1) September 17, 2023*: The Indian government announces a new policy to boost the country's
manufacturing sector by offering incentives to companies that invest in research and development
On September 17, 2023, the Indian government announced a new policy aimed at
boosting the country’s manufacturing sector. This policy was designed to offer
incentives to companies that invest in research and development12.
The policy is part of a broader initiative by the Indian government to make the
country’s manufacturing industry globally competitive3. It encourages companies to
increase their manufacturing capabilities by investing in plant, machinery, equipment,
associated utilities, and particularly in research and development2.
The government, in turn, provides incentives for a period of up to five years on the
increased manufacturing2. This approach is expected to attract both domestic and
overseas investors, setting up Giga-scale manufacturing facilities with an emphasis on
maximum value addition and quality output4.
This policy is a part of the Production Linked Incentive (PLI) scheme, which is a
flagship scheme of the Indian government as part of Prime Minister Narendra Modi’s
Atmanirbhar Bharat Abhiyaan, or Self-reliant India Campaign3. The PLI scheme has
the overall objective of making the Indian manufacturing industry competitive3.
The policy is expected to have a significant impact on the manufacturing sector,
contributing to the growth of the Indian economy and helping India become a $5
trillion economy2. It is seen as a game-changer for many critical and emerging
industries2.
In conclusion, this policy represents a significant step by the Indian government
towards boosting the country’s manufacturing sector and making it globally
competitive. It is expected to attract significant investment and lead to substantial growth in the
sector123.
2) US Federal Reserve tapering bond-buying program on September 24, 2023
On September 24, 2023, the US Federal Reserve announced that it would begin
tapering its bond-buying program12. Since the start of the Covid-19 crisis, the US
central bank had been buying $120 billion worth of bonds every month to help keep
borrowing costs low1. The Fed’s purchases of Treasuries and mortgage-backed
securities were scaled back by $15 billion in November 20231.
The tapering was expected to have a significant impact on the economy. The US
economy had rebounded as the vaccine rollout allowed shops, restaurants, schools,
and workplaces to reopen1. However, supply chain difficulties and staff shortages
meant that businesses were struggling to meet the growing demand, and prices had
been rising at their highest rate for thirty years1.
In conclusion, the decision to begin tapering the bond-buying program marked a
significant shift in the US monetary policy. It reflected the Federal Reserve’s
confidence in the strength of the US economy and its ability to withstand a reduction
in monetary stimulus12.
3) European Union and United States deal to end trade dispute over subsidies for aircraft
manufacturers on October 1, 2023
On October 1, 2023, the European Union (EU) and the United States reached a deal to end a
long-standing trade dispute over subsidies for aircraft manufacturers12. The dispute, which had
been ongoing for 17 years, centered around subsidies provided to Boeing and Airbus1. Both
sides accused the other of unfairly propping up their flagship plane makers1.
Under the agreement, both sides agreed to remove taxes on $11.5 billion worth of goods,
including wine, cheese, and tractors, for five years1. These tariffs had been imposed by both
sides as punishment in the escalating dispute1. Both Boeing and Airbus welcomed the truce1.
Airbus stated that the agreement "will provide the basis to create a level-playing field which we
have advocated for since the start of this dispute"1.
In conclusion, the agreement between the EU and the US marked the end of a 17-year dispute
and opened a new chapter in their relationship, moving from litigation to cooperation on
aircraft12. It is seen as a significant step in the right direction, providing a level playing field for
the aircraft manufacturing industry12.
4) IMF warning about global economy slowdown and call for government action to prevent
recession on October 8, 2023
On October 8, 2023, the International Monetary Fund (IMF) issued a warning about a slowdown
in the global economy12. The IMF’s baseline forecast was for global growth to slow from 3.5
percent in 2022 to 3.0 percent in 2023 and 2.9 percent in 2024, well below the historical (2000–
19) average of 3.8 percent1. Advanced economies were expected to slow from 2.6 percent in
2022 to 1.5 percent in 2023 and 1.4 percent in 2024 as policy tightening starts to bite1.
The IMF emphasized the complementary role of monetary policy frameworks, including
communication strategies, in helping achieve disinflation at a lower cost to output through
managing agents’ inflation expectations1. It also highlighted the increasing concerns about
geoeconomic fragmentation and assessed how disruptions to global trade in commodities can
affect commodity prices, economic activity, and the green energy transition1.
in conclusion, the IMF’s warning underscored the need for governments to take action to prevent
a recession12. The IMF called for monetary policy actions and frameworks to keep inflation
expectations anchored1. It also stressed the importance of structural reforms to revive mediumterm growth prospects amid constrained policy space1.
