India must focus on exports to achieve a 10% growth rate for the economy, said Arvind Panagariya, chairman of the Sixteenth Finance Commission.

 

'I’ve looked at successful countries such as Hong Kong, Singapore, Taiwan, South Korea, China, and India – these are the six high-growth examples. My conclusion is very clear – countries that have been open are the ones that have grown rapidly,' Panagariya said.

 

The former vice chairman of Niti Aayog further highlighted that the country needed to follow China’s strategy to increase its per-capita income and wean away from idea of import substitution.

 

'Even if we can capture the global market for a few products, that’s it! We don’t have to do anything else. That really is the China story – it acquired a very large share in certain products. And that gave China such a huge boost; for 3-4 decades, it grew at 10% a year,' he pointed out, noting that the global export market, at $32 trillion in 2022, was almost 10 times India’s GDP.

 

India’s GDP is expected to grow 7.3% in FY24, as per first advance estimate released in January. The IMF expects Indian growth to ease to 6.5% over the next two fiscal.

 

Panagariya cited the South Korea example, where growth dipped 2-3 percentage points once the country succumbed to the temptation of import substitution.

 

'I fear that in our (India’s) case, exiting this new phase of import substitution will be a challenge,' he pointed.

 

In a conversation with the Foundation for Economic Development, he also argued for states to create a favourable environment for labour-intensive industries.

 

'I think that to me is the single most important policy objective that states ought to be pursuing, particularly the larger states agriculture still dominates very heavily…And to do that, I have championed, creating special zones,' he said.

 

Panagariya also noted that the lack of reforms in manufacturing also has held back from the growth rate going to 10%.

India's rapeseed and mustard output is likely to reach a record high in 2024 due to an expansion in the planted area and favourable weather conditions in key producing states, industry officials said.

 

Higher rapeseed output will help the world's biggest vegetable oil importer to cut back on expensive imports of palm oil, soyoil and sunflower oil.

 

'Farmers have expanded area under rapeseed. Our recent survey is showing the crop is in good condition in almost all states,' B.V. Mehta, executive director of Solvent Extractors' Association of India, told Reuters.

 

Area under rapeseed has risen by around 5% from a year ago to 10 million hectares, Mehta added.

 

India produced 11.5 million metric tons of rapeseed in 2022/23 and in the current year production could rise by 300,000 to 500,000 tons industry officials said.

 

'The crop is in excellent condition. If things keep rolling smoothly in the next couple of weeks, production of 12 million tons is possible,' said Anil Chatar, a trader based in Jaipur in the north-western state of Rajasthan, the biggest producing state in the country.

 

HEAT WAVE CONCERN

Until last week, the weather was favourable but temperatures have started to rise, raising fears of a heatwave that could lead to the early maturity of crops and reduce the size of the seeds, said a New Delhi-based dealer with a global trade house.

 

In the past, higher temperatures in February and March have dashed prospects of high yields, he said.

 

In some districts of Rajasthan, the maximum temperature this week was nearly 6 degrees Celsius above normal, data from the weather department showed.

 

New season supplies would pick up from the next month, said Chatar. Rapeseed prices are trading below the government-fixed floor price of 5,650 rupees per 100 kg, and they could fall further unless the government ramps up procurement, he said.

 

India meets more than 70% of its cooking oil demand through imports of palm oil, soybean oil, and sunflower oil from Malaysia, Indonesia, Brazil, Argentina, Ukraine, and Russia.

 

Rapeseed crushing would pick up from April, and higher supplies of oil would limit imports of vegetable oils, the New Delhi-based dealer said.

ICAR-Central Citrus Research Institute, Nagpur organised a training programme on ‘Advanced Production and Post Harvest Technologies for Boosting Citrus Export’ for citrus farmers and exporters in the institute today. The program was sponsored by APEDA. The collaboration was done considering the ongoing harvest and export season in Vidarbha of Mrig bahar fruits of Nagpur mandarin.

 

Prof. Prakash Kadu, Associate Dean, College of Agriculture, Dr. P.D.K.V Akola, Nagpur was the Chief Guest for the programme, and Shri. P. A Bamane, Assistant Manager, APEDA RO Mumbai, was the Guest of Honour.

 

Dr. Dilip Ghosh, Director, ICAR-CCRI, highlighted the importance of the selection of suitable land, rootstock, and planting materials for citrus production. Dr. Ghosh urged the farmers to adopt a scientific package of practices for citrus cultivation and technologies developed by the institute and briefed them about export quality late maturing varieties of sweet orange like Cutter Valencia. He accentuated the participants to follow Good Agricultural Practices to obtain export-quality fruits.

