The commerce ministry and external affairs ministry should work together to achieve India's export targets, said Prafulla Chandra Mishra, Statistical Advisor, Directorate General of Foreign Trade under the Ministry of Commerce and Industry on Wednesday 

 

While speaking at an event of PHD Chamber, he said that PM Modi has proposed a 3T strategy focusing on trade, tourism and technology to strengthen Indian economic diplomacy. 

 

'This can be done by utilising India’s overseas missions and embassies,' Mishra added. He further explained the methodology of export targeting.

 

Notably, India is aiming to achieve exports of USD 1 trillion each in merchandise and services by 2030. 'It is important to achieve an overall compounded annual growth rate (CAGR) of 14.47 per cent including a merchandise CAGR of 12.05 per cent and services CAGR of 17.39 per cent,' Mishra stated.

 

Sanjay Aggarwal, Former President, PHDCCI called for reducing the gap between exports and imports. He observed that India has been importing on a higher side and exporting less which needs to be addressed. All MSMEs must explore the favourable export destinations on the back competitive infrastructure provided by the government.

 

Aggarwal also called for rationalisation in customs duties for facilitating exports.

 

Manoj Pant, Chair, Foreign Trade and Investment Committee shared that trade policy and investment policies form the backbone to enhance the growth trajectory of any economy. Pant called for a focus on skilling and imparting relevant skills to enable MSMEs to focus on producing quality products for promoting exports of indigenous products.

 

Meanwhile, Vishal Dhingra, Co-chair, Foreign Trade and Investment Committee mentioned exports have witnessed exponential growth in the past few years. There is a need to build capacity and train people. 

 

Dhingra mentioned that free trade agreements (FTAs) between India and other national economies and the production linked incentive (PLI) scheme will drive export growth in India. With phenomenal investment in infrastructure by the government, India can expect a multiplier effect in the growth of exports in the coming years.

The commerce and industry ministry has worked out a detailed plan to promote trade and investment and identified 12 countries including the US and UK for priority action, an official said. The plan was formulated by a task force comprising officials from the department of commerce, department for promotion of industry and internal trade, Indian missions abroad and Invest India.

 

Under the plan, the task force has identified calender of activities for these 12 priority nations -- US, Brazil, Canada, UAE, Saudi Arabia, UK, Germany, Sweden, Japan, Taiwan, South Korea and Russia, said the official who did not wish to be named.

 

The plan was prepared after an in-depth analysis of export-import trends. outbound investments trends and strategic engagements with over 20 countries.

 

As part of the plan, the ministry will organise road shows in different countries, which will encompass investment and trade promotion engagements.

 

Industry and exporters are also encouraged to organise world-level exhibitions in India and participate in fairs being organised in these 12 countries.

 

'The exercise is part of a concerted effort of both the departments to promote trade and investments,' another official said.

 

Last month Commerce Secretary Sunil Barthwal has stated that the ministry is working on a trade strategy to promote exports.

 

As part of that, the Department of Commerce, Department for Promotion of Industry and Internal Trade (DPIIT), Invest India and Indian missions abroad would focus on priority countries.

 

There would be a focus on promoting exports along with catering to the needs of the domestic market, he had said, adding both departments were kind of forging an alliance in terms of promoting investments and exports and for that, both were working on a trade and investment strategy.

 

Under the strategy, they will also participate in some major exhibitions abroad, where teams from these departments would also go and do buyer-seller meets.

The Indian Beverage Association (IBA) is organising the National Beverage Conclave 2023, in New Delhi on July 6 and will focus on the theme of 'Sustainable Food Systems: Redefining the Beverage Industry.'

 

According to IBA, the conclave aims to showcase and reinforce the non-alcoholic beverages industry as a driver of job creation, export-oriented supply chains, and investments in food processing aligned with national priorities.

 

'To support India’s ambition to move from food security to nutrition security, the conclave will highlight the industry's potential in environmental sustainability (water conservation, plastic reduction), economic and fiscal sustainability (investment and incentives), and social sustainability (healthier diets, improved welfare),' reads the statement by the IBA.

