India has decided to extend the duty-free import policy for Urad (split black gram) for another year, allowing imports to continue without import duties until March 31, 2026. This decision was confirmed by a notification from the Directorate General of Foreign Trade (DGFT). The extension aims to stabilize prices for Urad in the domestic market, especially considering the significant imports that India makes, predominantly from Myanmar.

Key Points from the Article:

• India will allow duty-free imports of Urad until March 31, 2026, as announced by the DGFT.
• The previous duty-free status was set to expire at the end of March 2025.
• Myanmar is the principal exporter of Urad to India, with $549 million worth being imported from there during the April-November fiscal period.
• Total Urad imports during this fiscal year reached $601.12 million.
• In the 2023-24 fiscal year, Urad imports totaled $663.21 million, with the majority sourced from Myanmar.
• Other countries that export Urad to India include Singapore, Thailand, and Brazil.
• Bilateral trade between India and Myanmar was valued at $1.74 billion last fiscal, maintaining a trade gap in favor of Myanmar.
• Major states producing Urad in India include Madhya Pradesh, Andhra Pradesh, Uttar Pradesh, Rajasthan, Tamil Nadu, and Maharashtra.
• India stands as the largest producer and consumer of Urad globally.

By extending the duty-free import allowance, the Indian government is taking measures to ensure that domestic prices remain stable in the face of fluctuating production levels and market demands.

The ongoing trade war between the United States and China has experienced a significant pause following high-level negotiations in Geneva. This cessation aims to defuse the escalating tensions caused by heavy tariffs imposed by both countries, which have resulted in devastating implications for global trade and economic stability.

Summary:

• Background of Trade War: The trade conflict initiated on February 1 when US President Donald Trump announced a 10% tariff on Chinese goods, followed by additional tariffs on Mexico and Canada, partially in response to the opioid crisis affecting the US.
• Opioid Crisis Statistics: In 2021, over 100,000 Americans succumbed to opioid overdoses, the majority involving fentanyl, emphasizing the urgency behind Trump’s tariff strategy.
• Escalation of Tariffs: After Trump's tariff announcement, China retaliated with its own tariffs, escalating the conflict. By early April, tariffs reached as high as 145% from the US on Chinese products and 125% from China on US goods.
• Economic Consequences: These tariffs created a trade embargo-like scenario that threatened both economies with severe repercussions, including a significant economic slowdown and job losses. For instance, the US economy contracted by 0.3% in the first quarter of 2025.
• China's Vulnerability: China, heavily reliant on exports, faced prohibitive costs associated with the trade stand-off, mirroring concerns raised regarding its economic health.
• Pause in Trade War: The recent negotiations led to a joint statement between the US and China, recognizing the importance of bilateral economic relations. The pause is seen as a retreat from further escalation, allowing both countries to reassess their strategies.
• Tariff Adjustments: As a result of the negotiations, both sides have reduced their tariffs by 115%, resulting in a 10% tariff on imports from each other. However, the US retained an additional 20% tariff related to the fentanyl issue, meaning US consumers are still grappling with a total of 30% tariffs on many Chinese imports.
• Future Outlook: While the pause halts the immediate damage and buys time for further negotiations, it is crucial to note that no formal trade deal has been reached yet. The situation retains a precarious balance, with ongoing costs affecting consumers and producers.

Important Sentences:

• The US and China have announced a pause in their trade war after two days of negotiations in Geneva.
• The trade conflict escalated when Trump imposed tariffs in response to opioid-related issues and trade deficits.
• By early April, tariffs reached extreme levels, resulting in a virtually embargo-like situation and threatening global economic stability.
• The pause is not a definitive trade deal but rather a temporary halt to escalate tensions further.
• The economic damage has been mitigated, but significant costs remain for both consumers and producers.

The article discusses the implications of a new executive order by U.S. President Donald Trump aimed at reducing drug costs in the United States through a "most favoured nation" (MFN) pricing policy. This policy mandates that the U.S. pharmaceutical companies pay the same price for drugs as the lowest prices found in any other country. While this could reduce prescription drug prices significantly for U.S. consumers, it raises concerns about the potential impact on drug prices in developing countries, such as India, where pharmaceuticals are generally much cheaper.

