News Buzz

BPOs/KPOs in tax net

According to a notification by the government, companies engaged in backend services related to Information Technology enabled Services (ITeS) will now come under the ambit of 18% tax under the GST regime. These entities engaged in the facilitation of supply of goods/services will henceforth not be considered to be involved in exports. They will now be considered as […]

India attempts trial sea shipment of mangoes

A trial shipment of 10 tonnes of the ‘Chausa’ variety of mangoes has already been sent by sea through this route. The consignment was sent from Lucknow to Pipavav port in the western state of Gujarat by road, to reach Italy via Spain.

Govt banking on pvt sector led growth: NITI Aayog

The think tank is of the opinion that space must be given so that the private sector in India can flourish. This could be done by changing the incentive structure pertaining to exports and ensuring greater participation of the country in global value chains.

IEA to cut oil demand forecast

“China is experiencing its slowest economic growth in the last three decades, so are some of the advanced economies ... if the global economy performs even poorer than we assume, then we may even look at our numbers once again in the next months to come,” Fatih Birol, IEA’s Executive Director said. Oil demand has slowed down in the US as well, the agency noted. While 2.2 million bpd increase was recorded in US last year, the growth estimate for this year is 1.8 million bpd.“China is experiencing its slowest economic growth in the last three decades, so are some of the advanced economies ... if the global economy performs even poorer than we assume, then we may even look at our numbers once again in the next months to come,” Fatih Birol, IEA’s Executive Director said. Oil demand has slowed down in the US as well, the agency noted. While 2.2 million bpd increase was recorded in US last year, the growth estimate for this year is 1.8 million bpd.“China is experiencing its slowest economic growth in the last three decades, so are some of the advanced economies ... if the global economy performs even poorer than we assume, then we may even look at our numbers once again in the next months to come,” Fatih Birol, IEA’s Executive Director said. Oil demand has slowed down in the US as well, the agency noted. While 2.2 million bpd increase was recorded in US last year, the growth estimate for this year is 1.8 million bpd.“China is experiencing its slowest economic growth in the last three decades, so are some of the advanced economies ... if the global economy performs even poorer than we assume, then we may even look at our numbers once again in the next months to come,” Fatih Birol, IEA’s Executive Director said. Oil demand has slowed down in the US as well, the agency noted. While 2.2 million bpd increase was recorded in US last year, the growth estimate for this year is 1.8 million bpd.

Credit Guarantee Enhancement Corporation in the pipeline

Envisioning the same in her maiden budget speech on July 5, Finance Minister Nirmala Sitharaman had said, “We recognize that investment driven growth requires access to low-cost capital. It is estimated that India requires investments averaging Rs 20 lakh crore every year.”

GSP removal to also impact US firms

While the termination of GSP will negatively impact India’s exports to US, it will also have a negative effect on US firms in India as their tax burden will grow by an additional US$ 300 million every year. This could further mean job cuts, scaling down investment plans and more prices for consumers.

Need to impart digital skills: Nasscom

“If we don’t fix the problem of talent pool immediately, there will be a point where companies are going to start hiring from each other. That’s going to have a big impact on wages and will redefine the competition landscape for companies,” stated Ms. Debjani Ghosh, President, Nasscom.

31% yoy drop in FDI in food processing in 2018-19

To entice foreign investors, FDI of up to 100% under the automatic route has been allowed in food processing industries. Furthermore, 100% FDI under government route for retail trading is permitted in respect of food products manufactured and/or produced in India. 

EV transition may take longer than a decade: TERI

Introduction of electric buses and taxis could be one step in facilitating consumers’ acceptance towards the use of EVs. Incentives against scrapping of old vehicles, launching EVs in a phased mannner, reducing GST & building public e-charging infrastructure are other ways suggested by TERI Director-General, Mr. Ajay Mathur, to enable this change.

Over 65% of H1-B visas since 2015 granted to Indians: MEA

Data suggests that the number of Indian nationals who were issued H1-B visas were: 125,528 in 2018, 129,097 in 2017; 126,692 in 2016; and 119,952 in 2015. H-1B visa has been designed to enable American firms to recruit foreign workers in specialty occupations that require theoretical or technical expertise.

US to substitute Chinese products with Indian imports

The Department of Commerce has identified 203 products which could be potentially exported to US. India is already exporting these products to US and is a competitor of China. India must capitalize on these opportunities soon before competitors like Vietnam and Cambodia take advantage.

EPC players in rooftop solar shutting shop

Falling margins and tariff pressure are making it difficult for these firms to meet their working capital and other operating expenses. These shutdowns have been attributed to flawed policy decisions by states like Tamil Nadu, UP & Rajasthan including failure to honour 20-30% capital incentives and retrospectively cancel net metering.

Bad loans dropped to Rs 9.34 lakh cr in FY’19: FM

Finance Minister Smt. Nirmala Sitharaman, pointed out that thanks to the steps taken by the government, the total bad loans of commercial banks declined by Rs 1.02 lakh crore to Rs 9.34 lakh crores in FY 2018-19. The government designed a comprehensive 4R's strategy for transparent recognition of non-performing assets (NPAs), resolution and recovery of value from stressed assets, recapitalizing public sector banks (PSBs) and restructuring PSBs.

Govt to ease local sourcing norms for FDI in single brand retail

"Designed in the UK - Made in India”can be the new focus area for this partnership. Similarly, in the services sector, India can provide huge technical expertise to British companies," the Minister of Commerce & Industry said. This could go a long way in establishing the 2 nations as preferred source countries in the global supply chain.  

China can inflict sanctions on US: WTO

In an earlier ruling, World Trade Organization (WTO) had ruled in favour of China, when it filed a case against United States’ anti-subsidy tariffs on its exports. US has not fully complied with the terms laid down by the ruling since it has enforced certain tariffs that are incompatible with the guidelines of the Geneva-based multilateral trade body.

Pharma growth slows down to 7.9%

Delay in the arrival of the monsoon and low rates of infections took a toll on the demand for acute therapy products. Low inventory stocking following the implementation of the goods and services tax (GST) also contributed to this trend, which intensified in May’19 when the market slowed down to a growth of 7% from an average of 10% in the earlier five months.

India to retain sugar export subsidies

India rolled out these subsidies in Setember’18 to incentivise mills for overseas sugar sales and set an export target of 5 million tons for marketing year ending September 30, ’19. This was done with the intention to enable mills to be able to pay the money owed to farmers. Besides launching a transport subsidy, the government has also increased the prices given to cane growers.

India’s steel exports drop 34% YoY in 2018-19

In order to check the situation, the"government has also notified 53 Steel and Steel Product (Quality Control) Orders which is applicable for both domestic production as well as imports," said Shri Dharmendra Pradhan, Union Minister for Steel. Other measures taken by the government to safeguard the domestic steel industry from unfair external competition include anti-dumping and countervailing duties.

India’s business sentiment lowest since June 2016

The net balance of private sector companies that were foreseeing output growth dropped from 18% in February to 15% in June. The tri-annual report predicted lesser profits, subdued hiring plans and relatively muted capital expenditure. However, there are hopes of demand pick up, pro-business government policies and a better financial flow improving profitability. 

Merchandise exports hit lowest value since March’18

Overall, India’s trade deficit narrowed for the month by 8% to US$ 15.28 billion. Weak indicators on consumption, along with lukewarm private investments also contributed to the slowest growth rate (5.8%) of the economy during January-March’19. Given these numbers, there’s a possibility that the economy could have slowed further during April-June, 2019.

Efforts on to address India’s RCEP concerns: Indonesia

India has clearly stated that the Regional Comprehensive Economic Partnership (RCEP) is not a win-win situation for all. One major demand by India pertains to easier mobility for its services professionals across borders under Mode 4. This is yet to be conceded by the members.

India’s defence exports to exceed target

India's defence exports are expected  to surpass the target of Rs 35,000 crore by 2024-25, according to Shri Ajay Kumar, Secretary, Defence Production Department. This exponential growth in defence exports has been attributed to the strong growth in shipments in recent years. He also asserted that the government has been actively involved in giving a boost to the private sector & MSMEs to invest in defence production under the existing production policy. For instance, the Ordinance Factory Board (OFB) had decided to scrap capacity verification for almost 90% of the products, excluding some sensitive items. OFB and defence PSUs are also planning to outsource about 3,000 items to encourage the MSME sector.

