APRIL 20259INDIA, ITALY TO STRENGTHEN TIES IN NON-COMPETING SECTORS: PIYUSH GOYAL Piyush Goyal, the Union Minister of Commerce and Industry, stated that India and Italy have committed to enhance co-manufacturing and co-designing in sectors where both nations possess complementary strengths rather than competing.At a joint press conference with Antonio Tajani, Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation of Italy in New Delhi, Goyal stated that the nations are working to build effective partnerships across various sectors and transform the strategic partnership into a broad relationship that will greatly enhance India-Italy bilateral trade from the existing $15 billion (around 1.29 lakh crore)."We have shared interests in areas like space. We are working together in the India-Middle East European Corridor, Global Biofuels Alliance, the International Solar Alliance (ISA), Coalition for Disaster Resilient Infrastructure and are making together the EU-India FTA a reality by the end of the year," Goyal said.Goyal stated that India is confident that combining Italy's exceptional design with India's ability to produce high-quality, cost-efficient goods can enhance the resilience of its supply In FY25, enhanced growth in the production of capital, infrastructure, and construction goods during the second half indicates a slow recovery in construction/capital expenditure activities in the latter portion of the fiscal year."The latest RBI Consumer Confidence Survey indicates an improvement in March, in both rural and urban areas. All these factors corroborate the recovery in domestic demand. Healthy rabi output and easing inflation in the fourth quarter also bode well for consumption demand," the report mentioned.Industrial expansion, indicated by the Index of Industrial Production (IIP), decelerated to 2.9 percent in February from 5.2 percent in January (adjusted upward from 5.0 percent), influenced by reduced output growth in the mining and manufacturing industries, whereas electricity saw an increase."On average, IIP growth stood at 4.0 per cent in the fourth quarter as of February, broadly in line with the 4.1 percent recorded in the December quarter," said Crisil.With data now available for eleven months of FY25, the inherent momentum within the sub-sectors of IIP can be emphasized. The IIP manufacturing showed improved performance on average during the latter half of fiscal 2025. This increased growth in areas such as petroleum products, machinery, and textiles occurred in the second half. chains and promote collaboration in sectors such as food processing, shipbuilding, pharmaceuticals, textiles, luxury, and fashion.In his statements, Italian Deputy PM Antonio Tajani mentioned that both nations are prepared for collaborative projects and desire to cooperate in Africa. "Tajani stated, `There are numerous sectors, such as machinery, agri-food, and space (of shared interest).'" Previously, while speaking at the `Italy-India Business, Science and Technology Forum' meeting, Tajani mentioned that sectors such as innovation, AI, supercomputers, space technology, and defense hold opportunities for collaborative partnerships, and both nations should strive to draw investments in these fields.Approximately 100 Italian entrepreneurs have joined Tajani to participate in this bilateral forum meeting. The two nations have consented to hold the upcoming joint commission for economic collaboration in Italy. Commerce Minister Goyal will head a sizable group of Indian entrepreneurs for this meeting. Goyal mentioned that the meeting might occur soon, potentially within a month or two."The foundation has been laid, the blueprint is clear and now the time is only to invest, create and grow into a bright future," Goyal said about the collaboration between India and Italy. Although US tariff increases pose a significant risk to growth predictions, global credit rating firm Crisil estimated a 6.5 percent GDP growth for India in fiscal 2026, with risks leaning towards the downside. Crisil anticipates the RBI's monetary easing will provide some counterbalance to the external challenges."Interest rate cuts, income tax relief and easing inflation are expected to provide tailwinds to consumption this fiscal, while the expected normal monsoon will support agricultural incomes," the report mentioned.Furthermore, the expected decrease in worldwide crude oil prices due to a possible global slowdown are projected to offer further assistance to domestic growth, it mentioned.Increases in US tariffs pose a significant risk to Crisil's GDP growth prediction for fiscal 2026, since uncertainty regarding how long these tariffs will last and their frequent changes may hinder investment.CRISIL FORECASTS 6.5 PERCENT GDP GROWTH FOR INDIA IN FY 2026 AMID US TARIFFS
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