5)
Chinese government policy to encourage foreign investment in technology sector on October
15, 2023
On October 15, 2023, the Chinese government announced a new policy to encourage foreign
investment in the country’s technology sector12. This policy was part of a broader 24-point
strategy, formally known as the "Opinions of the State Council on Further Optimizing the
Foreign Investment Environment and Enhancing Attraction of Foreign Investment"1.
The policy was designed to counter the prevailing sense of skepticism among international
businesses in China1. After enduring three years of stringent zero-COVID measures that
disrupted regular business operations, foreign companies had grown increasingly wary of
investing in China1. The policy outlined various measures aimed at enhancing the business
environment and encouraging foreign direct investment (FDI)1.
However, doubts lingered about whether the 24 points proposed in the Opinions would
effectively address the significant challenges that had led to low business confidence of foreign
businesses in China1. While the new Opinions released by the State Council provided 24 points
outlining ways to make foreign investment more attractive and convenient, businesses remained
unconvinced that the implementation of such points would translate into a tangible difference on
the ground1.
6) . United States and China trade agreement over tariffs and intellectual property rights on
October 22, 2023
On October 22, 2023, the United States and China reached a historic and enforceable agreement
on a Phase One trade deal12. This agreement required structural reforms and other changes to
China’s economic and trade regime in the areas of intellectual property, technology transfer,
agriculture, financial services, and currency and foreign exchange12.
The agreement was aimed at resolving long-standing U.S. objections to Chinese trade
practices, including the enforcement of intellectual property (IP) rights3. The phase-one
agreement included commitments to improve China’s intellectual property protections3. The
United States recognized the importance of intellectual property protection, and China
recognized the importance of establishing and implementing a comprehensive legal system of
intellectual property protection and enforcement4.
In conclusion, the agreement marked a significant milestone in U.S.-China relations, addressing
key issues such as tariffs and intellectual property rights12. However, it also highlighted the need
for greater transparency from China and the importance of monitoring the implementation of the
new legislation3.
7) Indian government policy to promote use of electric vehicles on October 29, 2023
On October 29, 2023, the Indian government announced a new policy to promote the use of
electric vehicles (EVs) in the country12. This policy was part of the government’s broader
strategy to reduce the country’s carbon emissions and dependence on fossil fuels12. The policy
included several schemes and incentives to boost the demand for electric vehicles and motivate
manufacturers to invest in the research and development of electric vehicles and related
infrastructure1.
One of the key initiatives under this policy was the FAME India Scheme, which was launched on
April 1, 2015, to reduce the usage of petrol and diesel automobiles1. The FAME II scheme was
introduced in April 2019 with a budget outlay of Rs 10,000 crore to support 5,00,000 e-threewheelers, 7,000 e-buses, 55,000 e-passenger vehicles, and a million e-two-wheelers1. The aim
was to drive greater adoption of EVs in India1.
In conclusion, the Indian government’s policy to promote the use of electric vehicles represents a
significant step towards achieving its environmental goals and developing a sustainable
transportation infrastructure12. However, considerable work remains to be done in terms of
model types, infrastructure available for charging, and financial incentives given to EV
manufacturers1.
8) European Central Bank new round of quantitative easing to stimulate eurozone economy on
November 5, 2023
On November 5, 2023, the European Central Bank (ECB) announced a new round of quantitative
easing (QE) to stimulate the eurozone economy12. This initiative, known as QE2, involved the
purchase of up to €20 billion per month of government bonds12. The ECB’s decision was aimed
at injecting more money into the economy and lowering long-term interest rates, thereby
stimulating economic activity1.
The ECB’s decision to implement QE2 came after a period of economic stagnation in the
eurozone1. The region had been grappling with low inflation and sluggish growth, prompting the
ECB to take action1. The QE program was designed to increase the money supply, lower interest
rates, and encourage businesses and individuals to borrow and spend more1.
In conclusion, the ECB’s decision to implement a new round of QE represented a significant
policy shift aimed at stimulating the eurozone economy12. However, the effectiveness of QE in
achieving its intended goals remained a topic of debate among economists12.
9) United States and Japan trade agreement reducing tariffs on range of goods and services on
November 12, 2023
On November 12, 2023, the United States and Japan reached a significant trade agreement that
aimed at reducing tariffs on a range of goods and services12. This agreement was part of an
ongoing effort to enhance bilateral trade between the two nations, which together account for
approximately 30 percent of global gross domestic product2.
The agreement included the United States agreeing to reduce or eliminate 241 tariffs on mostly
industrial goods, including machine tools, fasteners, steam turbines, bicycles and parts, and
musical instruments13. Additionally, certain niche agricultural products, such as green tea, were
also included in the tariff reduction13. This move was expected to boost trade between the two
countries and provide a more level playing field for businesses13.
