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Govt Eases Shipping Rules For IFSC Units At GIFT City To Boost Maritime Sector

Govt Eases Shipping Rules For IFSC Units At GIFT City To Boost Maritime Sector New Delhi, Jul 11 (KNN) The government has introduced a policy change aimed at strengthening the country’s maritime services sector and improving its global competitiveness. Units operating in the International Financial Services Centre (IFSC) at GIFT City, Gandhinagar, have been exempted from the licensing requirement for chartering foreign vessels used in export-import (EXIM) and international trade operations. The exemption, issued by the Ministry of Ports, Shipping and Waterways (MoPSW) under the Coastal Shipping Act, 2025, removes the need for eligible IFSC units to obtain approval from the Director General of Shipping for such activities. The move is intended to simplify regulations and create a more business-friendly environment for maritime enterprises. Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, said, “We have laid a strong foundation. The next phase is to unlock the full potential of maritime industry by minimal governance to enhance competitiveness, efficiency that powers India’s journey towards Viksit Bharat.” Boost to Maritime Finance and Investment The reform is expected to support the growth of maritime leasing, ship financing, and ship-owning activities through GIFT City. By reducing regulatory hurdles, the government aims to attract greater global investment and encourage the development of a comprehensive maritime services ecosystem, including asset management and related services. Officials stated that the measure aligns with the broader objective of positioning GIFT City as a leading global hub for maritime finance and services. It is also expected to enhance India’s appeal as a destination for international shipping business. Limited Scope, Existing Rules Unchanged The government clarified that the exemption applies only to the licensing requirement under Section 11 of the Coastal Shipping Act, 2025. The existing cabotage framework and safeguards governing domestic coastal trade remain unchanged. The reform provides flexibility specifically for international and EXIM-related operations without altering domestic shipping regulations. Immediate Implementation The notification has come into effect immediately. Authorities said the step marks continued efforts to strengthen India’s maritime capabilities and build a globally competitive ecosystem through policy reforms and regulatory simplification. (KNN Bureau)

20 hours ago

ONGC To Develop 1.75 MMT Strategic Oil Reserve In Karnataka

ONGC To Develop 1.75 MMT Strategic Oil Reserve In Karnataka Bengaluru, Jul 11 (KNN) State-run Oil and Natural Gas Corporation (ONGC) has approved the development of a 1.75 million metric tonne (MMT) strategic petroleum reserve at Mangaluru in Karnataka, marking the first instance of the country’s largest oil explorer funding such a facility. The company’s board has granted in-principle approval for the Phase-I expansion of the Mangaluru reserve project, along with associated infrastructure, in line with directions from the Ministry of Petroleum and Natural Gas. Details regarding project cost and timelines have not been disclosed. Strengthening Energy Security The move comes amid heightened geopolitical uncertainty and volatility in global oil markets, reinforcing the importance of strategic reserves in ensuring uninterrupted energy supply. India, the world’s third-largest crude oil importer, depends on imports for over 88 per cent of its oil requirements. Strategic petroleum reserves (SPR) are maintained as emergency stockpiles to cushion against supply disruptions or sharp price fluctuations. Expansion of Existing Infrastructure The proposed facility will be developed as an extension of the existing strategic reserve at Mangaluru and will add 1.75 MMT to the country’s storage capacity. India currently maintains about 5.33 MMT of strategic crude storage across facilities at Visakhapatnam, Mangaluru and Padur, managed by Indian Strategic Petroleum Reserves Ltd (ISPRL). The government has also approved a second phase of expansion, including additional capacity at Padur and a new facility at Chandikhol in Odisha. Commercial Use and Partnerships ONGC has indicated that it will engage with the government to explore broader commercial utilisation of the facility, subject to regulatory approvals. The Mangaluru site already hosts crude stored by the Abu Dhabi National Oil Company under arrangements that allow partial commercial use while retaining strategic access. Outlook Recent global developments, including disruptions in key oil transit routes, have highlighted the vulnerability of supply chains for import-dependent economies. The expansion of India’s strategic petroleum reserves is part of ongoing efforts to enhance energy security while supporting rising domestic demand. (KNN Bureau)

