The talks on the India-Oman Comprehensive Economic Partnership Agreement (CEPA) are expected to receive significant momentum during Commerce Minister Piyush Goyal’s visit to Oman. Discussions will focus on enhancing trade and investment, reflecting the importance of their economic ties, with bilateral trade estimated over $8.94 billion in 2023-24.
India’s exports increased by 5.57% to USD 59.93 billion during April-December due to strong demand in the US market, while imports grew by 1.91% in the same period. Experts predict continued growth in bilateral trade and potential opportunities due to the US-China trade conflict. Concerns remain over possible US tariffs on Indian goods.
India has a key opportunity to enhance its trade within Asia, with emerging corridors including India-US, India-Japan, and Southeast Asia. Gautam Kumra, chairman of McKinsey Asia, emphasizes the importance of manufacturing’s contribution to GDP and the potential of Global Capability Centres (GCCs). He highlights the need for localization and partnerships, particularly between Japan and India.
NECSTGA raises concerns over the Tea Board’s directive to stop tea production in North India, linking it to increased tea imports from Nepal, Kenya, and other countries. They highlight the adverse effects on over 1.5 lakh small growers, emphasizing the flawed regulations and negative impact on the Indian tea industry’s market value.
A weaker rupee alone cannot boost exports, according to FIEO. Depreciation impacts competitiveness when competitor currencies decline more. It inflates import costs, increases production expenses, and drives domestic inflation, reducing consumer purchasing power. Currency volatility complicates price planning for exporters and raises the cost of servicing external debt.
Union minister Ashwini Vaishnaw stated that simplifying the tariff structure is a priority for the Modi government to boost exports as a major driver of economic growth. The goal has shifted to ‘Make in India, Make for the World’, emphasizing export-led growth. Customs laws and procedures will also be streamlined to aid this strategy.
India and the EU are making significant progress in negotiations for a free trade agreement (FTA), according to commerce and industry minister Piyush Goyal. The two sides agreed to build a commercially meaningful trade agenda and work towards a mutually beneficial pact, ahead of the 10th round of talks.
US-India trade relations face uncertainty as President Trump pushes for reciprocal tariffs. India, with a trade surplus, contemplates reducing tariffs on specific American products. Officials consider a limited trade deal and broader concessions, aiming to strengthen economic ties despite historical disagreements.
Countries should stay calm and not react quickly to protectionist moves to avoid harming economic growth. WTO urges not to overreact and study policies first. Climate efforts need consistent action from both countries and companies. Renewables and green technology hold economic promise, and progress should continue despite some setbacks.
Some Indian exporters are facing margin calls and losses due to the sharp decline in the rupee. They had used the target redemption forward (TARF) structure, attracted by the promise of quick profits under low volatility. However, the rupee’s recent fall and increased volatility hindered profit caps and resulted in significant losses.
Ashwini Vaishnaw, leading the Indian delegation at Davos, emphasized India’s trust with global companies and strong US relationship despite potential issues like birthright citizenship changes. India presents a unified front for investments, focusing on manufacturing interest and AI development. Prime Minister Modi’s economic policies and trust in India’s foreign policy are key highlights.
India is examining the US ‘America First’ trade policy to determine its impact on bilateral trade. The White House directive to identify countries for potential agreements is viewed positively. Discussions are ongoing with US trade policies, and India’s government is awaiting key trade official appointments for further dialogue.
India is reviewing the impacts of Trump’s America First Trade Policy on its trade relations with the US, its largest trading partner. The memo suggests exploring bilateral or sector-specific agreements. Key trade officials’ confirmations in the US are awaited. Trump also threatens 100% tariffs on BRICS nations targeting the US dollar’s role in global trade.
Budget 2025: Nuts and Dry Fruits Council of India (NDFC) urges the government to set walnut import duty on a per-kilogram basis, reduce GST on dry fruits to 5%, and implement a production-linked incentive scheme to boost sector growth. India’s dry fruits market is projected to reach USD 12 billion by 2029.
India’s rice exports in 2024 remained steady despite earlier export curbs, with high basmati rice shipments compensating for a decline in non-basmati rice sales. The country’s total exports reached 17.8 million metric tons, down slightly from the previous year. Demand from Saudi Arabia, Iraq, and the UAE drove a 16.3% increase in basmati rice exports.
India’s government evaluates options such as a trade deal, tariff cuts, and increased imports from the US to counter potential trade actions by the Trump administration. Strategies include reducing import duties on specific US products and taking back illegal Indian immigrants from the US to ease tensions.
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