The proposed trade deal with the 27-nation European Union (EU) is expected to provide zero-duty access to the $95 billion European market for Indian textile and apparel manufacturers. Currently, India's share of the European market is just 6 per cent, or $5.5 billion.
Textiles, pharmaceuticals, chemicals, engineering goods, gems and jewellery exports will receive a boost from the free trade agreement between India and the 27-nation European Union, according to exporters.
India and the European Union are set to announce on January 27 the conclusion of negotiations and finalisation of a free trade agreement, which is aimed at boosting economic ties between the two regions amid disruptions in global trade due to US tariffs, an official said.
'Trump says India will buy over $500 billion of US goods.' 'At present, India's annual imports of goods and energy from the US are under $50 billion.' 'Reaching $500 billion would likely require more than 20 years, suggesting the figure refers to a long-term aspiration rather than a near-term commitment.'
'Our problem is not a budget deficit but a trust deficit. We need to trust our institutions and industries to innovate and lead. That is the way forward for India.'
India's gems & jewellery exports witnessed 30.6 per cent year-on-year (Y-o-Y) contraction in October to $2.17 million, amid the imposition of a steep 50 per cent tariff by the United States (US) on several Indian products.
Lockheed Martin plans to establish a C-130J Super Hercules co-production facility in India, the first outside the US, as the IAF seeks to procure new transport aircraft.
Ficci has suggested formulation of a 'manufacturing policy'. Such a policy will spell out guidelines for attaining a 12% growth of the sector annually. Guidelines will help in terms of incentives and subsidies; technology development; development of sustainable raw material base; regulatory and procedural reforms to the manufacturing sector. The manufacturing sector's profitability has been badly affected in the last few months & the government needs to intervene immediately.
"The report of the committee will form basis for the country's manufacturing policy," National Manufacturing Competitiveness Council Chairman V Krishnamurthy, who is also member of the panel, told reporters. Prime Minister Manmohan Singh had announced setting up of the high-level committee in 2006. Its mandate included looking into macro-economic issues stifling the growth and competitiveness of the manufacturing sector.
A high-powered panel set up by Prime Minister Manmohan Singh to go into the problems of manufacturing has come out with far-reaching draft strategy including labour reforms to achieve 12 per cent growth in the sector to sustain 9 per cent GDP growth.
India needs manufacturing sector growth for a variety of reasons.
Two modules published by the NCERT, Swadeshi: Vocal for Local (for middle stage) and Swadeshi: For a Self-Reliant India (for secondary stage), carry excerpts from the prime minister's Independence Day address in which he stressed that self-reliance would drive India's journey towards a Viksit Bharat.
'As one of many immigrants at Nvidia, I know the opportunities we've found in America have profoundly shaped our lives.'
Domestic supply of electronics is already less than half of domestic dem#8743 and although it is growing at 16 per cent already, demand is growing much faster.
Increase in the value of Rupee combined with rising interest rates has resulted in erosion of profitability and competitiveness of Indian exports by up to 12 per cent, according to a report by Ficci.
Apprehending a slowdown in the growth of the economy due to the hardening of interest rates, the appreciating rupee and falling tariffs, the government has decided to set up a group to discuss the impact of these changes.
Quoting a study conducted by the Department of IT in consultation with the National Manufacturing Competitiveness Council, it said that 'an estimated 2.25 million persons would be directly employed in the industry (IT) by 2015 as against 0.77 million in 2007'. Minister of state for labour and employment Harish Rawat told the Lok Sabha that incremental human resource requirement has been estimated to be around 1.5 million persons.
India needs another shot of difficult reform, of the kind only possible at gunpoint. Mr Trump holds that gun to our heads now. A drastic reduction in tariff protection, other elements of sarkari wet-nursing will force entrepreneurial India to become competitive again, argues Shekhar Gupta.
Finance ministry opposed to exemptions in principle: Official.
Indian drugmakers supply 47 per cent of the generic medicine requirements in the US, and tariffs would have increased prices in the US domestic market for patients, who are already dealing with drug shortages.
'As the global economy undergoes significant transformations in 2025, India's ability to navigate the complexities of trade wars, financial realignments, and emerging blocs will be pivotal,' explain Harsh V Pant and Soumya Bhowmik.
Industry associations and companies in the United States, including the US Chamber of Commerce, Coalition of Services Industries and the iconic bike company Harley Davidson have called on the Donald Trump dispensation to push India to reduce tariffs, non-tariffs, and regulatory barriers to boost American exports.
'We have to be prepared for the larger disruption that is likely to take place.'
Upgrading capabilities in manufacturing and logistics and bridging the gap between rural and urban incomes are some of the structural challenges that India needs to address, according to a document prepared by NITI Aayog. In the document titled 'Vision for Viksit Bharat @ 2047:An Approach Paper, the Aayog said India needs to avoid the middle-income trap and carefully work towards breaking out of it.
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.'
Trump's sweeping tariffs and penalties on China-built ships have turned global shipping into the front line of economic war, observes Shyam G Menon.
Debroy worked as a consultant in the Department of Economic Affairs in Finance Ministry.
Most of the pharma units are failing in documentation, and validation processes, and many don't have full-fledged quality control laboratories.
Index of industrial production data had also shown that the sector grew at 3.1 per cent after contracting in the previous quarters.
'I found it unbelievable that L&T said 45,000 jobs were waiting to be filled because of unavailability of suitable skillsets.' 'So, when the Opposition sweepingly says there are no jobs, I'm sorry... I'm not saying it's raining jobs, but there are jobs. The (skill) gap has to be bridged.'
Industry is displeased over the failure of the National Manufacturing Policy, which has failed to invite any sizeable investment since it was launched more than two years ago.
India's national security strategy needs to be revised periodically since the global and regional geopolitical situation is dynamic, points out Commodore Venugopal Menon (retd).
Exporters on Thursday demanded fiscal incentives, tweaking in customs duties on certain products and credit at affordable rates in the forthcoming Budget to boost exports and create jobs. In a pre-budget virtual meeting with Finance Minister Nirmala Sitharaman, the Federation of Indian Export Organisations (FIEO) said the depreciation of the rupee against the US dollar is affecting exports' competitiveness and the sector requires more support. "Creation of employment is the biggest challenge faced by the country...We would urge the government to provide fiscal support to units which provide additional employment in the export sector," the exporter's body said.
For the past few weeks, the government has been in an overdrive, pushing stuck projects with the larger aim to improve the country's economic growth, which had fallen to a four-year low of 4.4 per cent in the first quarter of this financial year.
India's new policy commission has received a makeover and a dream team has been formed to head the Think Tank, NITI Aayog.
'In the Mahabharat, when faced by an enemy, Yudhishtir, the eldest Pandav, had quipped that 'When it comes to external enemies, we are 105, (100 Kauravs and 5 Pandavs)'.' 'It is time modern politicians heed this ancient wisdom,' says Colonel Anil A Athale (retd).
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