 

The event is expected to bring together key stakeholders including policy makers, regulatory bodies, food scientists, Indian and international organisations such as the WHO, ICMR-NIN, industry, startups, thinktanks as well as influencers and key opinion leaders.

 

IBA remarked that with a market value of approximately Rs 58,000 crore in 2022, according to the Indian Council for Research on International Economics Research’s (ICRIER) 2022 study on the ‘Contribution of Non-alcoholic Beverage Sector to Indian Economic Growth’, the non-alcoholic beverages industry has experienced remarkable average growth rate of approximately 20% over the previous decade.

 

Meanwhile, experts feel that despite this impressive growth, the sector faces challenges including high GST and rates not aligned with FSSAI Regulations, unfair competition from the informal sector, counterfeit products, negative public perceptions, value/supply chain constraints, and the unavailability of quality local raw materials.

 

JP Meena, secretary-general, IBA, commented, 'A multi-stakeholder engagement and public-private partnership are important to address many of these local challenges. IBA is committed to driving a sustainable food system and having a meaningful impact on the economic progress of the country while also addressing many of the social, economic and environmental challenges.'

 

The conclave will also lay the future roadmap for making India a global beverage processing hub by 2030. It will explore best practices, provide recommendations for government policies, and focus on creating an ecosystem that supports export-oriented growth, innovation, and international collaboration. The idea is to shape the future of the non-alcoholic beverage industry and contribute to India's journey towards a 5 trillion-dollar economy.

Taiwan on Wednesday announced plans to enhance its official presence in India by setting up a new representative office in the financial hub of Mumbai, taking the number of such facilities in the country to three.

 

India and Taiwan, which don’t have formal diplomatic relations, first established representative offices in each other’s capitals in 1995. Besides the Taipei Economic and Cultural Center (TECC) in New Delhi, Taiwan set up an office in Chennai in December 2012.

 

India currently has the India-Taipei Association (ITA) office in Taipei. These facilities on both sides function as de facto missions and are responsible for promoting cooperation in trade, investment, tourism, education, and science and technology.

 

Taiwan’s foreign ministry said in a statement that the establishment of a TECC in Mumbai is aimed at further advancing 'substantive ties' with India and deepening exchanges and cooperation.

 

'In recent years, cooperation between [Taiwan] and the Republic of India has witnessed significant progress in numerous domains, including economics and trade, science and technology, critical supply chains, culture, education, and traditional medicine,' the statement said.

 

Taiwan’s move comes at a time when India’s ties with China have been taken to their lowest point in six decades by the three-year-old military standoff on the Line of Actual Control (LAC). In recent years, the Indian side has sought to woo Taiwan’s semiconductor majors as part of efforts to create chip manufacturing capabilities.

 

People familiar with the matter said Taiwan had raised the issue of setting up an office in Mumbai more than two years ago following a significant increase in trade ties in central India. Taiwan’s announcement was unlikely to have been made without the concurrence of the Indian side, they said.

 

The office in Mumbai is expected to begin functioning by the final quarter of 2023 as Taiwan needs to find suitable premises and hire local staff, the people said.

 

Since the TECC in Chennai was set up in 2012, nearly 60% of all Taiwanese businesses investing and opening factories in India have chosen to develop operations in the southern part of the country, Taiwan’s foreign ministry said. Chennai and its surrounding areas have benefited from investments by Taiwanese manufacturing industries and the new TECC in Mumbai is 'expected to have a similar effect in western India', the statement said.

 

'The TECC in Mumbai will help expand mutually beneficial trade and investment opportunities between Taiwan and India. Under Taiwan’s New Southbound Policy, it will also promote exchanges and cooperation in science and technology, education, culture, and people-to-people ties...,' the statement added.

 

The office in Mumbai will provide visa services, document authentication and emergency assistance to businesspeople, tourists and Taiwanese nationals in the states of Maharashtra, Goa, Gujarat and Madhya Pradesh and the union territory of Dadra and Nagar Haveli and Daman and Diu.

 

Taiwan’s foreign ministry also pointed to India’s emergence as a major investment destination for global enterprises and noted that many countries have a diplomatic presence in Mumbai.

