Tag: export

India eyes 18 countries to expand export basket, cut trade risks due to geopolitical tensions

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Having experienced impacts on trade due to several geopolitical challenges in the past few years, India is conducting an internal analysis of the action it has to take to mitigate the impact of the Israel-Iran conflict.

Having already started monitoring trade impacted due to the recent conflict, the Commerce Ministry is likely to take policy measures based on the feedback it receives from stakeholders on the issues faced by them.

Describing the last financial year FY24 as “very difficult in terms of trade” due to the Russia-Ukraine war, the Red Sea crisis and blockages in the Panama Canal, the Ministry pointed out that India successfully beat the odds projected by the United Nations Conference on Trade and Development (UNCTAD) reports as well as World Trade Organization (WTO) predictions for a slump in trade.

Stating that India is now used to prolonged regional conflicts like the Russia-Ukraine war, which had impacted the Gems and Jewellery sector, the Ministry added that India’s merchandise exports would’ve increased more had these conflicts not impeded trade. The Commerce Ministry had also conducted a stakeholder consultation during the Red Sea conflict when it had asked the ECGC to not increase insurance rates for exporters.

Having found new markets for electronics goods in the Cayman Islands, Turkmenistan, Honduras, El Salvador and Mongolia and engineering goods in Macau, Azerbaijan and Georgia, India exported iron ore to Saudi Arabia and France for the first time in FY24.

Based on the International Monetary Fund (IMF)’s predictions on GDP growth, India has identified 18 countries in terms of trade significance to expand its export basket and further diversify its trade to insulate itself from global demand shocks. The Commerce Ministry is also developing a portal on AI/ML-based data dissemination to improve data dissemination to investors and researchers, for which a meeting was held with EY last week.

Also Read: India’s March trade deficit narrows to $15.60 billion; exports up, imports fall

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Commerce Ministry mulls five-year extension for interest equalisation scheme

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Commerce Ministry is considering to recommend a 5-year extension to the interest equalisation scheme, buoyed by the positive response from exporters.

Government sources informed CNBC TV18 that extending the interest equalisation scheme on pre- and post-shipment rupee export credit aims to support outbound shipments. Sources added that an evaluation of the scheme is underway, and any further decision will hinge on the evaluation report’s outcome.

The interest equalisation scheme for exporters is scheduled to conclude on June 30, 2024.

From April 2023 to November 30, 2024, the government disbursed ₹2,641 crore out of the allocated budget of ₹2,932 crore under the scheme.

Disbursements totaled ₹3,118 crores in 2022-23 and ₹3,488 crore in 2021-22.

The interest equalisation scheme supports exporters from identified sectors and MSME manufacturers in accessing export credit in rupees at competitive rates, which holds significance amid prevailing global challenges.

On December 8, 2023, the Union Cabinet approved an additional allocation of ₹2,500 crore to sustain the scheme. This allocation supplements the initial outlay of ₹9,538 crore under the scheme, aimed at bridging the funding gap until June 2024.

Launched on April 1, 2015, the scheme was initially valid for 5 years until March 31, 2020, and has since been extended with additional funding.

Currently, the scheme offers an interest equalisation benefit of 2% on pre- and post-shipment rupee export credit to merchant and manufacturer exporters of 410 identified tariff lines, and 3% to all MSME manufacturer exporters.

These sectors encompass leather, carpets, handicrafts, fabrics, and readymade garments.

Now operating as a fund-limited scheme, its benefits for individual exporters are capped at ₹10 crore annually per Import Export Code (IEC).

Banks charging exporters an average rate exceeding repo+4% are ineligible under the scheme.

Implemented by the Reserve Bank of India (RBI) through various banks providing pre- and post-shipment credit to exporters, the scheme is jointly monitored by the Directorate General of Foreign Trade (DGFT) and RBI.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Piyush Goyal says no proposal to lift export curbs on wheat, rice, sugar as of now

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Union Minister Piyush Goyal on Saturday January 13 said there is no proposal before the government as of now to lift export curbs on wheat, non-basmati and broken rice and sugar. He also said India has no plans of importing wheat and sugar either.