Slowdown lowers M&As by half in H1, 2019

The country’s economic growth slowed down to 6.8% in fiscal 2019, the slowest pace of expansion recorded in the last five years. This was accompanied by a decline in the number of deals to 183 from 234 during the same period. Inbound deals were hit too, dropping by 53% to US$ 12 billion; while outbound transactions halved to $1.4 billion in the first 6 months of 2019.

PMO seeks inputs on making India electronics manufacturing hub

As electronic products are the second largest contributor to the import bill, India wants to capitalize on the prospect created by the Sino-US trade tensions & evolve as an attractive base for manufacturing and exports. 

No major gains from India-US trade talks

Negotiations on vital matters such as agricultural commodities, e-commerce, and steel and aluminum have been deferred. India’s major concern remains that the US could be planning to push for a major FTA that could hurt India’s competitiveness.

Textile sector hit by rising imports & NBFC crisis

The lack of working capital has prevented companies from capacity expansion and made servicing of existing loans difficult. Sales also continue to be sluggish in India & are said to have been slumped by 20-25% in recent weeks.

Q1 auto-sales record strongest de-growth since 2008-09

This drop has been attributed to reasons like production cuts and closure of plants by major automakers to manage higher inventory costs due to weak demand.

US-India to engage in trade talks

Following the meeting of Indian PM Shri Narendra Modi and US President Donald Trump in Osaka, Japan, along the sidelines of the G20 Summit, the two nations have announced that they will restart their trade talks.

Right time to restart Air India privatization

The government is likely to retain a 24% stake and all attendant shareholder rights available to it under law, instead of opting to remain as a minority financial investor.    

Housing affordability in India has worsened since 2015

According to RBI's Residential Asset Price Monitoring Survey, there was an increase in the house price-to-income ratio in India in the last four years from 56.1 in the March’15 to 61.5 in March’19.

Rupee rises to 11-month high vs US dollar

 The rupee along with other Asian currencies strengthened against US dollar, touching a high of Rs 68.30. Consequently, the benchmark Sensex rose by 0.42% to 38,720.44 points. So far this year, the index has risen by 7.38%. 

US removes country cap on Green Card

This bill enhances the per-country quota on family-based immigrant visas from 7% of the total number of such visas available that year to 15%. It also eradicates the 7% cap for employment-based immigrant visas.

Tax hike on super-rich to affect Expat hiring

The higher remuneration of expats could weigh in on India’s image as a pool of talent. Expats are an imperative source of senior talent across numerous sectors.

India’s FDI drops by 64% in June 2019

Of the total overseas direct investment during June’19, US$ 340.28 million was in the form of equity infusion, US$ 222.06 million was through loans and US$258.02 million came in through issuance of guarantee.

Apple exports India-made iPhones to Europe

The move would go a long way towards establishing India as a lucrative export hub for smartphone companies & reducing the cost of production of iPhones.

Weak growth could complicate fiscal consolidation

Moody’s Investors Service has opined that subdued growth will make fiscal consolidation and raising incomes challenging for the government.

Indian industry concerned on RCEP impact: CIM

Indian Industry is not convinced that RCEP will create a win-win situation for all by ensuring balanced outcomes in across the key pillars, particularly goods and services.

Indo-China trade drops by 3.5%*

India's exports to China in May 2019 stood at US$ 1.52 billion, dropping by 7.15%, while Chinese exports have declined by 4.54%, standing at US$ 6.66 billion. Consequently, the bilateral trade in May’19 dropped by a significant 5.04% YoY.

Trump sneers at India again over tariff hike

While the bilateral relationship between US & India has bloomed over the years, it has been dented by the row over market access and tariff escalations, leading to fears of a protracted dispute with larger ramifications.

Indians are the second highest paid ethnic group in UK

A report by the UK's Office for National Statistics (ONS) titled, ‘Ethnicity Pay Gaps in Great Britain: 2018', reveals that Indians earn 13.47 pounds an hour on an average and are the second highest paid ethnic group in UK, after China. They also have the second highest employment rate of 75.9%, following the Whites.

51% rise in receiving Canada’s green card

While in 2017, Canada had admitted nearly 26,300 people from India under the express entry route, in 2018, it awarded PR to 39,677 Indians.

India’s trade to grow despite global contraction

India is the only one of four nations in Asia (tracked by the Global Trade Barometer) to still record an index value of above 50. The growth in India's trade has been attributed to strong ocean trade.

CEPCI lauds hike in import duty on cashew kernels

The Cashew Export Promotion Council of India (CEPCI) is of the opinion that the hike of 45-70% in import duty on cashew kernels in the budget 2019-20 is a reason to rejoice.

IT Dept working on real-time issuing of e-PAN

The government has initiated projects to enhance the technology backbone of the Income Tax department resulting in enhanced time-bound services to the taxpayers as well as increase their voluntary compliance.

RBI could go for another rate cut

RBI governor Shaktikanta Das termed the budget’s proposal to infuse ₹70,000 crore of capital into state-run banks as a positive development. Ahead of themonetary policy review on 7 August, he expressed happiness that “the fiscal deficit has been improved from 3.4% to 3.3% (of gross domestic product in 2019-20). RBI will be happy mainly because it limits the […]

Govt. could reduce stake in PSEs to below 51%

The government is open to reducing its stake in select state-controlled firms to as low as 40%. This is in sync with the government's commitment to disinvestment in the budget.

More reforms for startups on the anvil

In line with the announcement on e-verification for angel investors in the budget, the government is planning to roll out a string of measures to make it easier for the startups to do business in the country.

Singapore and Pacific Alliance discuss an FTA

Modern services, food production, information and communication technology and urban solutions are some of the sectors where the FTA could be concluded.

Corporate tax cut to benefit nearly 4,000 companies

The Centre is expected to forego Rs 3,000 crores revenue annually as a consequence of this move, which covers 99.3% companies filing returns.

External borrowings to dent Indian exports: TPCI

Sovereign bond demand will rise, which will appreciate the price of rupee slightly. This might impact India's exports by up to 5 per cent.

Investment-driven growth envisaged in Budget’19

The budget'19 announced that the government is considering further opening up of foreign direct investment (FDI) in aviation, media, animation, and the insurance sectors.

Budget’19: Ease of business for MSMEs & startups

Startups and investors who file requisite declarations will not be subjected to any kind of scrutiny by the income tax department with respect to valuation of share premium.

FM gives push to infrastructure in Budget’19

The Government has given a massive push to all forms of physical connectivity & infrastructure development needed for it in the Union Budget’19.

Union Budget’19 announces ‘Matsya Sampada Yojana’

The government’s maiden budget intends to bring the fishermen community under the framework of welfare programmes and social security schemes.

US reports India’s hike on 28 goods to WTO

The US argued that India does not enforce these duties on like products originating in the territory of any other WTO member nation.

Economic Survey pegs FY20 GDP growth at 7%

The Economic Survey 2019-20 sees investment as the "key driver" of simultaneous growth in demand, jobs, exports & productivity.

India’s trade deficit rises with 25 countries

Commerce & Industry Minister Shri Piyush Goyal informed the Parliament that there has been a rise in India’s trade deficit with 25 countries in the last 3 years. These include South Korea (US$ 12 billion), Japan (US$ 7.9 billion), Germany (US$ 6.25 billion), Iraq (US$ 20.58 billion) and Saudi Arabia (US$ 22.9 billion). Higher imports […]

Government could unveil new industrial policy

The government is all set to unveil a new industrial policy in the upcoming Union budget. The policy is expected to revolve around the Make In India theme to re-industrialize the economy and create manufacturing jobs. It will adopt incentives to make India an exports hub & offer a medium- to long-term direction to India’s […]

Contraction in services for first time since May’18

Weak sales, competitive pressures and unfavourable taxation have led to a contraction in services sector in June’19 for the first time since May’18.

Higher MSP for kharif farmers

The Cabinet Committee on Economic Affairs has given its nod to higher support prices for kharif, or summer-sown crops. The measure is in accordance with the aim to give farmers 1.5 times the cost of production.

Revenue gain of US$ 217 mn from retaliatory tariffs

India is likely to get additional US$ 217 million of revenue from the retaliatory tariffs it imposed on 28 American products.

