India’s growth rate will continue: Nirmala Sitharaman
At an event hosted by the High Commission of India in London on Tuesday (8), Sitharaman offered a confident assessment of India’s economic position amid evolving global trade dynamics.
Nirmala Sitharaman with businessman Vindi Banga, chair of UK Government Investments.
INDIA’S finance minister, Nirmala Sitharaman, highlighted the country’s robust economic resilience during her visit to London this week, stressing domestic demand as a significant attraction for global investment in the face of rising international trade tensions.
At an event hosted by the High Commission of India in London on Tuesday (8), Sitharaman offered a confident assessment of India’s economic position amid evolving global trade dynamics.
“The world has seen depressed growth for over several years. Earlier, it was low interest for long and now it’s going to be low growth for long, and that’s not happy news for anybody,” she said.
Her remarks were made during a session titled ‘Opportunities and challenges for India’s quest to become a developed economy by 2047’.
Baroness Shriti Vadera with Sitharaman.getty image
Sitharaman said, “India has maintained its fastest-growing economy tag continuously now for five years and we still think that momentum may moderate a bit, but it will still be India who will keep that growth.”
The minister noted domestic consumption patterns, and said growth was “calibrated because of the consumption which exists domestically. It is backed by demand for global-standard goods and that is why globalisation since the 1990s has given India many opportunities.”
On trade relations with the US, Sitharaman acknowledged potential challenges but expressed optimism.
“The US is the leading trade partner for India. So, at a time when trade is going to be influenced by tariffs, measures which the US government are taking, we still will have to make sure that the strength India has in domestic demand as a big magnet – which can attract global supplies – must be sustained and boosted,” she said.
Patricia Hewitt with Sitharaman.getty image
Strong domestic demand in India would continue to attract foreign direct investment (FDI) and international manufacturing interests, to satisfy the domestic market and for India as an export hub, the minister added.
Sitharaman positioned India as a key driver of future growth, saying, “We think India, and a few emerging markets, are going to be the engines of growth. The global depressed growth, if it has to pick up, will have to be because of these engines.”
The Indian minister arrived in London on Monday (7) evening on a six-day European tour that will also include a visit to Austria. Her UK itinerary began with the in-conversation session at the High Commission in partnership with the London School of Economics (LSE).
This is set to be followed by a 13th ministerial round of the India-UK Economic and Financial Dialogue (EFD) with her British counterpart, chancellor Rachel Reeves, on Wednesday (9), after Eastern Eye went to press on Tuesday.
The EFD represents a platform between the two nations, facilitating engagement through working groups and between respective regulatory bodies in the financial sector. These include investment, financial services, financial regulations, UPI interlinkages, taxation and illicit financial flows.
The key priorities for the Indian delegation during the EFD include cooperation in the IFSC GIFT City, investment opportunities, insurance and pension sectors, fintech and digital economy initiatives, and mobilising affordable and sustainable climate finance.
During her visit, Sitharaman delivered a keynote address at the India-UK Investor Roundtable. It was attended by CEOs from global organisations and key figures from across the UK financial sector, including pension funds, insurance firms, banks and financial services institutions.
She also co-hosted a roundtable with UK secretary of state for business and trade, Jonathan Reynolds.
The event, organised in partnership with the City of London Corporation, brought together senior management representatives from prominent pension funds and asset managers in the UK.
The ongoing India-UK Free Trade Agreement (FTA) negotiations featured prominently during these discussions.
Following her engagements in the UK, she will travel to Austria, where she is scheduled to hold meetings with Austrian finance minister Markus Marterbauer and the chancellor, Christian Stocker.
Sitharaman and Wolfgang Hattmannsdorfer, the Austrian minister for economy, energy and tourism, will co-chair a session with key Austrian CEOs to apprise them of existing and upcoming opportunities in India, aimed at fostering deeper investment collaboration between the two countries.
TRADE talks between India and the US have hit a roadblock over disagreements on duties for auto components, steel and farm goods, Indian government sources said to Reuters, dashing hopes of reaching an interim deal ahead of president Donald Trump's July 9 deadline to impose reciprocal tariffs.
Here are the key issues at play:
HURDLES TO A TRADE DEAL
India's dependence on agriculture – a major source of rural jobs – has made it politically difficult for New Delhi to accept US demands for steep tariff cuts on corn, soybean, wheat and ethanol, amid risks from subsidised US farm products.
Domestic auto, pharmaceutical, and small-scale firms are lobbying for only a gradual opening of the protected sectors, fearing competition from US firms.