Key points include:

• Trump's MFN policy aims for the U.S. to pay the same price for drugs as the lowest-priced country globally, effectively realigning drug costs.
• The initiative is expected to reduce prescription drug prices in the U.S. by 30% to 80%.
• There is concern that this policy will lead to pressures on countries like India to increase their drug prices, as lower-cost markets will influence U.S. pricing strategies.
• India's generic drug industry, which is crucial for supplying affordable medicines globally, faces increased scrutiny and potential price hikes due to external pressures from pharmaceutical giants and international trade agreements.
• The Indian patent regime has been criticized by developed countries, prompting the U.S. to place India on a "Priority Watch List" for intellectual property rights (IPR) issues.
• Experts warn that as U.S. firms face stricter pricing controls, they will seek to raise drug prices in markets like India to maintain profit margins.
• Ajay Srivastava from GTRI highlighted the need for India to respond strategically to these pressures, emphasizing the importance of preserving its current patent laws to ensure affordable access to medicines.
• India's compliance with the WTO's TRIPS agreement allows it to resist additional patent protections ("TRIPS-plus"), which tend to favor pharmaceutical corporations.
• An Indian pharma executive mentioned that the Trump's order might impact margins for distributors rather than Indian generic manufacturers, suggesting that profits are currently held within an opaque supply chain in the U.S.
• The U.S. pharmaceutical sector, largely comprised of patented drugs (79%), remains a critical point of concern for maintaining effective drug pricing strategies.
• Stock reactions were evident in pharmaceutical markets, with concerns over profit impacts leading to a sell-off in stocks both in the U.S. and India.

This situation highlights the complex interplay between drug pricing policies, international trade, and the pharmaceutical landscape, necessitating a measured response from India to safeguard its competitive position in the global market while ensuring access to affordable medications for its population.

Summary:

India and the U.K. have agreed on a Free Trade Agreement (FTA) after three and a half years of negotiations, marking a significant move in bilateral relations. The Indian Commerce Minister, Piyush Goyal, proclaimed that the FTA would set new standards for trade between the two nations, although details of the agreement are still under wraps. The deal is expected to be finalized in about three months and is projected to take over a year before implementation.

• Trade Dynamics:
  • The U.K. is India's 16th largest trading partner, and India ranks 11th for the U.K.
  • Current bilateral trade stands at about $60 billion, with expectations to double by 2030.
  • The agreement could potentially boost bilateral trade by an additional $34 billion, according to the British government.

The FTA will allow India to eliminate tariffs on 99% of its export products, particularly benefiting sectors like textiles, leather, footwear, auto parts, engineering, and gems and jewelry. Meanwhile, the U.K. expects to reduce tariffs on 90% of its export categories, with a significant drop in tariffs for alcoholic beverages and automobiles from the U.K., which are poised to improve their market access in India.

• Tariff Reductions:
  • Tariffs on U.K. alcoholic beverages will decrease from 150% to 75%, eventually reducing to 40% over a decade.
  • Automobile tariffs will drop from over 100% to 10%, subject to quotas based on price and capacity for electric vehicles.

The agreement includes provisions for Indian workers in the U.K., permitting them to work without social security contributions for three years, thus addressing a point of contention during negotiations.

However, the FTA raises concerns regarding its potential effects on agriculture and small and medium enterprises (MSMEs). Critics argue that previous trade agreements have negatively impacted Indian farmers by driving prices down, specifically referencing the experience with Sri Lanka and the ASEAN FTA.

• Concerns:
  • Possible negative impact on Indian agriculture, specifically for the small landholding farmers.
  • Risks to the policy tools necessary for developing local capacities in vital sectors like defense and health systems, particularly concerning MSMEs that rely on government contracts.

Furthermore, the agreement allows U.K. companies improved access to Indian government procurement contracts, which could deepen India's import dependency. The FTA also overlooks the U.K.’s proposed Carbon Border Adjustment Mechanism (CBAM), which poses potential consequences for Indian exports of aluminum and steel, prompting fears of mutual retaliatory measures between the countries.

Important Sentences:

• India and the U.K. have reached an FTA agreement after prolonged negotiations.
• The FTA is expected to enhance bilateral trade from approximately $60 billion, potentially adding $34 billion.
• India will eliminate tariffs on 99% of its export products, securing advantageous trade conditions in textiles and automotive sectors.
• The U.K. will significantly reduce tariffs on alcoholic beverages and automobiles in India.
• Tensions remain regarding the impact on agriculture and MSMEs, with fears of price drops and competition.
• The agreement allows U.K. companies favorable conditions to bid on Indian government contracts, raising dependency concerns.
• The U.K.'s carbon pricing could affect exports from India, leading to possible retaliatory measures, adding to trade uncertainties.

The Sample Registration System (SRS) report for 2021 indicates that India's Total Fertility Rate (TFR) has stabilized at 2.0 children per woman, consistent with the previous year's figures. The report reveals significant demographic changes and trends in the country’s population distribution over the years.

