Latest news with #RaviDuttaMishra
Indian Express
01-08-2025
- Business
- Indian Express
Indian apparel exporters warn of 'mass layoffs' over US tariffs
Apparel exporters on Friday raised an alarm over steep 25 per cent US tariffs, stating that they will have to sell below cost to keep their factories running and avoid mass layoffs. This comes as new tariffs are set to come into effect on August 7, and as US tariffs on India have been set higher than on over 50 countries, including Bangladesh and Pakistan. 'We request immediate government intervention to offset this huge setback. Exporters have their back against the wall and will have to sell below cost to keep their factories running and avoid mass layoffs,' Sudhir Sekhri, Chairman, Apparel Export Promotion Council (AEPC), said in a statement. The US is a key market for Indian Ready-Made Garments (RMG) exports, with India holding a 33 per cent share in the country's total garment exports in 2024, AEPC said. India's presence in the US garment import market has grown, with its share increasing from 4.5 per cent in 2020 to 5.8 per cent in 2024, and it ranks fourth among the top RMG exporters to the United States, it said. 'Top three most exported products by India to US: Cotton T-shirts (9.71 per cent); women's or girls' dresses of cotton (6.52 per cent); babies' garments of cotton (5.46 per cent), etc. The top three exports of India to the USA hold 10, 36, and 20 per cent share, respectively, in the US total imports of these products globally,' AEPC said. China continues to be the top exporter, with a market share of 21.9 per cent in 2024, down from 27.4 per cent in 2020. Together, China, Vietnam and Bangladesh supplied 49 per cent of US apparel imports in 2024. Notably, while tariffs on China continue to be 30 per cent, US tariffs on Vietnam and Bangladesh have been set at 20 per cent. The US is India's largest export market for the labour-intensive Indian textile and apparel industry, as India exported $10.91 billion worth of products under the category in FY25. A steep 25 per cent tariff would leave Indian products uncompetitive compared to those from Bangladesh. Textiles have been a key growth driver in the US market, as a Morgan Stanley analysis said that India's bilateral goods trade surplus with the US has doubled over the last 10 years, growing from $20 billion in FY15 to $40 billion in FY25. 'This increase has been mainly driven by higher surpluses in sectors like electronics, pharmaceutical products and textiles,' the report said. The India-US trade deal is stuck over sensitive sectors such as agriculture and automobiles. The Indian Express had reported last week that India is unlikely to agree to US demands during the ongoing trade negotiations to accept genetically modified (GM) agricultural products such as corn and soya. This assumes significance as agriculture remains one of the contentious issues between the two countries, and the United States Trade Representative (USTR) has previously flagged restrictions on its GM products by countries as discriminatory. 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
Indian Express
29-07-2025
- Business
- Indian Express
With ONDC in place, separate national retail policy takes a backseat
As various interventions have been made by the government, such as the Open Network for Digital Commerce (ONDC), which provides open access to retailers, a separate national retail policy may not be a top government priority at the moment, The Indian Express has learned. 'A policy is a set of actions, and those actions are already being taken. Timely interventions are happening on a regular basis, such as the setting up of the National Traders Welfare Board and the launch of the ONDC platform. There is no need for a separate policy for retail trade right now,' a source tracking the matter told The Indian Express. The Ministry of Commerce and Industry told Parliament in 2023 that a draft National Retail Trade Policy had been prepared, based on consultations with state governments and major industry and trade associations. The draft focused on preparing strategies for the overall development of retail trade through targeted efforts to promote ease of doing business in the retail sector. The policy was expected to introduce several measures to reduce the compliance burden, enhance ease of access to credit, and decriminalise minor offences for all formats of retail trade. 'Special emphasis is placed on assessing the requirement of licences, removing renewal requirements, inspection reforms, facilitating public service delivery, and the creation of a single-window facilitation mechanism,' a parliamentary response said. India's retail sector contributes nearly 12 per cent to the gross value added (GVA) to overall GDP, making retail the country's third-largest sector. Experts have said that India currently lacks a single cohesive policy governing all retail formats, which creates 'pockets of imbalance between retail formats' and hampers the sector's growth. While some states like Maharashtra, Andhra Pradesh, and Karnataka have introduced their own policies, a comprehensive national approach is missing, leaving other states governed by 'outdated and unclear regulations'. An overarching policy is considered one of the most 'significant and urgent challenges', according to a CII report in 2018, prior to the development of the draft retail policy in 2021. 'A national policy can encourage the modernisation of in-store operations and standardise back-end infrastructure development by providing financial assistance, subsidies, and tax breaks, and improving access to capital. This modernisation process is expected to lead to more cost-efficient supply chains, improved labour productivity, and savings for end customers,' the report said. 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
Indian Express
24-07-2025
- Business
- Indian Express
India's average tariff on British products will drop from 15% to 3%, says UK govt
