India and the United Arab Emirates are looking to identify and incorporate commodities to diversify trade between the two countries, UAE ambassador to India 8said in an interview. The diversification of traded commodities can broaden the scope of economic cooperation and make local currency transactions even more versatile, Alshaali said in an email interview. He added that India, Europe, and the Middle East MoU for the India-Middle East-Europe Economic Corridor (IMEC) could potentially reduce shipping costs and facilitate efficient trade in goods and services. On the recent approval of 75,000 tonnes of non-basmati white rice for export from India to the UAE, he stated that Indian rice has earned a reputation for its quality and flavour, making it a preferred choice in the UAE and many other countries.

 

Local currency trade is picking up between India and the UAE. Do you think this will help usher in a new era of trade ties between the two countries? What is the vision for this going forward?

 

Yes, the increasing trend of local currency trade between India and the UAE has the potential to usher in a new era of trade ties between the two nations. This development signifies a commitment to strengthening economic cooperation and reducing reliance on foreign currencies, which can streamline the trade processes and reduce transaction costs. The vision includes expanding the use of our respective national currencies, the UAE dirham and the Indian rupee, in various trade transactions. By promoting direct exchange rates, facilitating the settlement of trade transactions, and encouraging the use of local currencies, both countries aim to foster deeper economic integration. This move is expected to facilitate bilateral trade, encourage direct investment, and improve financial transfers, ultimately enhancing the robustness of our trade relations and contributing to economic growth and stability in both nations.

 

Currently, the local currency trade has begun with gold and oil. Are both countries discussing other commodities to add to these items?

 

The framework outlined in the MoUs signed by CBUAE and Reserve Bank of India (RBI) seeks to promote the use of the national currencies in commercial transactions, which would contribute to the development of the foreign exchange market, facilitate bilateral trade, encourage direct investment, and support economic growth and financial stability. The diversification of traded commodities can broaden the scope of economic cooperation and make local currency transactions more versatile. Discussions are ongoing to identify and incorporate commodities of mutual interest and benefit both nations.

 

Considering global trade is expected to shrink, what is the UAE’s strategy to better use the FTA and boost trade with India? India and the UAE are trying to push non-oil trade. Would this include the UAE increasing its imports from more sectors in India?

 

Coming into force on 1 May 2022, the UAE-India Comprehensive Economic Partnership Agreement (CEPA) is the UAE’s first CEPA and a cornerstone of our new foreign trade agenda. The agreement eliminated or reduced tariffs on more than 80% of product lines, created new platforms for SME collaboration and promoted mutual investment flows, particularly into priority sectors.

 

The signing of the CEPA has contributed to strengthening economic ties between India and the UAE. Both countries are committed to expanding their partnerships across various sectors, focusing on sustainable growth. The agreed UAE-India CEPA Council (UICC) will function as a B2B collaboration mechanism, with a focus on MSMEs and start-ups, for building greater economic linkages and optimising CEPA benefits. Integration of activities will take place under the CEPA council and established committees/sub-committees.

 

Initial figures indicate that from May 2022 to April 2023, the first 12 months of the CEPA, bilateral non-oil trade reached a value of US$50.5 billion, a 5.8% increase on the same period from the previous year. It is commendable to see the effectiveness of the CEPA in promoting trade and investment, and both countries are committed to building a mutually beneficial partnership that delivers long-term prosperity.

 

What ambitions does the UAE have for the newly announced India-Middle East-Europe Economic Corridor? How does it compare to existing connectivity initiatives?

 

India, Europe, and the Middle East MoU for the India-Middle East-Europe Economic Corridor (IMEC) is a significant initiative that aims to boost connectivity, trade, and sustainability among participating countries. The UAE’s involvement in IMEC is expected to be multifaceted, leveraging its strategic location, trade expertise, and commitment to environmental conservation to contribute positively to the success of the corridor and strengthen international partnerships.

