Daily News - Monday, 24 February 2025

⁠India-Asean free trade talks in April (Financial Chronicle)

The next round of negotiations for reviewing the India-ASEAN Free Trade Agreement (FTA) in goods is expected in April 2025, though progress has been slow since the review was announced in August 2023, aiming for completion by 2025. The ASEAN bloc accounts for approximately 11% of India’s global trade, making it one of India’s key trading partners, but Indian industries have long demanded a review to address trade imbalances and asymmetries. India seeks an upgraded agreement that eliminates barriers and prevents misuse, ensuring a more balanced trade relationship with ASEAN. 

⁠INDIA'S EXPORTS FAIL TO MATCH GDP GROWTH (Financial Chronicle)

India’s export-GDP ratio has declined from 17.16% in FY14 to 12.37% in FY24, primarily due to weakening shipments to Asian markets, including China, where exports fell from $18 billion in FY12 to $16 billion in FY24 after recovering from a low of $9 billion in FY16. Similarly, exports to Hong Kong dropped from $14 billion in FY18 to $8 billion in FY24, Singapore’s exports fell from $16.7 billion in FY12 to $14.4 billion in FY24 (after hitting $7.7 billion in FY16), and Indonesian exports declined from $6.6 billion in FY12 to $5.9 billion in FY24. While exports to the Middle East have remained stagnant—UAE exports rose slightly from $33 billion in FY15 to $35.6 billion in FY24, and Saudi Arabian exports stayed at $11 billion—the increasing share of U.S. exports has helped stabilize the overall export-GDP ratio, though ongoing tariff wars could cause further deterioration. 

PM lauds youth in AI, space; calls for a healthy lifestyle (mint)

⁠Prime Minister Narendra Modi, in his ‘Mann Ki Baat’ address, highlighted India’s progress in space and artificial intelligence (AI), praising the youth’s growing involvement and noting that ISRO had launched its 100th rocket and over 460 satellites in the past decade, including many for other countries. He also emphasized India’s recognition at the Paris AI Action Summit, stating that Indians are rapidly embracing AI and new technologies, driving a transformative revolution in these sectors. Additionally, he addressed rising obesity concerns, advocating for small dietary changes such as reducing oil consumption by 10% each month, a message reinforced by Olympic champion Neeraj Chopra and world boxing champion Nikhat Zareen.

⁠India, UK proposed FTA talks set to resume today after 8 months (The Indian Express)

India and the UK will resume negotiations on their Free Trade Agreement (FTA) after an eight-month pause due to general elections, with discussions expected to be influenced by the Trump administration’s proposed tariffs and the UK’s upcoming Carbon Border Adjustment Mechanism (CBAM), which will tax imports of iron, steel, aluminum, cement, and hydrogen from 2027. India has already reduced import duties on cars, motorcycles, and select bourbon whiskey while proposing a 100% FDI limit in insurance, addressing key UK demands, but it may not commit these concessions in the FTA unless it secures reciprocal benefits. With most of the 26 negotiation chapters already closed or in advanced stages, experts suggest India should avoid reopening settled issues and seek clarity on whether the UK’s carbon tax will be neutralized under the FTA to ensure long-term trade certainty.

⁠India may face US pressure to reduce agri products tariffs (Financial Express)

As India considers tariff reductions on various U.S. products, Washington is prioritizing increased agricultural exports to India, seeking lower tariffs in this traditionally high-protection sector as part of ongoing bilateral trade negotiations. The new Trump administration views agricultural exports as a key economic priority, driven by strong political support from Midwest farming communities, and has highlighted India’s significantly higher average Most Favored Nation (MFN) tariff on agricultural goods (39%) compared to the U.S. (5%). While India has recently reduced tariffs on select items in the Union Budget, the White House has emphasized the need for greater reciprocity, making agricultural tariff cuts a critical point in future trade discussions.