India-Russia trade via INSTC doubles in past year

Trade between India and Russia via the INSTC has doubled in the past year, significantly reducing delivery times and costs. Bilateral trade reached a record USD 66 billion in 2024, with plans to achieve USD 100 billion by 2030. Pharmaceuticals are among the key sectors for further trade diversification.

The government has eased import norms for “vintage motor vehicles” by actual users. Previously limited to cars manufactured before January 1, 1950, imports are now allowed for broader vintage classifications. However, these vehicles must comply with the Motor Vehicles Act, 1988, if used on public roads.

U.S. President Donald Trump plans to impose 25% or higher tariffs on semiconductors and pharmaceutical imports, increasing over a year. This move is likely to impact India’s pharmaceutical industry heavily as the U.S. is their largest market, accounting for significant revenue of major Indian drugmakers like Sun Pharmaceutical, Dr Reddy’s, and Cipla.

India is considering a free trade agreement with Qatar, but economic caution is advised, particularly in the petrochemical sector. The Global Trade Research Initiative highlights the need for careful evaluation to ensure domestic industries and trade balances are not adversely impacted.

Donald Trump criticized Tesla’s potential factory in India as “very unfair” during an interview with Elon Musk, citing high import tariffs. Musk confirmed India’s 100% tariff on U.S. auto imports. Tesla has begun hiring in India, raising speculation about its market entry.

Minister of State for Commerce and Industry Jitin Prasada states that India is devising strategies to protect domestic exporters amid rising global protectionism. With a substantial domestic market, India is negotiating free trade agreements on equal terms and aims for USD 118 billion in engineering exports by 2024-25.

India and Qatar have elevated their relationship to a strategic partnership, aiming to double their trade from $14 billion in the next five years. They signed multiple agreements, focusing on trade, investment, energy cooperation, and counterterrorism efforts, while also discussing the Middle East situation.

India and the UAE’s bilateral trade increased by 21.35 per cent to USD 80.51 billion during April-January. India’s exports rose to USD 30 billion, while imports increased to USD 50.51 billion. The free trade agreement implemented in May 2022 boosted the trade significantly. Non-oil trade accounted for more than half of the total trade.

Qatar has committed to investing $10 billion in India, enhancing bilateral economic ties. The announcement came after high-level talks between PM Modi and Qatar’s Amir, highlighting India’s efforts toward creating a conducive environment for Foreign Direct Investment in various sectors such as infrastructure and technology.

The government is formulating a strategy to safeguard exporters’ interests, leveraging India’s 1.4 billion consumer market in trade negotiations. Engineering goods export target is set at $118 billion for FY25. EEPC suggests exemptions on safeguard duties for SMEs exporting engineering products to maintain global competitiveness.