GAGA B2B - CONNECTING IMPORTERS AND EXPORTERS

[ad_1] Ahead of Donald Trump taking office, the Centre has reached out to industry seeking their 'offensive asks' from Washington. These asks relate to demands in the areas of export interest for India."We have asked industry on how they see trade with the US and the possible impact of pronouncements that Trump has made. We have sought their inputs to evaluate the issues and their offensive interests," said an official. The inputs will be used to develop India's export strategy and evolve the approach in trade talks with the US. The exercise assumes significance with Trump threatening to impose reciprocal tax on India alleging that New Delhi levies high tariffs on certain US goods. Separately, the commerce and industry ministry is also examining the contours of the mini trade deal that India and the US were negotiating during Trump's previous term."Negotiations, discussions, retaliation, dispute or mini trade deal, nothing is off or on the cards,...

[ad_1] The Swiss decision to suspend the most favoured nation clause in the Double Taxation Avoidance Agreement will not delay the ratification and implementation of the already signed trade agreement between India and the EFTA bloc, Switzerland has said. The Swiss government has suspended the Most Favoured Nation (MFN) status, which could potentially impact Swiss investments in India and lead to higher taxes on Indian companies operating in the European nation. India and the four-nation European Free Trade Association (EFTA) signed the pact, officially dubbed as TEPA (Trade and Economic Partnership Agreement), in March. Its members are Iceland, Liechtenstein, Norway, and Switzerland. The agreement is yet to be implemented. "No, the decision will not delay the ratification and implementation of EFTA-India TEPA," the Embassy of Switzerland in India has said in a response to PTI queries on the matter. It also said that this decision does not negatively affect investme...

[ad_1] New Delhi: Fearing that countries like China may take advantage of low import duty to dump petrochemical products in India, a top trade body has sent an SOS to the government seeking hike in customs duty to protect the domestic industry and jobs. The Petrochemicals and Plastic Committee of the Federation of Indian Chambers of Commerce and Industry (FICCI) has written to Ministry of Chemicals and Fertilizers seeking hike in customs or import duty on polypropylene and polyethylene - vastly used in automobiles, packaging, agriculture, electronics and medical devices as well as in construction - from 7.5 per cent to 12.5 per cent. India is short on petrochemicals. Taking into account the capacity additions announced so far, the projected deficit of polypropylene and polyethylene is likely to reach 12 million tonne per annum or USD 12 billion at current price levels by 2030. While the domestic Indian producers are caught in the cyclical nature of the business, China is scali...

[ad_1] New Delhi: India’s apex exporters’ body Federation of Indian Export Organisations (FIEO) has sought restoration of the Generalised System of Preferences (GSP) for duty-free imports of Indian goods into the US as it expects leather, steel and plastics exports to benefit from it.It has also drafted a strategy to increase exports to the US wherein it has identified five sectors- apparel, electronics, toys, footwear and organic chemicals- as focus areas that could help capitalise on opportunities arising with the US president-elect Donald Trump’s threat to impose high tariffs on Chinese goods.Besides, the body has urged the government to provide financial assistance for Indian exporters to participate in exhibitions there.“Capacities are being built as big factories are coming up in the country. We have to increase our presence in the US,” said FIEO vice president Israr Ahmed.Emphasising the need for aggressive promotion and visibility in the US market, he said: “We are askin...

[ad_1] India has extended the timeline for duty-free imports of yellow peas by two more months until February 2025, according to an official notification from Directorate General of Foreign Trade (DGFT).In early December 2023, the central government allowed duty-free imports of yellow peas until March 2024, later to be extended till April, then June, and later till October and December. It was part of New Delhi's intervention to cool the prices of the overall pulse basket.Reportedly, the duty on yellow peas was first implemented in November 2017 at 50 per cent. India largely imports yellow peas from Canada and Russia.India is a large consumer and grower of pulses and it meets a portion of its consumption needs through imports.India primarily consumes chana, Masur, urad, Kabuli chana, and tur pulses.Despite several measures, including various incentives to farmers, India is still dependent on imports of pulses for its domestic requirements. Pulses imports have almost doubled ...

