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Time of India
15-07-2025
- Business
- Time of India
India's FTA gap: New Delhi has trade deficit with 5 partners; Asean deal under review
India has a merchandise trade deficit with five of the seven countries and blocs it has signed free trade agreements (FTAs) with, ever since those deals came into effect, as per an analysis by ET . Together, these partners made up nearly 37% of India's overall trade deficit in FY25. Since 2021, India has entered FTAs with Mauritius, the UAE, the European Free Trade Association (EFTA), and Australia. While the deficit with the UAE has widened since 2022, the trade gap with Australia has narrowed. The agreement with the four-member EFTA is due to take effect in October, and India's deficit with the bloc declined in FY25 from the previous year. With Mauritius, India maintains a small surplus. In contrast, FTAs signed in the 2000s have generally seen India's trade deficit continue to rise, except in the case of the South Asian Free Trade Area (Safta), where India enjoys a surplus. The trade shortfall with the 10-member ASEAN bloc, for instance, jumped to $45.2 billion in FY25 from $25.8 billion in FY22 and $21.8 billion in FY19. Deficits with Japan and South Korea have also increased. A government official said India's newer trade agreements are seeing better utilisation than older ones, with continued efforts to keep trade balanced. 'A review of the trade pacts with Asean and Korea is underway,' said another official, adding, 'However, the Asean is stonewalling the review and we are trying to assess why the utilisation of the deal is low.' The ASEAN-India Trade in Goods Agreement was implemented in 2010. In FY25, India's goods exports to the ASEAN bloc fell 5.4% year-on-year to $38.96 billion, while imports rose 5.6% to $84.16 billion. Though India continues to post a surplus under the 21-year-old Safta agreement, the surplus has declined between FY22 and FY25. Between FY19 and FY25, India's reliance on FTA partners has grown. Imports from all FTA countries and blocs rose during this period, while export growth was limited to a few. Currently, these partners account for 28.1% of India's exports and 29% of its imports. According to an analysis by the commerce and industry ministry, the number of preferential certificates of origin issued under India's FTAs with the UAE and Australia increased by 24.7% and 19% respectively last year. The analysis is significant as utilisation rates under trade agreements with Korea, Japan, and ASEAN remain low, ranging between 4% and 25% across several products. Preferential certificates of origin allow exporters to avail tariff concessions offered under free trade agreements. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
14-07-2025
- Business
- Time of India
It's not so good(s)! India has trade gap with 5 of 7 key FTA partners
India has run a merchandise trade deficit with five of the seven trade partners including two blocs it has free trade agreements (FTAs) with, ever since the pacts came into force, an ET analysis has shown. These trade partners collectively accounted for nearly 37% of India's total trade deficit in FY25. India has since 2021 entered into trade pacts with Mauritius, the UAE, European Free Trade Association (EFTA) and Australia. Its trade deficit with the UAE has expanded since 2022, but that with Australia narrowed. While the pact with the four-nation EFTA is expected to come into force in October, the trade gap with the grouping reduced in 2024-25 from the previous fiscal year. With Mauritius, India has a small surplus. In comparison, the deficit with partners India signed trade pacts with in the 2000s continued to widen, barring the South Asian Free Trade Area (Safta) where it is a surplus. Notably, the deficit with the 10-nation Asean bloc ballooned to $45.2 billion in FY25 from $25.8 billion in FY22 and $21.8 billion in FY19. Deficits with Japan and South Korea also widened. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Buy Lifetime Office 365 Download Undo A government official said the utilisation of India's new trade deals was higher than that of the old ones and that efforts were ongoing to maintain balanced trade. Live Events "A review of the trade pacts with Asean and Korea is underway," said another official, adding: "However, the Asean is stonewalling the review and we are trying to assess why the utilisation of the deal is low." The Asean-India Trade in Goods Agreement came into effect in 2010. India's goods exports to the Asean shrank 5.4% on-year in FY25 to $38.96 billion, while imports rose 5.6% to $84.16 billion. India continues to maintain a trade surplus with South Asia under the 21-year-old Safta. But this surplus has shrunk between FY25 and FY22. Overall, India's reliance on its FTA partners has grown between FY19 and FY25. Imports from all FTA countries and regions increased during this period, while exports growth was limited to a few. These partners now account for 28.1% of India's exports and 29% of its imports. As per an analysis done by the commerce and industry ministry, the number of preferential certificates of origin issued by India under FTAs with the UAE and Australia rose 24.7% and 19%, respectively, last fiscal year. The analysis assumes significance as the utilisation rates under trade pacts with Korea, Japan and Asean have been estimated between 4% and 25% in many products. The preferential certificates of origin enable exporters to claim tariff benefits under free trade pacts.
