India, US work for critical minerals self-reliance, supply chains

India and the US are collaborating to become self-reliant in critical minerals, strengthen supply chains, and adopt advanced technologies. Commerce and Industry Minister Piyush Goyal announced his upcoming visit to Washington for the India-US CEO Forum. He emphasized the strategic relationship between the two nations and their shared interests in bilateral and geopolitical issues.

The launch of the India-UAE virtual trade corridor and MAITRI interface aims to streamline trade under the India-Middle East-Europe Economic Corridor. The Virtual Trade Corridor will reduce administrative processes, logistics costs, and enhance ease of doing business. MAITRI integrates Indian and UAE portals to optimize efficiencies and regulatory compliance.

India will impose tariffs of 12% to 30% on certain steel products from China and Vietnam to protect local industry. The tariffs, targeting welded stainless steel pipes and tubes, will be in place for five years. This move follows strained relations between India and China since their 2020 border clash.

Union Minister Rajiv Ranjan Singh announced plans to boost annual seafood exports to Rs 1 lakh crore from Rs 60,000 crore. He highlighted the government’s efforts in the fishery sector, including infrastructure development and technological improvements. The government aims to strengthen the sector’s foundation over the next five years for overall national growth.

India is emphasizing strict ‘Rules of Origin’ in FTA talks with the UK to protect its automobile sector. Commerce Secretary Sunil Barthwal stated that these rules should not negatively impact Indian automakers. The government also aims to maintain the benefits of its production linked incentive scheme during these negotiations.

External Affairs Minister S Jaishankar stated that India is open to doing business with China, but the sectors and terms need careful consideration. Speaking in Berlin, he emphasized the complexity of the issue. On the Russia-Ukraine conflict, he mentioned that both countries should negotiate an end and India is willing to offer advice if requested.

The WTO warns that unilateral approaches to the digital economy and low-carbon transition could cause trade tensions and distortions. It emphasizes the need for multilateral policies to reduce poverty and inequality, benefiting vulnerable groups. The report highlights the importance of inclusive trade agreements and investment facilitation for development.

The UAE and India have strengthened their economic ties through the Comprehensive Economic Partnership Agreement (CEPA), signed in February 2022. This partnership aims to reduce tariffs, enhance private-sector networks, and boost investments in key sectors like logistics, healthcare, and AI. The agreement has already led to significant investments and new projects in both countries.

The World Trade Organization warns that uncoordinated unilateral actions in the digital economy and low-carbon transition could lead to trade tensions and distortions. The WTO emphasizes the need for multilateral policies to reduce poverty and inequality, particularly affecting vulnerable groups like low-income households, women, and MSMEs.

India is revising free trade agreements with South Korea, Malaysia, and ASEAN countries to benefit domestic industries. Union Minister Jitin Prasada highlighted the importance of these revisions at the ACMA annual session. He also emphasized the need for increased investment in R&D and boosting exports while reducing import dependence.