Investments touch 15-year low in June quarter  

According to data by the Centre for Monitoring Indian Economy, investments in new projects dropped to a 15-year low for the quarter ending June 2019. Indian companies from both the public and private sectors invested Rs 43,400 crore in new projects during the quarter, a decline of 81% QoQ and 87% YoY.  While these are […]

India to remain net importer of steel

Over the next two years, India will continue to be a net importer of steel according to Fitch Ratings Ltd.’s local unit. This can be attributed to the fact that high-grade products from South Korea and Japan flow in tax-free amid worries of dumping of steel from China. The imports are likely to increase if […]

Govt announces measures for farm cooperatives

The government has announced the setting up of an export-promotion forum & trade fair (October 11-13) to support farm cooperatives. The Commerce and Industry Minister, Shri Piyush Goyal, and Agriculture Minister, Shri Narendra Singh Tomar, have committed to establish a framework to double farm exports from Rs 2.75 trillion to about Rs 7 trillion by […]

Coal to be top power source till 2030

According to the recently released assessment of Central Electricity Authority, coal may account for half of India’s power generation in 2030 despite a boom in solar and wind energy projects. The analysis further states that there’s a mismatch between peak periods of demand and output from renewables. The report also states that India may be […]

India’s tea exports to Iran treble in Q1’19

There has been an increase in India’s tea exports to Iran in the first quarter of 2019 to 27.09 million kg despite the prospects of India losing this market due to the sanctions imposed by the US on Iran. There was also a 7.54% year-on-year hike in price realisation during this period to Rs 269.62 […]

40% drop in India’s solar imports in Q1

According to the latest trade data, India’s solar imports witnessed a significant year-over-year (YOY) decline in the first quarter (Q1) of 2019. While in Q1, 2018, India imported US$ 1.1 billion worth of solar cells and modules imported; it imported solar modules and cells of approximately $650 million the corresponding period this year. There has […]

Sugar industry opposes FSSAI move

In a bid to encourage consumers to make healthier food choices, the draft regulations of FSSAI have a provision that requires packaged food companies to label sugar content of products. This move has been met with stiff opposition from the country’s sugar millers which are already reeling under the double whammy of falling prices and […]

Government seeks ideas for new foreign trade policy

The Ministry of Commerce & Industry has invited stakeholders to offer suggestions for boosting the exports and trade for its new foreign trade policy (2020-25). Given the fact that some of the existing export subsidies, including the MEIS, will have to be withdrawn since they are incompatible with the World Trade Organization (WTO) rules, this […]

Slowdown in India’s core sector growth

According to the recently released official data, there has been a mere 5.1% growth in May’19 in India’s 8 core sectors. This is attributed to slowing growth in coal and refinery products. The refinery sector saw a retrenchment of 1.5% compared with a growth of 4.3% in the previous month. The coal sector also saw […]

High level committee for agricultural reforms

Prime Minister Shri Narendra Modi has approved the establishment of a panel for agriculture reforms. The committee would suggest the modalities for adoption and time-bound execution of agriculture sector reforms in two months. These would primarily be structural reforms to boost farm productivity and marketing. The high-powered committee would comprise of chief ministers and be […]

FSSAI wants jurisdiction over India’s food trade

The Food Safety and Standards Authority of India (FSSAI) wants to amend the Food Safety and Standards Act so that it gets more jurisdiction over India’s food exports & imports. The proposal by the agency to the Ministry of Health & Family Welfare also encompasses accountability for food-related offences. FSSAI also wants to bring animal […]

Debacle in Kuwait over Indian degrees

Kuwaiti government has decided to recognize degrees only if India’s National Board of Accreditation (NBA) approves of the courses they studied.

RBI surplus may not help government much

The possibility of the government getting a fiscal boost from the RBI surplus is pretty slim. The high-level Bimal Jalan panel (which is looking at the economic capital framework) is yet to give its report. It is expected to link such a distribution to meaningful utilisation of funds. This could imply retirement of government debt […]

India protects pharma and agri interests at RCEP

India has managed to get 3 harmful provisions pertaining to pharmaceuticals and agriculture dropped out of the Regional Comprehensive Economic Partnership. These provisions related to patent term extensions and data exclusivity. India took the lead role in arguing that they would impact public health and access to affordable medicines in developing countries by creating monopolies. […]

China lifts curbs to boost FDI

In a bid to entice foreign investors, China’s state planning agency is loosening FDI curbs in numerous sectors. These sectors include petroleum and gas exploration, agriculture, shipping agencies, cinemas and performance agencies, mining and manufacturing. China has also allowed 100% foreign ownership in some industries where ownership caps previously applied. Foreign investment in China was […]

India-US discuss issues at G20

Prime Minister Shri Narendra Modi held talks with US President Donald Trump ahead of the G-20 Summit. Discussions took place on various bilateral and global issues such as Iran, 5G communication networks, trade and defence. The meeting is significant as the US president has been an ardent critic of India lately for levying “tremendously high” […]

CIM reviews measures to reduce logistics costs to 9%

Union Minister of Commerce & Industry, Shri Piyush Goyal, spoke about having better coordination between the Ministries of Commerce & Industry, Road, Civil Aviation and Railways while reviewing the draft National Logistics Policy. This is intended to achieve the objective of reducing logistics costs from 14% to 9%. High logistics costs influences the competitiveness of […]

Plastic industry opposes high duty on raw material

The proposal of the Indian Chemical Council to increase duty on raw material has not gone down too well with the plastic industry, which has urged the government to roll it back. The industry is of the view that the hike in import duty on raw material could lead to supply disruption and affect the […]

India wins renewable energy case at WTO

In a massive development, India defeated the US at WTO in a case concerning America’s domestic content requirements and subsidies provided by eight states in the renewable energy sector

Banks asked to appoint official for MSMEs

The Ministry of Finance has instructed banks to appoint a general manager-level official to solve the problems faced by micro and medium enterprises. The move intends to boost the MSME sector, which contributes significantly towards employment generation and exports. The nodal GM may amass information related to details of MSMEs that have taken loans from […]

Government negotiating GSP with US: CIM

Union Commerce Minister Shri Piyush Goyal informed the Lok Sabha that the government is negotiating the issue of withdrawal of the Generalised System of Preferences (GSP) status with the US.

Data localisation excluded from e-commerce policy

The Union Minister of Commerce & industry, Shri Piyush Goyal has decided to exclude data localization norms from the final e-commerce policy. He has left the proposed data...

US urges India to lower trade barriers

As US Secretary of State Mike Pompeo set his foot on the Indian soil on Tuesday, the Trump administration made a case for India’s adoption of fair and reciprocal trade and the reduction of trade barriers. President Donald Trump tweeted that the increase in tariffs by India is ”unacceptable’ and India has already put ‘very […]

India imported coal worth Rs 1.7 lakh crores in FY’19

Coal Minister, Shri Pralhad Joshi, informed the Parliament that India imported 235.2 million tons (MT) of coal in 2018-19 valued at Rs 1.7 lakh crore in FY’19. During the previous fiscal year,  the country imported 208.2 MT of the dry fuel valued at Rs 1.3 lakh crore and 190.9 MT of coal valued at Rs […]

G20 nations adopting new trade restrictive measures

According to the World Trade Organization’s 1st Monitoring Report, G20 members have imposed 20 new trade-restrictive measures in last 8 months (between mid-October 2018 and mid-May 2019). Commenting on the report, WTO Director-General Roberto Azevêdo stated, “We urgently need to see leadership from the G20 to ease trade tensions and follow through on their commitment […]

New norms for GI logo & tagline use

Department for Promotion of Industry and Internal Trade (DPIIT) has come out with fresh rules surrounding the logo & tagline use of Geographical Indication. As per the guidelines proposed by the Commerce and Industry Ministry, the prior sanction of DPIIT is now required by retail outlets or e- commerce platforms to use the GI logo […]

US-India trade talks during G20 meet

Indian Prime Minister Shri Narendra Modi, & other world leaders will meet US President Mr. Donald Trump on the sidelines of the G20 Summit in Japan to hold a discussion over major matters, including trade on June 28. The summit gives an opportunity to global leaders to hold discussions about the state of the economy, trade, […]

Export-led growth imperative: Arvind Panagariya

Arvind Panagariya, the first Vice Chairman of the NITI Aayog, has stated that export-led growth is imperative for creation of good jobs in India. While the government is focusing on reducing India’s import bills by making the country self-reliant, Panagariya opined that “whole idea of turning back to import substitution turns the clock back (for […]

India planning incentives to attract Chinese cos

With the aim of attracting investments from Chinese companies, India is mulling over the idea of offering incentives such as preferential tax rates and the tax holiday like the one being provided by Vietnam. Some other suggestions pertain to setting up affordable industrial zones and giving preference to local manufacturers in government procurement to win over […]