The US is pushing for greater access to agricultural goods and ethanol, citing a significant trade imbalance, along with expanded market access for dairy, alcoholic beverages, automobiles, pharmaceuticals, and medical devices.
"LACK OF RECIPROCITY"
Despite India offering to cut tariffs on a range of farm products, give preferential treatment to US firms, and increase energy and defence purchases, Indian officials say they are still awaiting substantive proposals from Washington amid Trump's erratic trade policies.
Indian exporters remain concerned about US tariff hikes, including a 10 per cent average base tariff, 50 per cent on steel and aluminium, and 25 per cent on auto imports, as well as a proposed 26 per cent reciprocal duty that remains on hold.
STRATEGIC ALIGNMENT
Indian policymakers see the US as a preferred partner over China but remain cautious about compromising policy autonomy in global affairs.
The US is India’s largest trading partner and a major source of investment, technology, energy, and defence equipment.
TENSIONS OVER PAKISTAN
India remains wary of deeper strategic ties after Trump’s perceived tilt toward Pakistan during a recent conflict between the neighbours, which raised doubts about US reliability.
GROWING INDIAN EXPORTS TO US
New Delhi is confident exports will continue to grow, especially in pharmaceuticals, garments, engineering goods and electronics, helped by tariff advantage over Vietnam and China.
India's goods exports to the US rose to over $87 billion in 2024, including pearls, gems and jewellery worth $8.5 billion, pharmaceuticals at $8 billion, and petrochemicals around $4 billion.
Services exports – led by IT, professional and financial services – were valued at $33 billion in 2024.
The US is also India's third-largest investor, with over $68 billion in cumulative FDI between 2002 and 2024.
US EXPORTS TO INDIA
US manufacturing exports to India, valued at nearly $42 billion in 2024, face high tariffs, ranging from 7 per cent on wood products and machinery to as much as 15 to 20 per cent on footwear and transport equipment, and nearly 68 per cent on food.
According to a recent White House fact sheet, the US average applied Most Favoured Nation (MFN) tariff on farm goods was 5 per cent compared to India’s 39 per cent.
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Vedanta Resources, which is based in the UK and owned by Indian billionaire Anil Agarwal, has been working on reducing its debt. (Photo credit: Getty Images)
VEDANTA LTD said on Thursday that its parent company, Vedanta Resources, has signed a loan facility agreement worth up to £438 million with international banks to refinance existing debt.
The refinancing move, where old loans are replaced by new ones, often at better terms like lower interest rates, has led ratings agencies such as S&P Global Ratings and Moody's to upgrade their outlook on the company this year.
According to Vedanta's exchange filing on Thursday, the lenders involved in the deal include Standard Chartered Bank and its Mauritius unit, First Abu Dhabi Bank, Mashreqbank, and Sumitomo Mitsui Banking Corp.
Vedanta Resources, which is based in the UK and owned by Indian billionaire Anil Agarwal, has been working on reducing its debt.
The company lowered its net debt by £876m, bringing it down to £8.1 billion in fiscal 2025.
(With inputs from Reuters)
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Trump said that while deals are being made with some countries, others may face tariffs.
US PRESIDENT Donald Trump on Friday said a "very big" trade deal could be finalised with India, suggesting significant movement in the ongoing negotiations between the two countries.
“We are having some great deals. We have one coming up, maybe with India. Very big one. Where we're going to open up India," Trump said at the “Big Beautiful Bill” event at the White House.
The president also mentioned a trade agreement with China but did not provide details. "Everybody wants to make a deal and have a part of it. Remember a few months ago, the press was saying, 'You really have anybody of any interest? Well, we just signed with China yesterday. We are having some great deals," he said.
‘Some we are just gonna send a letter’
Trump said that while deals are being made with some countries, others may face tariffs. "We're not gonna make deals with everybody. Some we are just gonna send a letter saying thank you very much, you are gonna pay 25, 35, 45 per cent. That's an easier way to do it," he said.
Trump's comments come as an Indian delegation led by chief negotiator Rajesh Agarwal arrived in Washington on Thursday for the next round of trade talks with the US.
Talks ahead of July 9 deadline
Both countries are working on an interim trade agreement and are aiming to conclude it before July 9. The US had announced high tariffs on April 2, but the Trump administration suspended them until July 9.
Agriculture and dairy remain sensitive areas for India, which has not included dairy in any of its free trade agreements so far. India is cautious about offering duty concessions in these sectors.
