The Swiss are coming as $100 bn deal shifts focus from China to India

Swiss companies are investing more in India, encouraged by a new trade deal with the European Free Trade Association. This agreement will reduce tariffs on exports and open up the Indian market. Swiss firms like ABB and Kuehne+Nagel are expanding their operations, while the deal will also boost Indian exports of pharmaceuticals, clothing, and machinery.

India is seeking compensation from Turkiye following Ankara’s decision to extend safeguard measures on polyester staple fibres, impacting trade worth USD 22.18 million in 2023-24. India, citing WTO norms, may impose retaliatory customs duties if consultations do not resolve the issue.

In a bid to fill trade finance gaps in African countries, the State Bank of India and India Exim Bank are supporting businesses by providing credit lines and trade loans. These initiatives, which complement rather than compete with each other, aim to aid smaller corporates and enhance cross-border trade post-COVID-19.

Piyush Goyal, speaking at the 18th Asia Pacific Conference of German Business in New Delhi, advocated for a deeper strategic partnership and a Free Trade Agreement between India and the EU, emphasizing mutual respect in negotiations and highlighting the synergies between India’s scaling capabilities and Germany’s precision engineering.

Goyal said that first the sensitivities between the 27 countries of the EU and 27 states of India need to be respected.”If we respect each other’s sensitivities, like with UAE, Australia and EFTA, we respected each other’s sensitivities, and not encroach on issues which can hurt. For example, dairy, I just cannot open up dairy. […]

The commerce ministry aims to finalize an SOP document for FTA negotiations by year-end, involving input from 17 ministries. This document will standardize negotiation processes and include best practices, assisting future negotiators. A recent ‘Chintan Shivir’ addressed various FTA-related topics, reinforcing India’s ongoing trade discussions globally.

India is closely watching the Indo-Pacific Economic Framework (IPEF) trade negotiations and has not yet decided to join the trade pillar. India is also engaged in critical mineral dialogue and negotiating trade pacts with Australia and ASEAN countries. The outcomes will determine India’s next steps in these international trade agreements.

India’s plans to impose tariffs on steel imports remain unchanged despite recent talks between leaders of India and China. The proposed safeguard duty aims to protect domestic steel producers from cheap imports, particularly from China, and would apply broadly to all nations, not targeting any specific country.

In light of the economic impact and pressures from Indian businesses, Prime Minister Narendra Modi’s administration is reconsidering its strict investment restrictions on China. While maintaining certain safeguards, India aims to stabilize relations and boost high-end manufacturing by potentially easing rules on Chinese entry, primarily focusing on non-sensitive sectors.