services, tourism and mobility.
Source: The Economic Times
The Modi government is committed to giving greater emphasis to small entrepreneurs, Finance Minister Nirmala Sitharaman said here on Sunday. Speaking at a credit outreach event where she distributed sanction letters of loans totalling about Rs 5 crore, Sitharaman underscored the government's commitment to financial inclusion, last-mile delivery of credit and the integration of Ladakh's unique cultural identity into the broader developmental framework. At the event, loan sanctions exceeding Rs 5.13 crore were disbursed under key central schemes, such as MUDRA, PM Employment Generation Programme (PMEGP), Stand-Up India and PM Vishwakarma, the finance ministry said in a statement. Beneficiaries ranged from homestay owners and artisans to small entrepreneurs, reflecting the government's focus on micro-enterprise and selfemployment, it said. Sitharaman highlighted that over 64,000 MUDRA loans and more than 600 Stand-Up India loans have been sanctioned in Ladakh, with Leh district accounting for a significant share Public sector banks have shown increased credit activity in the region, with total loan sanctions rising steadily over the last two financial years, she said. The minister commended the expansion of financial infrastructure in Ladakh, with over 500 banking touchpoints and increasing deployment of banking correspondents. She also stressed the need to anchor development in local identity, citing recent initiatives such as the recognition of local languages under the Ladakh Official Languages Regulation Act and the conferring of classical language status to Pali as the most ancient Buddhist texts exist in the language, reflecting the region's rich heritage. She underlined that the Union government is committed to improving access to education in the region. The first-ever cluster university in the Ladakh region (University of Ladakh) was inaugurated in 2019 by Prime Minister Narendra Modi and the Sindhu Central University has been established to provide quality higher education, she said. On the government's commitment to the preservation and promotion of local customs and traditions, Sitharaman said the National Institute of Sowa-Rigpa has been set up to promote the Sowa-Rigpa system of medicine. She also spoke about the government's other initiatives, such as the lifting of a decade-long ban on the export and the GI tagging of Ladakh's Raktsey Karpo apricots, followed by GI tags for Ladakh's Pashmina wool, Shingskos (wood carving), and seabuckthorn products. Sitharaman further outlined the progress made in infrastructure, digital connectivity, and renewable energy, including the BharatNet rollout, mobile network expansion, and green hydrogen projects. The statement said the event brought together public sector banks, NABARD and financial institutions to deepen financial access, especially for the underserved sections, including Scheduled Castes, Scheduled Tribes, women entrepreneurs and remote communities.
Source: The Economic Times
The escalating Iran-Israel conflict is poised to disrupt global trade, potentially increasing freight rates and insurance costs, impacting India's exports to Europe and Russia. Concerns rise over merchant ship movements through the Strait of Hormuz and Red Sea, vital routes for global petroleum and container traffic. The Iran-Israel conflict has further increased global economic uncertainties, impacting world trade, including India's exports, as it is expected to drive up both air and sea freight rates, exporters say. They said that India's exports to Europe and counters like Russia may get impacted due to this war. If the conflict continues for long, the movement of merchant ships through routes such as Strait of Hormuz between Iran and UAE, and Red Sea would be affected.
"The war will further hurt global trade. The situation was gradually improving but now again the trade will be impacted. Our exports to Europe and countries like Russia may get hurt. Freight rates and insurance are expected to increase," Federation of Indian Export Organisations (FIEO) President S C Ralhan said. Indian export consignments gradually started moving through the Red Sea route but now again it would get impacted, he said.
