Latest news with #AjaySrivastava
India Gazette
3 days ago
- Business
- India Gazette
Next round of India-US trade negotiations to take place on June 5-6 in New Delhi
New Delhi [India], June 29 (ANI): In a significant development, a US team will visit India on June 5-6 to discuss a Bilateral Trade Agreement (BTA) with India, said government sources. According to the sources, the bilateral trade talks between the two countries are progressing well. India expressed satisfaction on April 29 that the meetings to negotiate a BTA with the United States are making 'positive progress' and termed the discussions 'fruitful.' ANI reported on May 23, through government sources, that India and the United States are poised to sign the first tranche of the much-anticipated Bilateral Trade Agreement (BTA) before July. As part of ongoing discussions on the India-US Bilateral Trade Agreement, representatives of India's Department of Commerce and the Office of the US Trade Representative met in Washington, DC, from April 23-25, 2025. The Ministry further added that the team had fruitful discussions on a wide range of subjects, including tariff and non-tariff matters, during the meetings in Washington, DC. As part of the BTA, leaders of both countries have set a bold new goal for bilateral trade - 'Mission 500' - aiming to more than double total bilateral trade to USD 500 billion by 2030. Going further, sources said that the Indian government is in the process of reviewing the impact of the US court order that struck down the reciprocal trade tariffs announced by President Donald Trump. In this context, Indian think tank organisations have suggested proceeding cautiously. The Global Trade Research Initiative (GTRI) suggested that the country should proceed cautiously in its ongoing Bilateral Trade Agreement (FTA) negotiations with the US. Analysing the impact of the ruling on Trade negotiations, Ajay Srivastava, founder of GTRI, said that India should resist any agreement shaped by threats or based on unlawful measures. The India-US trade deal would mark a significant milestone in economic relations between the two big economies, potentially opening new avenues for bilateral commerce and investment. In 2024-25, for the fourth consecutive year, the US was India's largest trading partner, with bilateral trade valued at USD 131.84 billion. India had a trade surplus of USD 41.18 billion in goods with the US in 2024-25. (ANI)
Mint
4 days ago
- Business
- Mint
India's exports face geopolitical woes but trade deals offer relief: RBI report
New Delhi: India's export sector faces challenges from rising geopolitical tensions, protectionist trade policies, and the rising threat of a global tariff war, the Reserve Bank of India warned in its annual report. However, the central bank said India's active participation in 14 free trade agreements and six preferential trade agreements could help offset some of these headwinds. India's ongoing negotiations for new deals with key trading partners such as the US, Oman, Peru, and the European Union are expected to provide fresh impetus to trade growth, RBI said in its report for 2024-25. RBI also warned that rising input cost pressures for the manufacturing sector and subdued domestic demand posed risks to India's economic growth. Global merchandise trade volume is projected to contract 0.2% in 2025 under an adjusted scenario based on the tariff situation as of 14 April 2025, RBI said. But the US's trade deal with the UK and its agreement with China to engage in discussions, both earlier this month, augur well for global trade, it said. India's trade talks with the US and the EU are in the final stages and likely to be signed next month. India recently finalised its trade agreement with the UK, concluding three years of negotiations that began in 2022. '(India's trade agreements) will add one more factor to the RBI recommendations. With less than 20% of global trade taking place under free trade agreements, India needs to focus on competing in the broader international market,' said Ajay Srivastava, a former Indian trade negotiator and co-founder of the Global Trade Research Initiative (GTRI), a trade research think tank. 'This requires deep reforms to domestic manufacturing, including lowering production and input costs, rationalizing import duties, reducing delays at ports, and ensuring easy access to loans for small and medium enterprises,' Srivastava added. India's merchandise trade deficit widened to $282.8 billion in 2024-25 from $241.1 billion a year ago, with oil accounting for 43.3% of that, commerce ministry data show. This means India spent much more on importing goods than it earned from exporting them during the year. Among India's major trading partners, the country's trade deficit with China, Russia and the UAE widened in 2024-25, while surpluses improved in respect of the US, the Netherlands, and the UK. Coal imports fell 20% year-on-year in 2024-25, driven by both a decline in volumes and lower import prices, per RBI's annual report. The drop was primarily due to higher domestic coal production and reduced demand from thermal power plants for imported coal used in blending. As a result, India's reliance on imported coal declined significantly, easing pressure on the country's import bill and helping to moderate the overall merchandise trade deficit. India's discussions with the US for a bilateral trade agreement is among the country's most crucial international pacts in the works, but has been under the shadow of US President Donald Trump's reciprocal tariffs announced last month. On 