Apparel exporters hanging by a thread amid new tariff threats

India apparel exports: The industry is already under pressure after the US imposed 50% tariffs on India last August, marked by deep discounts, diversion of idle capacity to domestic brands and rerouting of export orders through neighbouring countries.

Bangladesh has halted new onion import permits from India, prioritizing domestic farmers. While 10 lakh tonnes are exported to Bangladesh, Indian onions remain sought after globally. Imports under existing permits will proceed until January 30, as Indian exporters seek government subsidies to compete internationally.

India has firmly countered the statements made by US Commerce Secretary Lutnick regarding stalled trade discussions. Officials affirmed that Prime Minister Modi and President Trump are in regular communication, with the Ministry of External Affairs underscoring ongoing high-level interactions.

India and the European Union are in talks for a Free Trade Agreement. Discussions focus on a modern economic partnership. Both sides aim to safeguard farmers and MSMEs. Negotiations are ongoing to bridge differences. The goal is to conclude the talks soon. This pact could boost Indian exports to the EU market.

The Chief Economic Adviser has spotlighted key industries such as semiconductors, defence production, and critical industrial chemicals for self-sufficiency. Targeting a decrease in import reliance, this plan aspires to elevate India’s economic influence internationally.

In a striking political maneuver, US President Donald Trump is endorsing legislation that would impose a staggering 500% tariff on Russian oil purchasers. Indian oil executives perceive this as a tactical pressure play in ongoing trade negotiations rather than a serious ultimatum. The intention appears to be to coerce India while nudging Russia towards a […]

India’s finance ministry is set to remove restrictions on Chinese firms bidding for government contracts. These curbs were imposed in 2020 following border tensions. The move aims to boost commercial ties and address project delays. Several ministries have requested exemptions to overcome constraints. A high-level committee also recommended easing these measures.

A proposed sanctions bill in the US is set to deliver heavy tariffs on nations importing inexpensive Russian oil. India could face significant repercussions, while China appears insulated from these measures.

Union Budget: India plans to simplify its customs duty structure. The government is considering reducing the number of duty slabs to five or six. This move aims to cut down on disputes and make import duties align better with national priorities. The upcoming budget is expected to announce these changes.

India aims to be the world’s third-largest economy. Minister Nitin Gadkari stated this requires reducing imports and boosting exports. He highlighted converting agricultural waste into a national resource. This process can cut pollution from crop burning. It also strengthens the circular economy. Blending 15% with agro-waste can save foreign exchange. This will significantly reduce dependence […]