“There is no proposal as of now to remove export restrictions on wheat, rice and sugar. And India will not import wheat and sugar,” Goyal told reporters.

He added that the government expected wheat prices to come down and the initial estimates suggest 114 MT of wheat production.

The government is monitoring and considering ways to bring rice prices down, Goyal said.

India had banned wheat exports in May 2022, non-basmati rice exports from July 2023 and extended curbs on sugar exports beyond October 2023, as part of measures to control rising domestic prices.

He added that India is providing rice to friendly countries for their food security needs. The minister informed that India has provided rice to countries like Indonesia, Senegal, and Gambia.

With inputs from PTI.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

China’s exports drop for first time since 2016 as demand cools

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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China’s exports fell last year for the first time since 2016 as global demand weakened, undercutting a strong growth driver for the domestic economy.

China sold $3.38 trillion worth of goods to the rest of the world in 2023, a 4.6% drop from the record a year earlier. Shipments had soared during the pandemic as people stepped up purchases of goods while they worked from home, but demand from Europe, the US and elsewhere then faded as interest rates rose.

That December export data was likely helped by the comparison with the same month last year, when shipments slumped almost 10%, partly due to the effect of Covid-19 running rampant across the country then. Weak import data would add to the case that more policy support is needed to support domestic spending, Bloomberg Economics wrote in a report before the latest data was released.

There are some early signs of a rebound in global trade, with South Korean exports rising 5.1% in December and global sales of semiconductors returning to growth in November after falling for more than a year.

Also Read: China’s consumer prices in longest streak of declines since 2009

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Israel-Hamas War: Kanpur leather exporters worried due to uncertainty over orders worth Rs 500 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shocks of the ongoing Israel-Hamas war have even been felt among leather exporters in Kanpur, Uttar Pradesh as the war has led to uncertainty over orders worth crores of rupees. The leather exporters fear huge losses in the coming days.

Kanpur is known for its leather and leather products, which are supplied across the world. However, the businessmen from Kanpur are now a worried lot as a significant share of these leather products are exported to Israel.

The leather products that are exported to Israel include safety shoes and boots, bags and saddlery among others. Due to the ongoing conflict, orders worth crores of several exporters have been stuck, according to a CNBC Awaaz report.

As a result of the war, the exporters are not getting their payments. Besides the exported products, the orders that have been already ready are also stuck. Although the orders are ready for shipment, the manufacturers cannot send them and such orders amount to around Rs 400 to Rs 500 crore, the report added.

According to CNBC Awaaz, the manufacturer of safety shoes, Yashveer Singh said that the orders which were supposed to be exported to Israel are ready and are currently in shipping. However, due to the conflict, the shipping has been stopped and a huge order has got stuck. He also added that several other exporters have been facing similar situations.

Additionally, Singh said that some of the products have already reached the destinations but the payment has not been released so far, due to the war. Talking about the payment, Singh expressed the fear of loss on the products that have been already shipped. Christmas is near when the market rises rapidly, if the situation remains the same, then there will be a massive hit on the leather business, he added.

The assistant director of the Federation of Indian Export Organisation, Alok Srivastava said that the war between Israel and Hamas will lead to a crisis in exports to European countries. Goods from different manufacturers are getting stuck and the payments of many are yet to be received. As a result, businesses are also affected.

He said that payments of around Rs 400 crore of the traders have been stuck. If the situation worsens, the losses will mount, he added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India extends RoDTEP scheme support for exporters until June 2024

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) support, which was earlier notified till September 30, 2023, has now been extended till June 30, 2024, at the same rates as the existing export items. The issued scheme is WTO compatible and is being implemented in an end-to-end IT environment. The Commerce Ministry said that the move is aimed at helping India’s exporting community negotiate export contracts in the current global environment on better terms.

In a related development, the RoDTEP Committee has again been constituted in the Department of Revenue, in line with the scheme framework. The Committee will review and recommend the ceiling rates under the RoDTEP scheme for different export sectors.

The Committee held its first interaction today (September 26) in New Delhi with the Export Promotion Councils (EPCs)/Chamber of Commerce and discussed the methodology and other issues relating to the scheme and its implementation.