28 May, however, a US federal court ruled that Trump's tariffs and country-specific duties—such as the 26% levy on Indian goods—were not justified under the International Emergency Economic Powers Act since trade deficits do not qualify as an 'unusual and extraordinary threat" under the law. Indian trade experts are now urging New Delhi to reconsider its approach to ongoing trade negotiations with the US, and not allow for unilateral concessions. India's bilateral trade with the US climbed significantly in the just-ended financial year, to $131.84 billion in FY25 from $119.72 billion in FY24. This growth was driven by a sharp increase in Indian exports, which rose 11.6% to $86.51 billion from $77.52 billion over that period, while imports from the US grew at a slower pace of 7.42%, to $45.33 billion from $42.20 billion. As a result, India's trade surplus with the US widened by 16.6% to $41.18 billion in FY25, compared with $35.32 billion in the previous year. India's gold imports rose sharply in 2024–25, increasing 27.4% year-on-year to $58 billion. The rise was driven largely by a 30% surge in international gold prices, even as the overall import volume contracted, the RBI report noted. India's record trade deficit for November was revised downward to $32.8 billion from $37.8 billion after the government made a significant correction in gold import data, as Mint reported on 8 January. Gold imports for November were adjusted to $9.8 billion, a substantial reduction from the earlier estimate of $14.8 billion. Electronic goods imports also grew significantly, expanding 12.4% to $98.7 billion during the year. Although exports of electronic goods remained strong, the trade deficit in the sector widened marginally to $60.1 billion in 2024–25. The electronic goods trade imbalance was primarily due to continued deficits in components and computer hardware and peripherals, as per the RBI report. However, telecom instruments recorded a trade surplus of $3.7 billion, partly offsetting the overall gap. Meanwhile, India's net services exports reached $135.5 billion during April–December 2024, reflecting a robust growth rate of 12.9% year-on-year. This was largely supported by a 14.5% increase in software and business services exports, which together accounted for nearly 74% of the country's total services exports. Among other services, transportation receipts rose by 19.5% year-on-year, buoyed by higher global freight rates amid disruptions in key shipping routes. The average Baltic Dry Index—a benchmark for freight shipping prices—increased by 12% over the corresponding period of the previous year. Exports of travel services also saw a modest rise of 5.5%, indicating increased spending by inbound tourists.
Indian Express
5 days ago
- Business
- Indian Express
Exports to UK carry tariff risk as carbon tax left out of FTA
INDIA'S GOODS exports worth at least $775 million to the UK continue to face the risk of higher duties under its Carbon Border Adjustment Mechanism (CBAM) despite the conclusion of a Free Trade Agreement (FTA) earlier this month, a UK official said Tuesday. A policy that was first proposed by the European Union and later by the UK, CBAM seeks to put a tariff of up to 35 per cent on carbon intensive products such as iron, steel and aluminium. During negotiations, India had sought to secure a carve-out for MSMEs from the CBAM policy after exporters told the Ministry of Commerce and Industry they were not in a position to meet its extensive data requirements. Exporters had also raised concerns that complying with carbon tax could compromise confidential trade data of manufacturers. Confirming that CBAM was not part of the India–UK FTA, the UK official said these types of mechanisms usually don't form part of the deal. Arguing that CBAM is not WTO-compliant, India had also proposed a 'rebalancing mechanism' which would require UK to compensate Indian industries for losses incurred due to the policy. Trade experts said under the trade deal, the UK has agreed to allow 99 per cent of India's exports to enter duty-free. This concession could, however, be undermined as select Indian goods may face tariffs of 20–35 per cent, equivalent to the CBAM charges. Earlier this month, an Indian government official said India reserves the right to retaliate against losses caused by CBAM. The official said if India were to tax these products domestically, the industry could avoid paying the UK tax, and the revenue could support India's own sustainability initiatives. The carbon tax negotiations are significant, as the UK's CBAM — set to take effect in 2027 — will initially target carbon-intensive products such as iron, steel, aluminium, fertilisers, hydrogen, ceramics, glass and cement, with scope to expand the list in future. According to the think tank Global Trade Research Initiative (GTRI), the carbon tax could impact $775 million worth of Indian exports. 