Latest news with #IndianExporters
Reuters
10 hours ago
- Business
- Reuters
Key issues in India, U.S. trade talks ahead of July 9 deadline
NEW DELHI, June 26 (Reuters) - Trade talks between India and U.S. have hit a roadblock over disagreements on duties for auto component, steel and farm goods, Indian government sources said, dashing hopes of reaching an interim deal ahead of President Donald Trump's July 9 deadline to impose reciprocal tariffs. Here are the key issues at play: India's dependence on agriculture - a major source of rural jobs - has made it politically difficult for New Delhi to accept U.S. demands for steep tariff cuts on corn, soybean, wheat and ethanol, amid risks from subsidised U.S. farm products. Domestic auto, pharmaceutical, and small-scale firms are lobbying for only a gradual opening of the protected sectors, fearing competition from U.S. firms. The U.S. is pushing for greater access to agricultural goods and ethanol, citing a significant trade imbalance, along with expanded market access for dairy, alcoholic beverages, automobiles, pharmaceuticals, alcoholic beverages and medical devices. Despite India offering to tariff cuts on a range of farm products, preferential treatment for U.S. firms, and increasing energy and defence purchases, Indian officials say they are still awaiting substantive proposals from Washington amid Trump's erratic trade policies. Indian exporters remain concerned about U.S. tariff hikes, including a 10% average base tariff, 50% on steel and aluminium and 25% on autos imports, as well as a proposed 26% reciprocal duty that remains on hold. Indian policymakers see the U.S. as a preferred partner over China but remain cautious about compromising policy autonomy in global affairs. The U.S. is India's largest trading partner and a major source of investment, technology, energy, and defence equipment. India remains wary of deeper strategic ties after Trump's perceived tilt toward Pakistan during a recent conflict between the neighbours, which raised doubts about U.S. reliability. GROWING INDIAN EXPORTS TO U.S. New Delhi is confident exports will continue to grow, especially in pharmaceuticals, garments, engineering goods and electronics, helped by tariff advantage over Vietnam and China. India's goods exports to the U.S. rose to over $87 billion in 2024, including pearls, gems and jewellery worth $8.5 billion, pharmaceuticals at $8 billion, and petrochemicals around $4 billion. Services exports - led by IT, professional and financial services - were valued at $33 billion in 2024. The U.S. is also India's third-largest investor, with over $68 billion in cumulative FDI between 2002 and 2024. U.S. manufacturing exports to India, valued at nearly $42 billion in 2024, face high tariffs, ranging from 7% on wood products and machinery to as much as 15% to 20% on footwear and transport equipment, and nearly 68% on food. According to a recent White House fact sheet, the U.S. average applied Most Favoured Nation (MFN) tariff on farm goods was 5% compared to India's 39%.
Yahoo
10 hours ago
- Business
- Yahoo
Factbox-Key issues in India, U.S. trade talks ahead of July 9 deadline
By Manoj Kumar NEW DELHI (Reuters) -Trade talks between India and U.S. have hit a roadblock over disagreements on duties for auto component, steel and farm goods, Indian government sources said, dashing hopes of reaching an interim deal ahead of President Donald Trump's July 9 deadline to impose reciprocal tariffs. Here are the key issues at play: HURDLES TO A TRADE DEAL India's dependence on agriculture - a major source of rural jobs - has made it politically difficult for New Delhi to accept U.S. demands for steep tariff cuts on corn, soybean, wheat and ethanol, amid risks from subsidised U.S. farm products. Domestic auto, pharmaceutical, and small-scale firms are lobbying for only a gradual opening of the protected sectors, fearing competition from U.S. firms. The U.S. is pushing for greater access to agricultural goods and ethanol, citing a significant trade imbalance, along with expanded market access for dairy, alcoholic beverages, automobiles, pharmaceuticals, alcoholic beverages and medical devices. "LACK OF RECIPROCITY" Despite India offering to tariff cuts on a range of farm products, preferential treatment for U.S. firms, and increasing energy and defence purchases, Indian officials say they are still awaiting substantive proposals from Washington amid Trump's erratic trade policies. Indian exporters remain concerned about U.S. tariff hikes, including a 10% average base tariff, 50% on steel and aluminium and 25% on autos imports, as well as a proposed 26% reciprocal duty that remains on hold. STRATEGIC ALIGNMENT Indian policymakers see the U.S. as a preferred partner over China but remain cautious about compromising policy autonomy in global affairs. The U.S. is India's largest trading partner and a major source of investment, technology, energy, and defence equipment. TENSIONS OVER PAKISTAN India remains wary of deeper strategic ties after Trump's perceived tilt toward Pakistan during a recent conflict between the neighbours, which raised doubts about U.S. reliability. GROWING INDIAN EXPORTS TO U.S. New Delhi is confident exports will continue to grow, especially in pharmaceuticals, garments, engineering goods and electronics, helped by tariff advantage over Vietnam and China. India's goods exports to the U.S. rose to over $87 billion in 2024, including pearls, gems and jewellery worth $8.5 billion, pharmaceuticals at $8 billion, and petrochemicals around $4 billion. Services exports - led by IT, professional and financial services - were valued at $33 billion in 2024. The U.S. is also India's third-largest investor, with over $68 billion in cumulative FDI between 2002 and 2024. US EXPORTS TO INDIA U.S. manufacturing exports to India, valued at nearly $42 billion in 2024, face high tariffs, ranging from 7% on wood products and machinery to as much as 15% to 20% on footwear and transport equipment, and nearly 68% on food. According to a recent White House fact sheet, the U.S. average applied Most Favoured Nation (MFN) tariff on farm goods was 5% compared to India's 39%. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Times of Oman
