India and Saudi Arabia can look at doubling bilateral trade to $100 billion in the coming years from about $52 billion at present while making it more balanced, commerce and industry minister Piyush Goyal said on Monday.

 

The minister suggested Saudi Arabia to open an office of their sovereign wealth fund in GIFT city in Gujarat and industry chamber Ficci set up an office in Riyadh in partnership with Invest India, and the commerce ministry to facilitate investments.

 

'Maybe this could be a way to kick-start a better flow of trade and investments and also to see how we can double our trade, which is currently about $52 billion,' he said while interacting with Khalid A. Al Falih, minister of investment of Saudi Arabia at an event organised by the Federation of Indian Chamber of Commerce and Industry (Ficci).

 

'Can we be more ambitious and take it to $100 billion? Can we look at a more balanced trade with India becoming the provider of food security to Saudi Arabia while Saudi Arabia providing us more energy security like oil and fertiliser. So, it will really be a win-win and complementary relation,' he said.

 

India's exports to Saudi Arabia have increased to $10.72 billion in 2022-23 from $8.8 billion in 2021-22. Imports, on the other hand, have increased to $42 billion in 2022-23 from $34.1 billion in 2021-22, mainly on the back of oil shipments.

 

Minister Goyal suggested that the two countries can collaborate in areas like IT, food processing and pharmaceuticals.

 

Saudi minister Khalid A. Al Falih suggested India provide a more visible regulatory framework with transparency and clarity and that Saudi investors in India are treated as most preferred investors.

 

Saudi Crown Prince Mohammed Bin Salman Bin Abdulaziz Al-Saud is currently on a state visit to India after the G20 Summit concluded on Sunday. He is accompanied by a delegation of ministers and businesses.

 

The two countries have signed about 50 MoUs worth $3.5 billion to strengthen bilateral relations and give a push to trade.

The Union Minister of Commerce and Industry, Food and Public Distribution and Textiles, Shri Piyush Goyal while interacting with the Minister of Investment, Saudi Arabia, Khalid A. Al-Falih said that in Amrit Kaal, year 2047, India aspires to grow at an unprecedented scale. Shri Goyal highlighted the significance of the G20 Summit 2023 organized in New Delhi and also appreciated the organization of Startup20 under India's G20 Presidency.

 

He said that both the countries are the two fastest growing economies in the world today adding on, that in the World Bank ranking in terms of Ease of Doing Business Saudi Arabia was placed at number 62 and India at number 63. However, the ranking have been discontinued since 2020.

 

Shri Goyal also talked about how the trade between the two countries could be doubled which stands at about $52 billion presently and can be taken up at $200 billion. In this regard, the Union Minister invited the Saudi investors to visit Gujarat International Finance-Tech City and thereafter, bring investment.

 

He said that the investors would appreciate India’s regulatory mechanism has been simplified. Also, there’s only one regulator for all regulations. Besides, India has brought about tax rebates and made it seamless to move funds in and out of the GIFT city.

 

Shri Goyal suggested that the Federation of Indian Chambers of Commerce & Industry (FICCI) along with the Government of India and Invest India may open an office of Investment and Trade Promotion in Riyadh, Saudi Arabia. He emphasized that the GoI officials along with representatives from FICCI will encourage startups.

 

Shri Goyal also talked about the opportunities wherein India may provide food security to Saudi Arabia while energy, oil and fertilisers may be provided to India, stressing on a balanced trade.

 

The Union Minister also talked about NEOM City and said that Saudi Arabia government is setting it up at a cost of $0.5 trillion dollars and the very concept of having 100% clean energy in the entire city designed in a manner to be very user friendly using leveraging the huge landmass coastline.

 

'I think that's an area where India could contribute significantly,' Shri Goyal said highlighting that India may be helpful in areas like designing, construction, manning and developing business around. He quoted a recent study about the returns that investors have got from investment companies. He said that the study of the top five companies listed in the stock exchange shows that Indian companies have given a 20% CAGR return on investment for 20 years. He said that  Indian companies are followed by those from US and China.