20 hours ago

World Bank Backs India’s Rooftop Solar Plan With USD 890 Mn Funding

World Bank Backs India’s Rooftop Solar Plan With USD 890 Mn Funding New Delhi, Jul 11 (KNN) The World Bank’s Board of Executive Directors on Friday approved a USD 890 million financing package to support India’s national rooftop solar programme, aimed at expanding clean energy access, creating jobs and mobilising private investment. The funding will support the government’s PM Surya Ghar: Muft Bijli Yojana, which seeks to promote solar rooftop installations across 10 million households in both rural and urban areas. Financing Structure and Investment Push The package includes an USD 820 million loan from the International Bank for Reconstruction and Development (IBRD), a USD 60 million concessional loan from the Clean Technology Fund and a USD 10 million grant from the Livable Planet Fund, the World Bank said in a statement. In addition, the World Bank plans to mobilise around USD 4.2 billion in private financing through commercial loans to support household-level solar installations. Focus on Jobs and Energy Access The programme is expected to create nearly 1.7 million jobs across the renewable energy value chain, including manufacturing, installation and related services. It also aims to reduce electricity costs for households while encouraging domestic production of solar equipment. India has set a target of achieving net-zero emissions by 2070 and increasing the share of non-fossil fuel sources in its electricity mix to 60 per cent by 2035. Paul Proccee, World Bank Acting Country Director, India, said, “This new financing will help India scale up residential solar, while creating job opportunities across the supply chain and installation ecosystem.” Addressing Gaps in Rooftop Solar Adoption While large-scale solar capacity has expanded significantly in recent years, residential rooftop adoption has remained relatively limited. The scheme is designed to address this gap by offering incentives and improving access to financing for households. Strengthening Ecosystem and Capacity “The program will transform the residential solar market by removing financial barriers and building the capacity of distribution companies, banks, and vendors to deliver integrated service solutions,” Moez Cherif, Task Team Leader of the program noted. “Through collateral-free financing, households can install solar power and significantly reduce their monthly electricity bills,” Cherif added. (KNN Bureau)

20 hours ago

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Govt Prolongs Anti-Dumping Duty On Chinese Steel Tubes, Pipes Till Jan 2027

Govt Prolongs Anti-Dumping Duty On Chinese Steel Tubes, Pipes Till Jan 2027 New Delhi, Jul 11 (KNN) India has extended the anti-dumping duty on certain steel tubes and pipes imported from China until January 27, 2027, aiming to protect domestic manufacturers from low-priced imports, according to a notification by the Ministry of Finance. The duty applies to seamless tubes, pipes and hollow profiles made of iron, alloy or non-alloy steel. It was originally imposed in October 2021 and has now been extended through an amendment issued by the Central Board of Indirect Taxes and Customs (CBIC). Duty Range and Objective The existing anti-dumping duty ranges between USD 961.33 and USD 1,610.67 per tonne. The measure is intended to ensure fair competition and provide a level playing field for domestic producers facing cheaper imports. Authorities clarified that such duties are aimed at addressing unfair trade practices and are not designed to restrict imports or arbitrarily raise prices, PTI reported. Duty on Chemical Imports Also Continued In a separate decision, the government has extended anti-dumping duties on imports of Normal Butanol, also known as N-Butyl Alcohol, from Malaysia, South Africa and the United States for a further five-year period. The chemical is widely used across industries such as paints, coatings, adhesives and other chemical applications. Trade Safeguard Measures Anti-dumping duties are imposed under global trade rules to counter imports priced below fair market value. The extension of these measures reflects ongoing efforts to support domestic industries while maintaining balanced trade practices. (KNN Bureau)