Business Recorder
02-07-2025
- Business
- Business Recorder
Why SAARC still matters
The leaders of South Asia must recognize that the true potential for real and meaningful progress lies not in abandoning SAARC but in revitalizing it. Any consideration for establishing a new regional bloc to offset SAARC, risks further fragmenting South Asia rather than uniting it. SAARC's stagnation stems from bilateral disputes and not structural flaws; replacing it with a bloc perceived as aligning with specific geopolitical interests could deepen divisions rather than bridge them. SAARC is not merely a diplomatic forum; it is a homegrown initiative rooted in shared geography, history, and cultural ties that bind South Asia together. SAARC frameworks such as the South Asian Free Trade Area (SAFTA), the SAARC Development Fund (SDF), and the SAARC Visa Exemption Scheme, are already in place but underutilized. Any new bloc would lack these established mechanisms, requiring years to replicate what SAARC has already built. For example, SAFTA potential to boost intra-regional trade beyond its current 5 percent remains untapped due to political barriers, not institutional inadequacies. The call to revive SAARC is not nostalgic but pragmatic. The region 2 billion people 50 percent of whom live in poverty need SAARC frameworks to prioritise development over politics. Instead of sidelining SAARC, South Asian leaders must separate bilateral disputes from regional agendas, as ASEAN has done; fully operationalize SAFTA, expand visa exemptions, and launch joint infrastructure projects; scale up student exchanges, cultural programs, and trade delegations to build trust. SAARC's foundations are solid; its tools are ready. What missing is the political courage to prioritize regional prosperity over narrow rivalries. Had SAARC remained active after its 18th Summit in 2014, it would have convened its 23rd Summit by 2024 and been preparing for a 24th, potentially providing an institutional mechanism to de-escalate tensions during the recent major conflict that brought India and Pakistan to the brink of war. The recent escalation between India and Pakistan has severely jeopardised peace across South Asia, exacerbating regional instability in the absence of functional diplomatic platforms like SAARC. The South Asian Association for Regional Cooperation (SAARC) has historically played a pivotal role in easing tensions among member states, prioritizing regional cooperation and the welfare of South Asian citizens. Notably, it has helped to mitigate conflicts, particularly between Pakistan and India, by facilitating dialogue and promoting peace. SAARC revival remains elusive. While member states maintain representatives at the Kathmandu Secretariat, the regional body remains largely inactive, raising questions about the political will for cooperation. SAARC has historically played a crucial role in promoting dialogue and cooperation among its member states. However, since the postponement of the 19th SAARC Summit scheduled for 2016 in Islamabad, Pakistan, a significant dialogue among member states has been absent. SAARC's strength has never been about resolving political disputes directly, but about building everyday trust through student exchanges, shared markets, and coordinated disaster responses. These mechanisms are vital for peace. The South Asian University, based in New Delhi, was a visionary initiative. But imagine if it had branches in every member country, allowing students to study in Pakistan's mountains, Sri Lanka's coastlines, Indian plains or Nepal's valleys. These shared classrooms would help dissolve stereotypes and build lifelong friendships. More exchange programmes would connect youth across borders, creating a generation shaped by shared experiences, not divided by old narratives. SAARC has already contributed to people's well-being. Health clinics supported by the SAARC Development Fund (SDF) have quietly saved lives in remote areas. Food banks helped in times of drought. But these successes remain limited in reach. With stronger political support, such initiatives could grow, perhaps into regional vaccine drives or emergency response teams that move quickly across borders during disasters. These actions reflect the true spirit of SAARC: regional unity to improve the lives of ordinary people. People visiting sacred sites across borders, craftswomen selling handmade textiles in neighbouring countries, or students pursuing education beyond their homeland are not grand political gestures, but simple human aspirations. Yet, current visa systems restrict such movements. The SAARC Visa Exemption Scheme, which allows limited travel for businesspeople, issues around 200 visas per country each year, a drop in the ocean for a region of two billion. For trade, tourism, and trust to flourish, this number must grow. A common SAARC tourist visa, long discussed but never implemented, could transform mobility in the region. Despite political pauses, the foundation of SAARC is solid. Signed agreements on energy, connectivity, trade, and social development await fuller implementation. What is needed now is not new declarations, but action. Scholarships for students, simplified travel rules, affordable flights, and business-friendly border policies could bring immediate benefits. Each time a young person crosses a border to study, a trader expands market, or a family visits a sacred place, the dream of SAARC lives on. When SAARC was functioning, summits offered space for dialogue and cooling of tensions. For example, previous meetings helped ease situations after the Kargil conflict and during military stand-offs. Today, with SAARC not functioning at its full potential, countries lack the diplomatic cushions that once helped avoid escalation. And yet, there is hope. Indian External Affairs Minister recently said that 'SAARC is not off the table.' Pakistan, Bangladesh and other member countries have also expressed support for its revival. Leaders from Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives, and Afghanistan have long stood behind the vision of SAARC. All maintain their diplomatic presence at the SAARC Secretariat in Kathmandu. The challenge is not about structure; it is about political will. SAARC is not a platform that can be replaced or replicated. It is built on a natural alliance, formed