The immediate fallout of the conflict that started on early Friday or June 13 will be freight and insurance charges going up after a period of calm as Red Sea routes were slowly coming back to normal, Mumbai-based exporter and Techno craft Industries Ltd Founder Chairman S K Saraf said. If Iran-Israel war would continue for a week then the situation will be difficult for global trade, Saraf said, adding, "Iran and Israel too are our big trading partners". Cargo ships had gradually returned on Red Sea routes, saving them 15-20 days while moving to US and Europe from India and other parts of Asia. "The merchant ships will again avoid the Red Sea which will lead to escalation of freight costs that will have to be borne by traders. If war would go beyond a week, it can push freight rates by about 50 per cent," he added The present conflict that began with an attack on Israel on October 7, 2023 had brought cargo movement through Red Sea routes to a halt due to attacks by Houthi rebels on commercial shipping. After the US intervened with attacks on the rebels, the firing on commercial ships stopped. "Everything depends on whether the conflict remains localised or expands to include other countries. Its impact will be first felt in global crude oil prices," FIEO Director General Ajay Sahai said. Apart from the Red Sea route, this time transit through Strait of Hormuz is another factor that is weighing on the world energy trade. The Strait of Hormuz, located between Oman and Iran, connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. Around 21 per cent of global petroleum liquids consumption passes through that route. China, India, Japan, and South Korea were the top destinations for crude oil moving through the Strait, Oman also uses this route to supply liquefied natural gas to India. Only Saudi Arabia and the United Arab Emirates (UAE) have operating pipelines that can circumvent the Strait of Hormuz. Last year, the situation around the Bab-el-Mandeb Strait, a crucial shipping route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, escalated due to attacks by Yemen-based Houthi militants. Around 80 per cent of India's merchandise trade with Europe passes through the Red Sea and substantial trade with the US also takes this route. Both these geographies account for 34 per cent of the country's total exports. The Red Sea strait is vital for 30 per cent of global container traffic and 12 per cent of world trade. India's exports to Israel have fallen sharply to USD 2.1 billion in 2024-25 from USD 4.5 billion in 2023-24. Imports from Israel came down to USD 1.6 billion in the last fiscal from USD 2.0 billion in 2023-24. Similarly, exports to Iran of USD 1.4 billion, which were at the same level in 2024-25 as in 2023-24, could also suffer. India's imports from Iran were at USD 441 million in FY25 as against USD 625 million in the previous year. The conflict adds to the pressure world trade was under after the US President Donald Trump announced high tariffs. The government is expected to hold meetings with exporters in the coming days to discuss the recent developments. Based on the tariff war impact, the World Trade Organisation (WTO) has already said that the global trade will contract 0.2 per cent in 2025 as against the earlier projection of 2.7 per cent expansion. India's overall exports that had grown 6 per cent on year to USD 825 billion in 2024-25 were expected to touch USD 1 trillion by the end of this year, according to FIEO, and it could fall well short of this target due to geopolitical uncertainties.
Source: The Economic Times
London, The Free Trade Agreement (FTA) negotiations concluded with India places the UK at a "genuine" competitive advantage in the manufacturing sector, the House of Commons was told this week. During a debate on the bilateral FTA agreed last month, UK Business and Trade Secretary Jonathan Reynolds fielded a series of questions on the advantages of the deal which has been pegged to increase bilateral trade by GBP 25.5 billion annually in the long term. Reynolds reiterated that the pact marked a huge economic win for the UK as the "best deal that India has ever offered". "On advanced manufacturing... a set of advantageous positions has been agreed, putting this country at a genuine competitive advantage, particularly in relation to sectors such as automotive and machinery," said Reynolds, in response to a question by British Sikh Labour MP for Smethwick, West Midlands, Gurinder Singh Josan. "India is traditionally a very protectionist economy, and it is the world's fastest growing big economy. Whether it is for goods or services... or the West Midlands as a whole, there is so much good stuff here to celebrate," added the minister The debate this week comes ahead of UK-India Week, which begins next week as part of the annual India Global Forum (IGF) summit in London. The India-UK FTA is set to dominate the agenda, with Minister of Commerce and Industry Piyush Goyal among the speakers expected to address the forum. It will also mark the launch of the 2025 edition of the 'India Meets Britain Tracker', which analyses the investment flows by Indian companies into the UK. "Indian companies continue to play a pivotal role in the UK's growth story - from job creation to innovation. This year's tracker showcases their growing diversification, scale and resilience, and reflects the growing maturity and confidence of Indian enterprise on the global stage," said Anuj Chande, Partner and Head of South Asia Business Group at Grant Thornton, which produces the annual analysis with the Confederation of Indian Industry (CII). With the UK and India ranking as the sixth and fourth largest economies respectively, the Tracker offers insights into one of the world's most strategic investment corridors following last year's report setting a new record of 971 Indian-owned companies operating in the UK - a figure that has been consistently on an upward trajectory. "Indian businesses are no longer just investing abroad - they are transforming global economies," said IGF founder Manoj Ladwa. According to the UK's Department for Business and Trade (DBT), the India-UK FTA slashes tariffs across the board and is set to increase UK GDP by GBP 4.8 billion and wages by GBP 2.2 billion each year over the next decade.
Source: The Economic Time
Finance Minister Nirmala Sitharaman will meet principal chief commissioners of goods and services tax (GST) and customs on June 20, and those of income tax on June 23, to discuss field-level challenges and make tax administration more efficient and taxpayer-friendly, according to government sources. The meetings aim to review ground-level implementation of tax policies, resolve bottlenecks in taxpayer services, and improve the ease of doing business. On June 20, Sitharaman will speak with field officers from the Central Board of Indirect Taxes and Customs (CBIC), which handles GST and customs. “The meeting will focus on making the GST system easier for honest businesses, especially by reducing delays in GST registration and ensuring that genuine taxpayers are not troubled unnecessarily. The minister is also expected to review issues related to refunds, fake invoicing, and tax evasion cases,” a government official said.
