Page 30 - Trade

The Red Sea crisis: Commerce department flags rising import cost

The Red Sea strait is vital for 30 per cent of global container traffic and 12 per cent of global trade

Cost of Indian exports more than doubled due to Houthi attacks in Red Sea

Around 80% of India's goods trade with Europe, estimated at nearly $14 billion a month, normally passes via the Red Sea, according to government estimates

Commerce ministry calls stakeholders' meet on WTO issues on January 20

The commerce ministry has called a meeting of all stakeholders, including government officials and trade sector experts, on January 20 to discuss issues which are likely to figure in the WTO meeting, an official said. The 13th Ministerial Conference (MC) of World Trade Organization (WTO) is scheduled from February 26-29 in Abu Dhabi, the UAE. MC is the highest decision-making body of the 164-member WTO, which monitors global exports and imports besides adjudicating disputes between member countries. India is the member of the organisation since 1995. The issues which would figure in the MC 13 include agriculture, food security, dispute settlement reform, e-commerce moratorium, and fisheries subsidies. "We are meeting all the stakeholders on January 20," the official said. On the food security issue, India has called for finding a permanent solution to the issue of public stockholding for food security in the ministerial-level meeting. It has dismissed arguments for alternative fo

Xi Jinping stays clear of Red Sea battle despite risks to China trade

Chinese container shipping giant China Cosco Shipping Corp. stopped delivering goods into Israel because of the threats and attacks posed by the militants

India, US seek to bolster trade ties, work together on critical minerals

India's trade minister Piyush Goyal and Tai held their annual trade policy talks in New Delhi on Jan. 12. Tai is on a three-day visit to India

No import restrictions on certain IT products like desktop computers: DGFT

The government has clarified that there are no import restrictions on certain IT hardware products such as desktop computers. In a circular to customs authorities and industry, the commerce ministry arm Directorate General of Foreign Trade (DGFT) has said only the import of laptops, tablets, all-in-one personal computers, ultra small form factor computers and servers is restricted and imports of these goods are allowed against a valid import authorisation. "The given import restriction does not apply to any other goods such as desktop computers, etc, under the tariff head 8471," it said. In international trade parlance, every product is categorised under an HSN (Harmonised System of Nomenclature) code, or tariff heads. It helps in systematic classification of goods across the globe. HS Code 8471 includes products related to automatic data processing machines and units. It includes a mouse, printers, scanners, and CD drives. In August 2023, the government imposed restrictions on ..

Red Sea crisis: Commerce ministry calls inter-ministerial meet on Jan 17

The commerce ministry has called a high-level inter-ministerial meeting on January 17 to discuss the way forward on the trade front in the wake of ongoing problems in the Red Sea, a senior official said on Saturday. Senior officials from five ministries -- external affairs, defence, shipping and finance (department of financial services) and commerce -- will participate in the deliberations. The commerce ministry has also set up an internal strategic group, comprising additional secretaries of the ministry, to discuss global issues impacting the country's trade on a daily basis and prepare a strategy so that India's response can be quick and decisive. "This Wednesday, we are holding an inter-ministerial consultation. We will be discussing the way forward," the official said. The situation around the Bab-el-Mandeb Strait, a crucial shipping route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, has escalated due to recent attacks by Yemen-based Houthi ...

Govt seeks 'treaty status' from US for visa easing, trade boosting

Discussions on E1, E2 visas aimed at enhancing bilateral trade and investment

US urges transparency in India's IT import monitoring beyond 2024

USTR Katherine Tai emphasizes open communication with India on import policies

Red Sea crisis pumps up global container prices, ocean freight rates

At $3,072, prices per 40-foot container highest in 15 months

Need to rationalise customs duties in sectors with healthy growth: Official

There is a need to rationalise customs duties particularly in those sectors which are growing at a healthy pace for the last several decades, an official said on Thursday. The official, however, said that providing a protection of high duty is required for the infant domestic industry. "But if the industry is 40-50 years old and has developed, has good competition, good investments and if they are globally known, then they should also be competing with the global firms," the official argued. Normally, customs duties or tariffs are used as a policy tool to ensure a higher level of protection for certain sectors to boost domestic manufacturing. These remarks assume significance as there is demand from countries which are negotiating free-trade agreements with India to cut down import duties in sectors such as auto and alcoholic beverages. Overall duties in certain segments are up to 150 per cent like alcoholic beverages. "There is a need for balancing in the duty structure. One cou

A most striking event of 2023

The saga unfolding in the seas off the coast of Yemen reveals a new facet of asymmetric warfare in today's world