Logistics sector to create nearly 1.5 lakh jobs

According to the Team Lease Services biannual ‘Employment Outlook’ report for April-September 2019-20, the logistics sector is expected to add 1.49 lakh new jobs in the April-September period. This implies that there will be a 14.9% rise in employment generation YoY. The sector is also going to grow at 3% during the same period. This […]

India’s garment exports witness a rebound

There has been an augmentation in the exports of India’s readymade garments (RMG), after a 2 year hiatus. Exports of RMG for May’18 rose by 14.05% YoY in May’19 to reach US$ 1.53 billion. Interestingly, while Indian products tend to be costlier by 10-15%, they have a strong consumer demand.  The apparel industry, too, is expected to […]

Dismal monsoon could cut into food exports

Contrary to India’s enviable position of having established itself as a food basket for the world, there is a possibility of a decrease in its food exports, thanks to the paucity of water. Water resources minister Shri Gajendra Singh Shekhawat stated that to maintain its edge as a food exporter, India needs to revive its […]

Bill to promote investments in SEZs

Commerce & Industry Minister, Shri Piyush Goyal, introduced a bill in the Lok Sabha that paves the way for trusts to set up units in special economic zones (SEZs), replacing a similar ordinance in March’19. Following the amendment of sub-section (V) of section 2 of the Special Economic Zones Act, 2005, a trust or any […]

US replacing Iran for India’s oil imports?

In the backdrop of the sanctions imposed by it on Iran, US has emerged as a leading source for India’s oil importers. India, touted as the world’s third-biggest oil importer, bought about 184,000 barrels per day (bpd) of oil from the US over November 2018 to May 2019, compared to 40,000 bpd during the same period […]

Indian scheme for agri-exports criticised at WTO

The new transport and marketing assistance scheme for farmers introduced by the Union government in March has been under fire at the World Trade Organization (WTO). According to Australia, the scheme may have flouted a WTO’s Nairobi Ministerial meet decision on curbing such subsidies. The scheme provides assistance for the international component of freight and marketing of agricultural produce which is likely to alleviate the disadvantage of higher transportation charges of export of specified agriculture products in specified overseas markets. These markets include North America, the EU, some countries in South America, China, the ASEAN, New Zealand and Australia.

India, China & Russia to discuss US trade policies

Along the sidelines of the G20 Summit in Osaka, Japan, the leaders of BRICS are likely to discuss ways to oppose the "unilateralist" and "protectionist" trade policies of the US. China's Assistant Foreign Minister Zhang Jun stated, “Given the current international landscape, the meeting among the three leaders is also of significance. As you know, China's relations with Russia and India are showing sound momentum of growth." Given the fact that US has withdrawn the GSP benefits given to India, China is optimistic that India will support China, which is embroiled in a trade war with US. Talks will also be held on other areas like cooperation on economy, political issues, security and people-to-people exchanges among the grouping to further deepen cooperation and uphold the good momentum of BRICS cooperation, he said.

Malaysian PM mulls RCEP without India

In the backdrop of the longstanding Regional Comprehensive Economic Partnership talks, Malaysia’s PM – Mahathir Mohamad – expressed his desire to conclude the trade pact bereft of India for the time being. According to a recent report by Nikkei Asian Review, China, too, has echoed the same view in the face of the slow progress in bringing India, Australia and New Zealand on board. India has so far not signed on the dotted line of this mega Asia-Pacific trade agreement owing to its reluctance in opening up its markets. The negotiations started in 2013 and involve 16 countries – the 10 Southeast Asian nations and their large trading partners: China, Japan, South Korea, India, Australia & New Zealand.

India steps up on talks to check oil prices

In order to keep a check on the spiraling oil prices which have resulted from the US sanctions on Iran, India has resorted to diplomatic channels to address the issue. The recent geopolitical tensions – attacks on oil cargoes in the Gulf region and downing of a US drone by the Islamic Republic – have added to the woes of oil importers in India. These tensions may also drive the freight and insurance costs up. The rising crude prices are a serious cause of concern for India as it imports 84% of its oil needs. In order to ensure a constant supply of oil from the region, India has also deployed warship and aircraft to secure tankers headed to India from the Persian Gulf region.

35% Decline in India’s steel exports to US

Commerce & Industry Minister Shri Piyush Goyal, informed the Rajya Sabha that there has been a 35% drop in India’s steel exports to the US during FY 2018-19. This can be attributed to US imposition of additional tariff of 25% and 10% on steel and aluminium respectively across the globe (except Mexico & Canada, owing to its security ties). Interestingly, however, there was a 14% increase in the aluminium exported by India to the US. Of late, Washington & New Delhi have levied a string of tit-for-tat tariff measures. For instance, US has revoked India’s status as a beneficiary of the Generalized System of Preferences. India has hiked tariffs on more than 29 products imported from US.

US denies targeting India on H1B visas

The US has officially denied that it will put a cap on H1B visas for nations that compel foreign companies to store data locally. This was confirmed by a state department spokesperson. She said that although a broad review of the programme is being done, it is not country-specific. News that US is planning to put a […]

New industrial policy to be announced soon

President of India Shri Ram Nath Kovind stated in a sitting session of both houses that India will announce an industrial policy soon to promote industrial growth and provide jobs. He added that the policy will take into account the emergence of Industry 4.0 and aim to transform India into a global manufacturing hub. The […]

Motorola plans to make India export hub

Motorola, which is now owned by Lenovo, is focused on making India an export hub to bolster its thrust towards profitable growth in the country. It is currently exporting around 1-1.5 lakh units from India to markets like West Asia, South Africa and Mexico, as revealed by Prashanth Mani, country head for Lenovo’s mobile business […]

No Made-in-America products for Huawei?

US has cautioned the Indian government that companies found supplying equipment/other products made by the US to Huawei or its units may face punitive action. The letter was sent to the Ministry of External Affairs (MEA), and is being viewed as a part of US efforts to increase pressure on India to act against Huawei. MEA has asked […]

RBI opts for growth focus over inflation targeting

The RBI’s Monetary Policy Committee (MPC) has admitted that it is critical to give greater importance to the faltering economic growth, as inflation in India well within the monetary policy committee’s (MPC) mandated target. This information was revealed in the minutes of the June meeting of MPC that were released on Thursday. MPC has cut the key […]

Ukraine sees opportunity in India-US trade tussle

Ukraine is optimistic that India's imposition of tariffs on apples and nuts from US will provide it a great opportunity to penetrate the Indian market.

Indian pharma to reach US$ 120-130 billion by 2030

The Indian pharma industry has set a vision to reach US$ 120-130 billion by 2030 from US$ 38 billion presently, according to a report by Indian Pharmaceutical Alliance (IPA).

US threatens to cap H1B visas for India

The United States is reportedly planning to impose caps on H-1B visas for countries that compel foreign companies to store data locally according to sources, obviously referring to India’s position on data protection. The move would hurt India in particular as it is the largest recipient of these temporary visas, especially for its large technology […]

Corporate debt market growth at 10-year low

Growth in India's corporate debt market has been slowing since 2017, and recorded its weakest growth in over a decade at 9.7% in May 2019, according to the Bloomberg Economics index. In comparison..

No need for regulator for e-commerce: CIM

The Government of India has disapproved the demand by small traders for a regulator in the e-commerce sector. Commerce & Industry Minister Shri Piyush Goyal told representatives of small traders during a meeting that the appointment of a regulator will not solve their problems. The Department for Promotion of Industry and Internal Trade (DPIIT) had presented a draft […]

GST on EVs could come down to 5%

India could reduce the goods and services tax (GST) on electric vehicles (EVs) from 12% to 5% to boost the sector. The proposal to this effect is expected to be considered by the GST Council at its June 20 meeting, according to a senior government official. This will be welcomed by global manufacturers who wish to invest in […]

Government may remove LNG import duty

The Indian government could do away with the import duty on liquefied natural gas (LNG) in the upcoming Union Budget to be presented in July. The Petroleum and Natural Gas Ministry has made a strong case to reduce the duty from 2.5% to zero to promote green energy, reduce the cost of power generation, improve production […]

China proposing RCEP without India?