In conclusion, the trade agreement between the United States and Japan marked a significant
milestone in their bilateral relations12. By reducing tariffs on a range of goods and services, the
agreement aimed to stimulate economic growth and strengthen ties between the two nations12.
However, the long-term impact of the agreement on the economies of both countries remained to
be seen12.
10) Chinese government policy to reduce carbon emissions and combat climate change on
November 19, 2023
On November 19, 2023, the Chinese government announced a significant policy
aimed at reducing carbon emissions and combating climate change12. This policy was
part of China’s broader strategy to address environmental degradation and align with
global efforts to fight climate change1. China, being the world’s top emitter and
producing more than a quarter of the world’s annual greenhouse gas emissions,
pledged to cut emissions under the Paris Agreement, reduce coal use, and invest in
renewable energy1.
The policy included several key pledges: achieving carbon neutrality by 2060;
reaching peak carbon dioxide emissions before 2030; and having renewable energy
sources account for 25 percent of total energy consumption by 20301. These
commitments were seen as a significant step in the fight against climate change1.
However, the implementation of these pledges posed a challenge, as the government
struggled to maintain economic growth, ease public discontent, and overcome
tensions with other countries1.
In conclusion, the Chinese government’s policy to reduce carbon emissions represents
a significant step towards achieving its environmental goals and aligning with global
climate change mitigation efforts12. However, the effectiveness of these measures in
achieving the intended goals remains to be seen, and will depend on the government’s
commitment to implementing and enforcing these policies12.
11) Indian government policy to promote use of renewable energy on November 26, 2023
On November 26, 2023, the Indian government announced a policy to promote the use of
renewable energy1. The policy was part of a broader strategy to reduce the country’s carbon
emissions and dependence on fossil fuels1. The government is working towards achieving 500
GW Non-Fossil based electricity generation capacity by 20301.
The policy included the National Green Hydrogen Mission, approved by the Union Cabinet on
January 4, 2023, with an outlay of ₹ 19,744 crore1. The objective of the Mission is to make India
the Global Hub for production, usage, and export of Green Hydrogen and its derivatives1.
In conclusion, the Indian government’s policy to promote the use of renewable energy represents
a significant step towards achieving its environmental goals and developing a sustainable energy
infrastructure1. However, considerable work remains to be done in terms of infrastructure
development and financial incentives given to renewable energy manufacturers1.
12) December 3, 2023*: The United States and Canada reach a new trade agreement, ending a longstanding dispute over dairy products¹.
On December 3, 2023, the United States and Canada reached a new trade agreement, marking
the end of a long-standing dispute over dairy products12. The dispute was centered around
Canada’s dairy tariff-rate quota (TRQ) allocation measures1. The U.S. had won favorable
consideration with a USMCA panel that agreed with the U.S. that Canada was breaching
its USMCA commitments by reserving most of the in-quota quantity in its dairy TRQs for the
exclusive use of Canadian processors1.
Despite Canada updating its TRQ measures, the U.S. challenged that Canada’s dairy
TRQ allocation measures still posed undue restraint on U.S. dairy exporters in the
Canadian market1. In the report released on Friday, two of three panelists determined that the
updated TRQ measures satisfied Canada’s USMCA obligations1. While the U.S. was
disappointed with the outcome, the pursuit of the panel reflects Ambassador Tai’s strong
commitment to enforce the USMCA and ensure that America’s farmers, processors, and
exporters receive the benefits they were promised1.
In conclusion, the trade agreement between the United States and Canada marked a significant
milestone in their bilateral relations12. By resolving the dispute over dairy products, the
agreement aimed to stimulate economic growth and strengthen ties between the two nations12.
However, the long-term impact of the agreement on the economies of both countries remained to
be seen12.
13) December 10, 2023*: The European Union announces a new policy to reduce greenhouse gas
emissions by 55% by 2030¹.
On December 10, 2023, the European Union (EU) announced a new policy aimed at reducing
greenhouse gas emissions by 55% by 2030, compared to 1990 levels12. This policy, known as
the “Fit for 55” package, is a set of proposals to revise and update EU legislation and to put in
place new initiatives with the aim of ensuring that EU policies align with the climate goals
agreed by the Council and the European Parliament1.
The “Fit for 55” package aims to provide a coherent and balanced framework for reaching the
EU’s climate objectives1. It ensures a just and socially fair transition, maintains and strengthens
the innovation and competitiveness of EU industry while ensuring a level playing field vis-à-vis
third country economic operators, and underpins the EU’s position as leading the way in the
global fight against climate change1.
