Page 2 - Trade Policy

India' reliance on Bab-el-Mandeb Strait could impact economy: GTRI

India needs to work on finding alternate trade routes in the sea as heavy reliance on the Bab-el-Mandeb Strait, a key route crossing Red Sea, could impact the country's trade with the Middle East, Africa, and Europe, economic think tank GTRI said on Tuesday. Developing alternative routes such as the deep water port in Chabahar, Iran can help the country, it said. The situation around the Bab-el-Mandeb Strait, a crucial shipping route connecting the Mediterranean Sea to the Indian Ocean, has escalated due to recent attacks by Yemen-based Houthi militants. The strait, vital for 30 per cent of global container traffic, has seen increased tensions with various incidents in 2023, including attacks and military manoeuvre by regional and global powers, the Global Trade Research Initiative (GTRI) said. It added that India, heavily reliant on this route for trade and energy (crude oil and LNG) imports, faces increased costs and security risks, prompting efforts to diversify trade routes and

India-US Trade Policy Forum meeting likely to be held next month

The TPF is the premier bilateral forum for discussion and resolution of trade and investment issues between the US and India

India, Peru to hold trade talks on furthering investments from Oct 10: Govt

The next round of negotiations for a trade agreement between India and South American nation Peru will start from October 10, an official statement said on Monday. The agreement is aimed at promoting bilateral trade and investments between the two countries. With the pact, the two trading partners will significantly reduce or eliminate customs duties on maximum number of goods traded between them. "A special round of negotiations for the India - Peru trade agreement is scheduled to be held virtually on 10-11 October," the commerce ministry said. During the negotiations, the two sides will discuss different issues, including rules of origin, trade in goods, customs procedures and trade facilitation, technical barriers to trade, sanitary and phytosanitary measures. "Discussions on services, movement of natural persons (professionals), trade remedies and investment chapter will be held later in the month based on mutual convenience of the negotiators," the statement said. Negotiation

Deepak Anurag sworn in as member of Competition Commission of India

Deepak Anurag, retired additional deputy comptroller and auditor general of India, was sworn in as member of fair trade regulator Competition Commission on Monday. The Competition Commission of India (CCI) now has four members, including Chairperson Ravneet Kaur. Anurag was sworn in as member on Monday, according to a post by CCI on social media platform X. According to his LinkedIn profile, Anurag is a retired additional deputy comptroller and auditor general of India, at the Office of Comptroller and Auditor General of India. CCI also shared pictures of the member being sworn in on Monday. Last month, lawyer Sweta Kakkad and retired police officer Anil Kumar Agrawal were sworn in as members of the CCI. Kaur took charge as the Chairperson in May. The fair trade regulator is pursuing various cases, including those related to digital space, as well as dealing with all complaints related to GST profiteering.

Sebi slaps Rs 55 lakh penalty on 11 entities for non-genuine trades

Capital markets regulator Sebi on Thursday slapped penalties totalling Rs 55 lakh on 11 entities for indulging in non-genuine trades in illiquid stock options segment on the BSE. In 11 separate orders, the regulator slapped a fine of Rs 5 lakh each on Sanjay Kumar Agarwal HUF, Manoj Agrawal, Kanta Didwania, Harish Chandra Baldewa, Daksha Kirit Patel, Bestway Dealcom, Ziya Merchandise, S K Agarwal, and Sons HUF, Sumit Agarwal, Spectrum Technoprojects Pvt Ltd, and Sanjeev Mittal HUF. The orders came after the regulator observed large-scale reversal trades in the illiquid stock options segment on the BSE, leading to artificial volumes on the exchange. The Securities and Exchange Board of India (Sebi) conducted an investigation into trading activities of certain entities engaged in the segment from April 2014 to September 2015. The entities to be fined were among those who indulged in reversal trades. Reversal trades are non-genuine as they are executed in the normal course of trading

At WTO, growing disregard for trade rules shows world is fragmenting

Those depositing cases include China, Dominican Republic, India, Indonesia, Morocco, Pakistan, South Korea and the United States

