At WTO, India breathes fire over Dragon’s trade policies

India raises concerns at the WTO over China’s non-transparent subsidies, trade barriers affecting pharma, shrimp, and bovine exports, and export controls on critical materials. India seeks clarity on trade practices and consistency with global norms to address the $85.07 billion trade deficit and market access restrictions.

India plans to impose import restrictions on laptops, tablets, and PCs post-January to encourage domestic manufacturing by companies like Apple. This move aims to mitigate reliance on imports, particularly from China. The Ministry of Electronics and Information Technology is devising a new import authorization system to enforce these restrictions.

India has provided a Rs 487.60 crore credit line to Mauritius for replacing 100 km of outdated water pipelines. This marks the first rupee-denominated credit under India’s IDEAS scheme. The project underscores India’s commitment to socio-economic development in the Global South.

India’s merchandise exports grew marginally in September after two months of decline, driven by engineering, chemical, and electronic goods. Despite global uncertainties, exports increased, with a slight rise in goods imports and a marginally widened trade deficit. Discussions for FTAs with the UK and EU continue.

The worsening diplomatic ties between India and Canada, the previous year’s largest pulse supplier, are unlikely to increase pulse prices for Indian consumers. Adequate imported stocks, higher domestic production, and alternative sources from Russia and Australia are expected to maintain stable prices.

India’s net oil and gas import bill rose by 20% to $69 billion in the first half of the fiscal year due to rising consumption and stagnant domestic production. Crude oil imports increased to $71.3 billion, while LNG imports jumped 18%. This rise in import costs was exacerbated by a decline in refined product exports.

China is now India’s top import source with USD 56.29 billion in shipments from April to September this fiscal. The US is the leading export destination, with goods worth USD 40.38 billion. Imports from Russia, the UAE, and other countries also increased. The US remains India’s largest trading partner, followed by China.

India is expediting FTA talks with Australia, aiming for a comprehensive economic cooperation agreement before Australia’s 2024 elections. Current bilateral trade is around USD 24 billion. India is also pushing for a balanced review of its FTA with ASEAN, addressing tariff asymmetries by 2025.

India has urged the UAE to address concerns over a significant rise in exports of silver, platinum alloy, and dry dates, following the 2022 Comprehensive Economic Partnership Agreement. The UAE has agreed to investigate the compliance with the rules of origin norms to prevent circumvention.

India doesn’t anticipate an immediate impact on trade relations with Canada despite ongoing diplomatic tensions. Bilateral trade remains stable, with no new trade restrictions implemented. Efforts may focus on diversifying imports of pulses and fertilizers from other countries.