EU Subsidy Restrictions Impact Indian Exports 🌎

Wednesday, July 19th, 2023

Good Morning ☕

Did you hear about this new thing called the Foreign Subsidies Regulation (FSR) in the European Union (EU)? It might affect India's exports to Europe, especially when it comes to stuff like smartphones. The FSR is all about keeping a check on foreign subsidies and making sure there's fair competition in the EU market.

Sometimes the EU surprises us. Remember when they lifted that import ban on Indian mangoes? So who knows, maybe they'll take a chill pill with this FSR thing too. We'll have to wait and see how they implement it and what specific rules they come up with. It could have a big impact on India's exports, or maybe it won't be such a big deal after all.

Important News of the Day

1. EU’s new subsidy rule could hit India’s PLI

The Foreign Subsidies Regulation (FSR) of the European Union (EU) may impact India's exports to Europe, particularly in sectors such as smartphones. The FSR is designed to regulate foreign subsidies and ensure fair competition in the EU market. The World Trade Organization (WTO) prohibits countries from investigating subsidies given by other countries. In the past, the EU has been accused of providing unfair subsidies to European planemaker Airbus. However, there have also been instances where the EU has lifted import bans on Indian products, such as mangoes. The impact of the FSR on India's exports will depend on how it is implemented and its specific provisions.

2. ADB retains India's growth forecast at 6.4% for current fiscal

The Asian Development Bank (ADB) has projected that India's gross domestic product (GDP) will grow by 6.4% in fiscal year (FY) 2023, ending on 31 March 2024, and rise to 6.7% in FY2024, driven by private consumption and private investment on the back of government policies to improve transport infrastructure, logistics, and the business ecosystem. The projection is part of the latest edition of ADB’s flagship economic publication, Asian Development Outlook April 2023, released on 4 April 2023. The growth moderation for India in FY2023 is premised on an ongoing global economic slowdown, tight monetary conditions, and elevated oil prices.

3. Mumbai sees surge in mosquito-borne diseases in July due to monsoon

According to the Brihanmumbai Municipal Corporation (BMC), Mumbai has seen a rise in mosquito-borne diseases in July. Leptospirosis, chikungunya, H1N1, malaria, and hepatitis are among the diseases that have been reported. The BMC has advised citizens to take precautions to avoid mosquito bites, such as wearing long-sleeved clothes and using mosquito repellent. The BMC has also urged citizens to keep their surroundings clean and to not allow water to accumulate, as stagnant water is a breeding ground for mosquitoes.

4. India’s statistical system still has questions to answer

India's statistical system is facing significant challenges and requires reforms to deliver high-quality datasets. The National Statistical Commission has taken a fivefold approach to address these problems. Efforts to reform the statistical system are being made, with the NSO serving as the nodal agency for its development. The lack of a clear roadmap to address the crisis is a concern for producers and users of official statistics. The Indian statistical system is currently decentralized, with administrative statistics being a major component. Strengthening the statistical system in the states and re-examining data collection methods are among the recommendations for improvement.

5. India, Russia explore trade facilitation deal for quicker port clearance

India and Russia are exploring a trade facilitation deal to speed up port clearance. The deal would allow quicker clearance of goods at ports, reducing container handling times, standardizing procedures for getting goods to and from their destinations, and reducing paperwork at borders around the world. The two countries are looking to increase trade flows, with India being a crucial node in the networks they are trying to build. Russia and Iran are also building a new transcontinental trade route stretching from the eastern edge of Europe to the Indian Ocean, which is beyond the reach of any foreign intervention.

Entrepreneur of the Day👨‍💼

In a revolutionary move, three young entrepreneurs, Jayesh Tope, Pushkaraj Salunke, and Pritesh Mahajan, have introduced a groundbreaking concept in India's two-wheeler industry. Their startup, Revamp Moto, unveiled the country's first modular utility platform called Ravamp Moto Mitra. This electric vehicle (EV) comes equipped with more than 10 attachments, making it a versatile and multifunctional mode of transportation.