Integrating GVCs can add $1.2 trn to India's foreign trade: GTRI report

Steps like streamlining port and customs operations, and setting up of national trade network will help Indian firms integrate with global value chains and add USD 1.2 trillion in the country's foreign trade by 2030, according to a report. The Global Trade Research Initiative (GTRI) said that currently, India's limited participation in global value chains (GVCs) hampers its export potential, despite possessing substantial manufacturing capabilities across various GVC-relevant product categories. The integration of Indian companies in the GVCs is fundamental as about 70 per cent of global trade operates within these chains, encompassing a wide range of products, from electronics and machinery to pharmaceuticals and apparel. "India's weak GVC integration can be attributed to poor trade infrastructure, causing delays at ports and customs, which are detrimental to the timely flow of goods in these intricate value chains," GTRi Co-Founder Ajay Srivastava said. Countries like China, Japa

EU comm in China calls for balanced trade, warns Ukraine could divide them

The European Union's trade commissioner called for a more balanced economic relationship with China on Monday, noting a trade imbalance of nearly 400 billion euros (USD 425 billion), while also warning that China's position on the war in Ukraine could endanger its relationship with Europe. Valdis Dombrovskis, in a speech at China's prestigious Tsinghua University, said that the EU and China face significant political and economic headwinds that could cause them to drift apart. The strongest, yet not the only, headwind is Russia's war of aggression against Ukraine, and how China positions itself on this issue, he said, according to a prepared text of his remarks. Dombrovskis is in China to co-chair high-level economic and trade talks on Monday with Chinese Vice Premier He Lifeng. EU leaders have expressed concern about the bloc's growing trade deficit with China, which reached 396 billion euros last year. European Commission President Ursula von der Leyen recently announced an ...

Trade pacts with G20 member countries can help India boost exports: CII

Negotiating trade pacts with certain G20 countries and diversifying exports to regions like Brazil and Mexico could help India boost outbound shipments and manufacturing in the years to come, Chairman, CII national committee on EXIM, Sanjay Budhia, said on Wednesday. He said that tapping into opportunities in G20 countries is crucial for India's economic growth and global influence. India should diversify its export markets within the G20 countries, Budhia, who is also Managing Director of Patton Group, said. He added that while traditional partners like the United States and the European Union remain important, exploring emerging markets within the G20, such as Brazil, South Africa, Indonesia, and Mexico, can open up new avenues for Indian goods and services. "Negotiating and implementing trade agreements and bilateral deals with G20 member countries may be helpful to tap potential between India and G20 countries. Such agreements can reduce trade barriers, tariffs, and regulatory

Non-tariff barriers emerging as tool to disrupt textiles trade: AEPC

Non-tariff barriers (NTBs) are gradually emerging as a potent tool to damage and even disrupt legitimate textiles trade, apparel export promotion council (AEPC) said on Thursday. As many as 131 NTB notifications are issued related to the textile sector since 2019 with Uganda at the top position with 71 notifications, it said. It was followed by Ecuador (10), China (8), Taiwan (7), Israel (5), USA (4), and Peru (3). These barriers include certifications, inspections, regulations, standards, SPS (sanitary and phyto-sanitary - related with plants and animals) measures, and technical barriers to trade (TBT). These measures are by and large in conformity with the rules of the World Trade Organisation (WTO). But when these measures are used unfairly, in violation of WTO agreements to discriminate against imports and restrict market access, then they become non-tariff barriers hampering legitimate trade. The council has organized a webinar on emerging non-tariff barriers in the apparel

Spain has lot to offer in terms of defence trade: Indian ambassador Patnaik

Indian ambassador to Spain Dinesh Patnaik has said that the European country has "a lot to offer" in terms of bilateral trade in defence, start-up and IT ecosystem, and cultural exchange. The two countries share an increasingly important relationship through bilateral exchanges, he said, adding more and more Indian filmmakers are now exploring Spain's scenic locations, the latest being films such as Pathaan and Tu Jhoothi Main Makkar, and India is buying C295 aircraft, submarines and automotive components from Spain. The European country, in turn, procures chemicals, mechanical, engineering and electrical equipments from India, he said. "In the last one-and-a-half years, our trade has increased by about 30 per cent. We have a surplus of USD 4 billion with them. With very few countries we have such large surpluses, especially when it is non-petroleum products. But there is a lot more that can be done. This is just the tip of the iceberg," Patnaik told PTI in an interview. Speaking o

