Foreign Trade
India's May oil imports: Russia at record high, Saudi lowest in 10-month
India's oil imports from Russia hit a record high of 2.1 million bpd in May as discounts widened due to lower demand from China. Some European nations avoided Russian oil after the Ukraine invasion, making Russian oil cheaper than similar grades from the Middle East.
DGFT implements automated system for adhoc input-output norms fixation
The Directorate General of Foreign Trade (DGFT) has introduced a new automated system to establish adhoc input-output norms, aimed at facilitating foreign trade procedures. This initiative allows exporters to import duty-free raw materials for manufacturing goods meant for export under advance authorisation. Exporters can now apply for customized adhoc norms through a rule-based, automated process if standard norms do not meet their specific requirements.
EVs versus pork: China has its hand on a raw nerve of Europe
The escalating trade tensions between Europe and China over electric vehicles have the potential to ignite a new trade war. As Europe imposes tariffs on Chinese EVs, China retaliates by targeting European farmers, particularly in the pork industry. This tit-for-tat strategy threatens to impact various sectors on both sides.
Govt permits 2,000 tonnes non-basmati white rice exports to Malawi, Zimbabwe
The Indian government has approved the export of 2,000 tonnes of non-basmati white rice to Malawi and Zimbabwe through the National Cooperative Exports Limited, despite a ban on such exports since July 2023 to boost domestic supply. The move aims to meet the food security needs of the two African nations.
EU’s proposed sustainability standards to hurt Indian exports: GTRI
EU's ESPR regulation, criticized by GTRI, may raise costs and impact exports from developing nations due to stringent sustainability standards and Digital Product Passport requirement.
India's seafood exports up in volume terms; dip in value in 2023-24: Commerce min
India's seafood exports saw a 3% rise in volume but an 8% decline in value for the fiscal year 2023-24, totaling 1,781,602 MT valued at USD 7.38 billion. Frozen shrimp remained the top item, with the US leading as the largest market, followed by China and the European Union.
India's exports grew 1.1%, but trade momentum to continue: CRISIL
India's merchandise exports rose by 9.1% to USD 38.1 billion in May compared to last year, with a modest 1.1% increase from April, driven by both oil and non-oil sectors. Imports surged by 7.7% to USD 61.2 billion, mainly due to oil and core imports, widening the trade deficit to USD 23.8 billion.
Government proposes export obligation period review for certain sectors
India allows duty free import of inputs used for manufacturing for exports subject in advance authorisation to export obligation period in which exporters have to ship the goods within a stipulated time period otherwise they’re penalised. The Directorate General of Foreign Trade (DGFT) has sought comments of all the concerned stakeholders on the proposed amendments within 15 days.
Export duty on onions to stay as domestic prices recover
India's central government is unlikely to remove the 40% export duty on onions imposed last month, as domestic onion prices have almost doubled in the last month. The average rate of onions at the benchmark Lasalgaon APMC was Rs 28/kg on Tuesday, up 40% in the last 15 days and double of what it was a month ago. The rising onion prices have slowed down the pace of government onion procurement operations to create a strategic reserve under the Price Stabilisation Fund.
US cotton body seeks removal of 11% import duty on short staple cotton
US agri trade body Cotton Council International (CCI) has called for the removal of the 11% import duty on shorter staple cotton below 32mm length, which came into effect in 2021. The duty affects India's domestic textile industry, which is projected to grow to $350 billion by 2025. CCI and Supima, a non-profit trade association, will discuss mutual interest and cooperation with Indian textile companies.
Must Watch
Don’t extend ban on de-oiled rice bran beyond July, says SEA
The Government prohibited export of De-oiled Ricebran on July 28, of last year attributing it to the high fodder prices as De-oiled Ricebran is a major component. The ban, which was initially till March 31, 2024, was later extended up to July 31, 2024.
India, EU fail to reach accord on steel at WTO
India and the European Union failed to reach an agreement at the WTO on concessions related to safeguard measures on steel imports, impacting India's imports.
India has option to propose retaliatory duties on EU's safeguard measures on some steel products
New Delhi, India can propose retaliatory customs duties under WTO norms on EU imports due to disagreement over EU safeguard measures on steel products. EU extended safeguard duties on steel imports till 2026, affecting India's steel exports to the EU.
Gold, silver import surges 210 pc in 2023-24 from UAE; need duty revision in FTA: GTRI
Economic think tank Global Trade Research Initiative (GTRI) said this sharp rise in gold and silver imports is primarily driven by import duty concessions granted by India to the UAE under the India-UAE Comprehensive Economic Partnership Agreement (CEPA).
Feasibility study on proposal to establish land connectivity with India in final stages, says Sri Lankan President
Sri Lankan President Ranil Wickremesinghe announced that the feasibility study for a land connectivity proposal with India is nearing completion. This initiative, along with discussions on a potential power grid connection and the sale of excess renewable energy to India, will be on the agenda during External Affairs Minister S Jaishankar's upcoming visit to Sri Lanka on June 20.
G7 Summit commits to promoting India-Middle East-Europe Economic Corridor
At the G7 Summit, the Group of Seven industrialized nations committed to promoting infrastructure projects such as the India-Middle East-Europe Economic Corridor (IMEC), reaffirming a commitment to a "free and open Indo-Pacific." Prime Minister Narendra Modi attended the summit at the invitation of Italian Prime Minister Giorgia Meloni.