In their observations, the EPCs emphasised the need for enhancing the RoDTEP budget allocation and for higher rates to be made available to all export items to help them secure greater market access abroad.

The RoDTEP scheme was introduced by the government as a duty remission scheme on exports and has been implemented since January 1, 2021.

The scheme provides a mechanism for reimbursement of taxes, duties and levies, which are currently not being refunded under any other mechanism, at the central, state and local levels, but which are incurred by the export entities in the process of manufacture and distribution of exported products.

Under the scheme, support of Rs 27,018 crores had been extended for the 27-month period till 31.03.2023.

The RoDTEP scheme operates within a budgetary framework, and for the fiscal year 2023-24, a budget of Rs. 15,070 crores is available to support 10,610 HS lines at the 8-digit level.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Commerce Ministry attributes low export figures to global headwinds, less demand by importers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Attributing the year-on-year fall in India’s merchandise exports in July 2023 to global headwinds, the Commerce Ministry has said that most of the decline was due to lower value fetched on export of petroleum exports and not due to lower volumes.

A decline of $11.41 billion year-on-year was also in export of petroleum products from April to July 2023. India recorded merchandise exports of $32.25 billion in July 2023 compared to $38.34 billion in July 2022.

While a rise was noted in India’s exports to the UK in July 2023, the exports to US and UAE dropped compared to July 2022.

Commerce Ministry officials said that the export of electronic goods rose by $2.46 billion, and exports of smartphones saw 126 percent growth in between April and July 2023 compared to the same period last year, adding that merchandise imports from China declined during the period and imports from Russia nearly doubled.

Pointing out that India’s trade data needs to be seen not in isolation but with quantification of global headwinds, the Commerce Ministry stated that the data of India’s export destinations shows a consistent decline in imports in the past 4 months.

Stating that the fall in India’s exports was not as much as in many other big economies, the ministry officials added that many economies are witnessing a huge decline in both exports and imports.

The officials explained that a fall in India’s trade deficit as well as imports may be interpreted as a result of the country’s rise in the global value chains as well as increased domestic production and import substitution due to implementation of several PLI schemes.

Also Read:India’s exports are down but so is the trade deficit

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India’s exports are down but so is the trade deficit

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s exports in the month of July declined 16 percent to $32.25 billion while imports fell 17 percent to $52.92 billion, government data showed on Monday.

Exports have now contracted for the sixth month in a row due to the global headwinds, after contracting 22 percent In June, according to the government data. The trade deficit dipped 18.5 percent from $25.4 billion in July 2022 to $20.7 billion in July 2023.

In June, the exports had fallen by 22 percent compared to the previous year, imports data showed a fall of 17.5 percent, year-over-year. For July, India’s Merchandise exports fell to $32.25 billion from $38.34 billion in July 2022 & imports fell from $63.77 billion in July 2022 to $52.92 billion in July 2023. The Commerce Ministry was quoted saying “despite headwinds, India’s services exports have done well.”

The Government further described services as a “success story” and mentioned that it can’t be ignored, with exports rising to $27.17 billion in July 2023 from $24.26 in July 2022. Meanwhile, the Commerce Ministry has also added that it is important to see India’s trade data not in isolation, with quantification of global headwinds. Trade deficit has fallen as the government prioritised food security and took a conscious decision to stop export of certain edible products.

There’s a huge decline in both exports and imports of many countries while India’s fall in exports is not as much as elsewhere. According to the Government data, decline was noted in merchandise imports from China in April to July 2023 while imports from Russia nearly doubled. Most of the decline in exports came due to the decline in value of petroleum exports. Import data of India’s export destinations show consistent decline in imports in the past four months.

CNBC-TV18 reported in early July that many global chemical companies like FMC, Evonik, Clariant, Lanxess AG and Olin corp have issued profit warnings and blamed channel partners drawing down inventory and not replenishing them.

In 2022, the country had witnessed the largest growth year in exports, this year’s figure would look smaller in view of global headwinds, mentioned the Commerce Ministry.