[ad_1] Indian exporters are preparing to increase their presence in the US market, anticipating higher tariffs on Chinese goods, ToI reported. They are discussing strategies with the Indian government to capitalize on potential opportunities in sectors like textiles, leather, chemicals, electronics, auto parts, and toys. These discussions involve collaborating with American trade organizations and raising awareness of Indian products in the US."These are sectors where we have built capacity and where we are competitive. We should be ready to take advantage of the opportunity if it arises," said Israr Ahmed, vice-president of industry lobby group Fieo. The toy sector alone presents a potential $1 billion US market opportunity in the next few years.Also Read: Trump's another stark warning to India puts a lot at stakeAhmed explained that with US President-elect Donald Trump’s push to reduce reliance on China, American businesses are seeking alternative suppliers, posi...

[ad_1] A cost-benefit analysis of exchange rate movements shows that the benefits of depreciation of the Rupee, adjusted for inflation, is more in the form of exports than an appreciation that appears to be better for importers, an RBI study shows. The metric is known as the Real Effective Exchange Rate, (REER).“ The empirical findings indicate that in India depreciation in REER improves trade balance while appreciation deteriorates it” the study titled “Real Effective Exchange Rate and its Implications for India’s Trade Balance” said. The study was published in the Reserve Bank’s latest monthly bulletin.“ The impact of REER depreciation on trade balance is more than an equivalent REER appreciation in the short-run and vice versa in the long-run”. The views are of the authors Dipak R. Chaudhari, Anshul and Sangeeta Das from the financial markets operations department, Srijashree Sardar from financial stability department and Priyanka Priyadarshini from the department of supervis...

[ad_1] India has become an attractive choice for companies seeking to shift manufacturing away from China. Now, the return of Donald Trump to the White House who will most likely intensify trade war with China can further fuel the momentum for diversifying investments outside the world's second-largest economy and India needs to capture it.However, a report by government policy think-tank NITI Aayog suggests that India, unlike its South Asian peers – Vietnam, Thailand, Cambodia, and Malaysia, has had limited success in capturing the full potential of the "China Plus One" strategy so far.The report says Vietnam, Thailand, Cambodia, and Malaysia have become bigger beneficiaries of the strategy. Factors such as cheaper labour, simplified tax laws, lower tariffs and proactiveness in signing Free Trade Agreements (FTAs) have played a critical role in helping these countries expand their export shares.ALSO READ: India’s true manufacturing rival is not China, it's som...

[ad_1] New Delhi: US President-elect Donald Trump’s announcement to impose high tariffs on three of its trading partners, including China, will provide huge export opportunities for India and the domestic industry should prepare itself to tap them, Niti Aayog CEO BVR Subrahmanyam said Wednesday.He also said that the India-US relationship is “very deep” and “multi-dimensional” It is very deep and does not stand only on one leg which is trade.Trump last week said he would slap 25% tariffs on imports from Mexico and Canada and an additional 10% on China.“Whatever Trump has announced so far...I think there are opportunities for India. We are (like) a man at first slip, the ball is coming in our direction. Are we going to hold it or drop the catch, it's for us to see...and I think, you will see some steps in next few months,” Subrahmanyam said while releasing the first of the Aayog’s Trade Watch Quarterly report.ALSO READ: India has miles to cover before cashing in on China's...

