India removes 20% export duty on onions effective April 1

The government has decided to lift the 20 per cent export duty on onions from April 1 to protect farmers’ interests. This move comes as onion prices have dropped due to the expected arrival of the rabi crop. The export duty was initially imposed in September 2024.

Exporters from SEZs and EOUs can claim benefits under the RoDTEP scheme until February 5, 2025. However, from February 6, exports from these categories will no longer be eligible. The scheme’s extension highlights export challenges as volumes decline, urging the government for a five-year rate announcement.

India and the United States are actively discussing solutions to tariff-related disputes, aiming to formulate a bilateral trade agreement framework. The Ministry of External Affairs in India remains hopeful about reaching an understanding soon, signaling a possible breakthrough in their economic relationship.

India and the US are working towards a bilateral trade agreement, focusing on increasing market access, reducing import duties, and enhancing supply chain integration. The trade in goods and services between the two countries totaled $190.08 billion in 2023.

India may shield its economy from US trade tensions to some extent, but the ultimate impact hinges on trade deal outcomes. Global economic uncertainties have led to currency fluctuations and liquidity challenges, prompting proactive steps by the RBI and the government to sustain economic momentum.

The Directorate General of Trade Remedies (DGTR) has proposed a 12% provisional safeguard duty on certain steel products for 200 days to protect the domestic industry. This measure, alongside anti-dumping and countervailing duties, aims to address issues of dumping, subsidized imports, and unexpected surges in imports.

India has launched an anti-dumping investigation on flexible slabstock polyol imports from China and Thailand amid allegations that low-priced imports are harming the domestic industry. The investigation follows a complaint by Manali Petrochemicals Limited, urging that China be treated as a non-market economy.

India’s steel imports could halve by FY26, as the government considers a 12% provisional safeguard duty on some steel products. This measure is anticipated to boost domestic manufacturers’ profitability and capacity utilization, with imports expected to decline significantly and domestic demand growing steadily.

India’s services sector is experiencing robust growth, with Commerce Minister Piyush Goyal urging the sector to aim for USD 450 billion in exports by next fiscal year, surpassing merchandise exports.

India’s limited exposure to US tariffs mitigates direct risks, but potential trade redirection could affect its steel and chemicals sectors, according to S&P Global Ratings. India’s exports to the US constitute 2.3% of its GDP. Despite projected economic growth slowing to 6.7% in FY25, India remains the fastest-growing economy in Asia-Pacific.