Summary:

• TFR Overview: The TFR for India remains at 2.0 children per woman in 2021, unchanged from 2020.
• Regional Variations: The highest TFR (3.0) is observed in Bihar, whereas Delhi and West Bengal have the lowest TFR at 1.4.
• Age Demographics:
  • The percentage of the population aged 0-14 has declined from 41.2% in 1971 to 24.8% in 2021.
  • The economically active population, aged 15-59 years, has risen from 53.4% to 66.2%.
  • The elderly population (60+) has increased from 6% to 9%, with those aged 65+ growing from 5.3% to 5.9%.
  • Kerala shows the highest percentage of population aged 60 and above at 14.4%.
  • States with lesser elderly populations include Bihar (6.9%), Assam (7%), and Delhi (7.1%).
• Marriage Trends: The mean age at which women marry has climbed from 19.3 years in 1990 to 22.5 years in 2021.
• Census Context: The SRS is a major demographic survey providing annual fertility and mortality data at both state and national levels, conducted across 8,842 sample units covering around 8.4 million people. Census data occurs every ten years, and India is awaiting its next census, which was originally planned for 2021 but is yet to take place.
• Demographic Changes and Challenges: Finance Minister Nirmala Sitharaman announced the formation of a high-power committee during the 2024 interim budget to address challenges from population growth and demographic shifts, even though the SRS data indicates stable population trends.
• Replacement Level TFR: The national replacement level TFR (2.1) is achieved across regions, with several states reporting TFR figures below the replacement level.

Important Points:

• TFR at 2.0 for 2021 maintains stability from 2020.
• Bihar has the highest TFR at 3.0; Delhi and West Bengal the lowest at 1.4.
• The share of the 0-14 age group declined significantly from 41.2% to 24.8% (1971-2021).
• The economically active age group has grown to 66.2%.
• Elderly population (60+) in states like Kerala is 14.4%.
• Mean marriage age for females has increased from 19.3 to 22.5 years.
• Census is crucial for comprehensive demographic understanding and has been delayed since 2021.
• A high-power committee will be formed to address demographic changes, though SRS data shows stable figures.
• National replacement level TFR of 2.1 met, with regions showing varying birth rates.

The SRS report reflects the ongoing demographic transformations in India, highlighting shifts in fertility rates, age distributions, and marriage patterns, while indicating the need for a detailed analysis through upcoming census data.

The International Monetary Fund (IMF) has approved a significant financial support package for Pakistan, allowing for an immediate disbursement of $1 billion as part of its Extended Fund Facility (EFF). This financial assistance comes at a critical time for Pakistan, which has been grappling with economic challenges, including stagnant growth and high inflation rates. Below is a comprehensive summary of the article detailing this development:

Summary:

• IMF Loan Approval: The IMF's Executive Board approved a $1 billion disbursement to Pakistan as part of the 37-month Extended Fund Facility (EFF) initiated in September 2024. This brings the total disbursement under this arrangement to about $2.1 billion.

• Additional Support via RSF: In addition to the EFF funds, the IMF also approved Pakistan’s request for an arrangement under its Resilience and Sustainability Facility (RSF), which grants access to roughly $1.4 billion.

• India's Dissent: India expressed strong dissent against the approval, citing concerns over Pakistan’s potential misuse of IMF funds, suggesting a link to state-sponsored terrorism. India abstained from voting due to procedural constraints.

• Understanding the EFF: The EFF provides financial assistance to countries facing significant medium-term balance of payments problems. The funding is categorized as a loan rather than a grant, requiring repayment over an extended period to allow necessary structural reforms within the borrowing country.

• Pakistan's Economic Background: Pakistan's economy has been under significant strain, with a stagnant GDP of approximately $338 billion in 2023, less than its 2017 value. It has also faced soaring inflation rates, reaching as high as 29.1% in 2023.

• Factors Contributing to Economic Issues: Factors contributing to Pakistan’s economic challenges include:

  • Mismanagement by various governments
  • A high population growth rate
  • Low savings and investment rates
  • Insufficient infrastructure
  • Underutilization of the workforce, particularly women

• Historical Debt: Over the last 35 years, Pakistan has relied heavily on external loans, receiving 28 loans from the IMF, as well as funding from countries and organizations like China, Saudi Arabia, the UAE, and others.

• Reasons for IMF’s Latest Approval: The latest tranche's approval comes on the heels of Pakistan's government making policy and administrative reforms. The IMF acknowledged:

  • Progress in stabilizing the economy amidst global challenges.
  • A reduction in overall government borrowing.
  • A historic low inflation rate of 0.3% in April, signaling improvements in economic conditions.
  • Progress on fiscal reforms, including the Agricultural Income Tax, facilitating rebuilding policy credibility.

Important Points:

• $1 billion disbursement from IMF as part of the EFF for Pakistan.
• Total EFF funds available to Pakistan now at approximately $2.1 billion.
• India’s strong dissent regarding potential misuse of funds by Pakistan.
• IMF’s EFF provides assistance as a loan, requiring repayment.
• Pakistan’s GDP has been stagnant, and inflation has significantly risen.
• Economic mismanagement and insufficient infrastructure are key issues.
• Pakistan has a history of borrowing heavily from various sources.
• IMF approval linked to policy reforms and successful stabilization efforts.

This recent financial support signals the IMF’s commitment to aiding Pakistan in addressing its ongoing economic crises while emphasizing the necessity for reform and responsible management of funds to ensure sustainable recovery.