20 hours ago

Private Lenders To Outpace PSUs As Credit Demand Soars: Report

Private Lenders To Outpace PSUs As Credit Demand Soars: Report New Delhi, Jul 11 (KNN) India’s banking sector is expected to witness a strong recovery in earnings over the next few years, with profits projected to grow at a compound annual growth rate (CAGR) of around 15 per cent between FY26 and FY28, according to a report by Motilal Oswal Financial Services (MOFS). The report attributed the outlook to sustained credit growth and steady expansion in net interest income, with private sector banks likely to outperform their public sector counterparts during this period, ANI reported. Credit Growth Remains Strong The report noted that credit growth is expected to stay in the mid-to-high teens in FY27, supported by broad-based demand across sectors. Lending to corporates and services grew by 18.7 per cent and 19.1 per cent, respectively, in May 2026, while credit to the industrial sector has accelerated to mid-teen levels since late 2025. The growth has been driven by higher bond yields and increased working capital requirements among large companies, mid-sized firms and micro, small and medium enterprises (MSMEs), it added. Liquidity Support and Capital Inflows MOFS said recent measures by the Reserve Bank of India (RBI), along with higher foreign capital inflows, have supported liquidity conditions. Easing norms on foreign currency deposits and overseas borrowings are expected to bring in an additional USD 40–50 billion, contributing modestly to overall deposit growth. Deposit Growth Lag Margin Pressures Despite strong lending activity, deposit growth has remained relatively slower at around 10–12 per cent year-on-year in 2026. This has pushed the loan-to-deposit ratio (LDR) to a record high of about 83.4 per cent, indicating tighter funding conditions within the system. RBI’s easing on Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits and overseas borrowings could bring in USD 40–50 billion in forex inflows (about 1.5–1.8 per cent of total deposits), the report noted. MOFS expects net interest margins (NIMs) to stay under pressure in Q1 FY27 as lending rates remain unchanged while earlier rate cuts weigh on margins. With credit growth led by wholesale and MSME lending, banks may struggle to improve pricing power. Elevated deposit rates—especially at mid-sized banks—and a falling current account savings account (CASA) ratio are likely to raise funding costs, the report noted. Medium-Term Outlook Positive While NIMs may remain under near-term pressure, the outlook is positive over the medium term, aided by potential easing in borrowing costs and possible rate hikes by end-FY27, MOFS said, adding that banking sector earnings are expected to grow at ~15 per cent CAGR in FY26–28, with private banks (around 20 per cent CAGR) outperforming public sector banks. (KNN Bureau)

20 hours ago

India's Foreign Exchange Reserves Increase USD 7.26 Billion On Higher FCAs, Gold

India's Foreign Exchange Reserves Increase USD 7.26 Billion On Higher FCAs, Gold New Delhi, Jul 11 (KNN) India's foreign exchange reserves increased by USD 7.26 billion to USD 674.19 billion in the week ended July 4, supported by higher foreign currency assets and gold reserves, according to data released by the Reserve Bank of India (RBI). Foreign Currency Assets Drive Reserve Growth Foreign currency assets (FCAs), the largest component of the reserves, rose by USD 4.51 billion to USD 545.58 billion. FCAs reflect the valuation impact of non-US currencies such as the euro, pound sterling and yen held in the reserve portfolio. State Bank of India (SBI), in a research report, said the increase in foreign currency reserves indicated the RBI's efforts to rebuild its forex buffer. Market participants said the central bank has been absorbing a significant share of dollar inflows, helping replenish reserves amid sustained foreign exchange inflows, reported Business Standard. Gold reserves also increased by USD 2.67 billion to USD 105.21 billion during the week. Special Drawing Rights (SDRs) rose by USD 65 million to USD 18.62 billion, while India's reserve position with the International Monetary Fund (IMF) increased by USD 15 million to USD 4.79 billion. RBI Rebuilds Forex Buffer After Earlier Decline The latest rise follows a USD 5.65 billion decline in the previous reporting week. India's forex reserves had touched a record high of USD 728.49 billion in late February before moderating as the RBI intermittently sold dollars to curb volatility in the rupee. The central bank resumed dollar purchases in June as foreign exchange inflows strengthened. Rupee Ends Week Largely Stable Meanwhile, the rupee ended nearly unchanged at Rs 95.33 per US dollar on Friday, compared with Rs 95.38 in the previous session, supported by lower crude oil prices and a weaker US dollar. However, the domestic currency weakened by around 0.1 percent during the week as geopolitical tensions in West Asia continued to weigh on market sentiment. (KNN Bureau)

20 hours ago

Foreign Inflows, Lower Crude Oil Prices Push Indian Government Bond Prices Higher

