Briefing, 26 August 2024

ModiWatch: Modi's visit last week to Kyiv was the first by an Indian Prime Minister in history. He met with Ukrainian President Volodymyr Zelenskyy, and they oversaw the signing of four agreements: (i) Cooperation in Agriculture and Food Industry; (ii) Regulation of Medical Products; (iii) Indian Humanitarian Grant for Community Development Projects; and (iv) Cultural Cooperation for 2024-2028. The India-Ukraine Joint Statement addressed political relations, peace efforts, economic and scientific collaboration, defence ties, and cultural exchanges. Modi having visited Putin in Moscow last month will have pleased Zelenskyy with the symbolism of India providing aid to Ukraine.

On Friday the PM chaired the Union Cabinet, yesterday the PM was in Maharashtra officiating at a number of events and later on Sunday apologised to dignitaries for being delayed by monsoon weather in attending the Platinum Jubilee celebrations of the Rajasthan High Court in Jodhpur.

India’s first-ever National Space Day: Friday marked the first anniversary of the successful landing of the Vikram Lander on the surface of the moon. Minister of State for Space Dr. Jitendra Singh highlighted the increase in space start-ups in India, now numbering nearly 300, following the opening of the space sector to private participation. He reiterated the Finance Minister’s forecast that India’s space economy will expand from $8 billion to $44 billion in the next decade.

India-U.S. defence ties soar: During his ongoing visit to the U.S. (August 23-26), Indian Defence Minister Rajnath Singh met with U.S. Secretary of Defence Lloyd Austin at the Pentagon. They signed two key documents: the Security of Supplies Arrangement (SOSA), aimed at bolstering defence supply chains, and a Memorandum of Agreement for deploying Liaison Officers. India will send its first Liaison Officer to the U.S. Special Operations Command in Florida. Singh also encouraged U.S. defence companies to collaborate with Indian partners to advance the Make in India initiative and promote joint development and production. For more on defence sector collaboration see our report "India's Government Has Ambitions for Surging Defence Exporters".

India and US strengthen civil nuclear and space collaboration: In a meeting by Union Minister Dr. Jitendra Singh, the two nations reaffirmed their commitment to deepening cooperation in science, technology, and clean energy. Highlights include an Indian astronaut joining the International Space Station, efforts to secure global supply chains in critical sectors like semiconductors, pharmaceuticals, and clean energy technologies, and a focus on India's Green Hydrogen Mission. The countries are exploring Small Modular Reactors (SMR) for clean energy transition and strengthening collaboration in emerging technologies. This partnership aims to advance technological leadership, boost economic growth, and address climate goals, marking a significant step forward in Indo-US relations in the nuclear and space sectors.

India's biotech Boost: The Cabinet has approved the BioE3 Policy, focusing on biotechnology for economic growth, environmental sustainability, and job creation. Key features include support for R&D and entrepreneurship in biotechnology, establishment of Biomanufacturing and Bio-AI hubs, promotion of regenerative bioeconomy and green growth, and expansion of skilled workforce opportunities. The policy aligns with India's 'Net Zero' and 'Lifestyle for Environment' initiatives, aiming to advance a sustainable and innovative future while supporting the vision of a developed India.

Government unveils Unified Pension Scheme: The Union Cabinet has approved the Unified Pension Scheme (UPS) for government employees joining after January 1, 2004. The scheme features a 50% assured pension, 60% family pension, a minimum pension of ₹10,000, inflation indexation, and a lump sum payment at retirement, all while ensuring the assured pension remains unaffected.

India-Singapore Summit: Union Minister Piyush Goyal, along with other key Indian ministers including, Nirmala Sitharaman (Finance), S. Jaishankar (External Affairs), and Ashwini Vaishnaw (Railways, IT), will attend the second India Singapore Ministerial Roundtable (ISMR) today. The delegation will discuss strategies with Singaporean leaders to strengthen bilateral trade and investment. Prior to the event, Goyal will meet with global business leaders in Singapore to explore new opportunities.

India-Australia trade talk: The tenth round of India-Australia Comprehensive Economic Cooperation Agreement (CECA) negotiations took place in Sydney last week. Discussions covered goods, services, digital trade, government procurement, rules of origin, and agri-tech. Negotiators reviewed bilateral trade relations and reaffirmed their commitment to enhancing the economic partnership, building on the India-Australia Economic Cooperation and Trade Agreement (ECTA) implemented in 2022. The next round of CECA negotiations is expected in November 2024. Incidentally AusTrade is currently sponsoring a 10 city promotion for Australian wine across India. If you fancy attending a tasting contact AusTrade.

Government bans 156 combination drugs: The Indian government has banned 156 fixed-dose combination (FDC) drugs, including common painkillers, antibiotics, and multivitamins. A gazette notification on August 21, 2024, cited potential risks to human health and the availability of safer alternatives as reasons for the prohibition. FDCs, also known as “cocktail drugs,” combine multiple active ingredients in a single pill. The ban primarily affects medications used for pain relief, fever, and cold symptoms. More multivitamin combinations are currently under review.

India and Sri Lanka Conclude tenth Mitra Shakti Joint Exercise: The 10th edition of Mitra Shakti, a joint military exercise between India and Sri Lanka, wrapped up on Saturday at the Army Training School in Maduru Oya, Sri Lanka. The two-week drill, which began on August 12, focused on enhancing interoperability and mutual understanding between the two armies. The exercise aimed to strengthen defence relations, improve combat skills, and build proficiency in tackling transnational terrorism. The Indian High Commission emphasised the importance of this annual event in deepening the close defence relationship between the two nations through professional respect, personal bonding, and extensive training interactions.

Delhi Today: Intervals of clouds and sunshine; a morning shower in spots followed by a thunderstorm in spots in the afternoon.

Lok Sabha: Not in session.

Rajya Sabha: Not in session.

Closing prices: Delhi Spot Gold: ₹7,135 ▷ ₹/$: 83.9175▼0.04% BSE Sensex: 81,086.21▲0.041% 10 Year Gilt:6.85% ▷

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