Most of the free trade agreements that India has entered into over the years are not delivering the expected benefits. Giving a starker view of this, a recent analysis has showed that exports to the countries with which India has no bilateral trade pacts are holding up better in the current scenario, as compared to the shipments to the FTA partner countries.

 

In the first six months (January-June) of 2023 merchandise exports to FTA partners declined 18.2% on year while the overall decline in shipments during the period was only 8.1%, according to the analysis by trade policy think tank Global Trade Research Initiative.

 

The decline in exports to FTA partners brought down their share in overall exports to 26.8% in the Jan-June 2023 from 30.1% in the same period last year. The FTA partners with the biggest decline in exports are South Asia Free Trade Area AFTA (33.2%), South Korea (30%), Australia (25.4%), Japan (15.6%) and ASEAN (13.4%), according to GTRI.

 

While overall imports from FTA partners have also declined during the six months by 11%.Overall exports to FTA countries were $ 58.6 billion in the first half of 2023, down from $71.6 billion in the year ago periodr. Imports during Jan-June declined to $ 88.6 billion from $ 99.5 billion in the year ago.

 

The trade deficit with FTA partners also increased to $ 30 billion in January-June this year from $ 27.9 billion the same period last year.More than half of this deficit or $ 16.1 billion is accounted for by Asean alone which explains the insistence of India on review of Asean-India Trade in Goods. Last year the deficit during the same period was $ 19.3 billion.

Only with SAFTA is India running a surplus of $ 10.3 billion on exports of $ 12.7 billion and imports $ 2.4 billion. Last year’s surplus with Safta which includes Afghanistan,Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka was $ 16.7 billion.

 

Deficit with Australia ($ 4.2 b), Japan ($6.2 b), Korea ($ 6.7b), UAE ($7.2b). Overall India’s merchandise exports in Jan-June were $ 218.7 billion, down 8.1% from last year. Imports during the period were at $ 325 billion, down 8.3% on year. Services imports touched US$ 89.8 billion during January-June 2023, exhibiting a growth of 8.1 % over the same period last year (Jan-June 2022). Services exports reached a turnover of $166.7 billion during January-June 2023, exhibiting a healthy growth of 17.7 % over the same period last year .Services imports touched$ 89.8 billion during in the first half of 2023, exhibiting a growth of 8.1 % over last year.

 

India’s foreign trade – Exports and Imports of Merchandise and Services – reached$ 800.6 billion during January-June 2023.

 

Food Secretary Sanjeev Chopra on Tuesday said there are no plans to import wheat from Russia under any diplomatic deal.

 

Talking to reporters, he said that are also no plans to restrict non-basmati par boiled rice exports.

 

Last month, Centre had imposed a ban on the export of widely consumed non-basmati white rice, following a ban on broken rice exports last year.

 

He also informed that government will buy 52.1 lakh tonnes of rice from farmers this year as against 49 lakh tonnes procured last year.

 

He said that fortified rice will also be given through National Food Security Act.

The food authority has decided to extend the timeline for compliance of the provision of warning statement for ‘pan masala’ specified in the FSS Labelling and Display Second Amendment Regulations, 2022.  

 

The food businesses were given three months to comply with the provisions that specify ‘the warning statement must cover 50% of the front-of-the pack of the label’ from August 1, 2023.  

 

'It has been decided to further defer the enforcement of the ‘note’ i.e., ‘the warning statement must cover 50% of front of the pack of the label’ in schedule –II of the labelling and display second amendment regulations for a period of 03 months from 1st August 2023,' reads the order issued by the FSSAI.  

 

The said rule was set for commencement from May 1, 2023, but stakeholders made a representation before the food authority and sought time for compliance.  

 

'Representation has been received from association requesting an extension of time period for compliance of the ‘note’ amendment so as to exhaust the packaging material having the existing warning and to arrange for the new packaging material,' said Dr Amit Sharma, Director, Regulation Division, FSSAI, and added that after due consideration it has been decided to further defer the enforcement of the ‘Note’ for a period of three months from August 1.  

 

Earlier, the food authority extended the compliance timeline for a period of three months from May 1, 2023, which was the original deadline for the compliance.

Nepal has exported 6,69,680 kg of tomatoes to India via three border points within two weeks, records at the customs office along the border have shown.