 

The Union Minister thereby, said that its time to accelerate the investment coming from Saudi Arabia. He said that FDI from Saudi Arabia last year was just about $ 4 billion which was $ 2.8 billion during COVID period.

 

He said that Saudi Arabia’s investments into India’s processing industry can be a great driver of agriculture and food security. Shri Goyal added that similarly, the Pharma sector has immense potential. He said that a greater understanding between the regulatory authorities of Saudi Arabia and India may help Pharma industries. He added that those living in Saudi should have easier access to Indian medicines which will also encourage Indian Pharma companies to invest in Saudi Arabia.

The United States and India have agreed to resolve their last outstanding dispute- related to poultry-at the World Trade Organization, the US Trade Representative said Friday.

 

In a statement, it also said that as part of the agreement to resolve their final outstanding dispute at the WTO, India agreed to reduce tariffs on certain U.S. products, including frozen turkey, frozen duck, fresh blueberries and cranberries, frozen blueberries and cranberries, dried blueberries and cranberries, and processed blueberries and cranberries

 

'These tariff cuts will expand economic opportunities for US agricultural producers in a critical market and help bring more US products to customers in India,' the USTR office said.

 

This announcement comes as US President Joe Biden met Prime Minister Narendra Modi today in New Delhi for the G20 Leaders' Summit.

 

'The leaders lauded the settlement of the seventh and last outstanding WTO dispute between India and the United States. This follows the unprecedented settlement of six outstanding bilateral trade disputes in the WTO in June 2023,' said a joint statement released Friday.

 

The two sides had last month discussed this WTO dispute and expressed their shared desire to reach a solution soon.

 

'Resolving this last outstanding WTO dispute represents an important milestone in the US-India trade relationship, while reducing tariffs on certain US products enhances crucial market access for American agricultural producers,' said USTR Katherine Tai.

 

The six disputes which have been already settled include countervailing measures on certain hot-rolled carbon steel flat products from India, certain measures relating to solar cells and modules, measures relating to the renewable energy sector, India's export-related measures, certain measures on steel and aluminium products, and additional duties on some products from the US.

Prime Minister Narendra Modi and his British counterpart Rishi Sunak on Saturday reviewed the progress of the India-UK Free Trade Agreement (FTA) negotiations and expressed hope that the remaining issues could be ironed out at the earliest so that a 'balanced, mutually beneficial and forward-looking' trade deal is concluded soon.

 

During his bilateral meeting with Sunak on the sidelines of the G20 Summit in New Delhi, Modi conveyed his appreciation for the UK's support during India's G20 Presidency, marked by high-level participation at various G20 meetings and events, the Ministry of External Affairs (MEA) said in a press release.

 

This is the 43-year-old British Indian leader's first visit to India since becoming Prime Minister in October 2022.

 

The two leaders noted with satisfaction the progress in diverse areas of bilateral cooperation as per the India-UK Comprehensive Strategic Partnership as well as the Roadmap 2030, particularly in economy, defence and security, technology, green technology and climate change, health and mobility sectors, it said.

 

Both leaders also exchanged views on international and regional issues of importance and mutual interest.

 

UK Prime Minister Rishi Sunak, who is in Delhi to attend the G20 Summit, visited the Akshardham temple in the national capital on Sunday morning. Sunak was accompanied by his wife Akshata Murthy during his visit to the Akshardham temple.

 

Modi and Sunak 'also reviewed the progress of Free Trade Agreement negotiations and expressed hope that the remaining issues could be addressed at the earliest so that a balanced, mutually beneficial and forward-looking Free Trade Agreement is concluded soon,' the MEA said.

 

In a post on X after the meeting, Modi said, 'Great to have met PM @RishiSunak on the sidelines of the G20 Summit in Delhi. We discussed ways to deepen trade linkages and boost investment.'

 

India and the UK will keep working for a prosperous and sustainable planet, Modi said.

 

Earlier, a readout from 10 Downing Street of the meeting said that cooperation in the field of defence technology, innovation and some consular issues were among the topics on the agenda of the meeting.

 

Prime Minister Modi is also said to have highlighted the 'warm reception' that Sunak has received during his maiden visit to India as British Prime Minister.

