Issuance of preferential certificates under FTAs rises, signals higher trade pact use by exporters

Indian exporters are increasingly leveraging free trade agreements, as evidenced by a rise in preferential certificates of origin issued. The number climbed to 7,20,996 in 2024-25, up from 6,84,724 in the previous fiscal year. This indicates greater utilization of trade pacts, boosting competitiveness through duty concessions, with continued growth observed in the initial months of […]

Amidst the escalating Israel-Iran conflict, a think tank urges the Indian government to urgently assess energy risks and diversify crude oil sources. The tensions threaten India’s trade routes and commercial interests, particularly through the Strait of Hormuz and the Red Sea. Disruptions could inflate oil prices, increase shipping costs, and impact Indian exports.

Basmati rice prices, recently elevated due to increased exports, are anticipated to decrease as exports to Iran are expected to decline amidst geopolitical tensions. While Iran’s conflict with Israel impacts demand, outstanding payments and freight concerns add to the uncertainty. The market’s future hinges on global events and potential shifts in trade dynamics.

The escalating Iran-Israel conflict is poised to disrupt global trade, potentially increasing freight rates and insurance costs, impacting India’s exports to Europe and Russia. Concerns rise over merchant ship movements through the Strait of Hormuz and Red Sea, vital routes for global petroleum and container traffic.

The UK-India Free Trade Agreement (FTA) is poised to give the UK a significant competitive edge in manufacturing, particularly in the automotive and machinery sectors. UK Business and Trade Secretary Jonathan Reynolds highlighted the deal as India’s best offer to date, projecting a substantial increase in bilateral trade.

​​The commodities, sourced from Afghanistan and Iran, have already seen a 15-100% surge in prices as imports through Pakistan have been completely blocked in the aftermath of the April 22 Pahalgam terrorist attack, they said.

India and China have agreed to engage in talks, addressing specific economic and trade concerns, including rare earth metal supplies affected by Chinese export controls. Both nations aim to expedite the resumption of direct flights and finalize an updated Air Services Agreement.

India’s exports are anticipated to face increased logistics costs, potentially rising by 15-20%, due to the ongoing Israel-Iran tensions. Closures of air routes over Pakistan and Iran will escalate air cargo expenses, while higher fuel costs impact sea transport. Disruptions are expected in shipping lines via the Red Sea and Suez Canal, creating uncertainties for […]

Global shipping lines had started avoiding the West Asian region after the Israel-Gaza conflict escalation in October 2023. Attacks on commercial vessels in the Red Sea by Iran-backed Houthi militants virtually crippled trade through the Suez Canal. This led to major companies rerouting trade through the Cape of Good Hope.

India has requested IREL to halt rare earth exports to Japan, aiming to secure domestic supplies and lessen reliance on China. This decision follows China’s export restrictions, which have impacted global industries. IREL intends to expand domestic mining and processing capabilities, seeking partnerships for rare earth magnet production, while India plans incentives for local processing […]