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NEW DELHI: India’s aviation sector is witnessing strong growth, supported by enhanced connectivity, improved airport infrastructure, and emerging potential in sustainable aviation fuel (SAF) development, the International Air Transport Association (IATA) said on Sunday.Speaking at a media briefing during the World Air Transport Summit (WATS) in Delhi, Amitabh Khosla, IATA’s Country Director for India, Nepal & Bhutan, said, “We are also seeing significant increase in the airport infrastructure, so it gives a good foundation, a base on which India will build further.”Khosla also pointed to India’s potential in Sustainable Aviation Fuel (SAF) production, citing the country’s standing as a major ethanol producer. “We understand from our discussions with some of the oil companies in the country that we are looking at India SAF production coming about in 2026,” he said.India, he noted, has the capabilities to become a key player in sustainable aviation, aligning with global decarbonisation goals. Despite this progress, IATA also highlighted persistent challenges related to high operational costs and tax-related uncertainties.This year’s WATS event has drawn approximately 1,700 attendees, and marks the first time IATA’s Annual General Meeting (AGM) is being held in India in over four decades.IATA represents around 350 airlines, accounting for over 80 per cent of global air traffic.According to IATA data, the aviation sector in India directly employs nearly 370,000 people and contributes$5.6 billion to the economy. Including indirect, induced, and tourism-related effects, the industry supports 7.7 million jobs and adds $53.6 billion to India’s GDP- equivalent to 1.5 per cent of total economic output.

Donald Trump had expressed criticism on Friday regarding Beijing’s alleged breach of an agreement. (AI image)

US President Donald Trump and Chinese President Xi Jinping may soon talk to ease the mounting issues in the US-China trade deal. According to US Treasury Secretary Scott Bessent, a conversation between Trump and Xi Jinping might occur “very soon,” suggesting this dialogue could potentially resolve the current deadlock in trade negotiations between the world’s top two economies.Trump had expressed criticism on Friday regarding Beijing’s alleged breach of an agreement reached in Geneva last month, which was brokered by Bessent. The agreement aimed to temporarily reduce the substantial tariffs both nations had implemented, with a planned duration of 90 days.The Wall Street Journal’s Friday report, subsequently verified by US officials, highlighted American concerns regarding China’s deliberate delays in approving export licences for rare earths and other crucial components essential for automobile and semiconductor manufacturing.

Donald Trump Truth Social Post on China

However, Bessent adopted a more conciliatory tone during his appearance on CBS’s “Face the Nation,” expressing confidence that the existing differences between the two nations could be resolved.“I’m confident that when President Trump and Party Chairman Xi have a call that this will be ironed out,” Bessent said, however noting that China was “withholding some of the products that they agreed to release during our agreement.”When questioned about rare earths being amongst those products, Bessent confirmed with a “Yes.”“Maybe it’s a glitch in the Chinese system. Maybe it’s intentional. We’ll see after the president speaks with” Xi, he said.Also Read | ‘Work of fiction…’: Will Donald Trump bury US government in debt with multitrillion-dollar tax breaks? Even Elon Musk is concernedRegarding the timing of a Trump-Xi conversation, Bessent said: “I believe we will see something very soon.”Following Trump’s return to office, the US President imposed huge reciprocal tariffs on most US trade partners, particularly implementing higher rates on imports from China.The escalating retaliatory duties between both nations reached significant levels before May’s reduction, where the US temporarily decreased its supplementary tariffs on Chinese imports from 145 percent to 30 percent.In response, China reduced its additional tariffs from 125 percent to 10 percent.Speaking to ABC’s “This Week,” Commerce Secretary Howard Lutnick said: “We are taking certain actions to show them what it feels like on the other side of that equation.” He noted that China was “slow-rolling the deal.”“Our president understands what to do. He’s going to go work it out,” Lutnick said.Also Read | ‘Even if we lose…’: Donald Trump administration readying two-part strategy to impose reciprocal tariffs, says ‘we will do it another way’