 

'The leaders had a productive conversation about negotiations on a UK-India Free Trade Agreement,' a Downing Street spokesperson said.

 

'The Prime Minister [Sunak] reiterated the UK's ambition to deliver a landmark trade deal which benefits businesses and workers in both countries and grows our trade in both goods and services. They agreed that ministers and negotiating teams would continue to work at pace towards an FTA,' the spokesperson said.

 

Sunak, who arrived here on Friday, held talks with Modi after the first session of the G20 Summit. Earlier, Sunak greeted Modi with a namaste as the latter received him at the venue.

 

Sunak is said to have congratulated Prime Minister Modi on India's 'consummate presidency' of the G20 this year, which he said had demonstrated the country's 'vital global leadership and influence'.

 

'The leaders reflected on the close and growing ties between the UK and India, exemplified in the ‘living bridge' between our people. They agreed it was important to build on the past and focus on the future, cementing a modern partnership in cutting-edge defence technology, trade and innovation. They also discussed a number of consular issues,' the spokesperson said.

 

'The Prime Minister congratulated Prime Minister Modi again on delivering a successful G20 Summit,' the spokesperson added.

 

Meanwhile, the MEA said Modi invited Sunak for a bilateral visit at an early, mutually convenient date for a more detailed discussion. The British leader accepted the invitation and congratulated Prime Minister Modi for a successful G20 Summit.

Major G20 partners will unveil ambitious plans Saturday to bolster trade between India, the Middle East and Europe, the United States said -- a modern-day Spice Route that could more closely bind three regions that account for about a third of the global economy.

 

Washington, Saudi Arabia, the EU, UAE and others will sign an agreement on the sidelines of the G20 summit to explore a railway and port project to augment trade flows between Europe and India, officials said.

 

The agreement comes with Washington actively engaging with Riyadh, a major oil producer and security partner, as it encourages the kingdom to normalise ties with Israel.

 

Jon Finer, US deputy national security advisor, said the announcement came after 'months of careful diplomacy, quiet, careful diplomacy, bilaterally and in multilateral settings'.

 

Finer said the plan could include shipping and rail transportation projects to 'enable the flow of commerce, energy and data from here in India across the Middle East to Europe'.

 

This project 'has enormous potential' he said. 'But exactly how long it takes, I don't know'.

 

The project is still in the early stages, with participants studying how best to link India's vast 1.4 billion population and quick-growing economy with markets to the west.

 

But Michael Kugelman, South Asia Institute director at The Wilson Center, said the plan could be a significant response to China's much-vaunted Belt and Road Initiative (BRI) -- which has spread Chinese influence, investments and commerce across Europe, Africa, Asia and Latin America.

 

'If finalised, it would be a game changer that strengthens connectivity between India and the Middle East and would aim to counter BRI,' Kugelman posted on X, formerly known as Twitter.

 

The agreement to discuss the project could be among the most tangible developments at a summit that has highlighted deep-seated divisions between key G20 members over Russia's war in Ukraine and how to pay for climate change.

 

The summit is nonetheless expected to agree to the accession of the African Union, giving the continent -- whose only G20 member is South Africa -- more of a voice on the global stage.

 

The Group of 20 was conceived in the throes of the 2008 financial crisis as a way of managing the global economy.

 

But finding consensus among members has been increasingly difficult in recent years.

 

Even before it began, the importance of the New Delhi summit was called into question when China's Xi Jinping decided to skip the meeting and send his number two, Premier Li Qiang, to India instead.

 

No official reason was given for Xi's absence, but the Asian giants have been at loggerheads over a border dispute and other issues, while Beijing is seeking to make US-led groupings such as the G20 more amenable to its own interests.

 

Russia's seat is taken by Foreign Minister Sergei Lavrov, with diplomatic opprobrium and war crimes charges keeping the country's leader Vladimir Putin from the summit.

 

United Nations chief Antonio Guterres warned Friday of growing global divisions, insisting countries must assume responsibility regardless of 'whether it's the president or the prime minister or the vice president' who is in New Delhi.

 

The backdrop to the talks could hardly be starker: the European Union's climate monitor has said this year is likely to be the hottest in human history, with Guterres declaring on Friday the 'climate crisis is spiralling out of control'.