[ad_1] Guards on either side of a border checkpoint between India and Bangladesh scour vehicles and frisk passengers in a hunt for illicit consignments of gold and drugs, as well as food staples such as sugar, grain and even onions. "We caught smugglers in August who were transporting sugar concealed beneath a layer of sand in their vehicle," said an officer of India's Border Security Force (BSF) in the northeastern city of Shillong, who sought anonymity. Despite such efforts, illegal barter trade of gold for food items has surged since mid-2022, as India's export curbs fuelled a vast disparity with prices in Bangladesh, causing combined government revenue losses of billions of dollars. The smuggling distorts India's bullion trade with discounts from official prices, hides unaccounted wealth, and weakens New Delhi's efforts to curb food inflation by limiting exports.At the same time it undermines Bangladesh's import reduction measures aimed at boost...

[ad_1] Israeli Minister of Economy Nir Barkat has expressed profound gratitude to India for its unwavering support, highlighting Prime Minister Narendra Modi’s prompt solidarity following the October 7 terror attacks.Speaking to ET on a visit to India to push investment and technology partnership Barkat elaborated on Israel’s innovative economic model, which identifies six key clusters driving exports. These include advanced manufacturing, life sciences, and high-tech and desert-tech sectors.The approach involves aligning infrastructure to these clusters, creating specialized facilities like labs that cater to multiple startups. For instance, shared laboratories for agri-tech companies not only reduce costs but also foster a collaborative ecosystem, Barkat noted.By leveraging public-private partnerships, Israel maximizes efficiency and scales innovations effectively, offering a replicable framework for India-Israel collaboration, the Minister pointed out. “We have a huge number ...

[ad_1] US President-elect Donald Trump's recent statements on trade, including the threat of 100% tariffs against the BRICS nations if they seek to dethrone the dollar, warrant caution and careful monitoring, said Bob Willen, managing partner and chairman of Kearney, a leading global management consulting firm. On his second visit to India within the last six months, Willen spoke to Vinod Mahanta in an interview about Trump, the growth of global capability centres (GCCs) in India and the transformative role of Artificial Intelligence (AI) in shaping the future of companies. Edited excerpts:President-elect Donald Trump has warned BRICS members of 100% tariffs if they launch their own currency or support an alternative to the US dollar as the world's reserve. Should this be a cause for concern for India and its businesses?There's definitely a sense of caution to see how things will actually unfold. He's a dealmaker-practical and deeply concerned about markets, espe...

[ad_1] Three trading houses have become dominant sellers of Russian oil to India as many smaller players dropped out of the business due to high funding costs in Russia and lack of access to Western funds, according to data and six trading sources. The change reverses a trend of dozens of little-known trading firms flooding the market for oil trade between Russia and key buyers China, India and Turkey, lured by prospects of higher fees to help Russian producers skirt Western sanctions. India has become the biggest buyer of Russia's seaborne crude after Moscow's invasion of Ukraine in 2022, with purchases near record highs at 1.8 million to 2.0 million barrels per day, or more than a third of its crude imports. The recent concentration of trade has allowed Russia to sell record oil volumes to India at the smallest discounts since 2022, though its oil remains cheaper than rival U.S. and Middle Eastern grades, according to six traders and data.The dominance of a few players...

[ad_1] India's finished steel imports from China reached an all-time high during the first seven months of the current financial year from April, according to provisional government data reviewed by Reuters, rattling hundreds of small Indian steel producers. China, the world's biggest steel producer, shipped 1.7 million metric tons of finished steel to India during April-October, a 35.4% increase year-on-year, the data showed. This has exacerbated the deteriorating financial health of Indian steel producers struggling with cheap Chinese imports and falling domestic prices despite robust demand driven by rapid economic growth and rising infrastructure spending in the world's fastest growing major economy. China, the world's biggest steel producer, mostly shipped stainless steel, hot-rolled coils, galvanised sheets, plates and electrical sheets, among other grades during the period, the data showed.India's overall finished steel imports surged to a seven-year h...