The falling oil prices, influenced by US President Donald Trump‘s policies and OPEC+’s increased output quotas, have pushed crude costs to their lowest since the Covid pandemic, benefiting consumers whilst creating challenges for producers.Brent North Sea crude currently trades below $65, significantly lower than the $120 peak witnessed in 2022 after Russia’s invasion of Ukraine.The declining oil prices have helped reduce global inflation and stimulated growth in oil-importing nations, particularly in Europe. In the US, the consumer price index dropped 11.8 percent year-on-year in April.As Pushpin Singh, an economist at Cebr explained, reduced crude prices enhance consumers’ “discretionary items” spending capacity. The Brent price decrease of over $10 from last year has lowered various fuel costs, potentially reducing consumer goods prices through decreased transportation and manufacturing expenses.While Trump’s trade policies have influenced oil prices, the overall impact on inflation remains uncertain due to potential increases in other resource costs. Singh also noted that lower oil prices could diminish the appeal of renewable energy investments.Oil-producing nations face significant challenges, particularly high-cost producers who must reduce production, according to Ole Hansen from Saxo Bank. Shale producers are especially vulnerable when prices approach $60, with some firms already reducing investments in the Permian Basin.OPEC+ members show varying resilience to low prices. Saudi Arabia, UAE, and Kuwait maintain substantial monetary reserves, whilst Iran, Venezuela, and Nigeria face greater economic pressures due to limited borrowing capacity.Eight major OPEC+ members, including Saudi Arabia and Russia, announced on Saturday their plans to substantially increase crude oil output for July. The coalition’s statement confirmed they would maintain the previously established target of 411,000 barrels per day, which was also set for May and June. This revised production target represents more than three times the volume originally proposed by the alliance.Read more: OPEC+ announces major July output hike as oil prices fall to four-year lowThe recent OPEC+ decision to production by 411,000 barrels daily appears aimed at disciplining quota-breaching members, whilst responding to Trump’s pressure for lower prices. This strategy particularly affects economically vulnerable OPEC members and could impact non-OPEC producers like Guyana, whose recent economic growth has relied heavily on oil revenues.

NEW DELHI: India is projected to witness the fastest growth in its ultra-high-net-worth individual (UHNWI) population globally, increasing by 50 per cent between 2023 and 2028, according to a report by McKinsey & Company and The Business of Fashion (BoF), as quoted by ANI.This anticipated surge aligns with a robust outlook for India’s luxury market, which is expected to grow between 15 and 20 per cent in 2025. The report attributes this growth to structural and demographic shifts, along with expanding retail infrastructure in tier-one cities.Recent developments such as the opening of Jio World Plaza and the planned entry of Galeries Lafayette are expanding luxury retail footprints in major urban centres. Meanwhile, the government has introduced new import taxes on luxury goods priced above Rs 700,000 (approximately USD 8,400) to encourage domestic spending—despite the prevailing 28 per cent Goods and Services Tax (GST) on luxury items.In comparison, Japan- the second-largest market for UHNWIs in Asia- is forecast to see its wealthy population grow by over 12 per cent from 2023 to 2028. Japan’s luxury sector is expected to grow by 6 to 10 per cent in 2025, buoyed by strong domestic consumption and tourism.India’s broader economic ascent is also reinforcing this trend. Niti Aayog CEO BVR Subrahmanyam recently confirmed that India has overtaken Japan to become the world’s fourth-largest economy, citing data from the International Monetary Fund (IMF). According to the IMF’s April 2025 World Economic Outlook, India’s nominal GDP is projected to reach USD 4.187 trillion in FY2026, marginally ahead of Japan’s estimated USD 4.186 trillion.Between 2019 and 2023, the global luxury industry recorded exceptional growth, with demand for personal luxury goods—including fashion, handbags, watches, and jewellery—driving a compound annual growth rate (CAGR) of 5 per cent. Luxury brands outperformed broader markets and achieved record profit margins during this period.However, 2025 has brought a notable slowdown across the sector. The report indicates a decline in luxury value creation for the first time since 2016 (excluding the pandemic-hit year of 2020), with several key growth drivers—including strong Chinese consumer demand—losing momentum.China, which had recorded over 18 per cent annual growth in the luxury segment between 2019 and 2023, is now experiencing economic headwinds that are weighing on global performance.