 

G20 countries account for around 85 percent of global climate warming emissions, making action in the forum crucial to real progress.

 

India's Modi has painted the summit as his country's diplomatic coming of age -- evidence of New Delhi's clout and prestige on the global stage.

 

Modi argues developing nations need a greater say in global decision-making.

 

But on Ukraine, there was little sign of progress.

 

Moscow continues to press its allies to water down international condemnation of its invasion of Ukraine, throwing up a major roadblock to joint action.

India and Brazil on Sunday agreed to work together for the expansion of India-Mercosur preferential trade agreement (PTA) to further promote economic ties, an official statement said. Mercosur is a trading bloc in Latin America, comprising Brazil, Argentina, Uruguay and Paraguay.

 

The issue came up for discussion during the meeting of Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva here at the sidelines of the G20 Summit.

 

'Expressing satisfaction over the growing trade between India and Mercosur, both leaders agreed to work together for the expansion of India-Mercosur PTA during Brazil's Mercosur Presidency, to leverage the full potential of this economic partnership,' a joint statement issued after the meeting said.

 

The two countries also welcomed the establishment of the India-Brazil Business Forum as a dedicated platform for private-sector collaboration.

 

'The leaders noted with satisfaction the conclusion of domestic procedures for the entry into force of the India-Brazil Social Security Agreement,' it added.

 

India-Mercosur preferential trade agreement (PTA) came into effect on June 1, 2009.

 

In such agreements, two countries reduce or eliminate customs duties on a limited number of goods agreed between them. Expansion of the agreement would include more numbers of goods and negotiating norms to promote trade in services and boost investment.

 

This PTA has limited coverage and contains only 450 tariff lines or products.

 

India's exports to Latin America have increased to USD 17.7 billion in 2022-23 compared to USD 15 billion in 2021-22. Imports, on the other hand, rose to USD 22 billion in the last fiscal against USD 21.74 billion in 2021-22.

 

The bilateral trade between India and Brazil has increased to USD 16.6 billion in 2022-23 from USD 12.2 billion in 2021-22.

Policies and procedures of India’s National Programme for Organic Production (NPOP) will be revised and it will include measures to strengthen the monitoring system, the Commerce Ministry has told a Chennai-based voluntary services organisation.

 

'... as per the directions of the NAB (National Accreditation Board), a committee is being constituted for revision of NPOP policy and procedures,' the Ministry told the Shree Shree Shree Swami Vivekananda Trust (SSVT).

 

Suggestions received from the stakeholders, including from the trust, will be placed before the committee for perusal, he said.

 

Best policy, but...

The Ministry was responding to a letter from SSVT on July 8 to Prime Minister Narendra Modi seeking 'an honest introspection to revamp the organic enforcement system'. SSVT said a recent audit of the European Commission emphasised the NPOP launched in 2001 as one of the best policy and procedural documents. 

 

'It is also a fact that the European Commission audit cited lapses in the enforcement in our organic agriculture. Our Trust wrote letters on January 5, February 7 and April 8 highlighting numerous pitfalls with the view of protecting Bharat’s interests…,' SSVT said.  

 

There was an immediate need to nominate competent auditors to conduct due diligence on enforcement procedures and implementation of organic farming at the level of certification bodies besides APEDA. This will help protect and preserve the label and authenticity of organic produce in the country, it said.

 

SSVT stressed the need for due diligence in view of repeated breach of rules, while some bodies were habitual offenders (change of promoters and entity names) in the organic agriculture certifications.

 

Aadhaar linkage

Referring to the allegations of duplication of farmers in growing organic produce, Commerce Ministry’s Verma said the Agricultural and Processed Food Products Export Development Authority (APEDA) is making provisions for linkage of Aadhaar, land documents in the online system for further strengthening the system.

 

However, trade sources said the Ministry has been talking of such linkages for quite sometime but nothing has happened yet. 

 

The SSVT said the role of APEDA, the nodal agency for organic exports, as secretariat and evaluation committee is vital in facilitating the decision-making process of NAB. 'Out of 36 evaluation committee members, it is interesting to note that 10 members belong to APEDA and Commodity Boards,' it said. 