 

China has traditionally bristled at Taiwan’s activities in India, and the Chinese embassy in New Delhi once even issued guidelines for Indian journalists regarding reporting on Taiwan’s national day. The Chinese side had sought a reaffirmation of India’s adherence to the 'One China' policy when tensions peaked in the Taiwan Strait in August 2022 following former US speaker Nancy Pelosi’s visit to Taipei.

 

At the time, the external affairs ministry avoided any mention of the 'One China' policy while opposing unilateral actions to change the status quo in the Taiwan Strait. India stopped referring to the policy in official documents around 2010 in response to China’s insistence on issuing stapled visas to residents of Jammu and Kashmir and Arunachal Pradesh.

The government and exporters have the same vision for advancing trade and investment.

 

To increase India’s share in global trade, the Commerce and industry ministry presented its proposal to export organizations on Monday to promote investment and marketing jointly.

 

The director general and CEO of the company is Ajay Sahai. the Federation of Indian Export Organisations, announced that the department for promoting industry and internal trade would hold roadshows in 12 nations to draw investments and also engage with domestic stakeholders in tier Ii and tier III to build an ecosystem for export.

 

To boost India’s export potential, the government, under the leadership of Minister of Commerce and Industry Piyush Goyal, has emphasized a focused approach towards two key sectors: food and electronics. Recognizing its immense growth potential, Goyal aims to tap into the global demand for these products, enabling India to become a significant player in the international market.

 

India, with its diverse agricultural resources and rich culinary heritage, possesses a vast array of food products that can cater to global markets. Piyush Goyal believes that by harnessing this potential, India can become a major food exporter. The government focuses on enhancing agricultural product quality standards and packaging, ensuring compliance with international regulations. Additionally, Goyal aims to strengthen the supply chain infrastructure, reducing wastage and improving the shelf life of perishable goods.

 

To achieve these goals, the government has initiated various measures. These include promoting organic farming, investing in research and development for crop improvement, and establishing food processing units across the country. Particular emphasis is placed on fostering value-added products, such as processed fruits and vegetables, spices, and dairy products. Furthermore, the government is actively removing trade barriers, negotiating favourable trade agreements, and creating awareness about Indian food products through international trade fairs and exhibitions.

 

Another sector that Piyush Goyal is keen on boosting is electronics. As technology continues to rapidly advance, its prevalence in our lives is also increasing.global demand for electronic goods, India has an opportunity to become a manufacturing hub for electronics and strengthen its position as an exporter. The government’s vision is to reduce imports and enhance domestic production, making India self-reliant in the electronics industry.

 

To achieve this, the government has launched initiatives like the Production Linked Incentive (PLI) scheme, which provides financial incentives to manufacturers for increasing domestic value addition in electronics manufacturing. This scheme has attracted significant investments from domestic and international players, leading to the establishment of manufacturing facilities nationwide. Additionally, the government has focused on creating an ecosystem conducive to research and development, innovation, and skill development in the electronics sector.

 

While the government’s efforts to promote food and electronics exports are commendable, some challenges must be addressed. Issues such as inadequate storage and transportation infrastructure, fragmented supply chains, and lack of awareness about global market trends pose obstacles to seamless exports in the food sector. These challenges necessitate concerted efforts from government and private sector stakeholders to develop a robust ecosystem supporting food exports.

 

Similarly, in the electronics sector, despite the progress made through the PLI scheme, India still needs to catch up to competitors from countries like China, Vietnam, and Taiwan. To overcome this, the government needs to create an enabling environment by addressing infrastructure gaps, ensuring a skilled workforce, and offering attractive incentives to attract investment.

 

Increasing investments, he claimed, will benefit in fostering commerce by integrating with global value chains. The diaspora will be contacted for investment during the roadshows as well. In a meeting presided over by Minister Piyush Goyal, the Commerce and industry ministry also requested that exporters concentrate on high-potential industries like food, electronics, and engineering for a push on exports shortly.

 

The US, UK, Brazil, Germany, Saudi Arabia, Sweden, Taiwan, Korea, Japan, and Russia are the primary international markets where exports might be further encouraged.

 

The ministry advised exporters to concentrate on taking part in the largest trade shows and exhibits worldwide to boost exports.