Based in Nashik, Maharashtra, Revamp Moto is dedicated to developing highly reliable and connected electric vehicles on modular utility platforms. Currently, they have introduced two products, namely "RM MITRA 02" and "RM 25". These battery-less electric vehicles are proudly made in India, emphasizing the founders' commitment to promoting domestic manufacturing.

The electric vehicle market is rapidly expanding worldwide, and Revamp Moto is poised to capitalize on this growth. According to a 2019 report, the global electric vehicle market was valued at $162.34 billion, with experts predicting it could reach $802.81 billion in the near future. The founders of Revamp Moto recognize this immense potential and are determined to establish their brand as a major player in the industry.

When the trio appeared on a popular entrepreneurial show, they showcased their promising startup, accompanied by a massive order of 50,000 units worth Rs. 250 crore. This substantial order piqued the interest of the investors, sparking a fierce competition among the Sharks. Aman Gupta made an initial offer of 1 crore at 3% equity, followed by a counteroffer from the founders of 1 crore at 2% equity. Ashneer then entered the fray with an offer of 1.2 crores at 2.5% equity. After some intense discussions, Aman and Anupam ultimately formed a partnership with the co-founders at a final offer of 1 crore at 2% equity.

The journey of Revamp Moto is just beginning, but the innovative approach and strong market potential make it an exciting venture. With their groundbreaking modular utility platform and a growing demand for electric vehicles, Revamp Moto has the potential to disrupt the two-wheeler industry in India and beyond.

Breaking News: The Scoop You Can't Miss!

1. Govt seeks explanation as Kannada lecturer mocks Chandrayaan-3 mission

The Indian government has sought an explanation from a Kannada lecturer, Hulikunte Murthy, who allegedly ridiculed the Chandrayaan-3 mission on Twitter, claiming that it will fail. Murthy is also a Dalit activist. The government's action comes after the successful launch of the Chandrayaan-3 mission on July 14, which aims to land a rover on the Moon. The previous Chandrayaan-2 mission's lander-rover failed to make a soft landing and crashed during touchdown.

2. India ranks among Apple’s top 5 iPhone markets for the first time: Report

India has become one of Apple's top five iPhone markets for the first time, ranking behind the U.K., Japan, China, and the U.S. in terms of iPhone sales. Apple has been aggressively expanding its manufacturing capabilities in India, with plans to produce 25% of all iPhones by 2025. The country presents a big, long-term opportunity for Apple's iPhones, as it is one of the world's fastest-growing economies and mobile phone markets. However, Apple's challenge in India is its high price tags, which is a significant issue in a price-sensitive market like India.

3. Adani Transmission adds 550 circuit kilometres in Q1

Adani Transmission Limited reported a cash profit of Rs. 915 Cr, up 71% YoY, and a PAT of Rs. 355 Cr, up 66% YoY, for Q1 FY2021. The company acquired operating transmission lines of 550 circuit kilometers during the quarter. The revenue of Adani Transmission Ltd.'s distribution business stood at Rs. 2213 crores, with a growth of 27% YoY, due to a significant jump in energy sales. Gautam Adani, chairman of Adani Group, expects Adani Transmission Ltd.'s revenue to expand by 18% and cross Rs 4,000 crore in annuity income.

4. No GST for free part change in warranty

The Indian government has clarified that no Goods and Services Tax (GST) will be levied on free warranty replacements or parts change in warranty. If both goods and services are given free, then there is no GST on the supply. The clarification comes after the GST Authority for Advance Ruling (AAR) in Maharashtra ruled that a company would have to pay GST on the value of free goods supplied to customers under warranty. The ruling had caused confusion among businesses and consumers. The new clarification is expected to provide relief to businesses and consumers alike.

World News 🌎

• Switzerland fights to contain forest fire near Italy border as winds pick up

• Goldman Sachs CEO David Solomon's growth strategy gains board's support: Report

• Donald Trump claims of ending Russia-Ukraine conflict in ‘24-hours’

• Xi Jinping raises concerns over potential collapse of Chinese Communist Party

• US soldier detained in North Korea after crossing the border: Report

• Blast in Pakistan's Peshawar, several people wounded

• Years after Brexit, UK support to rejoin EU passes 50% for the first time

• Weak global growth seen for medium term: IMF

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