NEW DELHI: Air India, owned by the Tata Group, is reportedly negotiating with Airbus and Boeing regarding a substantial aircraft acquisition, including approximately 200 additional narrow-body aircraft, supplementing their significant 2023 purchase as part of their extensive renovation programme, according to industry sources quoted by Reuters.The negotiations, which could encompass hundreds of aircraft across various categories according to two sources, build upon previously reported discussions concerning additional wide-body aircraft. Reuters sources indicate Boeing has gained an advantage in potentially supplying additional 777X aircraft.The possibility of another substantial order from India’s national carrier emerged as aviation executives convened in India, the world’s fastest-expanding aviation market, for a Delhi summit where Prime Minister Narendra Modi is scheduled to speak on Monday.In 2023, Air India had placed an unprecedented order for 470 aircraft from both manufacturers, followed by an additional 100 Airbus aircraft order. These consecutive orders coincide with manufacturers facing supply chain difficulties, resulting in significant delivery delays and aircraft shortages.The acquisition of new aircraft is essential for Air India, which experienced limited investment during government ownership. The airline is currently implementing a comprehensive modernisation strategy to regain market share from international competitors.One of the sources indicated the potential narrow-body aircraft order involves 200 units, whilst two others suggested quantities in the hundreds. The timeline remains uncertain, with one source noting pricing negotiations could present challenges as Air India aims to secure terms comparable to IndiGo, which announced new partnerships and additional Airbus orders on Sunday.Also read: IndiGo confirms order for 30 more Airbus A350s, strengthens wide-body fleetSubstantial aircraft orders typically require months of confidential negotiations, with Boeing and Airbus components usually announced separately. India’s aviation sector is growing at approximately 7% annually, according to Airbus projections. However, analysts note that inadequate infrastructure hampers growth, particularly regarding connectivity between smaller towns and major cities.Prior to the aviation conference in Delhi, the International Air Transport Association, representing 300 global airlines, indicated that Indian carriers were positioned for continued rapid expansion, while facing challenges from high fuel costs and taxation.

NEW DELHI: The Reserve Bank of India (RBI) is likely to announce a third consecutive 25 basis points (bps) rate cut on June 6, amid easing inflation and global economic uncertainty driven by US tariff actions. With consumer price inflation remaining below the 4 per cent median target, experts believe the move would support growth during a period of external volatility, according to a PTI report.The Monetary Policy Committee (MPC), the RBI’s rate-setting panel, will begin deliberations on the next bi-monthly policy on June 4. The decision is scheduled to be announced on Friday, June 6.Following 25 bps repo rate cuts in both February and April, which brought the key policy rate down to 6 per cent, the six-member MPC, led by RBI Governor Sanjay Malhotra, also changed its policy stance from ‘neutral’ to ‘accommodative’ in April.The central bank has now reduced the policy repo rate by a cumulative 50 bps in 2025 so far, prompting multiple banks to lower their External Benchmark Lending Rates (EBLRs) and Marginal Cost of Funds-Based Lending Rates (MCLR).“We do believe that given the rather benign inflation conditions and the liquidity situation which has been made very comfortable through various measures of the RBI, the MPC would go in for a 25 bps cut in the repo rate on the (June) 6th. The commentary on both growth and inflation will be important as there are expectations of revisions in their forecasts for both the parameters,” said Madan Sabnavis, chief economist, Bank of Baroda. He also expects the RBI to provide detailed insight into global factors affecting the Indian economy, especially in light of the expiration of US tariff relief in July.ICRA’s chief economist, Aditi Nayar, also projects continued monetary easing through the year, as CPI inflation is forecast to remain below 4 per cent for most of the fiscal. “A 25 bps rate cut is expected next week, followed by two more cuts over the subsequent two policy reviews, taking the repo rate to 5.25 per cent by the end of the cycle,” she said.The RBI’s annual report, released on Thursday reiterated the central bank’s plan to manage liquidity operations in line with the prevailing monetary policy stance, ensuring sufficient liquidity for the productive sectors of the economy.The government has mandated the RBI to maintain CPI-based retail inflation at 4 per cent, with a flexibility band of plus or minus 2 per cent.Assocham Secretary General Manish Singhal also supported the case for easing, citing multi-year low inflation and overall positive macroeconomic indicators. “Though the INR is likely to come under depreciation pressure in the short term, especially if global interest rates (e.g. in the US) remain elevated, its impact will depend on the changes in global risk appetite, crude oil prices and the Fed’s own monetary stance. We emphasize the importance of strategic patience over aggressive easing, given the current environment of steady growth and manageable inflation,” said Singhal.Echoing similar sentiments, Signature Global founder and chairman Pradeep Aggarwal expressed hope that the RBI would offer relief to homebuyers with a rate cut. “Given that several scheduled commercial banks have been reducing their lending rates following the previous two RBI MPC outcomes, another rate cut at this juncture would act as a catalyst for increased housing demand across segments. As a result, both first-time homebuyers and investors are likely to be encouraged to enter the real estate market, further strengthening demand across the sector,” Aggarwal said.Also read: RBI slaps Rs 54.78 crore in penalties on banks and NBFCs for compliance lapses in FY25An article in the RBI’s May Bulletin highlighted that domestic bond yields have declined to multi-year lows, aided by back-to-back policy rate cuts and liquidity-enhancing measures. The report noted that monetary and credit conditions are evolving in line with the RBI’s accommodative policy approach, aiming to bring inflation in line with targets while bolstering growth.India’s GDP growth is estimated to have dipped to a four-year low of 6.5 per cent in FY 2024–25. Meanwhile, retail inflation in April 2025 eased to 3.16 per cent- the lowest year-on-year print since July 2019.