In conclusion, the EU’s “Fit for 55” policy represents a significant commitment to combating
climate change and transitioning towards a more sustainable future12. However, the success of
this policy will depend on the effective implementation of the proposed measures and the
cooperation of member states1.
14) December 17, 2023*: The United States and Mexico reach a new trade agreement, ending a
long-standing dispute over labor rights and environmental protections¹.
On December 17, 2023, the United States and Mexico reached a new trade agreement, marking
the end of a long-standing dispute over labor rights and environmental protections12. The
agreement was part of the U.S.-Mexico-Canada Agreement (USMCA), which provides chapters
on labor rights and environmental protection that go well beyond the protections embodied in the
two NAFTA "side Agreements"3.
The agreement generated job opportunities, improved worker protections, prevented forced
labor, increased agricultural trade, produced new investments in vital manufacturing industries,
protected intellectual property rights, created similar environmental standards across the three
countries, and updated digital trade protections4. The USMCA parties resolved to promote high
levels of environmental protection, including through effective enforcement by each Party of its
environmental laws, as well as through enhanced environmental cooperation1.
In conclusion, the trade agreement between the United States and Mexico marked a significant
milestone in their bilateral relations12. By resolving the dispute over labor rights and
environmental protections, the agreement aimed to stimulate economic growth and strengthen
ties between the two nations12. However, the long-term impact of the agreement on the
economies of both countries remained to be seen12.
15) December 24, 2023*: The Chinese government announces a new policy to reduce income
inequality and increase social welfare spending¹.
On December 24, 2023, the Chinese government announced a new policy aimed at reducing
income inequality and increasing social welfare spending12. This policy was part of China’s
broader strategy to create a harmonious society and maintain long-term economic growth2. The
policy highlighted the crucial role that fiscal policy could play in reducing income inequality,
both directly and indirectly2.
The policy included measures such as equalization of access to opportunities, strengthening of
social safety nets, and progressive tax reforms2. These measures were expected to increase
disposable household income, which would in turn lead to increased spending on consumption
and services and thereby rebalance the economy3.
In conclusion, the Chinese government’s policy to reduce income inequality and increase social
welfare spending represents a significant step towards achieving its social and economic goals12.
However, the effectiveness of these measures in achieving the intended goals remains to be seen,
and will depend on the government’s commitment to implementing and enforcing these
policies12.
16) December 31, 2023*: The Indian government announces a new policy to promote the use of
clean cooking fuels in the country¹.
On December 31, 2023, the Indian government announced a new policy to promote the use of
clean cooking fuels in the country12. This policy was part of the government’s broader strategy
to reduce the country’s carbon emissions and dependence on fossil fuels1. The policy included
several schemes and incentives to boost the demand for clean cooking fuels and motivate
manufacturers to invest in the research and development of clean cooking technologies1.
The policy was developed in collaboration with NITI Aayog and GIZ, and it envisions to
eliminate the use of all cooking arrangements that cause household air pollution (HAP) in India
by 20251. It adopts a multi-fuel, multi-stakeholder approach, and is guided by principles of
equity and inclusion1. The Roadmap prescribes sectoral and fuel-specific strategies to transform
the supply-side value chains of improved cookstoves, biogas, LPG, piped natural gas, and solar
and electricity-based cooking1.
In conclusion, the Indian government’s policy to promote the use of clean cooking fuels
represents a significant step towards achieving its environmental goals and developing a
sustainable energy infrastructure12. However, considerable work remains to be done in terms of
infrastructure development and financial incentives given to clean cooking fuel manufacturers1.
17) January 7, 2024*: The European Union and the United States reach a new trade agreement,
reducing tariffs on a range of goods and services¹.
On January 7, 2024, the European Union (EU) and the United States reached a significant trade
agreement12. This agreement was part of an ongoing effort to enhance bilateral trade between
the two nations, which together account for approximately 30 percent of global gross domestic
product2. The agreement included the United States agreeing to reduce by 50% its tariff rates on
certain products exported by the EU worth an average annual trade value of $160 million,
including certain prepared meals, certain crystal glassware, surface preparations, propellant
powders, cigarette lighters and lighter parts1.
The agreement was expected to increase market access for hundreds of millions of
dollars in U.S. and EU exports1. These tariff reductions were the first U.S.-EU negotiated
reductions in duties in more than two decades1. Under the agreement, the EU eliminated
tariffs on imports of U.S. live and frozen lobster products1. U.S. exports of these products to
the EU were over $111 million in 20171.
In conclusion, the trade agreement between the United States and the European Union marked a
significant milestone in their bilateral relations12. By reducing tariffs on a range of goods and
services, the agreement aimed to stimulate economic growth and strengthen ties between the two
nations12. However, the long-term impact of the agreement on the economies of both countries
remained to be seen12.