 

The summit occurred during four months of declining merchandise exports for the nation.

 

According to Sahai, the drop in exports is common in India. According to port data, he claimed the number of shipments from India had remained the same. 'The decline in commodity prices is the cause of the decline in exports in value terms,” Sahai continued.

 

According to data from the ministry, exports fell for the fourth consecutive month in May by 10.3% on-year to $34.98 billion, while the trade deficit increased to a five-month high of $22.12 billion.

 

In all, exports fell by 11.41 per cent to $69.72 billion in April and May of the current fiscal year, while imports fell by 10.24 per cent to $107 billion.

 

The country’s exports are impacted by the slowdown in demand in essential markets, increasing inflation in developed countries, and the war in Russia and Ukraine.

 

Sunil Barthwal, the secretary of commerce, had previously stated that both ministry divisions were collaborating on a trading plan involving Invest India and Indian missions overseas to encourage the resurgence of exports.

 

He stated, 'We have identified 40 nations that comprise 85% of our exports and are concentrating our efforts on growing our exports until signs of an economic rebound in their home economies become apparent.

 

Along with officials from the Federation of Indian Export Organisations (FIEO) and business groups, representatives from several export promotion councils from industries like clothing and medical devices attended the conference on Monday.

 

Piyush Goyal’s vision to focus on food and electronics for India’s export push holds immense potential to boost trade and economic growth. By capitalizing on India’s strengths in agriculture and harnessing the opportunities offered by the electronics industry, the government aims to enhance India’s global competitiveness. However, addressing the challenges and implementing robust strategies will be crucial to realizing this vision. With sustained efforts and collaboration between the government, industry, and other stakeholders, India can position itself as a leading exporter of food and electronics, contributing to the nation’s overall development.

Climate experts have been warning that an increase in temperatures due to climate change could adversely impact the yield of wheat, causing concern among wheat-growing countries such as India.

 

Worst fears have come true with a multi-national research team finding wheat highly sensitive to increases in maximum daily temperature during multiple stages of its growth in the post-monsoon and dry winter season.

 

The team, however, said not all is lost. It said jowar (sorghum) can step in as a viable alternative. 'Jowar is able to handle increases in temperature with far less impact on yields. There is an additional advantage too. Wheat requires 1.4 times more water than jowar owing to the extension of its growth cycle into summer,' the study said.

 

Wheat’s sensitivity

The study was carried out by researchers from Columbia University, USA; Chinese Academy of Agricultural Sciences, China; Indian School of Business; and Indian Institute of Technology, Bombay.

 

The paper titled 'Climate resilience of dry season cereals in India' was published in Nature’s Scientific Reports. It examined the sensitivity of wheat and jowar yields to increases in temperature and compared water requirements under different scenarios.

 

The paper said the wheat yields are likely to decrease by 5 per cent coupled with a significant increase in water footprint by 2040. Jowar, in that case, is India’s best bet with its meagre 4 per cent increase in water footprint with the same climatic projections, it argued.

 

Top wheat producer

The paper said India is the world’s second-largest producer of wheat, which recorded a whopping 40 per cent increase in production since the early 2000s.

 

'We have reached a critical turning point in India’s agricultural landscape. Our research highlights the urgent need for climate-smart agriculture interventions, particularly in the rabi season,' Ashwini Chhatre, co-author of the study and Executive Director of Bharti Institute of Public Policy at the ISB, said.

 

'The traditionally grown sorghum or jowar emerges as a game-changer, offering resilience to projected climate changes and requiring significantly less water than wheat,' he said.

 

The total wheat production in the country has gone up since the turn of the century due both to increases in yield (26 per cent) and increases in area (17 per cent). The production of jowar, on the other hand, declined by 5 per cent in the same time period. This decline is despite a 37 per cent increase in yields and is attributed to a 21 per cent loss in the area under production.

 

Caution

Agriculture scientists have been advocating against the trends in India towards the expansion of wheat cultivation from the North into hotter parts of the country.