[ad_1] India has pitched for fast-tracking negotiations in the WTO on special safeguard mechanism (SSM), which would allow developing countries to temporarily raise tariffs on agricultural imports in response to import surges or price drops, an official said. The country flagged the issues during a meeting of a committee on agriculture issues in Geneva on December 4. In the meeting, India emphasized on the need to prioritize unresolved mandated issues such as a permanent solution to public stockholding, SSM, and cotton, treating them as standalone issues. "India highlighted the Nairobi Ministerial Decision's mandate to prioritize and fast-track SSM negotiations, calling for modalities that are simple, operational, and equitable," the Geneva-based official said. Regarding Guyana's proposal, India reiterated that any facilitator-led processes should be consensus-based and respect WTO's (World Trade Organization) multilateral principles, rejecting the non-t...

[ad_1] The political turmoil in Bangladesh has slowed down exports of gem and jewellery, imitation jewellery, engineering goods and oilmeals from India. The raw cotton, cotton yarn and textiles exporters are facing delays in payments, even though the buyers are depositing payments in local currency Bangladeshi Taka. However, due to dollar shortage, banks are finding it difficult to convert Taka into dollars, resulting in payment delays.Pankaj Chadha, chairman of the Engineering Exports Promotion Council said "Private orders have come down and the Bangladesh government's perception of India has turned negative. We are not getting any government orders from Bangladesh. Additionally, Indian banks are not accepting letters of credit, a contractual agreement between a buyer's bank and a seller's bank that guarantees payment to the seller for goods or services, issued by Bangladesh's banks. So the situation seems to be quite volatile." Engineering exports to ...

[ad_1] India, Sri Lanka and Pakistan have raised concerns at the World Trade Organization (WTO) on attempts to appoint facilitators to oversee the resumption of the stalled agriculture negotiations.At a meeting of the committee on agriculture on Wednesday, India rejected the facilitator-led approach, which is based on "convergence" instead of the WTO's tenet of consensus, and said that trust deficit is a major reason for agriculture talks not moving forward.Under the proposed facilitator-led process, facilitators appointed by the chair of the agriculture negotiations would guide the discussions on various topics. New Delhi believes that such a process undermines ministerial mandates."The three members expressed concerns about the facilitator-led process, citing a lack of clear consensus among members and insisted that members adhere to formal negotiation channels," said a Geneva-based official.In a communication to the WTO last month, they proposed that a...

[ad_1] New Delhi: The RBI's decision to cut Cash Reserve Ratio (CRR) will increase liquidity in the system, thereby helping exporters get credit at easy terms, FIEO said on Friday. Cash Reserve Ratio is the proportion of deposits that banks must keep with the central bank. The RBI has slashed CRR by 50 basis points to 4 per cent, effective in two tranches on December 14 and December 28. Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said exporters are already facing challenges at liquidity front. "In such times, the CRR cut will help increase flow of money," he told reporters here. The CRR cut will infuse Rs 1.16 lakh crore into the banking system and will soften short-term interest rates and can reduce the pressure on bank deposit rates. FIEO has earlier stated that the declining bank credit to exporters will hurt the sector. While exports grew by 15 per cent in the rupee terms between 2021-22 and 2023-24, the outstanding credit i...

[ad_1] India in 2019 decided not to join the mega free trade agreement RCEP as the pact was not addressing its concerns and since then there has been no change in that position, Commerce and Industry Minister Piyush Goyal said on Friday. The RCEP (Regional Comprehensive Economic Partnership) agreement is being negotiated among 10 ASEAN members (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam) and their six free-trade pact partners Australia, China, India, Japan, South Korea and New Zealand. In a written reply to the Rajya Sabha, Goyal said that the structure of RCEP did not adequately address the ambitions and concerns of India's stakeholders. Due to that, India decided not to join the bloc, in its current form. Accordingly, during the third RCEP Leaders Summit held on November 4, 2019, in Bangkok, India conveyed its position that current structure of RCEP did not address the outstanding issues and concerns of the co...