 

The Minister, however, has said internationally laid down procedures are being followed in the organic certification process. 

 

Farm ministr’s move

However, the trust said since the evaluation committee was the pillar of NPOP enforcement, its selection suggests that 'there is a weak and fragile approach imbibed in the institutional framework at this level'.  

 

The Commerce Ministry’s communication complements a move by the Ministry of Agriculture and Farmers’ Welfare. 

 

In February this year, the Ministry said it plans to come up with a new certification system for organic cotton and its derivatives as part of its efforts to promote Indian export. 

 

Indian organic exports have been under pressure in view of various shortcomings being reported from abroad, especially the European Union, in shipments of organic products.

India will offer Russia options to invest the billions in rupees it has accumulated for exports, Foreign Minister Sergei Lavrov said Sunday in New Delhi.

 

'Our Indian friends said they would propose promising areas they can be invested in,' Lavrov told reporters, citing talks with Indian counterpart Subrahmanyam Jaishankar in Jakarta, Indonesia, on the sidelines of the East Asia summit prior to his arrival to India. 'Right now our governments are talking how to use and invest them to mutual benefit.'

 

He didn’t provide further details.

 

Lavrov also said Russian arms contracts with India remain in force, despite difficulties with payments caused by sanctions imposed by the US and its allies over Russia’s invasion of Ukraine.

 

Russia has emerged as a top supplier of oil to India over the past year, settling a greater share of trade in national currencies and redirecting shipments east as traditional customers in Europe shunned purchases after President Vladimir Putin invaded Ukraine. But with imports from India stagnating, Russia is ending up with an excess of rupees, which its companies have trouble repatriating because of local currency restrictions.

PM Narendra Modi and his Japanese counterpart Fumio Kishida on Saturday held wide-ranging discussions on investment climate in India, status of Mumbai-Ahmedabad bullet train and India-Japan-Bangladesh trilateral as part of their bilateral Indo-Pacific partnership.

 

Modi and Kishida met here after the Session 1 of the Day 1 of G20 Summit in what was their third meeting so far this year.

 

'Held productive talks with PM @kishida230. We took stock of India-Japan bilateral ties and the ground covered during India's G20 Presidency and the Japan's G7 Presidency. We are eager to enhance cooperation in connectivity, commerce and other sectors,' Modi posted on X.

 

Sources said the Japanese PM raised the issue of regulatory framework for Japanese investments in India and urged Modi to look into the issue.

 

Japan is among the biggest investor in India and is committed to increase its FDI into the country in the backdrop of the strong partnership.

 

The two leaders reviewed status of bullet train project and emphasised on free and open Indo-Pacific region.

 

In this context, the two countries decided to widen their partnership including through the trilateral involving Bangladesh for Bay of Bengal. Japan is constructing deep sea port in Bangladesh that would link NE India with SE Asia via Bay of Bengal.

 

The FSSAI has once again asked notified labs to upgrade their organic food testing abilities as the Government of India has decided to promote organic food in the country in a big way.

 

FSSAI has issued another direction, in this regard, which is the second in the last three months, stating, 'In continuation to the order of even number dated 16th June 2023, it is again to inform that the Government of India is promoting organic products in our country by encouraging and strengthening cooperative societies. The success of this depends on reliable testing to ensure the authenticity of the organic products. Therefore, all food testing laboratories need to optimise their facilities and procedures to handle organic testing efficiently and accurately.'

 

All the FSSAI notified laboratories were directed to review their current capabilities and take the necessary steps to enhance the infrastructure and scope of the testing for organic products along with making an application to APEDA for authorisation as one of its laboratories by submission of the accreditation certificate and scope details.

 

The FSSAI direction added that the lab shall also indicate the inclusion in the list of laboratories for organic products besides applying to National Referral Laboratory of APEDA for proficiency testing programme/competence assessment in order to qualify for pre-export testing of organic products.  

 

 'It is also instructed to all laboratories applying for organic products to compulsorily include this specific category within the FSSAI-NABL integrated scope,' reads the direction.