I'...additional concessions, such as opening government procurement, reducing agricultural subsidies, weakening patent protections, and allowing unrestricted data flows -- demands India has resisted for decades.'
The impact of United States President Donald Trump's reciprocal tariffs is not yet known and New Delhi's strategy to deal with the situation is to firm up a bilateral trade pact with Washington, DC by fall of this year, External Affairs Minister S Jaishankar said on Wednesday.
India's policy for agriculture trade must move commodity-by-commodity to gain maximum benefits as US President Donald Trump's 26 per cent tariff on exports from the country take effect, said agriculture economist Ashok Gulati in a recent policy paper.
'The US is strongly placed to expand its crude supplies to India.'
The UK has strongly condemned a security breach involving a pro-Khalistan extremist rushing towards External Affairs Minister S Jaishankar's convoy in London. The incident took place as Jaishankar was leaving the Chatham House think tank on Wednesday evening. The protester was swiftly taken aside by officers of the Metropolitan Police, with no arrests being confirmed so far. The UK said such attempts to "intimidate, threaten, or disrupt" public events are "completely unacceptable". The incident comes after Jaishankar's talks with UK Foreign Secretary David Lammy, during which both leaders covered the entire gamut of bilateral ties, including the relaunched Free Trade Agreement (FTA) negotiations, regional and global issues. The MEA has condemned the security breach and the provocative activities of the "small group of separatists and extremists", calling on the UK to "live up to their diplomatic obligations".
An ACMA-BCG report has targeted Indian auto component exports to hit $100 billion - nearly a fivefold increase from $21 billion currently
'And America will invite India in to have really an extraordinary opportunity and relationship with us.'
"These latest so-called 'Liberation Day' tariffs are reckless and self-destructive, inflicting financial pain on Illinois at a time when people are already struggling to keep their small businesses afloat and put food on the table."
The group waving separatist flags was barricaded and monitored by a significant police presence outside the venue on Wednesday night, with officers rushing to restrain the man as he ran past the barricade in an attempt to block the path of the minister's car pulling at an Indian flag.
India's External Affairs Minister S Jaishankar has stated that the US administration under President Donald Trump is moving towards multipolarity, which aligns with India's interests. He also revealed that India and the US have reached an agreement on the need for a bilateral trade pact. Jaishankar touched upon various foreign policy issues including India's role in the Russia-Ukraine conflict, the trajectory of the BRICS grouping, and relations with China during a session at the Chatham House think-tank in London.
"From President Trump's perspective, the one big shared enterprise that we have is the Quad, which is an understanding where everybody pays their fair share. There are no free riders involved. So that's a good model which works," he said. The Quad alliance consists of the US, India, Australia and Japan.
'But I don't think the government is in a great hurry to sign the BTA.'
Importers will now have to provide sufficient proof to the domestic customs authorities that the goods being imported have a minimum 35 per cent value addition in the country from which it is being exported to India.
US shale oil would act as an alternative to India's heavy dependency on Russian crude, which is currently facing sanctions.
'While criticising India's high tariffs, Mr Trump stated he would impose reciprocal taxes on Indian products if re-elected.' 'However, since India's tariffs follow WTO rules, Mr Trump's actions would violate these rules,' Ajay Srivastava points out.
With the new government taking charge in Britain, senior officials of India and the UK will hold the next round of talks this month for the proposed free trade agreement to resolve the pending issues and close the negotiations, an official said. The India-UK talks for the proposed free trade agreement (FTA) began in January 2022. The 14th round of talks stalled as the two nations stepped into their general election cycles.
Of Trump's reciprocal tariffs and trade deals
Driven by smartphone, electronics exports have reached $22.5 billion in value in the first eight months of the current financial year (FY25), a near 28 per cent growth over the $17.66 billion electronics exports during the corresponding period of FY24.
India has flagged concerns over non-tariff barriers (NTBs) faced by its exporters with the Russian government, commerce secretary Sunil Barthwal said on Monday. NTBs faced by Indian exporters are mainly in sectors such as marine products and pharmaceuticals.
It was their first conversation since Indian-origin Sunak took charge as British prime minister on Tuesday.