China is reportedly proposing a new Asian free trade agreement without India, a development that exposes significant strains in negotiations over the 16-country Regional Comprehensive Economic Partnership. According to the report, China is deeply frustrated with India’s position on tariff reductions, which is at odds with other RCEP participants. Furthermore, China is also peeved over the “free […]

India’s tariffs could depress Washington apple prices

The apple industry in Washington has affirmed that retaliatory tariffs by India on US apples will have a severe impact on exports. The state expects exports to India to slow down after the additional tariff of 20%, which brings the total duty to 70%. India had imported 7.8 million boxes (40 pounds each) of the […]

Defence exports grow by over 100% in 2018-19

India’s defence exports have increased by over 100% YoY to reach Rs 10,745 crore in 2018-19 from Rs 4,682 crore in 2017-18 , led by policy liberalisation and access to the US market. The Defence Ministry is now looking to further accelerate growth through a new export license plan that will enable Indian companies to export […]

California almond growers worried on Indian tariffs

California Senator Dianne Feinstein has strongly criticised US President Donald Trump for “damaging” trade ties with India. Her statement carries significance especially in context of India’s retaliatory tariff imposition on 29 US export products on January 16. One of the products is California almonds, whose exports to India are valued at US$ 650 million annually. Therefore, India’s […]

India’s flexi-workforce reached 3.3 mn in 2018

India’s workforce under flexi-staffing (provided through contractors to various employers) has grown at a compound annual growth rate (CAGR) of 16.3% to reach 3.3 million in 2018 as opposed to 2.1 million in 2015, as revealed in a report by the India Staffing Federation (ISF). This increase indicates formalisation of the workforce, wherein they get provident fund, […]

US ready for more tariffs on China if talks fail

US Commerce Secretary Wilbur Ross has affirmed that President Donald Trump is ready to impose additional tariffs on the remaining US$ 300 billion worth of imports from China if the trade deal does not materialise. He stated during an interview at the Paris Airshow, “We will eventually make a deal, but if we don’t, the […]

US, India farm policies questioned at WTO

Farm support initiatives by India and US have been questioned by other WTO members in their questions submitted to the organisation’s quarterly agriculture committee meeting. Both US President Donald Trump and Indian Prime Minister Shri Narendra Modi have declared a strong intent to improve farm incomes. The EU has asked India to give an explanation on […]

No multi-brand retail trade by foreign companies: CIM

In a meeting with e-commerce companies, Minister of Commerce & Industry Shri Piyush Goyal asserted that the Government of India will not allow multi-brand retailing by foreign companies. He added that they can only be an agnostic platform in the meeting which was attended by giants like Amazon, eBay and Walmart-owned Flipkart.  The Minister has engaged in […]

Fitch cuts India’s GDP growth projection to 6.6%

Global rating agency Fitch Ratings has cut its India’s GDP growth forecast for the second consecutive time to 6.6% for the current fiscal. It had earlier cut its forecast from 7% to 6.8% in March 2019. The agency stated, “This is the slowest growth outturn in five years. The slowdown over the past year has […]

UKIBC seeks review of FDI norms for retail

The UK-India Business Council (UKIBC) has asked the Government of India to review its norms for investment in multi-brand retail to boost FDI in the politically sensitive sector. Currently, India allows investment of up to 51% in the sector by foreign entities. Till date, Tesco is the only UK retail chain to have got approval. […]

Industry body seeks higher export duty on iron ore

The Pellet Manufacturers’ Association has sent a written request to the Prime Minister’s Office for an increase in export duty on iron ore from 30% to 50%. The association is specifically asking for the duty to be imposed on iron ore with more than 58% iron. The letter cautions that adequate adequate availability of iron ore […]

US-China war could boost Indian exports in 354 items

A study by the Commerce Ministry has concluded that India can boost exports in at least 354 items, ranging from capital goods to base metals as a result of the US-China trade war. The export enhancement for these products is expected to be worth billions of dollars. China has imposed extra duties in 774 tariff […]

India’s exports grow by 4.32% in Apr-May 2019

India’s total exports (merchandise and services combined) in April-May 2019-20* are estimated at US$ 92.33 billion, growing by 4.32% YoY, according to latest figures released by the Department of Commerce. Imports for the period are estimated at US$ 109.75 billion, growing by 5.3% YoY. Merchandise exports grew by 2.37% YoY to reach US$ 56.1 billion, while services exports grew by 7.5% YoY to reach […]

India imposes retaliatory tariffs on US goods

India has decided to levy retaliatory tariffs on 29 US products after the latter removed India from the GSP regime. The tariffs became effective on Sunday, June 16. 2019. A government official with knowledge of the developments stated, “The matter will be notified by the finance ministry tonight or tomorrow, before the Sunday deadline.” Retaliatory […]

India submits proposal on fisheries subsidies

India has introduced a new proposal at the WTO to protect its rights to provide subsidies to small and artisanal fishers in the country. In this proposal, India has suggested that developing countries and least developed countries (LDCs) must be exempted from prohibitions on some fisheries subsidies if the fishing is done within the waters […]

DGFT increases MIP for cashew kernels

The Directorate General of Foreign Trade (DGFT) has increased the minimum import price (MIP) for broken cashew to Rs 680/kg from Rs 288/kg. The price of whole cashew has also been raised to Rs 720/kg from Rs 400/kg. The industry has been complaining about the negative impact of cheap and low-quality cashew kernel shipments from ASEAN countries and Africa. Some importers […]

India’s sugar production could fall in 2019-20

India’s sugar output is projected to fall by as much as 15% in 2019-20 due to the onset of severe drought in the major sugar growing regions. This will lessen the pressure on sugar mills to export surplus sugar and help boost global prices that have fallen by over 20% last year. The output in […]

Xi Jinping commits to open more doors for India

Chinese President Xi Jinping has promised to further simplify regulations for import of certain goods from India to address the trade imbalance between the two countries. He said this during his meeting with Indian Prime Minister Shri Narendra Modi on the sidelines of the SCO Summit in Bishkek, according to Mr Vijay Gokhale, India’s Foreign […]

Pompeo urges India to open up on trade

US Secretary of State Mike Pompeo has urged India to open up its economy and “diversify” its energy portfolio, adding that countries that provided American companies with access to their local markets have seen “real opportunity”. He was speaking at the India Ideas Summit of the US-India Business Council in Washington. He said that the US is […]

FSSAI food packaging norms to be effective from July

The Food Safety & Standards Authority of India (FSSAI) is preparing for implementation of new packaging regulations, which will be effective from July 1, 2019. Successful implementation of these regulations will need integrated efforts from all stakeholders, particularly the chemical industry. The institution has made brand owners responsible for the food safety aspects of their packaging materials. Its […]

IIP reaches 6-mth peak, inflation also surges

India’s factory output showed an expansion in April to reach a six-month peak. Statistics from NSO show that the index of industrial production (IIP) expanded at a rate of 3.4% in April compared to 0.3% a month ago. But retail inflation has also accelerated by 3.05% in May, the fastest rate in seven months as […]

India among top 20 sources of FDI

India is expected to secure a place for itself among the top 20 countries for outbound FDI by the end 2019, according to a survey of investment promotion agencies (IPAs) conducted by the United Nations Conference on Trade and Investment (UNCTAD). The report also adds that India and UAE are considered among the top 10 sources of FDI between […]

CIM reviews India’s past FTAs

According to official sources, the Hon’ble Minister of Commerce & Industry Shri Piyush Goyal has studied India’s past FTAs in detail and the extent of gain it has provided to partner countries. The NDA government did not sign any FTAs in its previous term, and even the existing ones have been strongly criticised by the […]

Cashew exports plunge to two-decade low

India’s cashew exports have dropped to a two-decade low in 2018-19, falling by 20% YoY to 66,693 tonnes and by 24% YoY in value terms to Rs 4,434 crore. Export quantities stood at around 100,000 tonnes till a few years back. But the quantity has dropped over the years due to tough competition from Vietnam and other […]

Government to curb sub-standard steel imports

The government is planning to take urgent measures to curb the import of defective/sub-standard steel in the interest of domestic manufacturers. The issue was discussed at a high level meeting of the steel and commerce ministries. A government official affirmed, “There is a need to contain imports of defective and sub standard steel. It comes […]

Global trade could drop by 17% in trade war

Mr Keith Rockwell, Director of Information & External Relations, WTO, has struck a note of caution on the ongoing hostilities in the global trade environment. He warned that in case of a full-blown trade war that brings tariffs back to levels before the creation of the multilateral trading system, global trade would drop by 17% […]