 

The study indicates a strong need to consider climate-resilient strategies for cereals grown in the rabi season and amplifies calls by scientists and activists for diversifying kharif cereals away from a concentration in paddy. 'In addition to sorghum (jowar), we can explore millet crops such as pearl millet (bajra), finger millet (ragi), foxtail millet, barnyard millet, etc., as a suitable replacement for rice or wheat,' Arabinda Padhee, Principal Secretary- Agriculture, Govt of Odisha, has said.

 

India is expected to send 290,000 tonnes of fully broken white rice to Mali, a country in West Africa, through government-to-government (G2G) channels. This decision follows India's recent authorisation in May to allow the export of fully broken white rice, which had been banned since September of the previous year, to other nations in order to fulfil their food security requirements. 

 

A senior government official stated that the Ministry of External Affairs (MEA) had received a request from the Minister of Industry and Commerce to export 290,000 tonnes of fully broken rice. The shipment will be divided into two separate batches of 240,000 tonnes and 50,000 tonnes, pending examination and policy announcement by the Directorate-General of Foreign Trade (DGFT). 

 

This development comes in response to the demand from African countries, which rely on India for their supply of fully broken white rice, in addition to parboiled rice. In April, the Indian government permitted the export of 500,000 tonnes of broken rice to Senegal and 50,000 tonnes to Gambia. It also authorised the export of 200,000 tonnes of this rice variety to Indonesia. 

 

African nations depend on India for rice imports due to the more affordable prices compared to offerings from Vietnam, Thailand, or Pakistan. Thailand is currently selling 100 per cent broken rice for USD 523 per tonne, while India offers the same variety at USD 425 per tonne, which serves as the benchmark price in the global market. The Indian price includes a 20 per cent export duty. For 5 per cent broken rice, India offers it at USD 468-USD 472 per tonne, while Pakistan, Vietnam, and Thailand offer it at USD 488-492, USD 508-512, and USD 518 per tonne, respectively. The three countries are selling 25 per cent broken rice within the range of USD 458-498, whereas India quotes this variety at USD 448-452 per tonne, according to spot trade sources. These prices are free-on-board (FOB). 

 

Due to the export ban on fully broken rice, Indian exporters have been unable to sell it in the international market. However, on 24 May, the Indian government allowed the export of broken rice following requests from foreign ministries seeking to meet their food security needs, despite the general ban on broken rice exports. This step was taken in response to the increasing requests received by the Indian government. 

 

Since the ban on fully broken rice exports was imposed in September 2022, African nations, which rely on India to meet 70 per cent of their rice consumption, have turned to non-basmati rice. In the first two months of the current fiscal year, African countries' imports of non-basmati rice have increased by 35 per cent compared to the same period last year, reaching nearly 2.1 million tonnes, as reported by Vinod Kaul, Executive Director of the All India Rice Exporters' Association. 

 

From April to May of FY24, India's basmati rice exports increased by 21 per cent compared to the previous year, reaching 830,858 tonnes. Non-basmati rice exports also saw a year-on-year increase of 6.1 per cent to reach 2.8 million tonnes. 

 

In FY23, India exported a total of 17.79 million tonnes of non-basmati rice, while broken rice exports were 23 per cent lower at 3 million tonnes due to the ban imposed to stabilise domestic prices. 

The trade activities between India and Bangladesh resumed through Bhomra land port in Satkhira on Sunday, with the arrival of 60 tonnes of green chilli, after a five-day vacation on the occasion of Eid-ul-Azha, reports UNB.

 

Six trucks, loaded with 10 tonnes of green chilli each, entered the land port, said general secretary of Bhomra C&F Agent Association ASK Maksud Khan.

 

The price of green chilli may decrease in the local market with the import, he hoped.

 

However, a number of trucks carrying green chilli from India are on the way to Bangladesh and these will reach the land port by this (Sunday) evening, he said.

 

Around 93 tonnes of green chilli arrived in Bangladesh in one week following the government’s permission of importing 36,830 tonnes to curb steep price hike of the essential kitchen item, reports BSS.

 

'After giving permission, 93 tonnes of imported green chilli have already come into the country. More chillis will arrive in the country tonight (Sunday night),' said a press release of the agricultural ministry issued on Sunday. 

