Crypto giants set for EU green light amid growing regulatory rift, sources say
Under the EU's new Markets in Crypto-Assets (MiCA) regulation, which came into force earlier this year, member states can issue licences that allow crypto companies to operate throughout the 27-nation bloc.
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Indian Express
3 hours ago
- Indian Express
From the Opinions Editor: India needs a well thought out trade strategy, but first it needs a China strategy
Dear Express Reader Over the past 11 years, the Narendra Modi government has taken several steps to shore up the economic momentum, and put the country on a higher growth trajectory. But, despite its efforts to ensure macroeconomic stability, revive private sector investments and boost household consumption, growth has been less than spectacular. Between 2014-15 and 2024-25, the economy grew at an average of just 6.2 per cent. Now, in its third term, whether pushed by Donald Trump's tariff war or the imperatives of growth, the government is making a determined effort to sew up trade agreements, hoping they will help embed the country into global supply chains, catalyse exports, and push up growth. A trade deal has been struck with the UK, and talks are proceeding with the US and the EU, with many of the issues that have previously held back these agreements being either resolved or sidestepped. These agreements will ensure greater market access and bring down tariffs, improving competitiveness of exports. But the question is: Will these trade deals be enough? Can they alone facilitate India's deep integration with global supply chains? Can the country emerge as a major production hub without integrating more closely with the supply chains that run through South and East Asia which form a vital part of global production systems? The case of Apple is instructive. The dramatic scaling up of the Apple ecosystem in the country — the company has recently said that iPhones sold in the US market will be mostly sourced from India — is a remarkable development. It is a consequence of both the government's production linked incentive scheme and the firm wanting to diversify its production bases away from China. Now, Apple provides a supplier list — a list that represents 98 per cent of the company's direct spend for materials, manufacturing and assembly of its products worldwide. This would include suppliers not only those involved in the production of the iPhone but also in other Apple products. As per this list, in 2023, 156 of the company's suppliers had manufacturing locations in China, 42 suppliers were located in Japan, 35 in Vietnam and 33 in South Korea, and 14 in India. Two years later the numbers would have changed slightly — as per a recent report there are now more than 20 component suppliers in India — but, they would still point towards the centrality of South and East Asia, and China in particular, to the global production system — a fact that cannot be ignored. If India wants to be a part of the production chain of other Apple products and grab a greater share of the value addition in the production process, it would need the smooth flow of components/materials into the country and more component manufacturers to be located here. And therein lies India's conundrum. What is India's China strategy? Should the country also be a part of RCEP (Regional Comprehensive Economic Partnership) and CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership)? In 2019, India chose not to be part of RCEP — the trade agreement that spans China, Japan, South Korea, Australia, New Zealand and the 10 ASEAN member states (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam). The decision to not join was in large part attributed to concerns over China. But the trade relationship with China has only deepened since. And that is the reality, contrary to the desire of reducing the dependence on China. In 2018-19, before India withdrew from RCEP, its trade deficit with China stood at $53.5 billion. By 2024-25, it had surged to $99.2 billion, without RCEP. India, though, is not alone. Even as the US has tried to reduce its reliance on China, its deficit with the country, though it has declined in recent years, stood at a staggering $295 billion in 2024. And this does not account for rerouting of exports through other countries. But, it's not just about companies like Apple. The issue around rare earth minerals — used in a range of sectors such as smartphones, TVs, EV cars, solar panels and jet engines — underlines China's centrality to the global production system. This reality cannot be wished away. China accounts for 90 per cent of global processing of rare earths. With the country placing restrictions on its exports, EV manufacturers in India have reportedly sought the government's intervention in the matter. If these supplies continue to be restricted, India's EV push, and thus its efforts in shifting towards a cleaner vehicle fleet, risk being affected. And that won't be the only sector that is likely to be impacted. There are some reports which suggest that the government has raised the issue of export curbs on rare earth minerals and magnets with China. But it's not just India. Even the US has been affected. In fact, one of the key aspects of the US-China agreement that was announced by Donald Trump is the upfront export of full magnets, and any necessary rare earths by China. It is difficult to see companies move their production to India on the scale that is needed for the country to emerge as a manufacturing powerhouse unless they can be sure of stable trade relations, of supply chains working smoothly, of the seamless movement of components/personnel from other jurisdictions. India needs a well thought out trade strategy. The lack of clarity partly explains the sluggish pace of investments in the country by domestic as well as foreign firms — both of whom seem to be more inclined to invest in other jurisdictions presumably because the risk-return matrix is not as favourable in India. A clear strategy should give these firms the confidence needed to invest in the country. Take care, Ishan
