- Friday, February 28, 2025
By: Shubham Ghosh
HERE are news in brief related to Indian economy and business for Friday, June 23, 2023:
After Indian prime minister Narendra Modi received an exceptional reception during his state visit to the US, with a red-carpet welcome and the rare opportunity to address a joint session of the US Congress for the second time, Arvind Panagariya, professor at Columbia University and former vice-chairman of India’s government think tank NITI Aayog, told Moneycontrol such a level of reception has not been witnessed for any previous Indian prime minister in his 50 years of experience in the US. The extensive media coverage of Modi’s visit and the grand welcome convey a clear message that India is emerging as a significant global player, and its influence will continue to grow if the country can sustain a 7-8 per cent economic growth rate for the next two decades. The geopolitical implications of the US’s recognition and support for India’s rise are significant, as demonstrated by the case of China’s ascent after receiving similar backing from the US. Panagariya emphasised the importance of India’s economic growth in bolstering its geopolitical position.
Boeing has revealed its plans to invest $100 million in India’s pilot training infrastructure and programmes, as stated in a White House release on Thursday. This announcement follows Air India’s recent order for more than 200 aircraft from Boeing, comprising 20 787 Dreamliners, 10 777Xs, and 190 737 MAX narrowbody planes. These developments coincide with a series of agreements signed by American and Indian companies during the meeting between prime minister Narendra Modi and president Joe Biden in Washington.
Indian finance minister Nirmala Sitharaman on Friday held a meeting with France’s minister of economy, finance, and industrial and digital Sovereignty, Bruno Le Maire, during the Summit for the ‘New Global Financing Pact’ in Paris. The ministers discussed important G20 priorities under India’s presidency, such as strengthening multilateral development banks and addressing debt vulnerabilities. France’s minister expressed gratitude for Sitharaman’s participation and India’s contributions to the pre-summit discussions. Sitharaman expressed optimism that the outcomes of the Paris summit would provide momentum for ongoing G20 and multilateral efforts in organizations like the UN, World Bank, and CoP28.
AdaniConneX has successfully raised $213 million for its data centre projects currently under construction. The funds will be used to finance two data centers with a combined capacity of 67 MW, including the Chennai 1 campus with a phase 1 capacity of 17 MW and the Noida campus with 50 MW capacity. This investment will support the development of critical digital infrastructure to facilitate the “Digital India” initiative, aiming to achieve 1 GW of data center capacity by 2030. AdaniConneX is a joint venture between Adani Enterprises Ltd and EdgeConneX, with a mission to build a sustainable 1 GW Green Data Center platform. The company announced that it has secured financing through a framework agreement with international lenders, including ING Bank N.V., Mizuho Bank, Ltd., MUFG Bank, Ltd., Natixis, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation. The involvement of these banking partners will institutionalize the development agenda of AdaniConneX.
BPCL, an Indian state-run refiner, is reportedly in discussions with Russia’s Rosneft to purchase approximately six million metric tons (43.8 million barrels) of discounted Russian crude oil. The pricing of this deal would be based on the Dubai benchmark, according to sources, and it reflects India’s growing reliance on its largest oil supplier amidst Western sanctions on Moscow. This agreement also signifies Rosneft’s strategic shift towards pricing its oil against the Middle Eastern benchmark, which is widely used in Asia, as opposed to the Europe-dominated Brent. The pending deal entails Rosneft delivering 6 to 7 monthly cargoes, each comprising around 700,000 to 720,000 barrels, to BPCL until March 2024. Negotiations are at an advanced stage, focusing on payment terms and other contract details, the sources said.
India and the US have reached an agreement to resolve six trade disputes at the World Trade Organisation (WTO), leading to the removal of retaliatory tariffs on specific American products by India. These disputes involved countervailing measures, solar cells and modules, renewable energy, export-related measures, and additional duties on steel and aluminum products. The resolution of these disputes aims to expand market opportunities for US agricultural producers and manufacturers. Both countries expressed their commitment to deepening bilateral cooperation and strengthening their economic relationship, including trade ties. This agreement is seen as a significant victory and mutually beneficial for both nations, eliminating all pending India-US disputes at the WTO. The US had imposed import duties on steel and aluminum products, to which India responded with customs duties on various American goods. The resolution of these disputes contributes to enhancing the trade relationship between India and the US, with the bilateral goods trade reaching $128.8 billion (£101.4 billion) in 2022-23.
(With agencies inputs)