The aim is to make tax enforcement stricter where needed but also friendlier and faster for regular businesses, in line with the government’s goal of improving the ease of doing business, the official said. On June 23, Sitharaman will meet officers from the Central Board of Direct Taxes (CBDT), which handles income tax. That discussion will likely include issues like pending appeals, refund delays, and complaints of high-pitched tax assessments. The minister is expected to hear directly from zonal officers about what’s working and what’s not. “Finance minister to strengthen field-level tax administration and ensure policies are better implemented on the ground without causing problems for honest taxpayers,” another official said.
Source: Business Standard
The latest flashpoint in West Asia is unlikely to affect India's overall crude oil and liquefied natural gas (LNG) supplies, which remain “healthy” as well as imports from West Asia, said petroleum ministry officials. “Inbound volumes are not expected to be impacted. We also have a good stock in line with our medium-term demand estimates. We are monitoring the situation,” a ministry official said. The crisis also does not threaten India's imports directly as it does not import crude oil from Iran. This is because of difficulties in payment to the heavily sanctioned Islamic regime in Tehran, he pointed out.
Source: Business Standard
Patna CM Nitish Kumar on Saturday inaugurated a new industrial unit (Cosmas Lifestyle Pvt. Ltd.) for manufacturing high-quality bags in Bela Industrial Area of Muzaffarpur set up under Bihar Textiles and Leather Policy 2022. Spread over 5 acres of land, the plant has been set up by investing ₹37 crore. The CM saw the bag manufacturing work being done there and talked to the people working in the unit, to know about the production. The workers told Nitish about the bag manufacturing work, cutting, stitching etc. The CM praised and encouraged them. "We are encouraging investors to set up industrial units in the state. Bihar Industrial Investment Promotion Policy has been made to provide facilities to the investors. With the establishment of such an industrial unit, the people around will get employment opportunities and financial help," he said. This industrial unit manufactures high-quality, low-cost bags and related accessories. About 1200 people are getting employment opportunities there and 40 per cent of them are women. Deputy CM Vijay Kumar Sinha, tourism minister Raju Kumar Singh, panchayati raj minister Kedar Prasad Gupta and others were present on the occasion.
Source: ET Manufacturing
Vietnam’s textile and apparel sector will begin transitioning to electric thermal technology later this year with the installation of the country’s first steam-generating heat pump at a garment factory near Hanoi. The project is a collaboration between the Apparel Impact Institute (Aii), WWF, H&M Group, and textile manufacturer Bangjie, whose Hung Yen facility supplies products to the Swedish fashion giant. The pilot marks the first electrification effort in Vietnam’s textile industry, which is one of the largest contributors to the country’s economy and carbon footprint. The electric heat pump will replace coal-fired boilers to provide the facility’s full steam and heat requirements, offering a cleaner and more efficient alternative. The initiative also supports H&M Group’s goal to cut supply chain emissions by 56% by 2030. Bottom of Form Textile manufacturing is highly dependent on thermal energy, which accounts for more than half of its total energy demand. Steam and hot water are critical for dyeing, washing, bleaching, and drying processes. The new system will harness waste heat from factory operations to power dyeing, drying, and setting, while also improving indoor working conditions through air cooling. The project is part of Aii’s Low Carbon Thermal Energy Roadmap, which focuses on early-stage electrification pilots to accelerate adoption and reduce costs over time.
Source: Retail Asia
Turkish industrial production increased by 3.3 per cent year on year (YoY) and decreased by 3.1 per cent month on month (MoM) in April this year, according to the Turkish Statistical Institute (Turkstat). The index for manufacturing increased by 3 per cent YoY and decreased by 3.4 per cent MoM in the month. The index for durable consumer goods decreased by 5.4 per cent YoY and by 0.4 per cent MoM in the month. The energy index increased by 10.4 per cent YoY and by 1.3 per cent MoM in the month, a Turkstat release said. The index for intermediate goods increased by 1.7 per cent YoY and decreased by 0.7 per cent MoM in the month.
Source: Fibre2fashion
Uganda recently announced major tax relief measures for start-up businesses along with reducing import duty on fabrics and garments. Starting July 1, the import duty on fabrics will drop to $2 per kg, or by 35 per cent, whichever is higher, down from the previous $3 per kg. In addition, the duty on imported garments will decrease to $2.5 per kg, or by 35 per cent, down from $3.5 per kg.
Source: Tex Pro
