News Buzz

India loses US$ 500 mn on e-transmissions annually

The current tax exemptions on e-transmissions are costing India around US$ 500 million every year, according to a research paper by UNCTAD. The paper estimates a total loss of around US$ 8 billion to 58 developing countries due to the tax exemption, of which India, China, Mexico, Thailand, Nigeria and Pakistan are the highest losers. […]

London Mayor bats for favourable norms for India

Sadiq Khan, the Mayor of London, is championing the cause of framing preferential norms for India, akin to those offered to China, in order to give an impetus to India’s investment in Britain. One such area where China, unlike India, currently enjoys flexibility is easier UK student visa application regulations. He lamented that due to […]

Bangladesh’s exports to India cross US$ 1bn

Thanks to the surging garment exports, India & Poland became major export destinations for Bangladesh, in addition to 9 other economies in 2018-19. According to the data collated by Export Promotion Bureau, Bangladesh’s export income from India in the first ten months (July-April period) of FY’19 amounted to US$ 1.07 billion, 52.98% higher than earnings […]

India recorded trade deficit with 11 RCEP countries in 2018-19

In the financial year 2018-19, India recorded a trade deficit with as many as 11 out of 16 member nations of planned Regional Comprehensive Economic Partnership (RCEP). While India had a trade surplus with Cambodia (US$ 0.1 billion), Myanmar (US$ 0.7 billion), and the Philippines (US$ 1 billion) in 2018-19 vis-à-vis the previous financial year, its […]

US-China tensions to have a ripple effect on Indian economy

According to an analysis by Indian Ratings and Research (Ind-Ra), the trade spat between US & China will lead to the latter dumping its products at predatory rates in emerging markets, including India. Some of the sectors that will be severely impacted in India include steel, polymer & capital goods.  Not only is this to disturb the […]

Turkey laments US move to end GSP benefits

The US has removed Turkey from the list of nations getting benefits under the Generalised System of Preferences (GSP), as threatened by it earlier in March. Turkey was the fifth largest beneficiary in the regime, with the programme covering US$ 1.7 billion of exports to the US, while India is the largest with exports of […]

SOPA urges curbs on imports soyabean & palmolein

Soybean Processors Association of India (SOPA) has urged the government to stop the illegal import of refined soyabean oil and palmolein from Nepal at zero customs duty. This concession, which is given to least developed nations in the SAARC region is proving detrimental to the interests of the domestic producers. SOPA points out that palmolein […]

Export opportunities to UAE, via Amazon

Amazon, with the help of Souq, a Dubai-based e-commerce company, will allow India’s online vendors to export their products to the UAE. This move is likely to trigger an increase in the sales of jewellery, apparel, beauty and groceries by Indian sellers. According to Gopal Pillai, vice-president of seller services at Amazon India, “there is […]

India’s grape exports to Europe by 31%

The year 2018-19 saw a 31% increase in the export of grapes to Europe, one of the most premium markets for the product. Within Europe, the prominent destinations for India’s grape exports were the Netherlands, UK and Germany, which accounted for 90% of the export figures. At the same time, other destinations, which are expected […]

India inundated by surging garment imports

The period during April 2018-February 2019 saw an increase in garment imports by 47% to US$ 1 billion and a 5% decrease in exports as per the data collated by the Clothing Manufacturers Association of India (CMAI). This increase in imports has been attributed to big retailers opting for low-cost foreign garments from countries like […]

US blacklists Chinese telecom major Huawei

In a move that could possibly escalate the US-China trade war, the Trump administration has imposed heavy sanctions on Chinese telecom equipment major Huawei, even as treasury secretary Mr Steve Mnuchin is planning a trip to China. It has added Huawei along with its 70 affiliates to its “Entity List”, which effectively prevents them from acquiring components […]

Shortfall anticipated in India’s sugar exports

According to the estimates of All India Sugar Traders’ Association, sugar mills have only exported 56% of their minimum indicative export quota (2.8 million tons out of 5 million tons) so far in this season (October 2018-September 2019). Though the government has introduced incentives for the industry to improve their export performance, a lot of […]

