Duty cut in Budget on certain inputs to boost exports, manufacturing: Commerce Ministry

The Commerce Ministry states that reducing customs duties on several inputs will support domestic manufacturing and boost exports. Key sectors like marine, chemicals, and critical minerals will benefit from these changes. The revamping of the Model Bilateral Investment Treaty aims to attract foreign investments and improve leverage during FTA negotiations.

The finance ministry has proposed a two-year timeline, extendable by one year, for completing provisional assessments of export and import consignments to reduce uncertainty and costs for exporters. Additionally, voluntary compliance measures, extended deadlines, and eased reporting requirements aim to enhance compliance and boost handicraft exports.

Trump’s tariffs on Canada, Mexico, and China aim to close a loophole that allowed duty-free imports of small packages under $800, targeting especially Chinese e-commerce retailers. This move will impact companies like Alibaba and Shein, which heavily relied on the de minimis exemption to ship goods directly to US consumers.

The Union Budget presented by Finance Minister Nirmala Sitharaman received positive feedback from UK businesses and investors for its focus on economic growth, private investment, and policy reforms. Highlights include simplifying FDI conditions, promoting skilling, and fostering a trust-based economic governance approach.

The government of India has simplified basic customs duty rates by reducing the number of levies to eight. While the effective duty rates on most items remain unchanged, adjustments to the Agriculture Infrastructure Development Cess (AIDC) have been made. Specific tariff rates for items like soaps, plastics, and chemicals have been consolidated to ease business […]

Union Minister Piyush Goyal announced that commerce, MSME, and finance ministries will collaborate to identify sectors needing support under the Rs 2,250 crore Export Promotion Mission. This initiative aims to boost India’s exports by providing affordable credit, cross-border factoring support, and assistance for MSMEs to tackle non-tariff barriers. The mission targets sectors like textiles, marine, […]

India’s Budget proposes an Export Promotion Mission and the creation of BharatTradeNet, a digital infrastructure to simplify trade compliance processes and accelerate transactions. The mission aims to assist smaller firms with export credit and support, tackling non-tariff measures, and enhancing domestic manufacturing capacities to integrate with global supply chains.

Finance Minister Nirmala Sitharaman announced the revamping of the model Bilateral Investment Treaty (BIT) to be more investor-friendly in her eighth consecutive Budget speech. She also introduced Jan Vishwas Bill 2.0 to decriminalize over 100 offenses and improve ease of doing business, alongside other regulatory updates and simplified procedures for company mergers.

The Commerce Ministry has withdrawn the track and trace system for pharmaceutical exports, aligning with the Ministry of Health’s regulatory framework. The Health Ministry has implemented barcode requirements for drug brands from August 2023. This move enhances ease of doing business for exporters while ensuring compliance with international serialization norms, without imposing additional domestic regulations.

India’s foreign exchange reserves increased by $5.6 billion to $629.6 billion during the week ending January 24, after seven consecutive weeks of decline. This increase is attributed to revaluation of non-dollar assets, dollar purchases by the central bank, and a rise in gold value, per the Reserve Bank of India.