Government removes export incentive for onions

A weak supply situation has led to a steep rise in the price of onions and compelled the government to revoke 10% export incentives on the vegetable. Last December, amidst falling prices, India had doubled the export incentives for the product, which is mainly exported to Bangladesh, Malaysia, UAE and Sri Lanka. But since January […]

India and China hold talks on RCEP

India and China held discussions on the deadlock in RCEP negotiations on June 10 and 11, led by Commerce Secretary Shri Anup Wadhawan and Chinese Vice Minister of Commerce Wang Shouwen. Officials from both sides are attempting to close the gap between the market access demanded by China and what India is able to offer. […]

India ranked 4th for tech investments

India is ranked 4th among the top overseas investment destinations for London technology companies over the past decade, according to official data released by London & Partners, the Mayor of London’s inward investment agency. Bengaluru was ranked 6th for tech companies seeking international expansion, beating New York, Dublin, Shanghai and Beijing. Between April 2009 to March […]

India strategises for military goods exports

India has prepared a list of 85 countries for export promotion of military equipment where it wants to promote its defence equipment. It has empowered its defence attaches to show India’s expertise in the sector. Furthermore, each attache has been allotted a budget of US$ 50,000 to promote exports of Indian defence products through participation […]

India has world’s fastest growing cities

Singapore has overtaken the US as the most competitive economy globally in the IMD World Competitiveness annual ranking. Hong Kong SAR took the second position followed by the US at rank 3. The decline in attractiveness of the US is attributed to factors like higher fuel prices, weakening exports, and fluctuations in dollar value. India does […]

Trump demands zero duties on motorcycles

US President Donald Trump has demanded that India must bring down import duties on American goods. In particular, he stressed that the duty on motorcycles must be reduced to zero, and the US will no longer get “robbed”. He also defended his protectionist policies and affirmed his commitment to reduce the US trade deficit of […]

China-India partners to counter US?

Ahead of the meeting between Indian PM Shri Narendra Modi and Chinese Vice President Xi Jinping on the sidelines of the upcoming Shanghai Cooperation Organisation (SCO), China has welcomed India to be a part of an international effort to counter “trade protectionism and unilateralism” and also tackle the “bullying practices of the US”. Chinese Vice-Foreign […]

Trump defends Mexico deal amidst criticism

US President Donald Trump continues to staunchly defend his deal with Mexico, wherein he backed off from a threat of 5% tariffs in return for Mexico promising to control the flow of immigrants from the southern border. Experts had cautioned Trump against the cuts, saying that it would push consumer prices up, and also compromise […]

Pepper producers stung by Vietnamese imports

Pepper exports in India are expected to witness a steep fall from 16,840 tonnes in 2017-18, which was in itself a relatively low figure. The reason is a drop in production in the two major pepper-producing states of Karnataka and Kerala due to weather conditions. This could compel farmers to hold inventory and release slowly […]

Gems & jewellery exports witness downturn

India’s gems & jewellery exports have been witnessing a declining trend of late due to the twin challenges of slowing international demand and weak liquidity in the Indian market. According to the Department of Commerce, exports of gems & jewellery from India dropped by 13.7% YoY in April 2019. For FY 2018-19, exports had declined […]

CIM emphasises on preserving WTO’s core principles

Shri Piyush Goyal, Minister of Commerce & Industry, emphasised on the importance of preserving the essential principles of the WTO in its reform process. He stated, “India believes that the reform process should not undermine the WTO’s fundamental principles, namely Special and Differential Treatment (S&DT), consensus-based decision making and objective of development.” Shri Goyal further […]

FM raises taxation of digital firms at G20

India’s Finance Minister Smt Nirmala Sitharaman urged G20 countries to resolve the issue of taxation of profits by digital companies in countries where they do not have a significant physical presence. She strongly supported a solution “based on the concept of ‘significant economic presence’ of businesses taking into account the evidence of their purposeful and […]

US sanctions jeopardize India-Iran trade payments

Indian rice and soya bean exporters have been unable to sign contracts with Iran owing to the ambivalence after US ended the waiver on sanctions against Iran. They requested the government to issue guidelines about the system of payments for exporters. The worst hit traders are the rice & soya bean exporters. Iran has been […]

Bumpy ride ahead for Indian IT firms

Indian IT firms are likely to face a volatile situation in the near future w.r.t. the banking and financial services, which account for a major share of the tech services business. In addition, major global developments like slowdown in economic growth, US-China trade war and Brexit are likely to affect the sector, as per a latest report […]

India’s containerised exports grow by 6%

Despite the fact that the rupee has been appreciating, there has been a 6% growth between January’19 & March’19 in India’s containerised exports, according to a report by Maersk India. Meanwhile, imports declined 2.2% over the same period. The overall export-import trade for the sector grew at 3% in the quarter. The highest growth (17%) was […]

Road transport minister advocates adoption of EVs

Minister of Road Transport Shri Nitin Gadkari, has suggested a move to cleaner automobiles – electric vehicles – and called for a wider consultation of stakeholders to facilitate this change. This move is aimed at tackling the double whammy of mounting pollution and the governments heavy import bill of oil. A steering committee headed by Niti Aayog’s […]

Steel consumption predicted to increase by 5-6%

India’s steel consumption is expected to increase by 5-6% in 2019, according to CARE Ratings. This growth will be driven by the government’s resolve to spend on infrastructure and construction. However, the agency lowered its forecast of steel production from 6-8% in February’19 to 5.9% in 2019 and 3-4% in 2020, signaling the possibility of […]

CIM advocates increasing export competitiveness

Addressing the Board of Trade and the Council of Trade Development and Promotion, Mr. Piyush Goyal stressed on the need to slash export subsidies and increase competitiveness. “Let us look at the next five years as one more way, one more new trend that we observe in this country, one more effort that we make to […]

Automation to displace 107 million women from jobs

According to the findings of a recent McKinsey report, nearly one-quarter of all women employed across the globe could be replaced by automation. Correspondingly, 163 million men (21%), could face the same scenario, as per the “The future of women at work: Transitions in the age of automation” report. About 11 million (8%) women could […]

RBI cuts repo rate by 25 basis points

The Reserve Bank of India’s Monetary Policy Committee reduced the repo rate by 25 basis points while switching its policy stance from neutral to accommodative. The reverse repo rate under the Liquidity Adjustment Facility has been adjusted to 5.50%, and the marginal standing facility (MSF) rate and the Bank Rate to 6%. The meeting comes […]

Government mulls reducing export subsidies

The Government of India is exploring the possibility of bringing down export subsidies and is instead looking for ways to boost infrastructure, the flow of credit and enhance insurance. These ideas are likely to be discussed by the Minister of Commerce & Industry, Mr. Piyush Goyal, with states in a meeting today. Since the exporters […]

India’s tea exports rise by 11.5% in April

As per data computed by Tea Board India, Ministry of Commerce & Industry, India’s tea exports increased by 11.5% to 17.93 million kg in April’19 as compared to 16.08 million kg for the same month in 2018. The findings of the provisional data suggest that the price realization per kg of tea at Rs 223.83 was […]

CIM looks to revamp Ministry to boost exports

Shri Piyush Goyal, Minister of Commerce and Industry is looking to revamp the Ministry to propel India’s exports, according to a report published in TOI. The plans will include expanding the focus of the Department of Promotion of Industry & Internal Trade to facilitating domestic investments as well, instead of a total focus on FDI. […]

India to become the 2nd largest economy in APAC by 2025

India is likely to catapult itself to the position of the 5th largest economy this year and outperform United Kingdom, reaching a total GDP size exceeding US$ 3 trillion. It will also surpass Japan as the 2nd largest economy in APAC by 2025, according to IHS Markit. Furthermore, around 7.5 million people are expected to join […]

GSP withdrawal will have marginal impact on pharma

The termination of the Generalized System of Preferences (GSP) benefits by the US could have a relatively marginal impact on Indian pharmaceutical companies that export drugs to the US. Dinesh Dua, Chairman, Pharmexcil, commented on the fallout, “It does impact pharmaceuticals, but very marginally. In fact, if you see the price spread, ex-factory dispatch price versus warehousing […]

FSSAI envisages coverage of exports

The Food Safety & Standards Authority of India (FSSAI) has proposed changes to the Food Safety and Standards Act (FSS Act), seeking to bring export consignments within its purview. The food industry regulator has also suggested a slew of liberalisation measures, including simplification in the process of acquiring food-business licences, to help companies to set […]