Foreign Inflows, Lower Crude Oil Prices Push Indian Government Bond Prices Higher New Delhi, Jul 11 (KNN) Indian government bond prices rose in early trade on Friday, supported by overnight gains in the U.S. Treasuries, lower crude oil prices and continued foreign investor buying, although market participants remained cautious ahead of a Rs 32,000 crore government bond auction. Foreign Inflows Support Bond Market The benchmark 6.94 percent 2036 government bond yield declined 2 basis points to 6.7348 percent. Bond yields move inversely to prices. Foreign institutional investors remained active buyers, purchasing a net Rs 1,500 crore worth of government securities on Thursday, reported Reuters. Overseas inflows into Indian bonds have approached USD 4 billion since early June, driven by expectations that recent policy measures could support India's inclusion in Bloomberg's Global Aggregate Index. Lower Oil, US Treasury Yields Lift Sentiment Brent crude oil prices fell by more than 2 percent to around USD 76 per barrel, easing concerns over inflation and improving India's external sector outlook. Meanwhile, the yield on the 10-year U.S. Treasury note declined about 3 basis points overnight, providing additional support to emerging market debt. Market participants said lower crude prices and softer U.S. Treasury yields have strengthened the appeal of Indian government securities by preserving their yield advantage for foreign investors. Attention is now focused on the government's bond auction, where New Delhi plans to raise Rs 32,000 crore through the sale of five-year and 40-year government securities. OIS Rates Decline Across Tenors In the interest rate market, overnight index swap (OIS) rates declined across maturities as easing oil prices and a stable rupee improved the inflation outlook and reduced expectations of interest rate hikes. The one-year OIS fell to 5.78 percent, the two-year to 5.93 percent, and the five-year to 6.19 percent. (KNN Bureau)

21 hours ago

DGFT Revises TRACE Scheme; MSMEs Eligible For Up To 95% Certification Cost Reimbursement

DGFT Revises TRACE Scheme; MSMEs Eligible For Up To 95 Certification Cost Reimbursement New Delhi, Jul 11 (KNN) The Directorate General of Foreign Trade (DGFT) has revised the guidelines for the Trade Regulations, Accreditations and Compliance Enablement (TRACE) scheme under the Export Promotion Mission (EPM)- Niryat Disha, with enhanced financial support aimed at helping Indian exporters meet global testing and certification requirements. Higher Reimbursement For MSME Exporters According to a trade notice issued on July 1, 2026, the revised scheme seeks to improve the global competitiveness of Indian exporters by reducing technical barriers to trade and facilitating easier access to international markets through support for testing, certification and regulatory compliance. Under the revised guidelines, micro and small enterprises will be eligible for reimbursement of up to 95 percent of testing and certification costs, while medium enterprises can claim reimbursement of up to 80 percent. The scheme provides a maximum reimbursement of Rs 50 lakh per Importer Exporter Code (IEC) per financial year for both categories. The DGFT has also introduced a provision for merit-based exceptions, under which reimbursement beyond the Rs 50 lakh annual ceiling may be considered on a case-by-case basis by a dedicated sub-committee. Approved Certification List To Be Updated Regularly Annexure 1 of the trade notice includes a comprehensive list of approved international, Indian and country-specific certifications eligible for reimbursement under the scheme. The directory will be updated periodically to incorporate new certifications, regulatory standards, conformity assessment requirements and country-specific compliance measures in line with evolving global market requirements. FIEO Seeks Exporters’ Feedback The Federation of Indian Export Organisations (FIEO) has urged exporters to review the approved certification list and identify any missing international or country-specific certification, testing protocol, regulatory approval or compliance requirement relevant to their export markets. Based on industry feedback, FIEO said it will take up such proposals with DGFT for inclusion in the approved directory, enabling more exporters across sectors to avail the benefits of the TRACE scheme. (KNN Bureau)