not just by geography, but by shared history, culture, and aspirations. The countries of South Asia are not distant partners; they are neighbours bound by centuries of interaction, migration, and exchange. From language and cuisine to festivals and philosophies, the region's common threads run deep. No external alliance or global forum can substitute the unique foundation upon which SAARC stands. Its strength lies in the fact that it is a homegrown initiative, designed by South Asians, for South Asians, to address the region distinct challenges and unlock its collective potential. People of the region are not asking for the impossible. They want peace, opportunity, and the freedom to travel, learn, and work across borders. It's time for SAARC to be reactivated, not just for governments but for the people it was meant to serve. As the famous saying goes, 'Rivers don't stop at borders. Why must we?' When SAARC works as envisioned, it responds not with politics, but with a common vision, thriving marketplaces, and the quiet truth that the futures of South Asian people flow together. (The writer is the Secretary General of SAARC Chamber of Commerce and Industry) Copyright Business Recorder, 2025
New Indian Express
28-06-2025
- Business
- New Indian Express
India imposes restrictions on jute imports from Bangladesh amid trade concerns
NEW DELHI: India has imposed immediate restrictions on the import of jute and allied fibre products from Bangladesh, in a move reflecting growing tensions in bilateral trade relations. The new measures apply to all land and seaports across the country, with the sole exception of the Nhava Sheva seaport in Maharashtra, according to a notification from the Directorate General of Foreign Trade (DGFT). The restrictions, however, will not apply to goods exported by Bangladesh to Nepal and Bhutan. At the same time, the re-export of such Bangladeshi goods from Nepal or Bhutan into India 'will not be allowed,' the notification clarified. Under the South Asian Free Trade Area (SAFTA) agreement, Bangladesh's jute exports currently enjoy duty-free access to the Indian market. However, the Indian jute industry has long raised concerns over the adverse impact of dumped and subsidised imports, particularly of jute yarn, fibre, woven fabrics, and bags originating from Bangladesh. 'This has placed the Indian industry at a disadvantage, as there is credible evidence that Bangladeshi jute exports continue to benefit from government subsidies,' a source familiar with the matter said.
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Business Standard
28-06-2025
- Business
- Business Standard
India curbs jute imports from Bangladesh to protect domestic industry
India has announced new restrictions on the import of jute and related fibre products from Bangladesh, effective immediately. The latest move comes at a time when tensions between the two neighbouring countries are rising. The restrictions will apply to all land and seaports except the Nhava Sheva seaport in Maharashtra, according to a report by the Press Trust of India. The Directorate General of Foreign Trade (DGFT), under the Commerce Ministry, issued a notification on Friday confirming the restrictions. Jute imports have hurt Indian industry Under the South Asian Free Trade Area (SAFTA) agreement, jute products from Bangladesh currently enjoy duty-free access to India. However, the Indian jute industry has reportedly suffered for years due to low-priced and subsidised imports, particularly of yarn, fibre, and bags from Bangladesh. "There is credible evidence that Bangladeshi jute exports continue to benefit from state subsidies extended by the government of Bangladesh," said one of the people quoted in the PTI report. Anti-dumping measures haven't worked In response to the issue, the Directorate General of Anti-Dumping and Allied Duties (DGAD) previously carried out investigations and imposed anti-dumping duties on jute and related products from Bangladesh. However, sources told PTI said the duties have not led to a significant decline in imports. Malpractices by some Bangladeshi exporters, they added, include mislabelling, misuse of technical exemptions, exporting through firms exempted from anti-dumping duties, and "misdeclaration" to claim higher subsidies. Earlier in May, the Indian government imposed new port restrictions on the import of a range of goods from Bangladesh. The move, widely seen as a retaliatory measure, followed Dhaka's decision to close its land ports to Indian yarn exports. The Directorate General of Foreign Trade on May 17 issued a notification detailing the restrictions. It restricted the import of goods such as readymade garments, processed food items, carbonated drinks, plastic goods, and wooden furniture. Self-reliance and rural jobs a priority The Indian government said the new restrictions aim to tackle unfair trade practices, support the 'Atmanirbhar Bharat' (self-reliant India) initiative, and protect livelihoods in the rural jute sector. "To safeguard the interests of the domestic jute industry and to counter the unfair trade practices employed by the Bangladesh exporters acting in collusion with Bangladeshi establishment, it has been decided to restrict Bangladesh imports of jute and jute products to India through only from Nhava Sheva port," said one of the sources. "The imposition is expected to streamline the quality checking, prevent misdeclaration and fraudulent labelling, thereby neutralising the malpractices that have plagued the industry for long," he said. "The government is also taking steps to ensure that exporters in Bangladesh do not circumvent the aforesaid restrictions by routing their jute exports through third countries," he added. Political fallout after Sheikh Hasina's ouster The imposition of these trade barriers marks a sharp downturn in bilateral ties between India and Bangladesh. The relations between the two neighbours have soured significantly following the ouster of the Sheikh Hasina-led government in Bangladesh — a longstanding ally of New Delhi. Her departure ushered in an interim government led by Muhammad Yunus, which has faced criticism for failing to curb attacks on minorities, particularly Hindus. This political instability and human rights concerns have contributed to the diplomatic chill and increased mistrust between the two countries.