Ahead of the India-UK trade deal signing ceremony on Thursday, the UK government said India's average tariff on British products will drop from 15 per cent to 3 per cent. This is expected to result in a nearly 60 per cent increase in UK exports to India in the long run, amounting to an additional $20 billion in exports. New Delhi, often criticised for being a high-tariff country — especially by US President Donald Trump — has started reducing tariffs for Western trading partners to improve economic integration and boost exports, particularly in labour-intensive sectors such as textiles and leather goods. 'A reduction in tariffs, combined with a reduction in regulatory barriers to trade between the UK and India, is estimated to increase UK exports to India by nearly 60 per cent in the long run — this is equivalent to an additional £15.7 billion of UK exports to India when applied to projections of future trade in 2040. It will also increase bilateral trade by nearly 39 per cent in the long run, equivalent to £25.5 billion a year, when compared to 2040 projected levels of trade in the absence of an agreement,' the UK government said in a statement. As many as 26 British companies have secured new business in India, the statement added. 'Airbus and Rolls-Royce will soon begin delivering Airbus aircraft — with over half powered by Rolls-Royce engines — to major Indian airlines as part of around £5 billion worth of contracts recently agreed,' it said. The UK already imports £11 billion worth of goods from India, but liberalised tariffs on Indian goods will make it easier and cheaper to buy Indian products. For businesses, this could mean potential savings when importing components and materials used in sectors such as advanced manufacturing or luxury and consumer goods. Meanwhile, India will benefit from tariff elimination on approximately 99 per cent of tariff lines, covering nearly 100 per cent of trade value — offering opportunities to boost bilateral trade between India and the UK, according to the Commerce and Industry Ministry. The pact includes chapters on goods, services, innovation, government procurement, and intellectual property rights. The two countries have also concluded negotiations on the Double Contribution Convention Agreement, or social security pact, which would help avoid double contributions to social security funds by Indian professionals working for a limited period in Britain. However, talks on the Bilateral Investment Treaty (BIT) are still ongoing. 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
Indian Express
20-06-2025
- Business
- Indian Express
Iran–Israel war could shut Bandar Abbas port, push up air freight rates: Exporters tell govt
Indian exporters on Friday urged the government to plan alternate shipping routes to West Asia, warning that the escalating Iran–Israel war could lead to the closure of Iran's largest port, Bandar Abbas, and drive up air freight charges as several West Asian countries are closing their airspace, a person aware of the development said. 'There are concerns that the Bandar Abbas port could be closed, so alternate routes—particularly Chabahar Port—should be considered. There is also worry over a surge in air freight, along with ocean freight, due to airspace closures in several West Asian countries such as Jordan and Iran. Pakistani airspace is already closed,' exporters told the government at a stock taking meeting on Friday at the Commerce and Industry Ministry. 'Sea freight could rise, and the war risk premium may further add to costs. Oil flows remain steady through the Strait of Hormuz, but the situation is volatile,' traders said. A Commerce Ministry official said traders informed the government that the situation in the Strait of Hormuz is 'currently stable', and a ship reporting system has been put in place to monitor any incidents. 'The freight and insurance rates are also being closely monitored,' the official added. The Indian Express had earlier reported that escalating tensions between Iran and Israel have further driven up marine cargo insurance premiums, amid growing war-related risks and the potential threat to global shipping and trade routes. Marine cargo insurance premiums have now risen by 15 per cent to 30 per cent, with insurers charging an additional 0.15 per cent of the cargo's value, insurance sources said. The increase is expected to impact commodity importers and exporters operating from ports in Gujarat and Maharashtra. Exporters said that Red Sea exposure premiums began climbing after the Russia–Ukraine war, well before the current Iran–Israel conflict. That earlier escalation had already prompted global underwriters to reassess maritime risks. The latest flare-up has only deepened concerns—especially in the Red Sea, a crucial corridor for global oil and cargo trade. 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
Indian Express
09-06-2025
- Business
- Indian Express
Inter-departmental huddle on textile trade amid EU, US FTA talks
The Commerce and Industry Ministry is set to hold a inter-departmental meeting on Tuesday to formulate textile export strategy amid the ongoing free trade agreement (FTA) negotiations with the European Union and the United States, The Indian Express has learned. The meeting will be attended by officials from Commerce ministry, Finance Ministry and the Reserve Bank of India (RBI) among others and is expected to discuss policy levers that could help Indian textile exporters gain a stronger foothold in key Western markets. The textile sector—one of India's largest employment generators and a major foreign exchange earner—has emerged as a priority area in the country's FTA push, particularly due to its labour-intensive nature and its potential to benefit from tariff concessions in the US and EU markets. While India's apparel exports have long faced stiff competition from lower-cost producers like Bangladesh and Vietnam, trade deals with the EU and US could offer Indian exporters a competitive edge through preferential access. The meeting is expected to focus on ironing out issues such as export financing, compliance with quality and sustainability standards, and the role of production-linked incentives (PLI), as India looks to position its textile industry as a major beneficiary of its expanding trade partnerships. 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
