India’s forex reserves up by $5.5 billion at $629.55 billion as of January 24, 2025

India’s forex reserves increased by $5.5 billion to $629.55 billion as of January 24, 2025, after a decline of $1.8 billion the previous week. The Reserve Bank of India continues to manage liquidity and prevent sharp rupee depreciation by intervening in the market as necessary.

India needs a new strategic trade roadmap amid shifting global trade dynamics and rising protectionism. The Economic Survey 2024-25 emphasizes reducing trade costs and boosting export competitiveness to enhance participation in global supply chains and increase market share despite ongoing trade tensions.

The Economic Survey indicated that India’s export growth would face challenges due to global economic uncertainties, particularly in Europe and China. It emphasised that domestic growth levers will play a more critical role for India moving forward, given the fluctuating international trade environment.

The government plans to amend the 72-year-old Coir Industry Act to boost exports, introducing value-added products like jute and rubber blended coir. Reducing the coir board size by 50% aims for faster decision-making. The move also envisions export facilitation centres for producers.

Prime Minister Modi’s upcoming visit to Washington DC will prioritize talks on a limited trade deal with the US, focusing on tariff concessions and investment agreements. This initiative, resembling the US-Japan trade agreement, aims to enhance market access for both nations and boost confidence, resuming promising negotiations from Trump’s first term.

The Reserve Bank of India’s $5 billion dollar/rupee buy-sell swap auction is anticipated to attract strong interest from banks and corporate treasuries. This six-month swap is part of RBI’s strategy to inject liquidity worth approximately 1.5 trillion rupees into the banking system, with varied opinions on the expected premium cut-off.

India’s import of pulses in 2024 doubled from the previous year, reaching an all-time high of 6.63 million tonnes. The surge, particularly in yellow peas, aimed to curb retail inflation. The industry has urged for duties in 2025 to prevent market flooding and manage prices effectively.

Tea Association of India revealed the misuse of import laws, with imported low-quality tea being re-exported as Indian tea. This practice harms the reputation and financial stability of Indian tea, it said. The TAI has called for stricter enforcement, penalties, and reconsideration of duty-free imports to protect the industry and ensure fair trade practices.

The UK and India will resume free trade and bilateral investment treaty talks. British Prime Minister Keir Starmer and Indian Prime Minister Narendra Modi decided to restart FTA negotiations during the G-20 Summit. Britain’s Business and Trade Secretary Jonathan Reynolds will visit India next month to advance discussions, focusing on issues like electric vehicles, alcoholic […]

India has lifted import restrictions on specific patrol boats and vehicles, effective immediately. In a notification issued on Wednesday, the Directorate General of Foreign Trade (DGFT) announced that the import policy for patrol and surveillance boats, air-cushion vehicles, and remotely operated vehicles has been changed from “restricted” to “free.”