 

As per the records of customs offices at Birgunj, Mechi Customs in Kakarbhitta and Bhairahawa, a total of 6, 69,680 (Six lakhs Sixty-nine thousand and six hundred eighty) kilograms of tomatoes has been exported to India from Nepal till 18th of August.

Tripura Agriculture Minister Ratan Lal Nath on August 18 said that the state government will send 32 metric tons of processed maize to Maharashtra.

 

He said that 32 metric tons of processed maize from the state will be sent to Maharashtra through a private agency while in the first phase, 16 metric tons of maize will be sent on August 19. 

 

Minister Nath said this while inaugurating the sale centre of NERAMAC organic crop on the premises of the Horticulture and Soil Conservation Office today.

 

'In this outlet of NERAMAC, various crops and products produced organically in the state will be available. Later, various products produced by self-help groups and self-entrepreneurs will also be available in this outlet along with products produced through natural means', said the Agriculture Minister. 

 

The Minister said that at present, the state has such outlets of NERAMAC at Agartala-Akhaura Integrated Land Port, Sadar Sub-Divisional Magistrate's Office, and Secretariat. 

 

'NERAMAC outlets will also be opened at Agartala Railway Station, Sabroom Integrated Land Port, and Srimantapur Integrated Land Port', said Nath.

 

Nath said that various products available in the outlet will be sold in various wards of the city area in a mobile vehicle approved by NERAMAC. 

 

This mobile vehicle was also formally inaugurated today. 

 

Minister Nath said that India ranks fourth in the world in terms of organic farming area. 

 

'India ranks after Australia, Argentina, and Spain. According to a survey of 2021, 23 lakh hectares of land in the country are under organic farming. Sikkim has been declared a 100 percent organic state among the North-Eastern states. So far 26 metric tons of aromatic rice, 62 metric tons of ginger, 14 metric tons of turmeric, and 149 metric tons of pineapple have been marketed in the state in the financial year 2022-23 and 2023-24 under organic farming About 50 thousand metric tons of pineapples have been produced organically on 5 thousand 86 hectares of land in the state', he said.

The India-United Arab Emirates (UAE) Free Trade Agreement (FTA) has the potential to benefit Maharashtra, which is the largest contributor to India's Gross Domestic Product (GDP). The FTA, which went into effect on May 1, 2022, aims to increase bilateral trade between India and the UAE from $60 billion to $100 billion within the next five years.

 

In addition to increasing trade, the FTA will also facilitate increased investment flows between the two countries. UAE-based companies have already invested over $35 billion in India, with many of these investments coming to Maharashtra. This increased investment will bring new technologies and business practices to the state, boosting its economic development.

 

India and the UAE have strong economic ties, with the total value of the UAE's non-oil trade with India reaching over $45 billion in 2021, representing a 60% increase from 2020 and an 8% increase from 2019. India is also the UAE's top trading partner for non-oil exports, accounting for nearly 14% of the UAE's total non-oil exports worldwide.

 

According to data from the ministry's Directorate General of Commercial Intelligence and Statistics, India's exports to the UAE rose 17.6% to around $18 billion in the April-October fiscal year 22. Imports from the UAE during the same period increased by 33% to $32.3 billion.

 

The FTA with the UAE has the potential to further boost Maharashtra's economic growth by providing greater access to the UAE market for Maharashtra's products and services. These will entail:

 

? Elimination of tariffs on a wide range of goods and services: The FTA will eliminate tariffs on a wide range of goods and services traded between India and the UAE, which will make it easier and more cost-effective for Maharashtra's businesses to export to the UAE. The FTA will eliminate tariffs on textiles, electronics, and engineering goods, which are major exports from Maharashtra to the UAE. This will make it easier for Maharashtra's textile manufacturers and electronics and engineering firms to sell their products in the UAE, which is a significant market for Indian goods.

 

? The elimination of tariffs under the FTA is expected to lead to increased exports of Indian products, including those from Maharashtra, to the UAE. According to data from the Indian department of commerce, Maharashtra's exports to the UAE increased by 23% in the first year after the implementation of the FTA. This includes exports of products such as textiles, electronics, and engineering goods, which are major sectors in Maharashtra.

 

? The FTA will make it easier for UAE companies to do business in Maharashtra, which is expected to attract foreign investment to the state. UAE-based companies may be attracted to invest in Maharashtra's manufacturing, services, and agriculture sectors, which could create new job opportunities and stimulate economic growth.