 

Scientists from ICAR-CCRI provided technical sessions to farmers on practices, disease, and insect pest management, and post-harvest citrus management for export quality citrus fruits, involving interaction and feedback sessions.

 

About 120 citrus farmers, FPOs, FPCs, and exporters participated in the program.

India has lifted a ban on onion exports to 'offload huge stocks' and get a better price in the international market, cheering local farmers.

 

The committee of ministers headed by Union Home Minister Amit Shah on Sunday approved the export of 50,000 tonnes of onions to Bangladesh on top of 300,000 tonnes to other countries, the local media reported.

 

One of the reasons for lifting the ban is said to be huge onion stocks in Gujarat and Maharashtra, the Hindustan Times said, citing experts.

 

India imposed the ban in December to keep prices under control after drought and bad weather hit production.

 

The ban, which was to be effective until Mar 31, sent prices higher in Bangladesh because the country depends partly on supply from India.

 

Bangladeshi ministers spoke to their Indian counterparts about the issue on several occasions.

 

Foreign Minister Hasan Mahmud raised the issue in meetings with Indian External Affairs Minister S Jaishankar and Commerce Minister Piyush Gojyal earlier this month.

 

Mahmud said he urged Jaihsankar to ensure uninterrupted supply of essential commodities to Bangladesh for maintaining price stability, especially during Ramadan.

 

He also said he discussed with Goyal India’s export of perishable products to Bangladesh, including 50,000 tonnes of onions and 100,000 tonnes of sugar before Ramadan, which is expected to begin on Mar 11.

India's agricultural export landscape has witnessed a notable surge in fresh fruits, marking a 29% increase from April to December 2023, as reported by the Agricultural and Processed Food Products Export Development Authority (APEDA). This period saw Indian fresh fruits penetrating 111 global markets, a jump from the previous year's 102, thus securing their place in the over $100 million export value category. Key commodities like bananas, kesar, and dasheri mangoes have seen remarkable growth rates of 63%, 120%, and 140% respectively. Lentils and fresh eggs also posted significant increases of 110% and 160%.

 

Processed vegetables and miscellaneous items followed suit, with substantial growth, contributing to the positive trajectory of 18 out of 23 Principal Commodities in APEDA's basket. The fiscal year 2022-23 saw India's agricultural exports hitting $53.1 billion, with APEDA commodities making up 51% of this figure, underscoring the sector's robust performance.

The Agricultural and Processed Food Products Export Development Authority (APEDA), under the Ministry of Commerce and Industry, facilitated the export of bananas from India to Russia via Sea by M/s. Gurukrupa Corporation Pvt. Ltd. a Mumbai-based exporter of fruits and vegetables regularly exporting fresh fruits and vegetables to the EU and the Middle East. 

 

A consignment of 20 MT (1540 boxes) of bananas was flagged off on 17th February 2024 from Maharashtra by Chairman, APEDA, Shri Abhishek Dev in a collaborative effort with the Central Institute of Sub-tropical Horticulture (CISH). APEDA highlighted the development of sea protocol employed for this shipment by CISH to maintain the quality of fruit in transit.

 

Chairman APEDA highlighted APEDA’s financial assistance scheme, which now is putting special emphasis on supporting women entrepreneurs. He applauded the contribution of CISH in the development of the sea protocols and congratulated all personnel for a successful flag-off.  

 

Recently, Russia has shown keen interest in the procurement of tropical fruits from India with bananas being one of them, which significantly is a major Agri import of Russia, which was presently, primarily being imported from Ecuador, in Latin America.

 

The major export destinations for Indian bananas include Iran, Iraq, UAE, Oman, Uzbekistan, Saudi Arabia, Nepal, Qatar, Kuwait, Bahrain, Afghanistan, and the Maldives. Additionally, the USA, Russia, Japan, Germany, China, the Netherlands, the UK, and France present India with abundant export opportunities.

 

M/s. Gurukrupa Corporation procured bananas directly from farmers of Andhra Pradesh. After harvesting, bananas were brought to an APEDA-approved packhouse in Maharashtra where it was graded, sorted, packed, boxed, and stuffed in containers. The container was transported to JNPT for further voyage to Novorossiysk port, Russia for the final destination at Moscow Russia.