The escalation in the diplomatic row between India and Canada will not have an impact on the bilateral trade and investment ties between the two countries, government sources said on Tuesday. They also said that the bilateral trade value is not significant and Canadian funds can route their investments through Singapore, the UAE and the US. "India is a preferred investment destination," they said.
Another priority in the first 100 days could be the launch of an e-platform -- Trade Connect -- to help exporters connect with stakeholders of international trade.
The commerce department has reaffirmed its plans to launch the 'Trade Connect' e-platform to help exporters connect with stakeholders of international trade, as a part of the new government's 100-day action plan, a senior government official said.
Prime Minister Narendra Modi's goal of making India a high-income economy by 2047 is unlikely to be achieved, but the country should become an upper middle-income nation by then, Financial Times chief economics commentator Martin Wolf said on Friday. Wolf further said that India would also become a superpower by 2047. "India wishes to become a high-income country by 2047.
India and Taiwan would resume talks for signing a Free Trade Agreement soon, a representative of the Taipei Economic and Cultural Centre in New Delhi said on Wednesday.
Industry body Assocham has advised the government to enter into a Preferential Trade Agreement with China instead of a Free Trade Agreement. The chamber has prescribed a minimum period of 5 years before the two countries finalise the FTA. Tariff cuts due to FTA will see the Chinese goods flood Indian markets. While with a PTA, tariffs could be reduced in a phased manner. Indo-China FTA might affect economic efficiency of these countries as they would exclude other countries.
India's trade deficit with Russia continued to widen for the second consecutive year to $57 billion in the financial year 2023-24 (FY24), with Moscow becoming New Delhi's largest source of crude oil imports. All eyes will now be on Prime Minister Narendra Modi's visit to Russia during July 8-9, where he is set to meet President Vladimir Putin. This will be Modi's first visit to the Kremlin since the Russia-Ukraine conflict began over two years ago.
India's gold and silver imports from its free trade agreement (FTA) partner UAE have skyrocketed 210 per cent to $10.7 billion in 2023-24 and there is a need to potentially revise the concessional customs duty rates under the pact to mitigate the arbitrage driving this surge, a report said on Monday. Economic think tank Global Trade Research Initiative (GTRI) said this sharp rise in gold and silver imports is primarily driven by import duty concessions granted by India to the UAE under the India-UAE Comprehensive Economic Partnership Agreement (CEPA).
Says it is ready to show flexibility on all major issues
After operationalising FTA in goods last year, both the sides were engaged in widening the base of the pact by including services and investments.
The government has not expressed its willingness to enter into a Free Trade Agreement in services with United States, Lok Sabha was informed on Friday.
Barring a few exceptions India has a chronic trade deficit with most of its existing FTA partners as it is with most of its proposed FTA partners.
Industry body Assocham on Monday said country's top CEOs are in favour of signing a specialised free trade agreement with the European Union in services.
India on Thursday ruled out a Free Trade Agreement with China, until 'domestic distortions' like high taxes and poor infrastructure are corrected.
Officials from India and the United Kingdom (UK) are working overtime to address the contentious issues related to the proposed free trade agreement (FTA) between the two nations, in a final push to conclude the deal by the year-end. Commerce secretary Sunil Barthwal was headed to London on Thursday after completing his four-day visit to Brazil. Other key officials from India's negotiating team will be joining Barthwal in the UK capital, hoping to make headway in the FTA negotiations, which started in January last year, a person aware of the matter told Business Standard.
Negotiations for the proposed free trade agreement (FTA) covering goods, services and investments between India and Thailand, which were supposed to conclude by this month-end, are likely to go on till October.
In a move that could improve the weakening sentiment in the Indian textile industry, the government is set to sign a free trade agreement (FTA) with the European Union (EU) by the end of the current calendar year.
India and Australia would now implement the free trade agreement on a mutually agreed date as the Australian Parliament on Tuesday approved the pact between the two countries. "BREAKING: Our Free Trade Agreement with India has passed through parliament," Australian Prime Minister Anthony Albanese said in a tweet. The India-Australia Economic Cooperation and Trade Agreement (AI-ECTA) needed ratification by the Australian parliament before its implementation.
European Union is not contemplating signing free trade agreement with India in the near future and will focus on completion of contentious World Trade Organisation negotiations including agriculture and Singapore issues
More capital flows will lead to greater trade flows between the two countries.
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