GUWAHATI

The North East Confederation of Small Tea Growers’ Association (NECSTGA) has sought steps, including weather-based crop insurance and regulation of leaf-dealing agents, to safeguard the 200-year-old beverage industry.

In a memorandum to the Chairperson of the Parliamentary Standing Committee on Commerce, the NECSTGA pointed out that the woes of small tea growers need to be addressed as they accounted for 52% of India’s total tea production.

The association’s president, Diganta Phukan, and secretary general, Binod Buragohain, said the quality of tea has been deteriorating because certain players blended poor quality teas, and unscrupulous agents acted as a bridge between small tea growers and bought leaf factories.

A bought leaf factory is a tea processing plant not associated with any estate or plantation group. A bought tea factory produces granular or orthodox teas, largely from leaves procured from small tea growers through agents or suppliers.

“More than 90% of the leaves are transported to the BLFs (bought leaf factories) by the agents, and 50% of these leaves are damaged during transportation,” the NECSTGA said, lamenting that small tea growers do not get the right prices because the bought leaf factories pay for the leaves through these agents.

“All agents should be regulated by the Tea Board of India through a monitoring mechanism,” the association said, calling for transparency in the supply chain to maintain the quality of tea.

Referring to Prime Minister Narendra Modi’s avowed focus on the northeastern region, the NECSTGA said the Centre should treat tea like other crops, including paddy and wheat, and come up with a minimum or sustainable support price policy. The small tea growers, in particular, have been finding it tough to stay afloat due to the increasing cost of production.

Underlining the impact of climate change on tea plantations, the association said weather-based crop insurance had become necessary for the small tea growers to cover damage due to drought and heavy rainfall. “Tea bushes have been damaged and green leaf production has been declining (due to extreme conditions),” it said.

The other suggestions of the NECSTGA include promotional schemes to increase the per capita consumption of tea in India to one kilogramme from the current 840 grams, and a brand name for Assam tea. It said the image of Assam tea had suffered without branding, which necessitated adherence to quality.

“Blenders are making tea brands in different names by adding poor quality made (processed) teas from various sources,” the association said.

The NECSTGA also said the Tea Board of India’s schemes should be made available for small tea growers across the northeastern States, beyond Assam.