 

Moreover, over 138,000 tonnes of onion have already come into the country against the government’s permission to import 918,000 tonnes.

 

Abdur Rahim, general secretary of Satkhira Kitchen Market Traders Association, said green chilli is being sold at Tk 400-450 per kg at the wholesale market while it is being sold at Tk 600 at the retail market, a UNB report said.

 

'Already the price of green chilli has started to come down and it will be sold at Tk 50-60 per kg within two days,' he said.

 

In the wake of the surging price of green chilli in the local market, the Ministry of Agriculture allowed the import of green chilli.

 

The ministry permitted 30 importing firms to import a total of 11,600 metric tonnes of green chilli, said a release on June 25.

 

The price of green chilli has significantly risen in the local market recently.

The Food Corporation of India will be auctioning off around 8 lakh tonnes of food grains on Wednesday 5th July. This is part of a plan by the government to keep wheat and rice prices in check in the country.

 

In the last 3 days, the government has sent out tenders for 4.07 lakh tonnes of wheat and around 3.86 lakh tonnes of rice under the open market sale scheme (OMCS). In a departure from its previous policy, the government has decided to hold e-auctions on a weekly basis instead of alternate weeks, and it will cover both wheat and rice in the same week. With the exception of three states where minor adjustments were made, all other states have been allocated the same quantities as in the first round of tender.

 

Meanwhile, in the first round of the rice e-auction, Punjab has been allocated 1.5 lt, which accounts for 39% of the total quantity available for sale. An official source stated that Punjab's higher allocation is due to its excess stock. However, traders have expressed concerns about the allocation, stating that many consuming states have not received an adequate quantity while Punjab, which primarily consumes wheat, has received a significant allotment.

 

Notably, there will be no rice auction in Madhya Pradesh, Haryana, Assam, Chhattisgarh, and Telangana. Officials have clarified that these states were excluded due to the ongoing procurement of rabi-grown paddy, which presents a possibility of recycling. However, millers have argued that the reserve price set at Rs3,100/quintal leaves no room for recycling.

 

During the first e-auction, Bihar was allocated 30,000 tonnes of rice, while Uttar Pradesh received 15,000 tonnes, West Bengal obtained 2,300 tonnes, Odisha secured 10,000 tonnes, Jharkhand was allotted 17,000 tonnes, Andhra Pradesh acquired 7,000 tonnes, Karnataka received 33,000 tonnes, and Kerala was assigned 10,000 tonnes.

 

The conditions for bidders remain the same for the rice auction as well. Bidders must possess an FSSAI license and are prohibited from reselling the rice to bulk buyers, similar to the conditions in the wheat auction.

 

Additionally, the maximum cap of 100 tonnes per entity and the requirement of having a GST number in a particular state to participate in that state's auction have been retained in the guidelines for the rice auction.

India on Monday permitted imports of potatoes from Bhutan without any license for one more year till June 2024. Earlier, it was allowed till June 30 this year.

 

'Import of potatoes...is allowed from Bhutan without any import license, up to June 30, 2024,' the directorate general of foreign trade (DGFT) said in a notification.

 

Imports of fresh or chilled potatoes stood at $1.02 million in 2022-23.

 

In a separate notification, the DGFT said that the import of 17,000 metric tonnes of fresh (green) areca nut without a minimum import price (MIP) condition from Bhutan will also be allowed through LCS (land customs station) Chamurchi (INCHMB).

 

Chamurchi is a small village in the Jalpaiguri district. It is close to the Bhutan border. INCHMB is a location code.

 

Further, in a trade notice, the directorate laid out a procedure for the allocation of quota for the export of broken rice on humanitarian and food security grounds, based on requests received from governments of other countries.

 

It has extended the last date for submission of an application for obtaining a license for the export of broken rice to Senegal, Gambia and Indonesia, up to July 6.

 

'In case of any mis-declaration by any applicant or any applicant failing to export the allocated quota to the respective country(ies), within the specified time period, will be blacklisted for the next two financial years and action under the relevant provisions of FT (D&R) Act, 1992, as amended, shall be taken against the applicant,' it said.

 

Foreign trade happens as per the Foreign Trade (Development & Regulations) Act, 1992.