21 hours ago

Global Uncertainty Pushes India's Business Confidence To Three-Year Low: HSBC

Global Uncertainty Pushes India's Business Confidence To Three-Year Low: HSBC New Delhi, Jul 11 (KNN) Business confidence among India's private sector companies has fallen to its lowest level in nearly three years amid global uncertainty following the Middle East conflict, according to the latest HSBC India Business Outlook survey compiled by SP Global. Business Optimism Falls To Three-Year Low The survey showed the net balance of firms expecting higher business activity over the next 12 months declined to 22 percent in June from 35 percent in February, marking the weakest level of optimism since October 2023. Businesses attributed the subdued outlook to rising input costs, weaker demand, volatile commodity prices, currency fluctuations, policy and tax uncertainty, and higher costs associated with adopting greener technologies and complying with environmental regulations. Global Uncertainty Weighs On Sentiment Pranjul Bhandari, Chief India Economist, HSBC, said optimism regarding business activity and profitability had dropped to its lowest level in nearly three years due to global uncertainty. Despite the decline in sentiment, India's profitability outlook remained stronger than global peers. The survey recorded a profitability net balance of 15 percent, compared with the emerging market average of 5 percent and the global average of 9 percent. Firms Continue To Back Investments Companies also continued to prioritise investment despite weaker earnings expectations. The net balance for planned capital expenditure increased to 19 percent in June from 17 percent in February, while planned spending on research and development rose to 12 percent from 5 percent. Businesses said investments would focus on new product development, digital transformation, artificial intelligence, production expansion, software adoption, and geographical expansion. Hiring Plans Ease As Cost Pressures Rise Hiring intentions, however, weakened during the period, with the net balance of firms planning to increase employment falling to 10 percent in June from 17 percent in February. Manufacturers remained relatively more optimistic about hiring than service sector firms. The survey further found that expectations for non-staff cost inflation reached their highest level since October 2024, reflecting anticipated increases in fuel, energy, raw material, transportation and other operating expenses. However, India remained among the least concerned markets globally on this measure. Confidence Weakens Across Major Economies The report noted that business confidence weakened across most major economies following the outbreak of the Middle East conflict, with optimism improving only in Spain and the United States. (KNN Bureau)

22 hours ago

India Raises WTO Concerns Over Legal Framework Of Proposed E-Commerce Agreement

India Raises WTO Concerns Over Legal Framework Of Proposed E-Commerce Agreement New Delhi, Jul 11 (KNN) India has raised concerns at the World Trade Organization (WTO) over the institutional and legal framework supporting a proposed e-commerce agreement negotiated by a group of member countries, questioning its implementation without the consensus required under WTO rules. India Seeks Clarity On E-Commerce Agreement Framework In a communication circulated to WTO members on July 8, India sought clarification on the interim arrangements adopted by 66 countries to operationalise the Agreement on Electronic Commerce (ECA), negotiated under the Joint Statement Initiative (JSI) launched during the WTO's 11th Ministerial Conference in 2017. The intervention follows a declaration issued by participating countries at the WTO's 14th Ministerial Conference in March outlining interim arrangements for implementing the agreement. On June 10, WTO Director-General Ngozi Okonjo-Iweala circulated the ECA text to members. Questions Raised Over WTO Director-General’s Role India questioned the legal basis for the WTO Director-General to act as the depositary of the agreement, noting that the Marrakesh Agreement authorises this role only for WTO agreements and Annex 4 plurilateral agreements, reported The Hindu. Since the ECA has not been incorporated into Annex 4, India sought clarification on the authority under which the Director-General is receiving instruments of acceptance. Concerns Over Use Of WTO Institutional Resources The submission also raised concerns over the use of WTO Secretariat resources to support the agreement, including servicing its institutional functions, dispute settlement mechanism, and the proposed E-Commerce Committee, which is expected to report annually to the WTO General Council. India noted that proposals to include the agreement in Annex 4 of the Marrakesh Agreement failed to secure consensus in the WTO General Council in February and December 2025, and questioned the institutional basis for the interim arrangements in the absence of member-wide approval. Expert Warns Of Implications For WTO Governance Trade expert Abhijit Das said India had raised an important systemic issue regarding the WTO Director-General assuming responsibilities not provided for under the Marrakesh Agreement. He argued that permitting such arrangements without consensus could weaken the WTO's rule-based and member-driven framework. India has consistently maintained that agreements negotiated by a subset of WTO members cannot become part of the organisation's institutional architecture without consensus, warning that bypassing this principle could undermine the multilateral character of the WTO. (KNN Bureau)

22 hours ago
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