India, Australia working on comprehensive trade agreement: PM Modi

Prime Minister Narendra Modi on Tuesday said India and Australia are working on a Comprehensive Economic Cooperation Agreement (CECA), and exuded confidence that the bilateral trade will more than double in five years. The two countries have already signed India-Australia Economic Cooperation and Trade Agreement (ECTA), he said expressing hope the pact will help in doubling the two-way commerce in the next five years. Addressing a community event at Sydney's Qudos Bank Arena, the Prime Minister said the two countries are now working on CECA. "We are building a resilient and reliable supply chain. This will strengthen the business of both countries," he said. Modi, who is visiting Australia as a guest of the Australian government, said the air connectivity between India and Australia has increased and the number of flights would go up further in the coming days. Australia was the 13th largest trading partner of India in 2022-23. While exports stood at USD 6.95 billion, imports from

In the old tale of Kabuliwala, there is a South Asia trade mystery

India's business with its neighbourhood is stagnant though it offers better terms than China

Consumer org COF seeks probe into activities of online gaming firm RARIO

Consumer Online Foundation, a consumer rights organisation, has written to the finance minister to investigate the activities of a cricket collectable and gaming platform, RARIO, for alleged violation of tax laws with respect to cryptocurrencies, an allegation denied by the company. The letter by Consumer Online Foundation (COF) alleged that RARIO is engaged in unfair trade practices that infringe on the rights of consumers. RARIO refers to itself as a company engaged in the buying and selling of digital player cards and does not disclose on its website that it is in reality an NFT and cryptocurrency platform, the COF alleged. However, RARIO said, "We adhere to all the KYC requirements and fully comply with the applicable laws, including taxation." The letter alleged that the company has been engaging in unethical marketing practices and misleading customers in all of its transactions. "Customers purchase player cards in either INR or USD currency, which are loaded into their 'RAR

Top headlines: Subpar global trade growth, Sebi crackdown on ads, and more

Business Standard brings you the top headlines at this hour

New foreign trade policy to aid exports via e-com, farm equipment: Experts

The new Foreign Trade Policy (FTP) 2023, announced recently, will help in promoting exports of sectors from e-commerce, batteries for electric vehicles and farm equipment, experts said on Tuesday. India on March 31 came out with the new policy which aimed at pushing rupee trade, increasing outward shipments to USD 2 trillion by 2030, and promoting e-commerce exports, amid global uncertainties. Rumki Majumdar, Economist at Deloitte India, said that the policy emphasises on the manufacturing and export sectors with a long term view. Sectors such as batteries for EVs, green hydrogen, and garment, amongst others will benefit from the policy, she said, adding that with over 80 per cent of trade being done in the USD, encouraging trade in Indian rupee will be a relief. "It will also add to its resilience to external shocks and improve negotiating capabilities in international trade," Majumdar said. Shashi Mathews, Partner at IndusLaw, said that through the policy, the government's focus

India, Australia eye early conclusion on comprehensive trade pact

India, Australia to increase cooperation in critical minerals sector

Govt to bring retail trade policy to promote ease of doing biz: Official

The government is working to bring a national retail trade policy for brick and mortar retail traders with an aim to promote ease of doing business, a senior official said on Monday. Joint Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Sanjiv said that the policy would also help in providing better infrastructure and more credit to traders. The Department, he said, is also working to bring an e-commerce policy for online retailers. "We want that there should be synergy between e-commerce as well as retail traders," Sanjiv said at a conference on FMCG and e-commerce here. The Department is also in the process of formulating an insurance scheme for all the retail traders. The accident insurance scheme would particularly help small traders of the country, he added. "The government is trying to do policy changes not only in e-commerce but national retail trade policy which will be for physical traders which will be introducing ease of doing business,

Working to support plans to promote a free open Indo-Pacific region: USIBC

A top American business advocacy group has said that it is working to support plans to promote a free, open, and prosperous Indo-Pacific region. During an ongoing meeting with stakeholders of the Indo-Pacific Economic Framework (IPEF), the US India Business Council (USIBC) also focused on building resilient supply chains for the biopharmaceutical sector as well as for critical minerals essential to the energy transition, a media release here said. The framework is being hosted by the Indian Ministry of Commerce and Industry in Delhi from February 8 to 11. On Thursday, the USIBC said that it is working to support plans to promote a free, open, and prosperous Indo-Pacific region. The Indo-Pacific is a biogeographic region, comprising the Indian Ocean and the western and central Pacific Ocean, including the South China Sea. The US, India and several other world powers have been talking about the need to ensure a free, open and thriving Indo-Pacific in the backdrop of China's rising .

2023 to be tough on trade as global economies will slow down: GTRI to Govt

Announcement of measures like quick refund of duties, resolving inverted duty issues and bringing exports through post and courier at par with standard customs clearances in the forthcoming Budget