India negotiating with UK to avoid double contribution to social security

India is working on a treaty with the UK under the proposed Free Trade Agreement (FTA) to avoid double contribution to social security funds by Indian professionals working for limited time period in Britain, an official said on Thursday. Indian professionals working for a limited period in Britain contribute to their social security funds but not able to get its benefit as they return once the projects are complete. "We are negotiating the double contribution treaty with the UK under the FTA. There should not be any double contribution towards social security schemes," the official said. It is a long-standing demand of Indian businesses operating in Britain to cut down on the additional cost burden associated with bringing in skilled Indian professionals on a short-term basis. The compulsory National Insurance (NI) contributions of skilled Indian professionals in the UK on temporary visas remains an additional cost burden of about GBP 500 per employee a year, over and above all .

Best of BS Opinion: Investing for growth, export potential & more

Here is the best of Business Standard's opinion pieces for today

Export potential

The agricultural sector needs policy intervention

Reduction of logistics cost is a big macro turnaround for India

The country will create jobs and encourage consumption and demand by reducing logistic cost

India-Maldives row: Traders to refrain from dealing with island, asks CAIT

Amid the India-Maldives diplomatic row, traders' body CAIT on Monday called upon domestic traders and exporters to refrain from conducting business dealings with the island nation. CAIT Secretary General Praveen Khandelwal observed that the offensive comments targeting Prime Minister Narendra Modi have been deemed unacceptable by the business community, and this call to boycott aims to express solidarity and register disapproval against such disrespectful behaviour. The Confederation of All India Traders (CAIT) stated it has "urged traders and exporters to refrain from conducting business dealings with the Maldives". Khandelwal said the appeal "encourages traders to stand united in sending a strong message against such behaviour by temporarily abstaining from trade engagements with the Maldives". Khandelwal stressed upon the need for mutual respect in diplomatic discourse and condemned any form of disrespect towards the leaders of friendly nations. Meanwhile, the Maldivian envoy t

Optimistic about $2 trillion export target by 2030, says Piyush Goyal

Union Commerce and Industry Minister Piyush Goyal on Saturday expressed optimism that the country will meet its ambitious USD 2 trillion export target by 2030, notwithstanding geopolitical headwinds and inflationary concerns. Speaking at the inauguration of the Patsan Bhavan, which houses the Jute Commissioner's office and headquarters of Jute Corporation of India and National Jute Board, in New Town, Kolkata, Goyal acknowledged the challenging global situation. He cited the Ukraine war, the Israel conflict and issues related to the Red Sea as factors impacting trade. "To address low food grain production and curb domestic inflation, we have implemented restrictions. However, despite all these challenges, India's exports will continue to grow, aiming at reaching USD 2 trillion by 2030 from the current USD 770-775 billion," Goyal said. He highlighted the potential of the jute industry, stating that with "contribution from the jute sector and concerted efforts from the Centre and sta

Houthis launch sea drone to attack ships hrs after US issues final warning

An armed unmanned surface vessel launched from Houthi-controlled Yemen got within a couple of miles of US Navy and commercial vessels before detonating on Thursday, just hours after the White House and a host of partner nations issued a final warning to the Iran-backed militia group to cease the attacks or face potential military action. Vice Admiral Brad Cooper, the head of US Navy operations in the Middle East, said it was the first time the Houthis had used an unmanned surface vessel, or USV, since their harassment of commercial ships in the Red Sea began after the outbreak of the Israel-Hamas war. They have, however, used them in years past. Fabian Hinz, a missile expert and research fellow at the International Institute for Strategic Studies, said the USV's are a key part of the Houthi maritime arsenal and were used during previous battles against the Saudi coalition forces that intervened in Yemen's war. They have regularly been used as suicide drone boats that explode upon ...

Govt to come up with 65 QCOs to curb imports of sub-standard goods

The government will issue 65 quality control orders (QCOs) covering over 500 products to contain imports of sub-standard goods and boost domestic manufacturing, a senior government official said on Thursday. Joint Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Sanjiv said these orders are promoting safe products to consumers. Under these orders, items cannot be produced, sold, traded, imported and stocked unless they bear the Bureau of Indian Standards (BIS) mark. "We are coming up with almost 65 QCOs, covering more than 500 products. QCO is benefitting consumers and reducing sub-standard imports," he told reporters here. These orders are already issued for goods like smart meters, nuts, bolts and fasteners. Violation of the law can attract a penalty of up to two years of imprisonment or a fine of at least Rs 2 lakh for the first offence, which increases to Rs 5 lakh minimum for the second and subsequent offences. These orders are issued by the .