09-06-2025
- Business
- Times of Oman
India-UAE CEPA doubles bilateral trade in just three years
The India–UAE (United Arab Emirates) CEPA (Comprehensive Economic Partnership Agreement), signed on 18th February 2022 and implemented from 1st May 2022, marks a landmark achievement in India's foreign trade trajectory. Celebrating its third anniversary in 2025, the agreement has not only strengthened economic relations but also deepened strategic cooperation between two major players in Asia and the Middle East. The CEPA, India's first comprehensive FTA in the Middle East, covers trade in goods and services, rules of origin, digital trade, customs cooperation, and investment facilitation. It aims to boost non-oil trade to over USD 100 billion within five years and create tremendous jobs opportunities in both countries. Three years on, the CEPA has significantly reduced tariff and non-tariff barriers, provided smoother market access for Indian exporters, and attracted UAE investors into key Indian sectors such as infrastructure, logistics, fintech, and renewable energy. The UAE, India's third-largest trading partner and second-largest export destination, has emerged as a gateway to Gulf and African markets. The India-UAE FTA has become a model for India's broader trade ambitions, combining economic benefits with geopolitical and cultural ties that have spanned centuries. It demonstrates how proactive diplomacy and economic strategy can work in tandem to deliver transformative outcomes. India-UAE Trade Trajectory India and the UAE share a robust and growing trade relationship that has evolved from energy-based exchanges to a multifaceted partnership encompassing manufacturing, gems and jewellery, agriculture, electronics, and emerging sectors like fintech and green energy. Over the past five years, bilateral trade has surged despite global disruptions such as the COVID-19 pandemic and supply chain bottlenecks. The signing of the CEPA in 2022 marked a turning point, unlocking significant potential across multiple sectors. India's exports to the UAE have diversified from traditional products like textiles and gems to electronics, automobiles, food products, and engineering goods. On the other hand, India imports crude oil, petroleum products, precious metals, and chemicals from the UAE. The CEPA has not only increased trade volumes but has also improved trade efficiency. Key sectors have benefitted from duty-free access and streamlined customs procedures. This trajectory indicates a long-term strategic alignment, with both nations investing in resilience, innovation, and diversification of their trade portfolios. India and UAE witnessed steady growth in bilateral trade over the past five financial years, highlighting the impact of evolving policy and market dynamics. India's exports to the UAE have seen a notable increase, particularly after the implementation of the CEPA in FY 2022–23. India's growing exports to the UAE post-FTA implementation show enhanced market access and product from the UAE, mainly comprising crude oil and precious metals, have also risen; the increase in total trade reflects the deepening economic integration and expanding commercial partnership. The bilateral trade doubled from USD 43.3 billion in 2020-21 to 85.61 in 2023-24 and rose to 105. 76 in 2024-25. India's exports to the UAE exhibit a wide range of product categories, reflecting a well-diversified trade basket. Gems and jewellery, including cut and polished diamonds and gold jewellery, have traditionally led India's exports to the UAE. The sector has benefitted immensely from CEPA, with duties on certain jewellery items either reduced or eliminated, giving Indian exporters a competitive edge in the Gulf region. Refined petroleum products are another major export segment, underscoring India's strong refining capabilities and growing energy ties with the UAE. India also exports a large volume of textile and apparel products, including cotton yarn, readymade garments, and home furnishings, which cater to the UAE's large expatriate population and regional demand. Engineering goods and automobiles are gaining traction due to improved market access and rising demand for Indian vehicles and industrial machinery. In recent years, electronic goods, especially mobile phones and consumer electronics, have become significant contributors, driven by India's expanding electronics manufacturing ecosystem. Moreover, agricultural exports like rice, tea, spices, meat, and seafood continue to strengthen India's presence in the UAE's food supply chain. On the India's imports form UAE, crude oil and petroleum derivatives dominate India's imports from the UAE, playing a critical role in meeting its energy requirements. India also imports precious metals such as gold and silver in large quantities, which feed into its thriving domestic jewellery manufacturing industry. Other key imports include aluminum, fertilizers, sulphur, plastics, and chemicals, all vital for India's manufacturing and