India and Peru aim to finalize FTA in 2025

In this edition of Business Bytes, we read more on:

• Odisha’s Deputy Chief Minister and Tourism Minister, Pravati Parida, highlighted the state’s “limitless potential for tourism”
• India and Peru are advancing toward a free trade agreement (FTA) expected to be finalized in 2025, which would strengthen their growing economic relationship.
• Aditya Birla Group Chairman Kumar Mangalam Birla expressed optimism about increasing investments in the US, citing President Trump's positive stance towards India
• This week, we’ve observed intriguing developments in the dollar’s movement. Although the dollar held steady around familiar levels, it’s on the verge of ending its four-week winning streak
• Businesses with a turnover above ?250 crore, down from the previous ?500 crore threshold, and all central public sector enterprises (CPSEs) must now register on the RBI's TReDS invoice discounting platform
• October retail inflation in India is projected to spike to 6.15%, surpassing the RBI’s 6% tolerance threshold, primarily due to surging food prices and a diminishing base effect from last year

Happy Reading!

Odisha is poised for a tourism surge

Odisha’s Deputy Chief Minister and Tourism Minister, Pravati Parida, highlighted the state’s “limitless potential for tourism”. Odisha presents a diverse array of attractions, from the Buddhist Circuit and Puri-Konark Heritage Corridor to exciting adventure sports and authentic local experiences, she said.

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LEAD STORY

India and Peru aim to finalize FTA in 2025

India and Peru are advancing toward a free trade agreement (FTA) expected to be finalized in 2025, which would strengthen their growing economic relationship. Bilateral trade between the two nations has seen consistent growth, driven largely by gold exports to India, with exports to India reaching US$ 3.5 billion between January and September 2024 alone. An FTA could further enhance this trade by reducing tariffs and providing greater market access, benefiting key sectors in both countries.

For India, the FTA presents an opportunity to increase exports of vehicles, cotton, and pharmaceuticals, while Peru stands to gain new markets for its minerals, agricultural products, and processed foods. As the world’s third-largest copper producer, Peru aims to diversify its trade partners and reduce dependency on individual markets. The FTA aligns with Peru’s broader strategy to expand its global partnerships, building on existing agreements and actively seeking trade ties with major economies across Asia.

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HIGHLIGHT OF THE DAY

Aditya Birla Group Chairman Kumar Mangalam Birla expressed optimism about increasing investments in the US, citing President Trump's positive stance towards India and pro-industry approach. Birla highlighted the group's ongoing projects in the US, including a recycling and rolling plant in Alabama scheduled to begin operations in the next fiscal year.

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MSMEs to have access to collateral-free loans

Finance Minister Nirmala Sitharaman unveiled a new credit guarantee scheme for MSMEs, offering collateral-free loans of up to Rs. 100 crore. The scheme is designed to address the challenges MSMEs face in obtaining term loans for machinery and expansion.

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Forex Insights

US Dollar on verge of ending its four-week winning streak

We’ve observed intriguing developments in the dollar’s movement. Although the dollar held steady around familiar levels, it’s on the verge of ending its four-week winning streak. This shift in momentum deserves our attention, especially with significant economic events and political dynamics unfolding soon.

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FACT OF THE DAY

Businesses with a turnover above ?250 crore and all central public sector enterprises (CPSEs) must now register on the RBI's TReDS invoice discounting platform, as per the MSME Ministry's latest notification. This platform includes options like RXIL, M1xchange, Invoicemart, and C2treds. The mandated onboarding deadline is the end of this financial year. The previous threshold was ?500 crore.

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October retail inflation expected to breach RBI’s tolerance

October retail inflation in India is projected to spike to 6.15%, surpassing the RBI’s 6% tolerance threshold, primarily due to surging food prices and a diminishing base effect from last year. This anticipated rise, highlighted by a Union Bank of India report, signals ongoing inflationary pressures, with a focus on Kharif harvest outcomes and winter crop impacts to help stabilize prices in the coming months.

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