 

? The FTA will provide opportunities for collaboration and exchange between Indian and UAE companies, which can lead to the transfer of technology and knowledge. Indian and UAE companies may collaborate on research and development projects, or Indian firms may access advanced technologies developed by UAE companies. This can help Indian firms, including those in Maharashtra, to improve their products and services and stay competitive in the global market.

 

? It will provide greater access to the UAE market for Maharashtra's agricultural products, a major market for Indian agricultural products. This can boost the state's agriculture sector, which is a major contributor to the state's economy. The FTA will eliminate tariffs on agricultural products such as grains, vegetables, and fruits, which are major exports from Maharashtra to the UAE. This will make it easier for Maharashtra's farmers to sell their products in the UAE, which can increase their income and improve the viability of their farms.

 

The India-UAE Free Trade Agreement (FTA) has facilitated increased trade and investment between the two countries, particularly in sectors such as oil and gas, diamonds, precious stones and pearls, machinery and mechanical appliances, and textiles. It has also strengthened cultural and social ties, including increased travel and migration.

 

Overall, the India-UAE FTA has the potential to significantly boost the economy of Maharashtra through increased trade and investment with the UAE. It will also strengthen the already important partnership between the two countries and leverage their shared goal of using trade as a catalyst for economic growth and prosperity

 

The Matti banana variety native to Kanniyakumari district has been granted a Geographical Indication (GI) tag. These bananas thrive uniquely in the district’s climate and soil, resulting in a larger-than-human finger-sized fruit with a sweet aroma and honey-like taste.

 

Unique Characteristics of Matti Banana Variety of Kanniyakumari District:

Thriving Exclusively in Kanniyakumari’s Climate and Soil Conditions.

 

Distinctive Attributes:

Size and Taste: Matti bananas are slightly larger-than-human finger-sized fruits with a sweet fragrance and honey-like taste that remains unmatched outside their native region.

Variety Diversity: There are six distinct types of Matti bananas, each boasting unique qualities in terms of color, aroma, and flavor.

Hybrid Innovation:

The Semmati Banana – Beneficial for Child Growth and Suitable for Diabetics

 

Origin: A hybrid creation blending Matti and Red bananas.

Advantages: Possesses qualities that contribute to child growth and is also suitable for individuals with diabetes.

Complex Factors Shaping Uniqueness:

1. Genotype-Environment-Microbiome Interaction (G×ExM): Experts Emphasize the Role of Environment in Genetic Expression

 

The interaction between genes, environment, and microbiome plays a crucial role in shaping the expression of genetic traits.

The environment’s influence on gene expression highlights the profound connection between genetics and the surroundings.

2. Multifaceted Distinctiveness: The Confluence of Various Factors Creating Matti Banana’s Uniqueness

 

Humidity, Water, and Temperature: Specific environmental conditions contribute to the distinct growth of Matti bananas.

Soil Composition and Nutrient Balance: The composition of the soil and the balance of nutrients further contribute to the banana’s exceptional attributes.

Complex Interplay: The intricate interplay of these factors forms a complex web that results in the exceptional qualities of Matti bananas.

Challenges in Replication:

The Complexity of Factors Makes Reproducing Matti Banana’s Traits Difficult

 

Attempting to replicate the qualities of Matti bananas in other regions becomes challenging due to the multifaceted nature of the factors involved.

No single factor can be isolated to reproduce the same characteristics, underscoring the uniqueness of the native environment.

The exporters whose rice shipments were stuck at ports following export bans may get some relief.

 

The centre has directed Indian customs to allow shipments of non-basmati rice for export where the shipment has commenced where shipping bills were filed and where vessels arrived and anchored in Indian ports before ban notification.

 

The Customs has instructed its field formations to allow exports till August 31, in such cases.

 

India imposed an export curb on non-basmati white rice, including semi-milled, wholly-milled, polished and glazed varieties on July 20 to meet the domestic demand.

 

'The approval of loading in such vessels will be issued only after confirmation by the concerned Port Authorities,' the instruction said.

 

Non-basmati white rice constituted about 25% of total rice exported from the country.

 

However a large number of cargoes which had already arrived at the port ahead of the notification and according to industry estimates, about 2 lakh tonnes of rice cargoes were stranded at the port.