 

Banana is a major horticultural produce with Andhra Pradesh being the largest banana-producing state in India, followed by Maharashtra, Karnataka, Tamil Nadu, and Uttar Pradesh. These five states collectively contribute around 67 percent to India’s banana production in the fiscal year 2022-23.

 

Despite being the largest global producer of bananas, India’s exports do not reflect this quantitative evaluation. India’s export share in the global market is only 1% even though the country accounts for 26.45 percent of the world’s banana production (35.36 Million Metric Tons). In the fiscal year 2022-23, India exported bananas worth USD 176 million, equivalent to 0.36 MMT. 

 

Within the next five years, Banana exports from India are expected to achieve the target of 1 billion USD. This achievement will ensure an increase in farmers’ income and improve the livelihood of more than 25,000 farmers and is estimated to generate employment for more than 50,000 aggregators directly or indirectly linked to the supply chain.  

 

India, South Africa and Brazil can play a critical role in getting successful outcomes on the issues of fisheries and agriculture, along with the ecommerce moratorium, at the upcoming ministerial of the World Trade Organization (WTO), its director general Ngozi Okonjo-Iweala said.

 

Free trade agreements are not taking precedence over multilateralism, she said in an exclusive interview with ET,ahead of the 13th ministerial conference (MC13) in Abu Dhabi during February 26-29.

 

'We look at India as a leader, and we think that as a leader, India has a lot to do in terms of making sure we have a successful MC13,' she said.

 

G20 Troika Should Support UAE

Okonjo-Iweala added that New Delhi was 'instrumental at MC12 in helping to get to success.'

 

India, Brazil and South Africa are the troika of the G20, the WTO DG said. 'We hope they will work together to ensure MC13 is a success... the entire package… not one issue or the other… it is across the board,' she told ET.

 

'Not just G20, they are also BRICS (members)… they should support the UAE to ensure the UAE is a successful host, like it was for COP28,' she said, referring to the climate summit held late last year in Dubai.

 

Okonjo-Iweala said all three countries have to play a critical role in outcomes on fisheries, agriculture and ecommerce.

 

'We're trying to also (put) together a package of measures that developing countries want, which they think can help them, especially the least developed countries,' she said.

 

As many as 122 WTO members are discussing an agreement on investment facilitation for development, of which 85 are developing countries that want this pact. 'It’s a plurilateral that they are trying to insert into the legal framework of the WTO. So, support for that will be very welcome,' she said.

 

DISPUTES & PACTS

On WTO reforms and ending the impasse in the appellate body, she said there is a misconception about the dispute settlement system — that it’s not functioning at all. 'That is not the case,' Okonjo-Iweala insisted.

 

The system has two levels — the panel level and the appellate body. She said the panel level is functioning. 'The dispute settlement system is still managing to handle cases. The second tier — the appellate body — is still not working, but members need to find substitutes for that tier,' said Okonjo-Iweala, adding that this is one area where all members still need to come together to try to deliver a fully functioning dispute settlement system.

With the negotiations for the proposed India-UK free trade agreement reaching an advanced stage, the Prime Minister's Office reviewed the progress of the talks on February 16, sources said. Commerce and Industry Minister Piyush Goyal and Commerce Secretary Sunil Barthwal were also present in the meeting, they said.

 

'The talks for the agreement are at a crucial stage now. About three reviews have happened so far at the highest level,' they said, adding both countries are working to iron out differences on the remaining issues.

 

The commerce secretary recently stated that the negotiations were taking time because 'we want' to safeguard India's interest.

 

'India should commercially gain out of it and we should also be able to safeguard the interest of our farmers, PLI (production linked incentive) scheme goods. So, we are there to see that the deal is a fair deal,' he said.

 

So far 13 rounds of talks have been completed and the 14th round started on January 10.

 

Some of the key issues involved in the pact include customs duty cut on electric vehicles and whiskey and the movement of professionals. Talks are also progressing on the proposed bilateral investment treaty (BIT).

 

India and the UK launched the talks for a free-trade agreement (FTA) in January 2022.

 

There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights.

 

The Indian industry is demanding greater access for its skilled professionals from sectors like IT, and healthcare in the UK market, besides market access for several goods at nil customs duties.

 

On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, automobiles, lamb meat, chocolates and certain confectionary items.

 

Britain is also looking for more opportunities for UK services in Indian markets in segments like telecommunications, legal and financial services (banking and insurance).

 

The bilateral trade between India and the UK increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22.

Prime Minister Narendra Modi on Monday reiterated his government's commitment to support farmers in exploring new avenues in agriculture. Addressing an event in Lucknow in Uttar Pradesh, the prime minister emphasized the importance of working towards a common goal of having Indian food products on dining tables across the globe.