'By not securing a carve-out or exemption clause on CBAM, India lost a vital opportunity to protect its carbon-intensive exports. From January 2027, the UK can impose carbon taxes on Indian steel and aluminium, even as we grant UK goods duty-free access. That's a serious asymmetry. Expect the same treatment in India's FTA with the EU,' said Ajay Srivastava, founder of GTRI. As no concession was secured under the FTA, India could challenge the regulation at the WTO on the grounds that CBAM violates special and differential treatment (SDT) provisions, which advocate longer implementation periods for developing countries to protect their trade interests. However, trade law experts warn that the CBAM regulations in both UK and EU could be in effect by the time the WTO rules on the matter, given that WTO's Dispute Settlement Body (DSB) is not functional. They also said there is limited likelihood of an adverse ruling on CBAM at the WTO, as the EU remains one of the strongest supporters of the institution. A more probable outcome would be adjustments to the regulation rather than its complete withdrawal. The European Union on Tuesday refused to consult with Russia on concerns relating to carbon tax. This refusal could render Russia's dispute ineffective due to the non-functional DSB. In its request for consultation, Russia argued at the WTO that CBAM was a highly trade-restrictive and discriminatory mechanism established by the EU under the guise of climate policy. 'As the EU itself puts it, 'the introduction of a CBAM leads to a reduction in imports in the EU27', while the CBAM is used as an instrument to boost competitiveness and unlock additional investment capacity in the EU,' Russia said in its submission. Refusing the consultation, the EU stated it would 'not consult with the Russian Federation on the matter at hand as long as the Russian Federation continues to violate international law through its war of aggression against Ukraine'. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
Time of India
6 days ago
- Business
- Time of India
Govt allocates Rs 18,233 cr under RoDTEP scheme for exporters for 2025-26
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel New Delhi: The government has allocated Rs 18,233 crore under the export benefit scheme RoDTEP in the current financial year for over 10,750 product categories, an official statement said on Tuesday. As of March 31, 2025, total disbursements under the RoDTEP scheme have crossed Rs 57,976.78 government also said that the benefits under the scheme for exports of goods manufactured in special economic zones and export-oriented units are restored from June 1 this the Remission of Duties and Taxes on Exported Products (RoDTEP), various central and state duties, taxes, and levies imposed on input products, among others, are refunded to exporters. The current RoDTEP rates are in the range of 0.3-4.3 per cent."For the Financial Year 2025-26, the government has allocated Rs 18,233 crore under the scheme. The support will cover 10,780 HS lines (or product categories) for Domestic Tariff Area exports and 10,795 HS lines for Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and units operating in Special Economic Zones (SEZs) exports, ensuring broad-based coverage for diverse sectors of the economy," the commerce ministry since January 1, 2021, the scheme is designed to reimburse exporters for embedded duties, taxes, and levies that are not otherwise refunded under any other existing is compliant with World Trade Organization (WTO) norms and implemented via a comprehensive end-to-end digital platform to ensure transparency and efficiency."The reinstatement of RoDTEP benefits for special export categories reflects the government's continued commitment to creating a conducive, competitive, and compliant export ecosystem that drives India's long-term trade growth," it on the move, economic think tank GTRI said the government did not allow RODTEP benefits for these groups for exports made between February 5 and May 31, 2025."The government's stop-and-start approach to RoDTEP undermines the scheme's purpose," Global Trade Research Initiative (GTRI) founder Ajay Srivastava RoDTEP is a WTO-compliant way to refund embedded duties paid by exporters, its repeated withdrawal for AA holders, EOUs, and SEZs creates serious uncertainty, he said."Exporters struggle to price products or plan long-term deals when they cannot rely on steady refunds. While the reinstatement of benefits is welcome, it raises a bigger issue: why were they cut off mid-cycle at all? To position India as a stable and competitive export hub, the government must ensure uninterrupted RoDTEP coverage for at least five years," he said.
New Indian Express
6 days ago
- Business
- New Indian Express
Govt reinstate duty remission scheme for SEZs
Operational since 1st January 2021, the RoDTEP scheme is designed to reimburse exporters for embedded duties, taxes, and levies that are not otherwise refunded under any other existing scheme. The scheme intends to compensate all central, state and local taxes levied on the exported products. RoDTEP is compliant with World Trade Organization (WTO) norms and is implemented via a comprehensive end-to-end digital platform to ensure transparency and efficiency. The commerce ministry informed that total disbursements under the RoDTEP scheme have crossed Rs. 57,976.78 crore as of 31 March 2025, underscoring its significant role in supporting India's merchandise exports. For 2025–26, the Government has allocated Rs. 18,233 crore under the scheme. 'The reinstatement of RoDTEP benefits for special export categories reflects the government's continued commitment to creating a conducive, competitive, and compliant export ecosystem that drives India's long-term trade growth,' says the commerce ministry. However, Ajay Srivastava, founder, Global Trust Research Initiative (GTRI), the government's stop-and-start approach to RoDTEP undermines the scheme's purpose. 'Although RoDTEP is a WTO-compliant way to refund embedded duties paid by exporters, its repeated withdrawal for AA holders, EOUs, and SEZs creates serious uncertainty. Exporters struggle to price products or plan long-term deals when they cannot rely on steady refunds,' he says.