agricultural sectors. These commodity exchanges reflect a strategic, resource-driven, and evolving partnership. India-UAE Investment Relations Investment flows between India and the UAE form a foundational pillar of their bilateral relationship, supporting infrastructure, technology, finance, and renewable energy sectors. The UAE is among the top 10 sources of Foreign Direct Investment (FDI) into India, with cumulative investments exceeding USD 15 billion. On the other hand, Indian companies have established a strong footprint in the UAE, particularly in sectors like IT, education, construction, pharmaceuticals, and finance. Over 3,800 Indian companies operate in the UAE, benefitting from its liberal trade zones and investor-friendly environment. Indian retail giants, banks, and startups are increasingly exploring the UAE as a base for GCC and Africa expansion. The CEPA has provided a structured framework to promote investment facilitation, ensure regulatory transparency, and protect investor interests. The recent agreements on bilateral investment promotion and cross-border digital infrastructure cooperation are expected to further unlock investment synergies in emerging sectors such as AI, semiconductors, hydrogen, and smart mobility. Futuristic Outlook of India's Trade with UAE The future of India-UAE trade is poised for dynamic growth, underpinned by structural shifts, digital connectivity, and shared visions for sustainable development. CEPA has laid the groundwork for not just enhanced bilateral trade but also joint access to third-country markets, especially in Africa, West Asia, and Central Asia. With trade already exceeding USD 85 billion, both countries are on track to reach the USD 100 billion non-oil trade in the next few years. This will be supported by further integration in renewable energy, fintech, supply chain digitization, and emerging tech sectors. In green energy, the India-UAE Green Hydrogen Partnership has opened new channels of cooperation in solar power, clean mobility, and carbon-neutral logistics. Both are founding members of the International Solar Alliance and have launched joint ventures in solar panel manufacturing and energy storage. The CEPA's services trade chapter will significantly boost finance, healthcare, education, legal, and IT services. Mutual recognition of professional qualifications and reduced barriers in digital trade offer tremendous potential for Indian service providers. Emerging areas of bilateral collaboration between India and UAE include artificial intelligence, semiconductor design, defence manufacturing, aerospace, cybersecurity, and blockchain infrastructure. With both governments facilitating ease of doing business, the private sector is well-positioned to capitalize on these futuristic opportunities. In conclusions, the India-UAE FTA stands as a testament to visionary economic diplomacy, unlocking trade, investment, and innovation-led opportunities. Over three years, CEPA has catalyzed growth, diversified trade, and deepened bilateral trust. With supportive policy frameworks, private sector dynamism, and cultural closeness, the India-UAE economic relationship is poised to become a model for South-South cooperation. As both countries look toward the future, their partnership will be defined not just by shared prosperity, but also by shared responsibility in shaping a sustainable global economic order.
Times of Oman
16-05-2025
- Business
- Times of Oman
India's exports rise 12.7% in April, but imports outpace with 15.7% surge YoY
New Delhi: India's overall exports, including merchandise and services, witnessed a rise sharply to $73.80 billion in April 2025, marking a 12.7 per cent increase from $65.48 billion in the same month last year, according to data released by the Commerce Ministry on Wednesday. The data shows that the imports surged at an even faster pace, with overall imports climbed to USD 82.45 billion in April 2025, a 15.7 per cent jump from USD 71.25 billion in April 2024. Talking about the trade data, Commerce Secretary Sunil Barthwal said, "We have reached an USD 825 bn exports figure in 2024-25, which is the largest ever export. That shows that Indian exports and exporters have now achieved that resiliency in their business. Our exports are more resilient." Due to the difference in the export and import, India's overall trade deficit widened to USD 8.65 billion in the current year, as per the data of the Commerce Ministry. This is a significant 50 per cent increase from USD 5.77 billion a year earlier. As per the monthly data, India's merchandise exports saw a rise of 9.03 per cent to USD 38.39 billion in April as against USD 35.3 billion in the same month last year. As per the data, imports saw a rise of 19.12 per cent to USD 64.91 billion in April as against USD 54.49 billion in the same month last year. India's trade deficit had increased sharply in March 2025 to USD 3.63 billion, as against USD 1.92 billion in the same month of 2024. The widening gap highlights growing import demand, potentially driven by stronger domestic consumption. The export growth lagged robustly behind import expansion. While the uptick in trade activity points to strong economic momentum, the growing trade gap highlights the need for continued focus on boosting exports and managing import dependence, particularly in critical sectors. The trade deficit widened to USD 21.54 billion in March, up from a three-year low of USD 14.05 billion in February. India's overall export ( Merchandise & Services) has also shown steady growth in March 2025, with both exports and imports registering year-on-year increases.