 

IMEC represents a collaborative effort involving multiple countries, showcasing the willingness of nations to work together for mutual economic and environmental benefits.

 

The UAE’s strategic geographical location and well-developed infrastructure, particularly its ports and transportation networks, make it a key player in enhancing connectivity within the IMEC. The country can serve as a vital hub for the transit of goods and services.

 

The IMEC initiative aims to create an extensive economic corridor comprising two pathways - the east corridor, connecting India to the Arabian Gulf, and the northern corridor, connecting the Arabian Gulf to Europe. This will significantly enhance connectivity and integration between these regions, fostering economic growth, trade, and cooperation.

 

By reducing shipping costs and facilitating efficient trade in goods and services, IMEC has the potential to boost the economies of the participating countries. This corridor can serve as a crucial trade route, benefiting not only India, Europe, and the Middle East but also the global economy.

 

The UAE announced a $2 billion investment in India ‘food parks’ to tackle food security in South Asia and the Middle East, the UAE, India, the US, and Israel last year. What is the status of this project, and how has the progress been?

 

The UAE’s announcement to invest $2 billion to set up food parks across India is part of efforts by I2U2, to help tackle food insecurity in South Asia and the Middle East. The US and Israeli private sectors will be roped in for technologies to reduce food waste and spoilage, conserve fresh water, and employ renewable energy sources at the food parks.

 

We are currently working on this with all partners of the group to establish the parks, and several meetings have taken place for the next steps.

 

On 25 September, India allowed exports of 75,000 tonnes of non-basmati white rice to the UAE. Will it be sufficient for the country, or is it going to request more quantity as it prefers Indian rice more than other nations? How is the UAE coping after India’s non-basmati white rice export ban? Has the UAE asked India to remove the ban on non-basmati white rice?

 

There is a strong and cooperative relationship between India and the UAE in the realm of rice trade. The recent approval of 75,000 tonnes of non-basmati white rice for export from India to the UAE is a testament to the enduring partnership between our two nations. While this specific quantity of rice is significant, it is essential to recognise that both India and the UAE share a mutual interest in promoting bilateral trade and addressing food security concerns. Our governments remain committed to facilitating trade that benefits the populations of both countries.

 

Regarding the UAE’s preference for Indian rice, historical and cultural ties have fostered this preference. Indian rice has earned a reputation for its quality and flavour, making it a preferred choice in the UAE and many other countries. We value this preference and aim to meet the UAE’s rice needs to the best of our abilities.

 

As for India’s export ban on non-basmati white rice, it is essential to consider that these trade measures are taken in response to domestic factors, such as food inflation concerns and weather patterns affecting rice production. Both India and the UAE are committed to fostering a robust and harmonious trade relationship that addresses food security, promotes economic growth, and respects the preferences of our trading partners. We will continue to work closely together to ensure that our trade ties remain strong and mutually advantageous.

 

Recently, the climate change minister said in an interview that the UAE, through COP28, is trying to get $100 billion as far as climate financing is concerned and that the country would soon be sending the declaration draft on climate finance and food security. Has it been sent to the member countries yet?

 

In the context of COP28, the UAE is actively working towards making climate finance more affordable, available, and accessible. As part of these efforts, we are collaborating with international financial institutions (IFIs), multilateral development banks (MDBs), the International Monetary Fund (IMF), the World Bank, and GFANZ to leverage capital markets, standardize voluntary carbon markets, and incentivize private capital and finance for climate action. Additionally, we have engaged with the G20 High-Level Expert Group to design a modernised approach to climate finance. We emphasise the urgency of climate financing, and a call on donor countries is underway.

India has validated exports of rice to seven countries including Côte d’Ivoire, Cameroon, Guinea and Seychelles several months after banning the export of the crop in view of meeting the needs of the domestic market and reducing increasing prices.