[ad_1] In a relief to small exporters, the Reserve Bank of India (RBI) has asked banks to simplify a process for exports of up to $1,000.In a directive issued last week, which ET has seen, banks have been asked to do away with a compliance related to the realisation of exports for which exporters have to pay a fee. The move will benefit ecommerce shipments, most of which are less than $1,000.At present, routing of courier shipping bills is done through Export Data Processing and Monitoring System (EDPMS), which allows banks to match inward remittances against the shipping bills of exporters.This closure process is cumbersome and costly as banks charge ₹1,000-2,000 per shipping bill for reconciliation.For small-value packages, these charges erode profits."With the routing of courier shipping bills through the EDPMS, the outstanding entries for small-value shipping bills has increased considerably and is now the major component of the outstanding shipping bills in the EDPMS,...

[ad_1] Doha: External Affairs Minister S Jaishankar on Saturday reacted to President-elect Donald Trump's threat to impose 100 per cent tariffs on BRICS nations, stating that India has "no interest" in weakning the US dollar.Speaking at the Doha Forum on Saturday, Jaishankar reflected on the positive relationship India had with the first Trump administration, highlighting the restart of the QUAD under Trump's presidency. "We had a good relationship, a very solid relationship with the first Trump administration, yes there were some issues mostly trade related issues, but there were a whole lot of issues on which Trump was very international, and i remind people that it was actually under Trump that the QUAD was restarted," he said. He also noted the personal connection between Prime Minister Narendra Modi and President-elect Trump, which has contributed to the strong bilateral ties between the two countries."There a personal relation between PM Mo...

[ad_1] Norway on Sunday said that it plans to ratify the India-EFTA free trade agreement next year, the commerce and industry ministry said. India and the four-nation EFTA (European Free Trade Association) bloc inked the agreement, officially dubbed as Trade and Economic Partnership Agreement (TEPA), on March 10 this year. However, it needs ratification from the four countries for its implementation. The agreement came up for discussions during the India-Norway Business Forum which was held in Mumbai. May-Elin Stener, Ambassador of Norway to India, termed TEPA a landmark in bilateral relations and highlighted its potential to further enhance trade and investment between the two nations."She noted Norway's plans to ratify TEPA by 2025 and emphasized areas of focus, such as renewable energy, maritime industries, climate, and sustainability," the ministry said. « Back to recommendation stories The ambassador also announced that Norway will host the Indo-Nordic Summi...

[ad_1] New Delhi: India and the European Union are looking to bridge their differences on issues pertaining to rules of origin and government procurement in the next round of the bilateral free trade agreement (FTA) talks likely to be scheduled in March in Brussels.Officials said the 10th round of negotiations next round on the proposed trade deal could be held on March 10-14, 2025 and is likely to cover wider elements.The ninth round in September was a restricted one held to assess the exact picture of the positions of the two sides."We have exchanged our key asks and now their commercial significance is being assessed. The next round will be in the first quarter of next year," said an official. The two sides are expected to build on the limited progress made on issues such as rules of origin and government procurement, and New Delhi has conveyed to the EU that market access for its goods, services and investment should be the focus areas of the talks. The last round ...

[ad_1] The Directorate General of Foreign Trade (DGFT) has declared Amritsar Airport as an authorised export point for gold, silver, and platinum jewellery from India. Mostly meenakari and jadau jewellery are exported from Amritsar to the global markets.The inclusion of Amritsar Airport comes after persistent efforts by the Gem & Jewellery Export Promotion Council (GJEPC), which has been advocating for streamlining export procedures and promoting regional growth within the industry. This move will significantly boost the export potential of precious jewellery, especially for businesses in Punjab and surrounding areas.Vipul Shah, Chairman, GJEPC, said, “Amritsar is one of the major thriving centres for Meenakari and Jadau jewellery. Previously, exporters had to travel to Delhi Customs to have their export parcels appraised, which was not only time-consuming but also presented logistical challenges. Now, with Amritsar Airport designated as an authorised export point, jewellers...