Daily News - Tuesday, 16 July 2024
India flags concern on NTBs with Russia (Business Standard)
India has raised concerns with Russia over non-tariff barriers affecting its exporters, particularly in marine products and pharmaceuticals, aiming to gain greater market access and resolve certification challenges. The ambitious goal is to increase bilateral trade to $100 billion by 2030, focusing on sectors like electronics and engineering goods, amidst a trade imbalance driven by oil imports from Russia post-Ukraine conflict. Talks for a free trade agreement with the Eurasian Economic Union are progressing, with the next round of FTA discussions between India and the European Union set for September.
Tiruppur stitches a new tale after FY24 setback (Business Standard)
India's textiles export hub, Tiruppur, has rebounded from a 14% contraction in knitwear exports in 2023-24 to positive growth in 2024-25, with exports rising over 11% in May and 10% in June due to major orders from global brands like Primark, Tesco, and Decathlon. The resurgence is attributed to the diversification of global sourcing strategies, such as the "China Plus One" policy, and competitive wage hikes in Bangladesh. Tiruppur, responsible for 90% of India's cotton knitwear exports, is also overcoming labor shortages, further boosting its export activities across various production units.
WPI inflation surges to 16-month high (Financial Express)
India's Wholesale Price Index (WPI) inflation rose to a 16-month high of 3.36% in June, driven by sharp increases in food prices, particularly vegetables like onions and potatoes, which saw inflation rates of 93.35% and 66.37%, respectively. This rise in WPI, coupled with a high base effect and increased costs for manufactured products, suggests a likely pass-through to core retail inflation in the coming months, which stood at 3.16% in June. Analysts warn that continued price increases in industrial inputs could further narrow the CPI-WPI inflation gap and elevate core CPI inflation, reversing recent moderation trends.
Exports subdued, rise just 2.6% in June (Financial Express)
India's merchandise exports grew by 2.6% year-on-year to $35.2 billion in June, indicating ongoing challenges despite a weak base from the previous year and recent logistical disruptions. Imports rose by 4.9% to $56.18 billion, driven by petroleum and electronics, resulting in a widened trade deficit of $20.98 billion. The government is optimistic about surpassing $800 billion in combined goods and services exports for the fiscal year, focusing on key sectors such as engineering, textiles, electronics, pharmaceuticals, chemicals, and agriculture, with major export markets including the US, UAE, Netherlands, UK, and China.
EU FTA talks progress, next round in late September (Financial Express)
India and the European Union made significant progress on key issues of the proposed free trade agreement (FTA) in the latest round of negotiations, particularly in areas like government procurement, digital trade, technical barriers to trade, and goods market access. The next round of talks, the ninth, is scheduled for late September, with additional inter-sessional meetings planned for July and August to continue resolving divergences across the 21 chapters of the FTA. Meanwhile, India’s FTA negotiations with the UK show positive momentum, with Britain's new Prime Minister Keir Starmer expressing readiness to finalize a mutually beneficial deal.