Fibre2Fashion
10 hours ago
- Fibre2Fashion
Widening UK-EU trade gap sparks push for border reforms: Logistics UK
UK exports to the EU have plunged by 23 per cent between 2017 and 2024, exposing a widening trade imbalance since Brexit, according to Logistics UK. 'Between 2017 and 2024, total exports to the EU fell by 23 per cent from 106.4 million tonnes to 82.4 million tonnes, while imports from the EU declined only by 5 per cent - from 111.6 million to 105.5 million tonnes. This suggests UK exporters have faced greater frictions post-Brexit, while imports have been more resilient,' said Phil Roe, president of Logistics UK, speaking at the Multimodal 2025 event at the NEC. Logistics UK's analysis, conducted with MDS Transmodal, showed similar trends in containerised trade, where exports to the EU fell 21 per cent in Twenty-foot Equivalent Units (TEUs), while imports dropped just 5 per cent. Roe pointed out that the UK's reliance on the EU has not changed, but export volumes have declined sharply, indicating greater post-Brexit trade friction for UK businesses. Roe highlighted the broader global context—COVID-19, the Ukraine war, and the Red Sea crisis—but stressed that Brexit-related red tape has created disproportionate burdens on UK exporters. Roe attributed this to perceptions among EU traders that the UK is now more difficult to trade with. 'Trade associations in Netherlands and France tell us that working between the EU and GB is now seen as a specialist job for drivers moving these kinds of products, because of the delays and checks they will face. To put the logistics sector in the best position to help drive growth across the whole economy, the government needs to rectify this by working with the EU to help remove friction and delays at our borders,' he said. Roe called for urgent implementation of reforms agreed at the UK-EU Reset Summit in May. He argued that a border agreement based on dynamic alignment could eliminate many post-Brexit checks, smoothing trade and aiding economic growth. 'It is essential that this agreement is implemented as swiftly as possible and has input from business at every stage so businesses and the wider economy can start reaping the benefits of smoother trade,' Roe concluded. UK exports to the EU fell 23 per cent between 2017 and 2024, while imports dropped just 5 per cent, highlighting a growing post-Brexit trade imbalance, said Logistics UK. Increased red tape has created barriers for UK exporters. President Phil Roe urged swift implementation of reforms from the UK-EU Reset Summit to ease border frictions and restore smoother trade. Fibre2Fashion News Desk (HU)
New Indian Express
13 hours ago
- New Indian Express
Mainland autonomy requires oceanic depth
The Chinese reaction to the American immigration fracas has strategic undercurrents with a view to not only create alternate models but also emerge as a global education hub. I have previously written on the Chinese build-up towards building world class universities through state facilitated policies with a long-term plan. The size and speed at which they are advancing is shaking certain fundamentals of the game. The 'haigui' (sea-turtles) as the foreign educated returning Chinese are called, have been instrumental in building the science and engineering education in many universities like Tsinghua and Peking comparable to America. Some Chinese are looking at Singapore, Hong Kong, Japan, etc. as alternate geographies besides the increasing others who want to develop Chinese University using this turbulence as an opportunity. The Chinese government cannot change what America is doing but certainly is changing what it can do. The Indian side of the foreign landscape is a mixed bag. Surpassing China in terms of growth rate last year, China still retaining the top status of sending the largest number of Chinese to top five destinations—the US, UK, Canada, Australia and France, India is second to China in absolute numbers. India also seems to find an alternate growing interest in Australia, EU, Japan, etc. but needs more efforts to build the native Indian university ecosystem with a foreign touch. Though India and China have invested roughly the same in education (averaging 4.1 per cent to 4.6 per cent of GDP), the Chinese per capita investment is five times more that of India. The lucrative research grants and the magnetic incentives luring back overseas Chinese to China are the double engines of university reforms in China besides revitalising its university autonomy. The UGC Regulations for establishing foreign university campuses in India is a route for foreign universities taking the Pacific or Atlantic or Arabian Sea route to enter India with an oceanic depth in autonomy. The global academic freedom index is a pointer for more university autonomy in India. The regulatory framework for Indian universities in India requires more autonomy which may be given to the top 100 NIRF universities to begin with. There will be marginal collateral damage but it is worth the effort as mainland institutional autonomy requires the oceanic depth that others enjoy. Is anybody listening?