VinFast Asia CEO Pham Sanh Chau

VinFast, the electric vehicle arm of Vietnam’s Vingroup, is preparing a bold entry into the Indian market- setting the stage for direct competition with Tesla. With bookings for its vehicles scheduled to open this month, VinFast is banking on its VF7 and VF6 models to establish itself as a premium EV brand in one of the world’s fastest-growing auto markets.Pham Sanh Chau, CEO of VinFast Asia and Vietnam’s former ambassador to India, confirmed that the company aims to launch its vehicles ahead of the upcoming festive season. “We have our products in 16 countries, including Southeast Asia, the Middle East, the US… and VinFast will come to India with an entire ecosystem. Our first target is to position ourselves as the premium EV car in India through the VF7 and VF6, which we plan to roll out in the country by the festival season this year,” said Chau, as quoted by news agency PTI. Though Tesla is widely expected to enter the Indian market with fanfare, Chau downplayed notions of rivalry. “We don’t see Tesla, or even BYD for that matter, as competition. Our mission is green mobility. Anyone who shares that dream will be our friend,” he said. Still, VinFast’s plans clearly signal its intent to compete in the same space Tesla is eyeing- affluent urban buyers willing to pay a premium for electric innovation.“In Vietnam, we are the biggest selling car company, the largest charger and taxi service provider. We have done everything in Vietnam, and this is the time for us to go global. We wanted to enter India as it is a growing, dynamic automobile market,” Chau announced talking about expanding in India.VinFast has already invested $500 million in its new manufacturing facility in Thoothukudi, Tamil Nadu, with a total outlay of $2 billion committed by 2030. The plant, completed in just 15 months with strong state and central government support, will serve both the Indian market and export destinations in the Middle East and Africa. Initial production capacity is pegged at 50,000 units annually, with a ramp-up to 150,000 planned based on demand.To support its launch, VinFast will showcase its models at high-traffic locations such as shopping centres and airports before bookings open. The VF7 and VF6, currently manufactured in Vietnam, will be imported initially, though localisation is central to the company’s long-term strategy. “Localisation will help with government incentives, reduce costs, and make us more competitive,” Chau also said, adding that the company does not currently benefit from duty exemptions in India.Pricing has not yet been finalised, but Chau promised it would be “affordable” despite the premium positioning. “India is a sensitive market, and we will have an affordable price,” he said, while stressing the VF7 and VF6 will be “premium vehicles.”Beyond manufacturing, VinFast is laying the foundation for an EV ecosystem in India. This includes dealer networks, authorised service centres, charging infrastructure, and a used vehicle exchange program. Talks with state governments are underway to establish charging stations, with Chau expressing confidence in attracting support from Indian investors as well.By 2030, VinFast expects to employ up to 3,500 local workers, having already interviewed hundreds of engineering graduates from Tamil Nadu, accordingto Chau’s statement to PTI. The company’s expansion plan reflects a deep commitment to India, which Chau described as a “growing, dynamic automobile market.”

Image used for representative purposes

British Airways, operating for over a century in India, is set to expand its routes and flight frequencies, while also capitalising on cargo opportunities emerging from the proposed India-UK free trade agreement (FTA), according to Chairman and CEO Sean Doyle.The airline currently operates 56 weekly flights across five Indian cities- including thrice-weekly services from Mumbai, twice-daily flights from Delhi, and daily operations from Chennai, Bengaluru, and Hyderabad. This marks a significant increase from the 46 weekly flights it operated pre-pandemic. Calling India the airline’s largest single market outside the United States.In an interview with news agency PTI, Doyle said, “India is a very, very important market for British Airways. We’ve seen a 25 per cent increase in capacity compared to pre-pandemic levels, and we plan to continue expanding routes and frequencies.”British Airways will reintroduce first-class service on the Mumbai–London Heathrow route from October 27, using its Boeing 787-9 aircraft. This marks the return of the premium offering after a five-year hiatus, complementing the existing business, premium economy, and economy cabins.Doyle noted the growing importance of India in the airline’s global strategy, especially as demand for air travel surges among the country’s expanding middle class. “We want to be part of the growth of aviation in India. About 2,500 people work for British Airways in India. We see growth here that’s unprecedented in a generation,” he said.Increased cargo traffic is also expected under the FTA, particularly from niche export segments not just from the UK but also from surrounding markets served by British Airways.Commenting on the broader trade landscape, Doyle emphasized the importance of liberalized trade frameworks. “I was extolling the positives of a free trade agreement between the UK and India. Anything moving in the opposite direction needs to be examined closely,” he said, referring to uncertainties around tariffs and trade policies.British Airways is also preparing for future growth through fleet expansion, with a focus on acquiring more wide-body aircraft to support long-haul connectivity. India remains a strategic priority within this plan.He noted distinct travel trends across Indian cities. While Delhi and Mumbai predominantly cater to origin-and-destination (O&D) traffic between India and the UK, Bengaluru and Hyderabad are largely transit points for passengers heading to the United States.“If you look at markets like Bangalore and Hyderabad, that still is very much driven by connecting traffic into the United States… as we launch more services into India, and as we add more services into the United States, we give people more of a one-stop solution to get to more places than they can with any other carrier,,” Doyle added.