UAE-India sails catch trade winds

The UAE and India have strengthened their economic ties through the Comprehensive Economic Partnership Agreement (CEPA), signed in February 2022. This partnership aims to reduce tariffs, enhance private-sector networks, and boost investments in key sectors like logistics, healthcare, and AI. The agreement has already led to significant investments and new projects in both countries.

The World Trade Organization warns that uncoordinated unilateral actions in the digital economy and low-carbon transition could lead to trade tensions and distortions. The WTO emphasizes the need for multilateral policies to reduce poverty and inequality, particularly affecting vulnerable groups like low-income households, women, and MSMEs.

India is revising free trade agreements with South Korea, Malaysia, and ASEAN countries to benefit domestic industries. Union Minister Jitin Prasada highlighted the importance of these revisions at the ACMA annual session. He also emphasized the need for increased investment in R&D and boosting exports while reducing import dependence.

India and Japan have agreed to enhance financial cooperation and strengthen bilateral relations during the second India-Japan Finance Dialogue in Tokyo. Key discussions included macroeconomic situations, financial sector issues, and regulatory matters. Both sides plan to continue these discussions and explore holding the next round in New Delhi.

India’s exporters are facing a severe credit crunch despite overall economic lending growth. Export credit has dropped by 5% over two years, with priority sector lending for exports falling by 41%. The Federation of Indian Export Organisation (FIEO) has raised concerns, urging the Reserve Bank of India and the finance ministry to address this issue […]

World Bank’s latest India Development Update suggests India reconsider its stance on plurilateral trade deals, particularly joining the Regional Comprehensive Economic Partnership (RCEP). The report argues that India’s growth could benefit from increased participation in global value chains, despite concerns about Chinese competition and past reluctance to engage in such agreements.

Exporters are concerned about declining bank credit, which they will discuss with Commerce Minister Piyush Goyal. Despite a 15% growth in exports, outstanding credit dropped by 5%. The Federation of Indian Export Organisation (FIEO) suggests measures like sub-targets for export credit and increased insurance cover to address the issue.

India’s steel imports surged by 26.5% to nearly $7.3 billion during May-July 2024, according to the steel ministry’s Steel Import Monitoring System. Top product categories included stainless-steel flats, ingots, and hot rolled coils. China, Norway, and Indonesia significantly increased their exports to India during this period.