India en route to boost Gulf trade amid tensions with Pakistan

India strengthens its economic bonds with Gulf nations. Trade agreements are being finalized. A free trade agreement with Oman is expected soon. Similar pacts with Qatar and other Gulf countries are under consideration. India already has a trade deal with the UAE. Negotiations with the Gulf Cooperation Council are ongoing.

India’s palm oil imports declined by 24.29% in April compared to March, reaching 321,446 metric tons, according to the Solvent Extractors’ Association of India.

India’s trade relations with Turkey and Azerbaijan face potential strain due to their support for Pakistan and criticism of India’s strikes on terror camps. Calls for boycotts of Turkish goods and tourism have emerged in India. Despite this, trade continues, with India maintaining a surplus with both nations, engaging in diverse product exchanges and people-to-people […]

Indian entities have pledged nearly USD 6 million in foreign direct investments in Azerbaijan and Turkiye, a small portion of the total USD 6.8 billion proposed overseas investments in April. This comes amid calls for boycotts of Turkish and Azerbaijani goods and tourism following their condemnation of India’s strikes on terror camps in Pakistan.

The Federation of Indian Export Organisations or FIEO is working to boost trade with Russia. The aim is to increase exports and create a balance in the bilateral trade. Currently, the trade between the two nations stands at $11 billion. An agreement signed last year will help customs recognize secure businesses.

Piyush Goyal is set to visit the US to advance discussions on the proposed bilateral trade agreement, with meetings scheduled with key US officials. Negotiations will address retaliatory duties, market access, and intellectual property concerns. India may resolve the WTO dispute through the BTA, using its retaliation rights as leverage in the trade deal.

Despite trade tensions, the US and India are quietly working to resolve trade barriers. India is considering easing import rules for US apples by replacing strict certifications with simpler declarations. Simultaneously, discussions are underway to finalize a Regional Partnership Agreement for shrimp trade, aiming to reduce rejections and expedite clearances, potentially by year-end.

India’s coal imports witnessed a 9.2% decrease during April-February 2024-25, reaching 220.3 MT, resulting in substantial foreign exchange savings. Despite a rise in coal-based power generation, imports for blending by thermal plants significantly dropped by 38.8%. This reflects India’s commitment to self-sufficiency through initiatives boosting domestic coal production, which grew by 5.45%.

India has reserved its right to impose retaliatory duties on specific American products under WTO norms due to US steel and aluminum tariffs, potentially resolving the issue through ongoing bilateral trade agreement negotiations. A similar notification was issued to the WTO against the EU’s steel safeguard measure, which was never implemented.

India has proposed retaliatory duties on 29 American products, including apples and almonds, in response to US tariffs on steel and aluminum. New Delhi communicated to the WTO that these US measures impact $7.6 billion of Indian imports, resulting in $1.91 billion in duty collections.