Also Read:India’s industrial output rises 3.7% in June 2023

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nepal seeks easier access to Indian market for large-scale export of tomatoes

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nepal is ready to export tomatoes to India in bulk on a long-term basis to quell the skyrocketing prices but has sought easy access to the market and other necessary facilities.

The neighbouring country’s assurance came after Finance Minister Nirmala Sitharaman told Parliament on Thursday that India has started importing tomatoes from Nepal amid a record-high spike in prices in the country.

India is importing tomatoes for the first time due to high retail prices of around Rs 242 per kg amid supply disruptions caused by heavy rains.

Nepal is desirous to export vegetables, such as tomatoes, on a long-term basis to India, but for that India has to provide easy access to its market and other necessary facilities, Agriculture Ministry spokesperson Shabnam Shivakoti told PTI on Friday.

Though Nepal has already started exporting tomatoes to India through official channels a week ago, it is not in big quantities, she said. Arrangements are yet to be made for large-scale export of tomatoes, she added.

Echoing her voice, Binaya Shrestha, Deputy Director at Kalimati Fruits and Vegetable Market Development Board, said, “If we are provided with easy access to the Indian market, Nepal can export huge quantities of tomatoes to India.” “India is a good market for Nepalese tomatoes,” he pointed out.

Tomatoes are grown in abundant quantities in the three districts of Kathmandu Valley — Kathmandu, Lalitpur and Bhaktapur — and it is more than sufficient to meet the local demand, he said.

Some of the tomatoes grown in Kathmandu are being exported to the Indian market through unofficial channels, Shrestha admitted.

Some one-and-a-half months ago, farmers threw around 60,000 to 70,000 kg of tomatoes on the roads near Kalimati Fruits and Vegetable Market in Kathmandu after they failed to get a market for their products. At that time the farmers could not get even Rs 10 per kg of tomato in the wholesale market.

However, one month ago, the market price of tomatoes increased by four times, after traders started exporting tomatoes to India through illegal channels causing shortages in the local market, market analysts said.

The tomato which was sold in the retail market for Rs 40-50 per kg soared to Rs 200 to 250 per kg, as farmers started selling tomatoes to the Indian market through unofficial channels, according to Badri Shrestha, one of the major growers and suppliers of tomatoes in Kathmandu.

“We can fetch up to NRs 150 per kg after our products are exported to India through unofficial channels. Last month, 70,000 kg to 90,000 kg tomatoes were exported to India through unofficial channels on a daily basis,” said Badri, who grows 2,000 to 3,000 kg of tomatoes every alternate day from his farm located in Lalitpur district near Kathmandu during the vegetable season.

He claimed to have exported around 40,000 kg of tomatoes grown on his farm over the past one-month period to India through unofficial channels.

During his recent visit to India in July, Agriculture Minister Beduram Bhushal held discussions on facilitating Nepalese agricultural products, including tomatoes, to India with his Indian counterpart Narendra Singh Tomar.

Nepal has also asked Indian authorities to arrange quarantine and other facilities to export tomatoes, peas and green peppers, agriculture ministry spokesperson Shivakoti said.

Prior to importing vegetables to India, the Nepal government’s Plant Quarantine and Pesticide Control Office (PQPCO) has to issue certificates to the exporters.

Over the past week, Nepal exported tomatoes through its two border checkpoints, including one situated in Birtamode, agriculture ministry deputy spokesperson Tapendra Prasad Bohara said.

The Government of India has already included some vegetable items, including tomato, produced in Nepal in its quarantine list so as to facilitate its export to India, he said.

Meanwhile, about 10 tonne of tomatoes imported from Nepal are in transit and the commodity will be distributed in Uttar Pradesh during the weekend at a subsidised rate of Rs 70 per kg, National Cooperative Consumers’ Federation of India Limited (NCCF) Managing Director Anice Joseph Chandra said on Friday.

Since July 11, the NCCF has been selling tomatoes at a discounted rate on behalf of the central government to boost domestic availability and contain prices. So far, NCCF has sold 9,38,862 kg of tomatoes in Delhi-NCR, Rajasthan and Uttar Pradesh.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow