Tag: import

India exceeds export target of $750 billion in FY23, says Commerce Ministry

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

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India surpassed the export target of $750 billion and clocked in exports worth $778 billion in the financial year 2022-2023 while overall import is estimated to have exhibited a growth of 17.38 percent to $892.18 billion, the Commerce Ministry announced on April 13.

The Commerce Secretary highlighted that despite global headwinds, merchandise exports stood at $447 billion, a six percent or $25.46 billion jump from the previous year. He added that a $68 billion y-o-y increase was recorded in services exports in FY23.

#JustIn | India #trade deficit at $19.73 bn Vs $18.52 bn (YoY)

Here’s more👇 pic.twitter.com/c8XMm3XuUa

— CNBC-TV18 (@CNBCTV18Live) April 13, 2023

Petroleum exports rose by $27 billion y-o-y while the export of engineering goods witnessed a Y-o-Y fall of $5.12 billion in last FY.

The overall export growth for the fiscal under review was 13.84 percent Y-o-y. Also, as many as 45 principal commodities showed positive growth in exports in value and volume in the last financial year.

Merchandise imports, on the other hand, during the fiscal saw an annual rise of $111 billion. Gold imports dropped by 11.15 percent during the year while there was a 47 jump in petroleum imports.

India’s trade deficit increased by 46.05 percent y-o-y in last FY, the ministry said.

US continued be the top export destination with 17.50 percent share, followed by UAE accounting for seven percent share and Netherlands for 4.47 percent. Exports to China dipped almost 28 percent Y-O-Y and that to Bangladesh by 27.76 percent.

However, China remained the top import destination with 13.79 percent share, followed by 7.45 percent from UAE and 7.03 percent from the US.

Also, it must be noted that there was a 369.44 percent growth in imports from Russia and 62.8 percent from Indonesia.

The Commerce Ministry pointed out that fertilisers that used to be imported from China are now coming from Russia.

The ministry also shared status of India’s trade negotiations with other countries.

It said that the seventh round of India-Canada CEPA negotiations took place in Ottawa from April 3 to 6 and another round of discussions is likely. Indian delegation also participated in the second round of IPEF negotiations in Bali from March 13 to 19, it added.

The ministry noted that four rounds of negotiations have been completed in 21 policy areas for India EU FTA and the fifth round of talks is likely to be held in June in Delhi, followed by meetings in August.

Meanwhile, India UK FTA’s round nine of negotiations is scheduled from April 24 to 28.

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

Amazon, Flipkart and Snapdeal get CCPA notice for violating toy selling norms

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

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India has stepped up vigil against substandard toys being sold in the country. The Bureau of Indian Standards (BIS) said it has raided over 40 popular toy outlets for selling non-BIS-compliant toys. Several e-commerce companies, including Amazon, Flipkart and Snapdeal, were also violating these norms. Chairman Nidhi Khare told CNBC-TV18 that the Central Consumer Protection Authority (CCPA) had issued notices to Amazon, Flipkart and Snapdeal for violating norms.

Khare told CNBC-TV18 non-BIS compliant toys were being sold by all three e-commerce players and they have been directed not to sell them further.

BIS Director-General Pramod Kumar Tiwari told CNBC-TV18 that the BIS seized over 18,600 toys at 44 locations over the past month. Most of the seized toys were imported from China, he said.

He said search operations took place at several toy outlets, including Hamleys, Archies, WH Smith, Kids Zone, and Cococart located at major airports and malls across the country.

Outlets at Delhi airport, Noida, Ranchi, Chandigarh, Kolkata and more were raided, he said.

Confirming the receipt of the notice, a Flipkart spokesperson said, “Flipkart is a marketplace committed to democratising eCommerce for all in India and enabling lakhs of small businesses connect with customers through technology. As part of our ‘customer first’ philosophy, maintaining the quality of products that sellers offer on our marketplace has always been the top focus area. We remain committed to ensuring the highest quality of products sold on the platform. We have received notification from CCPA and will respond appropriately.”

Disclosure: RIL, the promoter of Reliance Retail that owns Hamleys, also controls Network18, the parent company of CNBCTV18.com.

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

Bureau of Indian Standards office raids sellers of substandard Chinese toys

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

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The Bureau of Indian Standards (BIS) has started a nationwide enforcement drive against substandard toys. The organisation visited various toy sellers who had been selling children’s toys without adequate licences and standards. The agency said on Tuesday that it seized a large number of toys in raids at 25 outlets across the country.

Nation-wide enforcement drive was conducted by Bureau of Indian Standards against outlets selling toys without valid BIS license Toys in huge numbers were seized during the raids undertaken at 25 outlets across the country@jagograhakjago @PiyushGoyal @AshwiniKChoubey @PIB_India pic.twitter.com/PdhLMMVxcb

— Bureau of Indian Standards (@IndianStandards) January 10, 2023

According to the BIS rules, toys are one of the many goods that come under the Mandatory Certification Scheme by BIS. Goods and items under the Mandatory Certification Scheme need to carry the ISI mark before they can be manufactured, sold, imported or distributed in India. The scheme came into effect in January 2021 since BIS issued its Quality Control Order (QCO).

Toys are under Mandatory Certification Scheme of BIS through Quality Control Order and cannot be manufactured, sold, imported or distributed without bearing the ISI Mark.@PIBConsumerFood @PTI_News @mygovindia

— Bureau of Indian Standards (@IndianStandards) January 10, 2023

The month-long enforcement drive was started by the BIS to tackle the issue of illegal imports of Chinese toys. The agency had received complaints from several Indian companies in the segment. Since the order was issued, BIS has granted licences to around 1,000 toy manufacturers and less than 30 foreign manufacturers received appropriate licences.

ALSO READ: USFDA begins inspection of Aurobindo Pharma’s Jadcherla unit | Exclusive

“Sub-standard and non-BIS certified toys have been seized during these raids. We started the raids after receiving complaints from domestic players that Chinese toys are being imported in the guise of chocolates, gifts and other items. No Chinese toy manufacturer has been granted a BIS licence till date,” Pramod Kumar Tiwari, director general of the Bureau of Indian Standards (BIS), had recently said on the organisation’s foundation day.

Tiwari said that raids were conducted in cities like Delhi, Kolkata, Mumbai, Hyderabad, Ahmedabad and Pune. Despite the ban on the import of non-certified toys, Chinese toys are still being found in India. Preliminary investigation by the BIS reveals that Chinese toys are being smuggled in, Tiwari told news agency ANI.

ALSO READ: USFDA issues warning letter to Sun Pharma’s Halol unit

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

US trade deficit shrinks most in nearly 14 years in November as imports decline

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

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The U.S. trade deficit contracted by the most in nearly 14 years in November as slowing domestic demand amid higher borrowing costs depressed imports.

The trade deficit decreased 21.0% to $61.5 billion, the lowest level since September 2020, the Commerce Department said on Thursday. The percentage decline in the trade gap was the largest since February 2009.

Imports tumbled 6.4% to $313.4 billion, with goods dropping 7.5% to $254.9 billion. Consumer goods imports were the lowest since December 2020.

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 imports of aircraft, turbojets and helicopters up sharply

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

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The import of aeroplanes, turbojets, and helicopters into India’s aviation industry has increased tremendously, according to the Commerce Ministry’s import alert list published on Tuesday, December 6.

In reaction to the massive rise, the Aviation Ministry asked the Directorate General of Civil Aviation (DGCA), National Aerospace Laboratories, Federation of Indian Chambers of Commerce & Industry (FlCCl), Confederation of Indian Industry (CII), and  Associated Chambers of Commerce and Industry of India (ASSOCHAM) to determine what measures may be taken to mitigate the surge of non-essential imports.

According to the data, India’s total imports of powered aircraft with an unladen weight greater than 15,000 kg increased by 56.5 percent in April to September year on year.

Additionally, the import of turbojets with a thrust greater than 25 KN surged by 34 percent in April-Sept YoY. The import of helicopters with an unladen weight of more over 2,000 kg increased by 42 percent during the same period.

Also read: Global airline industry to post $6.9 billion loss in 2022, reports IATA

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

RBI announces rules for international trade settlement in rupees, experts say it may be used for trade with Lanka, Russia

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

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The RBI on Monday announced an arrangement whereby Indian and foreign entities can settle cross-border trade payments in rupees. All exports and imports can be denominated and invoiced in rupees, with the exchange rate being market-determined, RBI said. Banks have to get RBI’s approval for the arrangements they put in place.

At the outset, the arrangement appears to have been made to enable a rupee-ruble trade, but the notification nowhere refers to any country or currency. The notification is titled, International Trade Settlements In Indian Rupees and the RBI says the purpose is “to promote the growth of global trade with emphasis on exports from India and to support the increasing interest of the global trading community in INR.”

The notification says foreign banks can open rupee (Vostro) accts in the foreign branches of Indian banks. Indian importers wanting to pay in rupees can pay into this account. Likewise, exporters selling to the same country can be paid rupees from these Vostro accounts. RBI adds that the surplus in these accounts can be used to pay for projects and investments and can be invested in government bonds and treasury bills.

Also Read: View: Rupee may be headed to 80.5 vs US dollar in 2-4 months

Some bankers were confused about what is new in the notification. A former central banker told CNBC-TV18, that such rupee payment into accounts in foreign branches of Indian banks ( called Vostro accounts) was always permitted. The only difference now appears to be the need for RBI permission.

Prof Anant Narayan, a former banker and currently the professor of finance at SPJIMR said the arrangement may be intended to enable Indian oil refiners to pay for Russian crude in rupees. He pointed to the following statement in the notification: Exchange of messages in a safe, secure, and efficient way may be agreed upon mutually between the banks of partner countries.

“This sentence appears to refer to setting up an alternative to the SWIFT messaging system,” he said. Since many Russian banks have been barred from using SWIFT due to sanctions by the US and EU, this sentence gives the impression that the arrangement has been announced with Indo- Russian trade in mind, he explained.

Also Read: View: Ten reasons why India’s record trade deficit is worrying

Yet another former central banker guessed that the arrangement may be to help Sri Lanka. The Indian government may arrange a rupee loan to Sri Lanka with the condition that it be used to pay for Indian goods. And the beleaguered country may pay back the rupee loan when normalcy returns.

Besides these two cases, it is difficult to see many countries wanting to take rupees for their exports to India since the rupee isn’t currently accepted internationally like the dollar, euro, pound or yen. Nor is such acceptance likely to take off under current circumstances when the rupee is depreciating nearly every day. An arrangement of this nature may make sense when the rupee is strengthening.

However, others pointed out that in course of time countries in the middle east may agree to take rupees for part of their crude oil sales since they buy several foodstuffs and engineering goods from India and have a large Indian diaspore whom they pay salaries. The Indian government is probably planning for the future to set up a rupee trade area much like China has evolved into a renminbi-trading area.

Also Read: Home-grown nano urea set to save India Rs 40000 crore in fertiliser imports per year

Nationalistic as this sounds, the reality is rupee has a distance to go before it becomes an internationally accepted currency, where if anything, the dollar’s dominance is only growing. As of now, this arrangement appears useful only for export to Sri Lanka and import from Russia.

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

RBI’s new mechanism to enable international trade settlement in Indian rupee

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

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The Reserve Bank of India (RBI) on July 11 said it has decided to put in place an additional arrangement for invoicing, payment and settlement of exports or imports in the Indian rupee.

Accordingly, all exports and imports under the new arrangement can be denominated and invoiced in Indian rupee, the exchange rate between currencies under the new arrangement may be market-determined. Before putting in place this mechanism, AD (authorised dealer) banks shall require prior approval from the Foreign Exchange Department of Reserve Bank of India, in Mumbai.

For settlement of trade transactions with any country, authorised dealer banks in India may open special rupee vostro accounts of correspondent banks of the partner trading country. 

ALSO READ | RBI steps in to bolster sagging rupee and attract more foreign flows

Indian importers undertaking imports through this mechanism shall make payments in the Indian rupee, which shall be credited into the special vostro account of the correspondent bank of the partner country, against the invoices for the supply of goods or services from the overseas seller/supplier.

“Indian exporters, undertaking exports of goods and services through this mechanism, shall be paid the export proceeds in INR from the balances in the designated Special Vostro account of the correspondent bank of the partner country,” the RBI said.

ALSO READ | RBI to continue with hawkish stance on policy measures, says Shaktikanta Das

Documentation

The letter of credit and other trade-related documentation may be decided mutually between banks of the partner trading countries under the overall framework of Uniform Customs and Practice for Documentary Credits and Incoterms. Exchange of messages in a safe, secure, and efficient way may be agreed upon mutually between the banks of partner countries, RBI said.

Advance against exports

Indian exporters may receive advance payment against exports from overseas importers in Indian rupee through the above rupee payment mechanism. Before allowing any such receipt of advance payment against exports, Indian banks shall ensure that available funds in these accounts are first used towards payment obligations arising out of already-executed export orders or export payments in the pipeline, the central bank said.

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“In order to ensure that the advance is released only as per the instructions of the overseas importer, the Indian bank maintaining the Special Vostro account of its correspondent bank shall, apart from usual due diligence measures, verify the claim of the exporter with the advice received from the correspondent bank before releasing the advance,” the RBI said.

Setting-off of export receivables

Set-off of export receivables against import payables in respect of the same overseas buyer and supplier with the facility to make/receive payment of the balance of export receivables/import payables, if any, through the rupee payment mechanism may be allowed.

Use of surplus balance

The apex bank said the rupee surplus balance held may be used for permissible capital and current account transactions in accordance with mutual agreement. Also, the balance in special vostro accounts can be used for payments for projects and investments, export or import advance flow management, investment in government treasury bills, government securities, etc.

Approval process

The bank of a partner country may approach an authorised dealer bank in India for the opening of special INR vostro account. The dealer bank will seek approval from the RBI with details of the arrangement, the central bank said.

ALSO READ | India’s Balance of Payments slips into deficit for first time in 13 quarters. What does this mean for the economy?

“(The) AD bank maintaining the special Vostro Account shall ensure that the correspondent bank is not from a country or jurisdiction in the updated FATF Public Statement on high risk & non-co-operative Jurisdictions on which FATF has called for counter-measures,” it said.

The directions will come into force with immediate effect.

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 trade deficit at record high of $25.63 billion in June

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

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India’s merchandise trade deficit grew to a record $25.63 billion in June from $9.61 billion during the same period last year, stated the data released by the Commerce Ministry.

The trade deficit in the April to June period this year was $70.25 billion.

The country’s merchandise exports increased by 16.8 percent year-on-year to $37.9 billion in June 2022, the highest-ever recorded in the month, the data stated.

On the other hand, imports expanded to 51.03 percent year-on-year to $63.58 billion. The monthly imports and trade decifit were among the highest-ever, in June 2022.

The merchandise exports during the first quarter of this fiscal year jumped 22 percent to $116.7 billion, the highest-ever exports recorded during the first quarter.

Also Read: US becomes India’s biggest trading partner in FY22; surpasses China

Non-petroleum exports increased by 11.9 percent to $92.5 billion in the first quarter, which also recorded a major rise in the exports of petroleum products, electronic goods and readymade garments.

The country saw a positive growth in imports of top 10 major commodity groups from June 2021 to June 2022. There was a 94.17 percent rise in petroleum and crude import, 241 percent rise in coal and coke import, 169 percent increase in gold import and 51 percent rise in total imports.

Cotton yarn exports fell by 22.54 percent, plastic exports reduced by 22.23 percent, engineering goods by 1.57 percent and drug and pharma exports by 1.27 percent.

There was a positive growth in all other major export categories from June 2021 to June 2022.

Also Read: Finance Ministry issues draft SOPs for e-commerce jewellery exports via courier route

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

Consumer durables to witness 3-5% price hike as higher import costs amid rupee fall add to input expenses

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

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Prices of home appliances and consumer electronics, including TV, washing machines, and refrigerators, are expected to go up by 3 to 5 percent from May end or the first week of June as manufacturers pass on the impact of rising input costs to buyers, according to industry players.

Moreover, the depreciating Indian rupee against the US dollar has put further woes on manufacturers as imported components have become costlier, with the industry largely being dependent on imports for key components.

Adding to the challenges, there has been shortage of parts triggered by piling up of containers at Shanghai port due to strict lockdown in the city following the surge in COVID-19 cases. This has put pressure on the inventory of the manufacturers, and several top line products that have lesser domestic value addition and are largely dependent on imports are not available in the market.

Also read: Crude oil price surges 5% overnight after flows of Russian gas to Europe fall

According to the Consumer Electronics and Appliances Manufacturers Association (CEAMA) fall of the Indian rupee against the dollar is creating more problems for the industry.

“Raw material prices are already going up and now the US dollar is going up as the Indian rupee is devaluing. All manufacturers would be now looking at the bottom line (income/profit). From June onwards, we will see a price increase of 3 to 5 percent,” CEAMA president Eric Braganza told PTI.

The hike would be in most of the product categories ranging from washing machines and cooling products such as air conditioners and refrigerators, besides other appliances. Some AC makers have already increased prices in May but some others are expected to follow either by the end of this month or June.

“The industry would be making payment for imported materials as it starts coming in,” Braganza said, adding, “if dollar is still at Rs 77.40 against the Indian rupee, the manufacturers would have to make price adjustments.”

However, he also added that if the US dollar settles down in the next two weeks to the previous level of 75 then they would have not to make such price adjustments. The rupee slumped by 15 paise to end at 77.40 against the US dollar on Thursday.

Also read: Strong US dollar and weak global demand drag crude oil prices to a 2-week low

Panasonic India & South Asia CEO Manish Sharma said there is continued pressure on input costs, though the company is working to minimise the impact on consumers.

“Last price hike we undertook was in January 2022. However, with increasing commodity prices, consumers can expect a 4-5 percent price hike soon across product categories, including refrigerators, washing machines, microwave ovens, among other appliances,” he said.

Similarly, Super Plastronics Pvt Ltd (SPPL) which has branding licences for international brands that include Blaupunkt, Thomson, Kodak and White-Westinghouse is also planning to increase prices of its TV range.

In 2022, there have been lots of challenges, starting from the war, then Covid situation and lockdown in China, and now the Indian rupee falling to an all time low against the US dollar.

“All this has pushed the brands to struggle in sourcing, production and supply,” said SPPL CEO Avneet Singh Marwah, adding, “As a result, there has been an increase of 20 percent in raw material and commodity prices, we will increase product prices in June and July by 3-5 percent for all brands including Thomson.”

Over the Shanghai lockdown, Haier Appliances India president Satish NS said it has disrupted the supply of components and the impact would be visible from June itself. “The major impact would be on AC and flat panel TVs. Refrigerators would be less impacted,” he said. However, he also ruled out that there would be any major price impact because of this.

Also read: Higher coal imports may push power supply cost by 5% in FY23, says ICRA

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