Per the decision to lift the ban, ‘Sika Finance’ reports, India will send 1.34 million tons to the seven countries. 474,000 tons of the shipment will go to the African countries, 190,000 tons to Cameroon and 142,000 tons for Côte d’Ivoire and Guinea.

The Asian country which is also world’s leading rice exporter, in July 2023 banned the export of NBW (Non-basmati white) rice (semi-milled or wholly milled, whether polished or not, glazed).

The move sent shock waves through the Asian market and global market for the staple food.

Côte d’Ivoire, the African continent’s largest importer, 41 per cent of Indian exports felt the blow with rice prices shooting up. Cameroon is the second market of the Indian rice exports on the continent, 25 per cent. The country’s Trade minister Magloire Mbarga Atangana, ‘Sika Finance’ reports, said the new shipment to Cameroon will cover three-month needs.

Both Côte d’Ivoire and Cameroon have pledged to reduce their dependence on India or imports. Yaounde in May 2023 proposed $620 million to support rice production. The central African country expects to produce 750,000 tons of rice by 2030.

Côte d’Ivoire on the other hand rolled out a 2020-2030 plan backed by a $241 million budget in view of reaching self-dependence by 2025.

India has told the World Trade Organization (WTO) that there is no evidence that its wheat exports were harming the food security of other countries or distorting trade.

 

At an agriculture negotiation meeting on Thursday, New Delhi said that the global trade body's 13th Ministerial Conference next year should centre around a food security package, with a solution for public stockholding at its core.

 

'India said that gone are the days when we were the discipline taker and had no knowledge and wisdom to talk about a subject that concerns us,' said a Geneva-based official. India's statement comes ahead of a senior officials meet of the 164 members of the WTO on October 23-24 which would provide political direction to negotiators for MC13. 'India also asked some members to set aside arrogance by denying its way of contributing to food security in its own country and others,' the official said.

 

At the meeting, New Delhi said that it has never been a wheat importer but managed to provide its neighbors with around 200 tonnes of wheat in 2020-2021 during the Covid-19 pandemic.

 

'India said there is no evidence from challengers that its wheat exports were either harming the food security of other countries or distorting trade,' the official said.

 

India's ask for a food security package has found support from around 80 countries including China, South Africa, G33 and the African Group who emphasized the urgency of delivering a permanent solution on public stockholding at MC13. Public stockholding is a policy tool used by governments to purchase, stockpile and distribute food when needed. Developing countries' food subsidies are protected by an interim peace clause, which shields food procurement programmes against action from WTO members in case the subsidy ceilings-10% of value of food production in the case of India and other developing countries-are breached.

 

As per the official, the EU reiterated its support for India and the proponents' attempt to find a permanent solution to the public stockholding issue.

According to US almond industry officials, the formal removal of retaliatory tariffs on agricultural products going into India will boost demand in that nation. Agreed to in June, the tariff removal took effect in early September, bringing the tariff rate back down to Rs 35 per kilogram on inshell and Rs 100 per kg on kernels. The tariffs had been Rs 41 per kg on inshell and Rs 120 per kg on kernels.

 

Julie Adams, the Almond Board of California’s vice president for technical and regulatory affairs, stated: 'We are very happy to see the retaliatory tariffs removed, which will both help increase demand in India and reduce the cost to consumers there. The almond industry has been working hard along with government officials to reduce the impediments for exports of California almonds to India, which is our largest export destination. We continue to discuss further opportunities to improve export conditions related to tariffs and technical barriers.'

Made with raw full fat milk, Kalari is our Indian version of Mozzarella cheese. This culinary dairy product is indigenous to Udhampur and popular in the district along with Jammu. While this is there, it is on the cusp of speeding wings in other parts of the country as the product has got GI (Geographical indicator) Tag.

 

While speaking to Indian Masterminds DC Udhampur Ms. Saloni Rai said, 'GI tag indicates the origin and special qualities of any product that comes with that.

 

Now that Kalari got GI tag, we are hopeful that in future it will continue to be the identity of the district.' When asked about the role of administration in getting the GI tag she said that application was pursued by a local. However, later it was supported by the Union Territory administration.

 

'It is quite happy news as such a unique product has been branded. This wouldn’t have beene possible without the help of locals and top leadership', said the collector.

 

ROLE OF SELF HELP GROUPS

 

Kalari cheese is a perishable item. It can only be stored at sub zero temperatures that too for a very dirty period. That’s why, even though it is popular in Jammu & Udhampur, the rest of the country is not aware about it.

 

Currently more than thousand people are involved in making and selling of this product. The collector said that they are going to encourage more and more people to get involved in the business of Kalari. They are also promoting Kalari among the self-help groups who can sell to other areas also. Besides this, the local branding of the product has already started. District administration is taking to the social media to increase awareness about this product.

 

The product will be given more identity and recognition in the coming festivals & fares. 'Lot of brading has started locally also. There are many cafes which promote Kalari like ‘Kalari Factory’, ‘I Love Kalari’. Now, our focus is to provide it more national recognition', said the collector.

 

HOW IS KALARI PREPARED

This food snack is made from raw milk separated by using soured milk. Then the solid part is turned in small flat pancake shape and dried in the sun. This process makes it dry from outside and yet moisture is retained on the inside. It is served after adding a little bit of salt and dry roasting in a flat pan using the fat container inside the cheese. It is mainly made and consumed in the Ramnagar sub-division of Udhampur. Usually, the cheese is eaten with chutney like chaat but sometimes, it is served with Kulcha too.

 

Ms. Rai believes that Kalari will give the name & recognition to Udhampur which it lacked till now.

In recent years, India has witnessed a significant shift in consumer preferences towards ready-to-eat (RTE) and convenience foods. Various factors, including busy lifestyles and urbanisation drive this transformation in dietary choices. However, one of the most notable drivers of this growth is the increasing demand for sustainable packaging.

 

Ready-to-eat (RTE) foods have gained immense popularity in India, and this trend shows no sign of slowing down. Urbanisation, the rise of working couples, and hectic schedules have led to an increased demand for convenient but healthy meal options. RTE products, which range from instant noodles to authentic Indian cuisines as microwaveable dinners, cater to these needs by offering quick and easy meal solutions.

 

While convenience is a major driver, consumers in India are becoming increasingly conscious of the environmental impact of their choices. Therefore, brands are now concentrating on sustainability in packaging to reach environmentally conscious customers. The consumer today is looking for products that align with their values, including sustainable packaging. This has incentivised RTE brands, including many mass-produced brands, to shift to green packaging.

 

Sustainable packaging, which includes materials like biodegradable plastics, paper-based packaging, and reusable containers, offers several advantages. Sustainable packaging materials have a lower carbon footprint compared to traditional plastics. They decompose more easily and produce fewer greenhouse gas emissions. Thus, brands that embrace sustainability in their packaging are viewed more favorably by consumers. It signals a commitment to responsible business practices.

 

This shift in consumer preferences has propelled ready-to-eat (RTE) and mass-produced food brands to adopt sustainable packaging solutions. However, balancing sustainability with cost-effectiveness remains a significant challenge. Here’s how RTE food brands are addressing this challenge, highlighting innovative approaches and strategies to cater to eco-conscious consumers.

 

Material and Efficiency

To meet sustainability requirements cost-effectively, RTE food brands are prioritising material selection. Switching to eco-friendly materials such as biodegradable plastics, recycled paper, or compostable packaging helps reduce the environmental footprint. Brands also focus on optimising material use through efficient packaging designs, min-imising waste and costs simultaneously.

 

reducing - Many brands are adopting minimalist packaging, reduc-ing excess materials and unnecessary features. This not only aligns with sustainable principles but also reduces production costs. Streamlined packaging often appeals to environmentally conscious consumers who appreciate the simplicity and reduced waste.

 

Innovative Packaging Technologies - RTE food brands are embracing cutting-edge packaging technologies like modified atmosphere packaging (MAP) and vacuum packaging. These techniques extend product shelf life, reducing food waste and the need for excessive packaging.

 

Locally Sourced produce - Brands are reevaluating their supply chains by sourcing ingredients locally. This not only reduces carbon emissions associated with transportation but also supports local economies. Shorter supply chains enhance food freshness, reducing the need for excessive packaging and preservatives, making it a cost-effective, sustainable solution.

 

The intersection of the ready-to-eat market and sustainable packaging is a prime example of how consumer preferences can drive positive change. As India’s middle class expands and environmental awareness grows, the demand for convenient yet eco-friendly options will continue to rise.

 

The RTE market in India has taken note of the sustainability imperative and is adapting accordingly. Companies are investing in research and development to find sustainable packaging alternatives. This includes experimenting with compostable materials, plant-based plastics, and reusable containers. Brands are highlighting their sustainable packaging choices in marketing campaigns to attract environmentally conscious consumers. Packaging is becoming a significant selling point. Some RTE manufacturers are partnering with packaging companies specialising in sustainable solutions. These collaborations allow for the integration of innovative packaging into the product supply chain.

 

Meeting the demands of environmentally conscious consumers in a cost-effective manner is a challenge that RTE food brands are actively addressing. Through material efficiency, minimalist packaging, innovative technologies, local sourcing, recycling, and consumer engagement, they are striking a balance between sustainability and affordability. These strategies not only satisfy eco-conscious customers but also con-tribute to long-term cost savings and a positive brand image. In a world increasingly concerned about the environment, embracing sustainability is not just an option—it’s a necessity for RTE food brands to thrive in the market.

In FY2023, India's merchandise exports reached $451 billion as against $421 billion in FY2022. Coincidentally, both the products and the states contributing to it remained similar. The states which contributed to the major share of these were: Gujarat (33 per cent), Maharashtra (16 per cent), Tamil Nadu (9 per cent), Karnataka (6 per cent), and Uttar Pradesh (5 per cent).

 

A deeper analysis of the districts showed that just 10 districts constituting less than 1.5 per cent of the 766 districts across India are contributing to 41 per cent of the country’s exports. These include, in ascending order of contribution: Jamnagar, Surat, Mumbai, Mumbai Suburban, Kanchipuram, Pune, Bharuch, Gautam Budh Nagar, Ahmedabad, and Kachchh. This extremely high concentration of exporting districts is something to ponder about.

 

Policymakers need to focus on the ‘missing middle-export districts’. An analysis of the districts which have exports between $1 billion to $5 billion, shows that there are 59 districts or ‘missing middle-export districts’ which have the potential to ease the current high concentration in just 10 districts. This also amplifies the significant potential that exists to garner higher exports.

 

These 59 districts are spread across 20 states and union territories, and currently constitute 29 per cent of India’s exports in FY2023.

 

Such diversification will also bring in a holistic export growth paradigm while also helping various other districts in India to grow and develop.

 

Recently, India introduced the ODOP-DEH (One District One Product-Districts as Export Hubs), which was also mentioned in the new foreign trade policy. The initiative aims at fostering balanced regional development across the identified 734 districts under it, while promoting one product from each district.? The objective is to work with manufacturers and producers across districts along verticals like design, production, manufacturing, packaging, and market creation to boost sales both in the domestic as well as international markets.

 

What the government could do is roll out the ODOP-DEH across the 734 districts at a later stage after it has focused on the 59 ‘missing middle-export districts’, thereby reducing the current anomaly at the district level for exports.

 

In most cases, there is a significant synergy between the products identified under ODOP-DEH, though there also exists some divergences. For instance, the key exports worth $1.6 billion from Sonipat in Haryana include leather products, footwear, engineering goods, and plastic products. However, the ODOP-DEH mentions the focus to be on ‘industries’, without specification which one. This is contrary to the ODOP-DEH, which envisages capitalising on a unique product from each district, with the goal to uplift the local community, and create a multiplier effect on the local economy.