Indian animation show becomes global success

Netflix’s first Indian animation show for children, ‘Mighty Little Bheem’, has become a global sensation. The second most watched show in the world on Netflix, after ‘Boss Baby: Back in Business’, the show has 21 short videos. Enjoying a universal appeal, the Youtube trailer of this non-verbal show attracted more than 22 million views. Although […]

Gems & jewellery exports dip in 2018-19

A slowdown in demand in developed markets of the world has led to gems & jewellery exports declining by 5.32% YoY in to US$ 30.1 billion in 2018-19, according to Gems and Jewellery Export Promotion Council (GJEPC). While exports of silver jewellery dropped by 75% during this period, exports of gold medallions and coins contracted […]

India’s PMI surges to 3 month high

Amidst the fears of economic slowdown driven by the annual growth for FY 2018-19 and quarterly growth figures (January-March, 2019) hitting a 5 year low, there is a sign of recovery in the industrial sector. For the first time in the last 3 months, PMI rose from 51.8 in April’19 to 52.7 in May. Growth […]

Indian rupee is Asia’s top performer in last 3 mths

Due to the influx of foreign currency, the Indian Rupee has emerged as the top performing currency in Asia over the last 3 months. The election of Mr. Modi as the nation’s Prime Minister is likely to give a further impetus to this rise. In light of these developments, the Reserve Bank of India (RBI) […]

GSTN fosters digitisation for small firms

The Goods and Services Tax Network (GSTN) has allowed smaller firms (those with a turnover of 1.5 crore or lower) to download a software that would help them move ahead on the road to digitization. The software will create invoices and account statements, manage inventory and prepare GST returns for these businesses. This move, according […]

Trump regime pulls the plug on GSP for India

US has put an end to benefits available to India under the Generalized System of Preferences (GSP). The move came after the US administration concluded that India has not committed to provide “equitable and reasonable access to its markets” for the US. However, some officials in the government are optimistic that this may just be […]

India, China guzzling on coal imports

Coal imports by India and China reached multi-year highs in May 2019, despite the shift being made towards renewable sources. Together, they accounted for a share of over 50% of thermal coal imports via the sea route as compared to 45% around an year ago. Factors driving this surge in purchases are the sharp drop […]

Smt Badal appointed Minister for Food Processing

Smt Harsimrat Kaur Badal has been appointed as the Honourable Union Minister for Food Processing Industries for the second time under the Narendra Modi government. She made her debut in electoral politics with the 2009 Lok Sabha elections and was elected from the Bathinda constituency for the second time in a row in 2019. Some […]

Shri Goyal appointed Commerce & Industry Minister

Shri Piyush Goyal has been appointed as the Minister of Commerce and Industry in the newly elected Modi government. He will also assume the charge of the Railways Ministry. Shri Goyal has donned many hats in the past – he has served as the Union Finance Minister on a couple of occasions, standing in for Finance […]

US firm on evicting India from GSP regime

Despite its desire to build warm relations with the newly elected Indian government, the Trump administration is steadfast on removing India from the Generalized System of Preferences (GSP) due to trade barriers. Dairy products and motorcycles are among the US products that attract a high tariff in India. GSP gives a favorable access to goods […]

Africa FTA ratified by 24 countries

The Africa Continental Free Trade Agreement (AfCFTA) has been ratified by the parliaments of 24 countries after removal of a procedural hurdle. So far, 52 nations are on board vis-à-vis this pan African agreement. Nigeria is now studying an impact assessment report and consulting domestic economic stakeholders to ascertain whether it will join the agreement. […]

Japan & South Korea dominate India’s steel imports

Japan and South Korea accounted for an overwhelming 57% of India’s steel imports (pegged at 630,000 tonnes) in April 2019, compared to 45% in the previous month. Imports from Japan increased by 27% YoY to reach 116,000 tonnes, while imports from Korea rose by 15% YoY to reach 2,45,000 tonnes. Both countries have the benefit of tax-free […]

India is out of US currency monitoring list

The US has removed India’s name from its list of currency manipulators globally, showing confidence in India’s forex policies and clearing it of alleged involvement in measures like currency devaluation for export gain. According to Axis Bank chief economist Saugata Bhattacharya, India did not qualify for the list on at least two of the three […]

New policy expected for exports via e-commerce

Department for Promotion of Industry & Internal Trade is planning to come up with a strategic roadmap to boost India’s exports via the e-commerce route. The policy will reportedly incorporate the role of several entities like Reserve Bank of India, India Post, customs authorities as well as export promotion councils. An official quoted that the […]

Indian e-pharma to reach $2.7 bn by 2023

India’s e-pharma market is projected to reach a size of US$ 2.7 billion by 2023 from US$ 360 million currently, according to a report by consulting firm E&Y. According to the report, factors like rising internet and smartphone penetration, ease of ordering medicines online, rise in per capita incomes and chronic diseases are driving the […]

US to impose duties on Indian glycine

The US International Trade Commission has concluded that glycine imports from countries like India, China and Japan are damaging the interests of the US industry. The Commission has inferred that the import price is less than fair value and is being subsidised by the governments in China and India. Backed by this information, the US […]

Indian pharma players hope to penetrate China

The Indian pharmaceutical industry is eagerly looking forward to new avenues in the wake of the US-China trade war. Though Chinese regulations are quite complex, the industry is preparing to replace US exports, considering the latent potential in the market.   Raghuveer Kini, Executive Director, Pharmaceuticals Export Promotion Council of India (Pharmexcil), commented, “Valued at over […]

India ranked 43rd in World Competitiveness Ranking

India climbed up one place to 43rd most competitive economy in the IMD World Competitiveness Ranking, owing to its robust economic growth, a large labour force and huge market size. Singapore has surpassed the US to grab the top position. The rankings integrate 235 indicators from each of the 63 ranked economies, evaluating their ability […]

Surging metal imports derailing Make in India

The Process Plant and Machinery Association of India (PPMAI) has expressed concern over the rise in imports of metals and capital goods due to India’s Free Trade Agreements (FTAs) with countries like  South Korea, Indonesia, Malaysia and Japan. The Chairman of PPMAI, Yatinder Pal Singh Suri, stated: “The Free Trade Agreements (FTA) coupled with lack of reciprocity […]

New Department for trade facilitation & logistics

In its 100-day agenda for the new government, the Commerce and Industry Ministry has proposed formation of a separate department for trade facilitation and logistics, to facilitate better coordination among various government agencies.  Currently, the logistics division (under Department of Commerce) is mandated to develop an action plan for the logistics sector in the country. […]

FDI inflows shrink for the first time in 6 years

FY’19 saw FDI equity inflows dropping by 1% to US$ 44.4 billion, the first decline over the past 6 years, according to data released by the Department for Promotion of Industry and Internal Trade. Pharmaceuticals (decline by 74% to US$ 266 million) and telecommunications (56% decrease to US$ 2.7 billion) were the worst affected; even […]

US, Japan, EU seek to amend rules on farm subsidies

US, Japan & EU have pleaded to WTO to amend the rule on farm subsidies, in the backdrop of the claims of under-reporting of farm subsidies. According to the WTO Agreement on Agriculture, a developing country cannot offer subsidies over 10% of the value of its agricultural production, while the norm is 5% for developed […]

Coconut exports surge on activated carbon demand

Coconut product exports are set to cross Rs 2,000 crore in value terms in FY 2019 due to higher prices for activated carbon in the international market. Till January 2019, exports of activated carbon (produced from coconut shells) had reached 80,467 tonnes with a value of Rs 1,123.64 crore. Total exports of overall products was […]

China’s import curbs concern aluminium exporters

India’s aluminium exporters are jittery about China’s plans to curtail aluminium imports from July. Furthermore, there is speculation that China will dump aluminium in India due to its trade war with US. In addition, the fact that India has FTAs with ASEAN members at an import duty of 2.5% has led to the erosion of […]

Government plans scheme to replace MEIS

The Government plans to do away with Merchandise Export from India Scheme (MEIS) – that subsidizes exports – which has been challenged by US in the World Trade Organization (WTO). It will be replaced by a new scheme which bolsters the Make in India drive of the government & will also be of use to […]

Commerce Ministry releases draft export policy

The Ministry of Commerce & Industry has promulgated a new set of product-specific regulations pertaining to India’s exports. A ready reckoner for exporters, the draft policy intends to consolidate the export-specific norms for numerous commodities in operation in various government agencies. “Based on inputs received from various partner governments, it is proposed to bring out […]