India set to export BrahMos to SE Asia & Gulf regions

With a number of South East Asian and the Gulf countries expressing an interest in BrahMos, India is all set to commence the export of this supersonic cruise missile later this year. A joint venture product of India and Russia, BrahMos is touted to be the world’s deadliest missile system. Some of India’s South-East Asian […]

India points to inconsistencies in OECD report

The OECD Services Trade Restrictive Index (STRI) report for 2018 has evaluated a total of 45 economies (36 OECD and the rest non-OECD) and 22 sectors. According to the report, the Indian services sector has been regarded as highly restrictive in areas such as FDI. A study commissioned by the Ministry of Commerce & Industry, […]

Textile Ministry foresees a rise in jute availability

The Union Ministry of Textiles has forecast a 10% increase YoY in jute production for the year 2019-20. While the final estimates for 2018-19 were 72 lakh bales; estimates for 2019-20 stand at 79 lakh bales, according to the report. These figures were derived after a recent meeting of the Jute Advisory Board (JAB), under […]

Exports rise by 1.3% in April 2019

India’s total exports (merchandise + services) are estimated to have grown by 1.34% YoY in April 2019 to reach US$ 44.06 billion, according to latest estimates released by the Department of Commerce. With total imports estimated at US$ 52.83 billion, India’s trade deficit was recorded at US$ 8.78 billion for the month.  The major export […]

Jet Airways crisis affects mango exports

The grounding of the 120-strong fleet of Jet Airways as a repercussion of the financial woes facing the international carrier, is now impacting exports of Alphonso mangoes to Europe & Gulf regions. The cancellation of booked Jet flights, coupled with the soaring fares of other cargo airlines (including the national carrier, Air India) is a […]

India Inc fears steel dumping by China

Indian steel makers are apprehensive that with the increase in tariffs by US, China could dump large quantities of steel into the Indian market. The industry has asked the Government to protect its interests by imposing safeguard duties of upto 25% on products deemed to be imported below the cost of production. Despite being the […]

India postpones tariff imposition on US imports

The Government of India has further delayed its plans to levy retaliatory import duties on 29 US products till June 16. India planned to levy these duties on American products like almonds, walnuts and pulses in June last year, but it has been postponing the decision since then. The US had announced that it would […]

Japan-India tussle over mobile phone import duties

Japan has accused India of advancing its interests by fostering domestic production and adjusting various taxes, including custom duties, under the Make in India project. While WTO membership terms specified that the import tariff on all the disputed goods was 0%, India applied a 20% tariff to mobile phones & base stations. Japan also pointed […]

USTR eyes US$ 300 billion of Chinese imports

In continuation of the simmering trade war between US and China, the US Trade Representative (USTR) proposed to increase tariffs levied on 3,805 Chinese imports, pegged at about US$ 300 billion. This tit-for-tat action came a day after China’s retaliatory move of imposing higher tariffs on US$ 60 billion worth of US goods sold in China from June […]

CPI inflation reaches 6-month high

The Indian economy witnessed a hike in consumer price index (CPI) based inflation, which rose from 2.86% in March’19 to 2.92% in April’19, the fastest growth over the past six months. A major factor for this was the growth in the food and beverages segment, which accelerated to 1.38% in April compared with 0.66% in […]

Indian pharma firms face litigation in US

Seven leading Indian pharmaceutical firms including Sun Pharma, Cadila Healthcare and Wockhardt are facing litigation in the US for alleged collusion in price fixing. The lawsuit includes 20 companies, led by Israeli pharma firm Teva Pharmaceutical Industries, which is also the largest generic drug maker in the world. The lawsuit has been filed by 44 […]

Exporters may avail automated GST refund by June

Indian exporters of goods and services as well as suppliers to SEZ units are expected to receive GST refunds automatically from the coming month, according to an official source. So far, the facility was available only to exporters who had paid Integrated Goods & Services Tax (IGST).  The GST Network is integrated with customs, which […]

Commerce Minister highlights crisis in WTO

Addressing the World Trade Organization Ministerial Meeting in New Delhi, Commerce and Industry Minister, Mr Suresh Prabhu, opined that “the crisis in the Appellate Body threatens to bring back power play to the multilateral trading system”.  He further observed that the “questions being raised on S&DT are controversial and extremely divisive.” The S&DT (Special & […]

China retaliates on US$ 60 bn of US exports

Retaliating to the U.S. government’s decision to increase tariffs on US$ 200 billion worth of Chinese goods from 10% to 25%, China will hike tariffs on US$ 60 billion worth of US goods from June 1, 2019. These tariffs will vary between 5% & 25%, according to Tariff Policy Commission of the State Council, China. […]

India’s vehicle sales see a record fall in April

The Society of Indian Automobile Manufacturers’ (SIAM) findings suggest that the sales of passenger vehicles have plummeted in April’19 by 17% YoY to reach 247,541 units, the worst fall in the last 8 years. This development is attributed to a number of factors, including the impact of last year’s base effect, the delayed purchase as a […]

Basmati rice prices drop by 5%

Basmati rice prices have fallen by around 5% over the past two weeks due to uncertainty regarding the impact of US sanctions on Iran. Exporters have asked the government for clear guidelines on the payment mechanism with Iran. Iran has emerged as India’s largest export market for Basmati rice over the years with over 30% […]

India hosts 2-day WTO Ministerial meeting

India is hosting a 2-day WTO Ministerial meeting starting today in New Delhi to discuss and build consensus on various issues. A meeting between senior officials of participating countries is being held today, while the Ministerial meeting will be conducted tomorrow. Sixteen developing countries including China, South Africa, Brazil, Saudi Arabia, Bangladesh and Turkey are participating in […]

First shipment to Afghanistan reaches Chabahar

India’s first export shipment to Afghanistan of around 500 tons of rice has reached Chabahar, according to Mr Khan Jan Alokozay, deputy chairman of Afghanistan Chamber of Commerce and Industries. He also added that the second export shipment from Afghanistan is ready for dispatch via the port.  Chabahar is the most opportune access point to Iran […]

India, Vietnam discuss opportunities for pharma trade

Vice President of India Mr Venkaiah Naidu asked Vietnamese President Mr Nguyễn Xuân Phúc to facilitate the entry of Indian pharma players in Vietnam. He assured Mr Phúc that Indian players have the capability to  provide medicines and high tech systems at affordable prices. Mr Naidu also offered help to Vietnam in satellite construction for both civilian and non-civilian […]

Duty hike on Chinese goods adds to uncertainty

The US duty hike on US$ 200 billion worth of Chinese imports came into effect today. US President Donald Trump has said that this is important to ensure that China abides by its commitments made earlier in the negotiations. Moody’s Investor Services has stated that this move “exacerbates the uncertainty” in the global trading environment, […]

FTAs not beneficial for chemical & petrochemical sectors: FICCI

Industry body FICCI has released a research report with consulting firm Matt MacDonald which concludes that most free trade agreements (FTAs) signed by India have not helped the chemical and petrochemical sectors. The report says that the Indian chemical and petrochemical sectors are not competitive because of various factors including high cost of capital and […]

India imports additional non-GM corn from Ukraine

India has imported an additional 27,000 tonnes of non-genetically modified (GM) corn from Ukraine at US$ 205/tonne (CIF) according to sources. This procurement became necessary as India faced a shortage due to pests and dry weather. Earlier this year, India had procured 57,000 tonnes of the product from Ukraine.  Till a few years back, India was […]

EEPC asks RBI to help exporters

EEPC India has asked the Reserve Bank of India to help Indian exporters in a scenario where US-China trade tensions are increasing, crude prices are unstable and forex markets are subject to high volatility. This leads to huge cost challenges for Indian exporters, especially the MSMEs.  To help them sustain in this situation, EEPC has requested […]

India finalises protocol for chilli meal exports to China

Commerce Secretary Anup Wadhawan and General Administration of Customs of China (GACC) Vice-Minister Li Guo signed a protocol for exports of Indian chilli meal to China on Thursday. This is the fourth such protocol to facilitate exports of agri-commodities from India to China. Similar protocols have been signed in the past for basmati and non-basmati rice, […]

China promises retaliation if Trump raises tariffs

China has threatened to retaliate if US President Donald Trump goes ahead with his plan to increase tariffs on US$ 200 billion worth of Chinese imports from 10% to 25%. Trade delegations from the two countries are scheduled to meet during May 9-10 in Washington, led by Chinese Vice Premier Liu He and US Trade Representative Robert Lighthizer and US […]