 

His remarks came amid a protest by a section of farmers over their various demands such as a legal guarantee for minimum support price for crops.

 

'We are assisting and encouraging farmers to take our country's agriculture on a new path,' he said.

 

He emphasised the focus on natural farming and millets. 'This is the right time for investment in superfoods like millets,' he said.

 

He cited the emergence of large-scale natural farming along the banks of the Ganges in Uttar Pradesh, which not only benefits farmers but also helps preserve the purity of sacred rivers.

 

The prime minister appealed to food processing entrepreneurs to prioritise the mantra of 'zero effect, zero defect' in their endeavours.

 

He highlighted the success stories of products such as Siddharth Nagar's kalanamak rice and Chandauli's black rice, which are now being exported in significant quantities, and pitched for collective efforts to take Indian food items to people across the world.

 

The prime minister encouraged entrepreneurs to form partnerships with farmers, underscoring the government's efforts in empowering small-scale farmers through farmer producer organisations and cooperative societies, which present opportunities for mutually beneficial partnerships.

 

'Benefit to farmers and agriculture is good for your business too,' Modi told the investors.

 

On Uttar Pradesh's pivotal role in driving the rural economy and agriculture-based economy of India, the prime minister called upon stakeholders to maximize the benefits of this opportunity.

 

He expressed confidence in the capabilities of the people of Uttar Pradesh and the efforts of the 'double-engine government' in laying the foundation for the state's and the nation's progress.

 

Modi launched 14,000 projects across Uttar Pradesh worth more than Rs 10 lakh crore at the fourth ground-breaking ceremony here on Monday for investment proposals received during the UP Global Investors Summit.

 

The projects relate to sectors such as manufacturing, renewable energy, food processing, housing and real estate, hospitality and entertainment, and education.

 

Uttar Pradesh Governor Anandiben Patel, Defence Minister Rajnath Singh, Chief Minister Yogi Adityanath, and several industrialists and representatives of top global and Indian companies attended the event.

 

Modi's remarks on agriculture and rural economy came amid a protest by a section of farmers over their various demands.

 

Farmers from Punjab began their march to Delhi on February 13 but were stopped by security personnel at Shambhu and Khanauri points on Punjab's border with Haryana.

 

Thousands of protesting farmers have been camping at the Punjab-Haryana border since as part of their 'Delhi Chalo' march.

 

Besides a legal guarantee for MSP, the protesting farmers are demanding the implementation of the Swaminathan Commission's recommendations, pension for farmers and farm labourers, farm debt waiver, no hike in electricity tariff, and reinstatement of the Land Acquisition Act of 2013.

The 3rd meeting of AITIGA Joint Committee for undertaking the review of ASEAN-India Trade in Goods Agreement (AITIGA)  was hosted by India in Vanijya Bhawan, New Delhi from 16-19 February 2024. The meeting was co-chaired by Shri Rajesh Agrawal, Additional Secretary, Department of Commerce, Ministry of Commerce and Industry, India and Ms. Mastura Ahmad Mustafa, Deputy Secretary General (Trade), Ministry of Investment, Trade & Industry, Malaysia. Delegates from ASEAN countries viz. Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand & Viet Nam participated in the meeting.

 

The AITIGA was signed in 2009.  In September 2022, both sides tasked the AITIGA Joint Committee  to undertake the review with the aim of making the Agreement more trade facilitative and mutually beneficial. A total of eight Sub-committees have been constituted under the AITIGA Joint Committee for undertaking negotiations on different policy areas related to the Agreement. The   first two meetings of  the Joint Committee were held in  May and August 2023.

 

The Joint Committee in its 3rd meeting held detailed discussions and took stock of the progress in the  negotiations.  The Sub-Committeesreported the progress and outcome of their discussions related to market access, Rules of Origin and Standards, technical regulations and conformity assessment procedures to the Joint Committee.  Following the   intense discussions, the Joint Committee outlined the  focus areas for  further deliberations  and updated the work programme  for  the Review  while providing necessary guidance to the Sub-committees to carry forward the negotiations.

 

India-ASEAN trade has grown to USD 131.58 Bn in 2022-23. The review of AITIGA will facilitate further expansion of trade between India and ASEAN in a balanced and sustainable manner.Both sides are aiming to conclude the review in 2025. The 4th meeting of AITIGA Joint Committee is planned to be held in Kuala Lumpur, Malaysia in May 2024.