Daily Financial News Analysis – 22nd July’20

Table of Contents

India Ideas Summit

Virtual India Ideas Summit organised by the US-India Business Council
FinMin Nirmala Sitharaman: Indian economy is set for a strong revival on the back of agriculture and allied sectors that are boosting the rural sector
GoI is closely monitoring the movements and if required, it is ready to take actions.

Green shoots are visible.
All sectors of India are open for investment
Minimal public sector presence
Only strategic sectors will require permission
Atmanirbhar Bharat Abhiyan: Rs 20 lakh crore economic stimulus package
Close synchronisation among the financial sector, regulators and monitoring of indicators could drive the recovery trend.
Ratings agency ICRA has revised its forecast for FY21 to 9.5% contraction
The government wants MSMEs to become stronger.

Piyush Goyal: “almost there” in closing a “quick trade deal.”
Preferential trade agreement (PTA) with 50-100 products and services
Both nations are natural partners with shared values and mutual trust.
The US is keen on a deal ahead of the presidential election.
US is ready to restore Generalised System of Preferences (GSP) benefits to India
India: steel and aluminium products and market access for its farm goods.
The US remained India’s top trading partner for the second consecutive year in FY20.
Bilateral trade was at $88.75 billion, up from $87.96 billion in FY19.

European Union leaders agreed on an unprecedented stimulus package worth €750 billion ($860 billion).
This package will pull their economies out of the worst recession in memory and tighten the financial bonds holding their 27 nations together.
German Chancellor Angela Merkel and French President Emmanuel Macron, who drafted an early outline for the proposal in May.
The emergency fund will give out €390 billion of grants and €360 billion of low-interest loans.
All expenditure must be consistent with the Paris Agreement’s goal of cutting greenhouse gases.

Global negotiations are going on at World Trade Organisation
Subject: ending harmful fisheries subsidies
India: we cannot end such support without providing carve outs for small and subsistence fishermen from developing countries.
There should be special and differential treatment for developing countries.
India said that the focus should be on distant water and large-scale industrial fishing.
India has said that the talks should seek greater contribution from those who provide large subsidies, both in value and on per capita basis.

A developing country is not eligible for the exemption if its GNI per capita crosses $5,000 for three consecutive years, has above 2% share in global marine capture, and the share of agriculture, forestry and fishing sectors is less than 10% of its GDP.
It should also be engaging in distant water fishing.