Iran sanctions bring uncertainty for Indian soyameal exports

The Indian edible oil industry is worried about the possible impact that US sanctions on Iran could have on exports of oilmeal. Due to the prevailing uncertainty, they are apprehensive about signing on to contracts with Iran for soyameal and oilmeal exports. Iran has been the third largest importer of Indian oilmeal, and exports got […]

US demand on scrapping ICT duties not feasible, says India

India has responded to US demands for removing 20% duties on imports of seven ICT products that also include high-end cell phones. While this would benefit US exporters, India asserts that the potential revenue loss of removing these duties will amount to around US$ 3.2 billion annually. This is much greater than the incentives to […]

India, China meet to discuss trade deficit

Officials from the Department of Commerce will be meeting a delegation from the General Administration of Customs of China (GACC) today to discuss ways to bring down India’s trade deficit with China. Commerce Secretary Mr. Anup Wadhawan will meet the Chinese Vice Minister of GACC to monitor the progress of steps taken so far and […]

Cash is king for the rich

The world’s rich are erring on the side of caution by increasing their cash holdings, according to a recent Quarterly Investor Sentiment survey by UBS. The survey reveals that cash accounts for around 32% of high-net-worth portfolios. The ratio was highest in Asia and Latin America at 36%, and the lowest in US at 23%. […]

Indian IT services market to reach US$ 14 billion by 2023

The IDC Asia/Pacific Semiannual Services Tracker – 2H 2018 has projected that the Indian IT & Business Services market will grow by 8.8% annually to reach US$ 13.1 billion by December 2019. It is further expected to grow by 8.7% YoY to reach US$ 14.3 billion by 2020. The IT services market accounted for 76% […]

Russia reducing dollar component in trade with BRICS

A report by global audit and consulting firm FinExpertiza reveals that Russia’s trade with its BRICS partners– Brazil, India, China, and South Africa – reached US$125 billion during the previous year. The report also concludes that share of export settlements by Russia with these countries in rubles increased by more than seven times over a […]

Cotton imports likely to have doubled in 2018-19

India’s cotton imports are estimated to be twice their value in 2018-19 compared to the previous year to an unprecedented 3.1 million bales. This is owing to the drop in production to its lowest level in the past nine years, which is compelling textile manufacturers to increase purchases from abroad. The cotton crop output is […]

CEPC asks government to clamp down on illegal imports

The Cashew Export Promotion Council has requested the government to restrict illegal imports of cashew kernels, which have caused the shutdown of over 50% of Indian factories and job losses amounting to around 6 lakh. The cashew industry in India is spread across 17 states and provides foreign exchange of Rs 6,000 crore per annum […]

Iran oil imports drop by 57% yoy in April

According to data on tanker arrivals viewed by Reuters, India’s imports of oil from Iran dropped by 57% year-on-year in April 2019. Average oil imports from Iran were at 277,600 barrels per day (bpd) in April, which was also a decline of 31.5% as compared to the previous month. India is the second largest export […]

Sun Pharma eyes potential in China

India’s largest drug maker Sun Pharma is confident of scaling up its business in the US$ 160 billion Chinese pharmaceutical market over the next 6-9 months. China has embarked on a huge multi-city drug procurement programme across cities,

India’s steel imports expected to increase

The demand-supply scenario for steel in India during the previous fiscal year indicates that steel imports are expected to grow in the coming months. While steel consumption grew by 7.5% YoY in 2018-19 to 97.54 million MT

Services PMI at 7-month low

India’s Services PMI touched a 7-month low to reach 51 in April 2019, as compared to 52 in March. The decline signified slower increase in new businesses and growth in output.

US shale cannot compensate for Iranian oil

After ending the waiver period for sanctions on oil imports from Iran, the US has been trying to export more of its shale oil to India. But India, which is looking for alternative sources to supplement the shortage,

US Commerce Secretary cautions India against retaliatory tariff action

Speaking at the 11th edition of Trade Winds Business Forum & Mission hosted by the US Department of Commerce, US Commerce Secretary Wilbur Ross has cautioned India against imposing any retaliatory tariffs on US exports.