IFC advocates local sourcing of garments

In the wake of the surge in garment imports from Bangladesh, Indian Texpreneurs Federation (ITF) has made a case for sourcing clothing requirements from within the country instead of importing. According to ITF, there has been a 53% y-o-y rise in Bangladesh’s overall exports to India in April’19 and a concomitant loss of apparel business […]

US monitors India for “unfair currency practices”

Alleging currency undervaluation, US has added the India to its list of economies to watch out for unfair practices and macroeconomic policies. The semi-annual report on US’ trade partners’ macroeconomic & foreign exchange policies also includes other leading economies such as China, Japan, Korea, Switzerland and Germany. In the backdrop of the RBI purchasing foreign […]

Low output to reduce India’s mango exports

India’s mango growing regions – Uttar Pradesh, Maharashtra, Gujarat & South India – have succumbed to the adversities caused by vagaries in weather. Furthermore, low production & increased logistical costs, coupled with stiff competition from Pakistan & Thailand, are likely to diminish India’s mango exports. UAE & West Asia are the common markets for mango […]

India defends ‘development dimension’ at WTO

At a recent informal gathering of select trade ministers in Paris, India has emphasised that it “cannot agree to any approach which undermines the centrality of the development dimension in the WTO”. India’s view was seconded by the ACP (Africa, Caribbean, and Pacific) group, the biggest coalition of developing and poorest countries. This is a […]

Make India an export & private-sector driven economy

Principal Economic Advisor Sanjeev Sanyal has suggested that the Reform Agenda 2.0 should focus on turning India into an export and private sector driven economy. He further affirmed during an  interaction with ET that India’s infrastructure was not a ‘binding constraint’ anymore and with reforms like GST and IBC, “the last five years were for […]

Theresa May to resign, leaving Brexit undone

In the backdrop of continued uncertainty over Brexit, Theresa May has announced her decision to step down as Britain’s Prime Minister on 7th June, 2019. She stated, “I will resign as leader of the Conservative and Unionist party on Friday, 7th June so that a successor can be chosen”. This has created room for a fresh debate […]

India to widen lead in GDP growth with China

According to estimates by the Paris-based think-tank Organization for Economic Cooperation & Development (OECD), India’s GDP growth lead over China is expected to increase in the coming years. Despite the cooling of China’s economy in the face of the US-China trade war and its global repercussions, India’s growth is projected at 7.25% in 2019 and […]

Trump foresees inclusion of Huawei in China deal

Even though the US government sees Huawei, the second-largest smartphone maker in the world, as “very dangerous”, US President Donald Trump sees the possibility of its inclusion in the trade talks with China. Currently, discussions between these two countries have stalled due to their ongoing trade war. “If we made a deal, I could imagine Huawei […]

Bangladesh hikes import duty on rice

In a move aimed at protecting its domestic rice cultivators from the competition posed by neighbouring countries like India, Bangladesh has decided to nearly double its import duty to 55%. This is the second hike this year,  as it raised the duty from 2% in 2017 to 28% earlier this year. This is expected to […]

Expert committee mulls strategy to reduce oil import

A High Level Committee of companies has submitted short-term, medium-term & long-term strategies to reduce India’s rapidly swelling oil imports to the Ministry of Petroleum & Natural Gas. In 2018, India consumed 204.92 MMT of petroleum products and 58.64 BCM natural gas. There was almost a stagnation in the domestic production of crude oil and […]

Indian exporters hold Basmati shipments to Iran

Fearing payment defaults in the light of the sanctions imposed by UN on Iran, Indian exporters have withheld shipments of Basmati rice to Iran. The ambiguity over trade with Iran in the light of the general elections has further made exporters apprehensive. “Unless there is new agreement with the Iranian government on export terms, we’ve […]

Textile exporters optimistic on US-China war

Surat-based textile exporters are highly optimistic regarding potential gains from the US-China trade agreement in fabric and readymade garment exports to the US. According to Synthetic & Rayon Export Promotion Council (SRTEPC), textile exports could grow by around 25% in 2019-20 due to the US-China trade war.  The US hike on US$ 200 billion worth […]

New import norms for diamond merchants

A Mumbai Customs directive has laid down new procedures for importing rough diamonds, which seek details on origin, size, shape, type, colour and clarity of diamonds from overseas. The fact that even a minute discrepancy may invite seizures and huge penalties has become a cause of concern for the traders. This appears to be a […]

India’s oil imports rise by 14% in April

In the month of April’19, India has registered an 18% hike (US$ 9.8 billion) in its oil import bill in value terms and by 14% (19.7 million tonnes) in quantity terms, despite the plunging imports from Iran (42%), which have been affected by sanctions imposed by the US. However, India’s imports from Venezuela, another country […]

Iron ore exports could surge with rising prices

With iron ore fetching US$ 100 per ton, the highest in the last 5 years in the international markets, India’s exports of lower grade iron ore could increase. According to international trade regulations, exports of iron ore of up to 58% attract zero import duty; as soon as iron ore of this quality crosses US$ […]

New investments in India on continuous decline

New investments in the Indian economy have continued to decline for the fourth consecutive year in 2018-19. The previous fiscal saw new investments at Rs 9.76 trillion, compared to Rs 20.86 trillion in FY 2014-15. This decline has happened despite the fact that announcements were higher in 2018-19 at Rs 17.25 trillion, compared to Rs […]

UN expects India to grow at 7.1% in FY’20

According to UN’s recent World Economic Situation and Prospects (WESP) 2019 Mid-year Update, the Indian economy will grow at 7.0% in 2019, in comparison to 7.2% growth registered last year. It’ll further grow at 7.1% in the succeeding financial year, owing to its robust consumption and investments. However, the agency lowered its original growth expectations […]

US wants to participate in Indo-Japan dispute

US has requested the World Trade Organisation (WTO) to allow it to participate in consultations between India & Japan on the tariffs levied on IT products on the grounds that many of its products are exported to India. Tokyo has accused New Delhi of charging excess duties to boost local manufacturing. These tariffs, Japan argued, […]

WTO predicts slowdown in trade growth

WTO foresees continued sluggishness in global trade growth during the second quarter of the current financial year due to the escalating tensions in the ensuing tariff spat between US & China. The organisation has pointed towards falling levels of growth in international air freight, automobile production, sales and trade in agricultural raw materials. “The outlook […]

TPCI anticipates losses over RCEP deal

Trade Promotion Council of India (TPCI) has expressed concerns over the Regional Comprehensive Economic Partnership (RCEP) as it could lead to a flooding of imported goods in Indian markets. According to Mr. Mohit Singla, Chairman, TPCI, “For India, issues of tariff rate (import duty) are as important as other areas under negotiations, mainly because India […]

US-China war can benefit Indian textile sector

The imposition of tariffs on China’s textiles has created an opportunity for Indian textile manufacturers, according to a report by the Confederation of Indian Textiles Industry (CITI). The tariff hike by the United States on US$ 200 billion worth of imports from China includes textiles-related chapters 50 and 60. India’s exports to the US under these chapters were […]

Taiwan sees huge trade potential with India

India is being perceived as a major market by Taiwan. This is attributed to a string of developments such as the New South Policy (2016), the current China-US trade tensions and the escalation of costs in China. In the light of these circumstances, Taiwan is turning to India and stipulating a 20% y-o-y growth in […]

Aluminium & copper industry concerned on dumping

In the light of the ongoing trade friction between US & China & the likely dumping of aluminium & copper products in India, industry insiders cautioned the government about the spike in China’s exports. This came ahead of the meeting of Regional Comprehensive Economic Partnership (RCEP) on May 24. “The presence of China in RCEP […]

Defence Ministry envisages policy to boost local content

In order to promote the level of indigenous content in defence equipment procured by the Indian Armed Forces, India’s Ministry of Defence (MoD) is rolling out a new policy. The guidelines can be attributed to ‘Public Procurement (Preference to Make In India) Order’, 2017 and aim to bring down the dependency on foreign imports. The […]

Indian cashew producers eye Chinese market

Changing consumption patterns in China have led Indian cashew producers to regard China as a potential market. However, there is one stumbling block in this development – unlike Vietnam & Cambodia, India does not enjoy tariff concessions and free border trade. Currently, India has to pay a 10% import duty on imported cashew kernels. Therefore, […]

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.