The US is seeking duty reductions on items such as industrial goods, automobiles (especially electric vehicles), wines, petrochemical products, dairy products, and agricultural goods like apples, tree nuts, and genetically modified crops.
India, on the other hand, wants duty concessions for sectors such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas.
ASDA, one of Britain’s largest supermarkets, has reported a pre-tax loss of £599 million for 2024, swinging sharply from a £180 million profit the previous year.
The loss comes despite total sales rising by over £1 billion to £26.8bn, as the retailer faces mounting debt costs, falling sales, and spiralling spending on a major IT overhaul, the Telegraph reported.
The main blow to Asda’s finances has come from its heavy debt load, a legacy of its £6.8bn buyout by the Issa brothers and private equity firm TDR Capital in 2021.
According to the report, the company’s debt pile, now close to £5bn, has become much more expensive to service as interest rates have risen. Last year, finance costs jumped by 38 per cent to £611 million, up from £441 million the previous year
Asda said it was forced to pay higher rates after refinancing part of its debt, putting further pressure on its bottom line.
Another major factor behind the loss is the ongoing “Project Future” – Asda’s multi-year plan to separate its computer systems from former owner Walmart. The project has been beset by delays and cost overruns, with total spending now approaching £1bn, far above its original budget
Last year alone, Asda spent £310m on the IT transition, which has included job cuts and outsourcing as the company tries to control costs. Problems with the new systems have also led to pay errors for thousands of staff.
While overall revenue rose thanks to new store openings, underlying sales have slipped. Like-for-like sales, excluding fuel, fell by 3.4 per cent to £21.7bn, with food sales down 3.7 per cent.
Meanwhile, Asda’s share in the UK grocery market has dropped to a record low of 12.1 per cent, with the retailer losing ground to rivals such as Tesco, Aldi, and Lidl
Despite efforts to win back shoppers with price cuts and a new convenience store push, Asda was the only major supermarket to report a sales decline in recent months, analysts said.
The company’s results were also hit by a £378m impairment charge, reflecting a drop in the value of its stores and assets. These one-off costs, combined with the IT spending, were singled out by Asda as the main reasons for the headline loss.
“The reported overall loss is the result of two significant one-off costs,” an Asda spokesman said, pointing to the impairment and Project Future costs. “These are not recurring costs and do not reflect the underlying performance of the business”
Allan Leighton, who returned as chairman last year, has launched a price war and cost-cutting drive to try to restore Asda’s fortunes. He has described many of the company’s problems as “self-inflicted” and is aiming to “turn it into what it was”. However, he has warned that a full recovery could take several years.
Despite the bleak headline numbers, Asda insists its core business remains profitable, with a pre-tax profit of £115m before exceptional items. Adjusted earnings before rent also rose slightly to £1.14bn.
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Mounjaro, or tirzepatide, is part of a new class of weight-loss medications, with trials showing patients losing an average of 20 per cent of their body weight after 72 weeks.
ELI LILLY said on Thursday that it has received approval from India's drug regulator to launch pre-filled injector pens of its weight-loss drug, Mounjaro.
The move gives the company more options to compete with Novo Nordisk, which recently launched its weight-loss drug Wegovy in the country.
Lilly began selling Mounjaro in India in late March for treating diabetes and obesity. Until now, it was available only in 2.5 mg and 5 mg vials.
"With this approval, all six dosage options for Mounjaro will soon be available in India, supporting a more personalised approach to treatment," Lilly India President Winselow Tucker said.
According to a company statement, the Central Drugs Standard Control Organization has approved Mounjaro KwikPen, for once-weekly use, in six dose strengths: 2.5 mg, 5 mg, 7.5 mg, 10 mg, 12.5 mg and 15 mg.
The approval will allow Lilly to compete more directly with Denmark-based Novo Nordisk, which launched Wegovy in India on Tuesday with multiple dose strengths and an “easy-to-use” pen device.
India, with a rising number of diabetes and obesity cases, presents a major market for weight-loss drugs. A study published in the medical journal The Lancet ranks India among the top three countries globally for high obesity rates.
Lilly did not share pricing details. Each Mounjaro pen will have four fixed doses of 0.6 ml.
Mounjaro and Wegovy are part of a class of drugs known as GLP-1 receptor agonists. These help regulate blood sugar levels and slow digestion, which makes people feel full for longer periods.
In India, both companies are expected to face competition from domestic generic drugmakers that are working on lower-cost versions of Wegovy. The drug’s active ingredient, semaglutide, is set to go off patent in India next year.
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