View: Getting out of a diplomatic snafu over ecommerce

India’s increasing protectionist policies risk escalating trade tensions with the US, particularly in the booming e-commerce sector. Local retailers’ concerns about MNC dominance are prompting government intervention, but US retaliation could harm Indian exports and jobs. A balanced approach is crucial to protect local interests while fostering foreign investment and economic growth.

India’s economy shows resilience amidst global uncertainties. Favorable monsoons boost agriculture, while services trade remains strong. However, weakening global demand and geopolitical tensions, including the Russia-Ukraine conflict, pose challenges to export growth and financial markets.

External Affairs Minister S Jaishankar acknowledged the challenges posed by Middle Eastern conflicts to the India-Middle East-Europe Economic Corridor (IMEEC) but highlighted progress on its eastern front involving India, the UAE, and Saudi Arabia. He emphasized India’s condemnation of terrorism and hostage-taking, advocating for a ceasefire and a two-state solution for the Palestinian people.

India and the Association of Southeast Asian Nations (ASEAN) have scheduled the next round of talks concerning their free trade agreement for February 2025 in Jakarta. The two economic groups concluded their fourth round of negotiations earlier this month. Separately, India is working with the European Free Trade Association (EFTA) to implement a free trade […]

India and the Association of Southeast Asian Nations (ASEAN) have scheduled the next round of talks concerning their free trade agreement for February 2025 in Jakarta, Indonesia. The two trading partners aim to enhance trade and eliminate barriers by reviewing the existing agreement, AITIGA, which was signed in 2009.

UK Prime Minister Keir Starmer announced the resumption of Free Trade Agreement negotiations with India in early 2024. The decision, following a meeting with Indian Prime Minister Narendra Modi, aims to bolster the countries’ bilateral trade partnership, which is currently valued at approximately GBP 42 billion annually.

A new report by Goldman Sachs suggests that India’s economy will likely remain stable despite potential global economic shocks in 2025, including a possible US-China trade war. Although the country’s GDP growth is predicted to slow to 6.3 percent due to fiscal consolidation and tighter credit, India’s long-term growth potential remains strong.

Indonesia and Thailand have raised concerns at the World Trade Organization about India’s quality control orders. The orders cover products like medical textiles, footwear and viscose staple fibre. They also questioned measures restricting imports of copper, wooden boards and tyres. Canada, Japan, the UK and the EU had previously raised similar concerns.

India’s services exports are on track to surpass merchandise exports by 2030, reaching USD 618 billion. Driven by software, IT, and Other Business Services (OBS), this shift highlights India’s emergence as a global services powerhouse. However, diversifying IT exports beyond the US and promoting OBS sectors are crucial for sustained growth.