 

The Customs officials had sought clarity from the Directorate General of Foreign Trade (DGFT) .

 

The DGFT on August 18 issued a clarification that such cargoes arriving at the port ahead of the July 20 order must be cleared for export.

Executive Vice-President and Commissioner for Trade, Valdis Dombrovskis, travels to India this week to attend the G20 Trade and Investment Ministers Meeting in Jaipur, and to co-chair the EU-India High Level Dialogue on Trade & Investment together with Piyush Goyal, Minister of Commerce and Industry, in Delhi.

 

During his stay, he is also due to meet Nirmala Sitharaman, Indian Minister of Finance, for discussions on the EU’s relations with India.

 

Overall, the EU is aiming to deepen ties with India and working to that end with negotiations on three ambitious agreements: a Free Trade Agreement, an Investment Protection Agreement and a Geographical Indications Agreement. Closer EU-India cooperation is symbolised through the parallel engagement in the Trade and Technology Council, according to a readout by EU.

 

During his mission to India, Executive Vice-President will also participate in a meeting with European Business, organised jointly by EU Delegation and Task Force to establish a Federation of European Business in India (FEBI).

 

The key themes of the G20 meeting in Jaipur, starting Wednesday, are multilateral trade for global growth and prosperity, inclusive and resilient trade, supply chains as well as leveraging technology for paperless trade.

 

Dombrovskis said, 'India is a key partner for the EU and we look forward to engaging with our Indian counterparts on how we can further deepen our ties, notably by advancing our talks for a Free Trade Agreement. The G20 comes just six months before the 13th Ministerial Conference of the WTO, so we must seize this opportunity to drive forward the multilateral trade agenda at a time of global turbulence.'

Shri Rajesh Agrawal, Additional Secretary, Department of Commerce, Ministry of Commerce and Industry represented India in the 20th ASEAN-India Economic Ministers’ meeting held on 21st August 2023 in Semarang, Indonesia and co-chaired the meeting with Dr. Zulkifli Hasan, Minister of Trade, Indonesia. The Economic Ministers or their representatives from all the 10 ASEAN countries viz. Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam participated in the meeting. Democratic Republic of Timor-Leste also joined the Meeting as an observer.

 

The Ministers reviewed the bilateral trade and investment relations between India and ASEAN and underscored their commitment to strengthen and enhance the economic partnership between India and ASEAN to ensure that the ASEAN-India Comprehensive Strategic Partnership delivers meaningful benefits for both sides, particularly in the post-pandemic era. India and ASEAN registered a bilateral trade of USD 131.5 billion in 2022-23. The trade with ASEAN accounted for 11.3% of India’s global trade in 2022-23.

 

The Ministers also interacted with the ASEAN-India Business Council (AIBC) and took note of the activities undertaken by AIBC in 2023, including the 5th ASEAN-India Business Summit held on 6th March 2023 in Kuala Lumpur. The Ministers noted the Non-Tariff Barriers (NTBs) flagged by the businesses and appreciated the growing exchanges between the stakeholders from both sides.

 

The Ministers exchanged views on the regional and global challenges, such as the multidimensional impact of the COVID-19 pandemic, climate change, heightened volatility in the global financial market, inflationary pressures, and geopolitical tensions. Both sides identified resilient supply chains, food security, energy security, health and financial stability as priority areas of cooperation.

 

The main agenda of this year’s meeting was the timely review of ASEAN-India Trade in Goods Agreement (AITIGA) which was signed in 2009. The Economic Ministers’ meeting was preceded by AITIGA Joint Committee meeting, which deliberated the roadmap for the review and finalised the Term of Reference and the Work Plan of the AITIGA Review Negotiations. After constructive discussions, the Ministers endorsed the above review documents, which would pave way for the formal commencement of negotiations with defined modalities. The review of the AITIGA was a long-standing demand of Indian businesses and the early commencement of the review would help in making the FTA trade facilitative and mutually beneficial. The Ministers agreed to follow a quarterly schedule of negotiations and conclude the review in 2025. The review of AITIGA is expected to enhance and diversify trade while addressing the current asymmetry in the bilateral trade. The decision for review of AITIGA will now be placed in the forthcoming India-ASEAN Leaders’ Summit scheduled in early September for further guidance.