India is progressing rapidly towards implementing the FTA with the EFTA bloc, aiming for enactment by late 2025. The agreement promises $100 billion investment over 15 years, creating 1 million jobs in India. Notable concessions include reduced duties on Swiss watches and chocolates. Ongoing FTA talks with the UK and EU are also in focus.
India-EFTA trade pact likely to be implemented before end of 2025: Piyush Goyal
The government announced that no individual has a legal right to demand reasons for their suggestions not being included in the Foreign Trade Policy. The Directorate General of Foreign Trade stated that the government may consult stakeholders but is not obligated to incorporate or explain the exclusion of their feedback.
India’s textiles and apparel exports, including handicrafts, rose by 7% to USD 21.35 billion from April-October FY 2024-25, led by Ready Made Garments. Imports in the sector declined slightly by 1% in the same period. Cotton Textiles and Man-Made Textiles saw notable export increases.
President-elect Donald Trump has threatened tariffs on Indian imports, but India’s trade policy issue lies more in non-tariff barriers, specifically Quality Control Orders. These orders unpredictably restrict imports and harm local industries by monopolizing resources and fragmenting supply chains, ultimately hurting India’s economic productivity and job creation.
India is diversifying its export basket, focusing on products like banana, ghee, solar PV modules, and alcoholic beverages. The goal is to increase the global share of these products, targeting markets such as the US, EU, China, Japan, and more. Export revenues are expected to surge due to government incentives and global demand.
India aims to surpass $1 billion in organic product exports by next year, with significant growth in the last decade. The country is working on MRAs for delicate exports like fisheries. Tobacco exports are projected to grow 8% to over Rs 13,000 crore this year, maintaining controlled production.
India’s tobacco exports are set to grow by over 8 per cent and exceed Rs 13,000 crore this year. The Tobacco Board supports farmers through various measures to enhance income and production quality. India’s production is regulated to meet domestic and export demands, ensuring stability for the tobacco industry.
India should seek comprehensive engagement with the incoming Trump administration to address issues in trade, investment, technology, and finance. A focus on maintaining supply lines and diversifying markets is vital, particularly for sectors like pharmaceuticals, jewellery, and services. Leveraging opportunities from US tariff actions is crucial.
Vadhvan Port Pvt Ltd has awarded the EPC contract to ITD Cementation India for near-shore reclamation and shore protection for the Vadhvan Port project in Maharashtra, at a cost of Rs 1,648 crore. This contract is pivotal for initiating key infrastructure packages, with the project expected to progress rapidly into 2025.
India’s exports of goods and services are expected to surpass USD 814 billion in 2024, a 5.58 per cent increase from 2023. While machinery and electronics exports are growing, traditional sectors such as textiles and garments are declining, highlighting both opportunities and challenges amid sluggish global trade and geopolitical tensions.