 

Another such example is Karnataka's Kolar district where the major export today is smartphones — which form about 89 per cent of its total exports. Under the ODOP-DEH initiative, Kolar has been identified with a diverse range of products, from mango, colour capsicums, millet ragi, mango pulp, processed pulses, spices, engineering, aerospace and defence components, automobiles, phones, apparel to many others. Concentrated attention may be the way forward here.

 

The crux towards having a successful ODOP-DEH would be when new export districts beyond the perennial ones are provided an opportunity in terms of new companies and greater capex being set up.

 

The ODOP-DEH can also learn from similar initiatives abroad. For instance, Japan's ‘One Village, One Product’ (OVOP) initiative underscores the importance of community involvement and the preservation of cultural heritage. Thailand's experience highlights the significance of sustainable growth and the incorporation of modern techniques while staying true to traditional skills. Mexico, the Philippines, and Ghana offer insights into creating an environment where local products become a source of pride and economic empowerment.

 

The ODOP-DEH’s possible focus on the identified 59 ‘missing middle-export districts’ in all probability will help to reduce the existing export concentration, while also augmenting India’s overall export share globally, which has been hovering around 2 per cent for a long time. Such efforts will build upon India’s ambition to have $1 trillion in merchandise exports by 2030.

 

A focus on these ‘missing middle-export districts’ would be a good step towards transforming India's diverse districts into thriving centres of excellence on the global stage. By further developing newer districts, India will be able to create more export hubs which would usher in a new growth story.

Russia is considering a formal Indian request to expand the list of Indian suppliers for buffalo meat, seafood and other livestock products amid ongoing talks to open mutual access for agricultural products, Russian trade commissioner Alexander Rybas said.

 

The two countries, Rybas said in an email interview, are also discussing the development of the Northern Sea Route (NSR) to serve as an alternative transportation route for goods to Asian markets. 

 

What are the plans for boosting agri trade?

Russia and India have been conducting long-term negotiations on the mutual opening of access to crop and animal husbandry products. There is some progress here. In January 2023, regulatory authorities of the two countries agreed on veterinary certificates for the export of sheep wool, leather raw materials and animal feed from Russia to India.

 

This year, we plan to open mutual access for a number of agricultural products. Currently, Russia is considering India’s application to expand the list of Indian suppliers of buffalo meat, seafood and aquaculture, as well as other livestock products. In addition, negotiations are underway between major Russian importers and Indian producers of tropical canned fruit (mango, pineapple, avocado, etc.).

 

India and the Eurasian Economic Union planned to resume talks on an FTA. What has been the progress?

The Union is ready to resume negotiations with India on concluding a free trade agreement. Currently, it is difficult to make any forecasts on the timing of the conclusion of the agreement, but even now we see and understand the significant benefits of concluding a free trade agreement for both the Eurasian Economic Union (EAEU) and India, including in terms of the possible implementation of future joint projects. Businesses of the Union countries also actively support the transition to preferential treatment.

 

Are India and Russia exploring the possibility of creating a new sea corridor similar to the Northern Sea Route?

The Indian side expressed interest in participating in the project for the development of the Northern Sea Route (NSR). In fact, this is a continuation of the Chennai-Vladivostok sea route, and the NSR may become an alternative way of delivering goods to Asian markets in the future. Already, in the context of the rapid growth of cargo traffic (in 2021, cargo traffic amounted to 34.9 million tons, and by 2024 it is planned to reach the figure of 80 million tons), the Indian side has requested from the Russian side an assessment of the current economic feasibility in terms of transport costs compared to alternative transport routes and long-term prospects for the development of the NSR, including the possible participation of India in specific projects. Moreover, in May 2023, an Indian delegation visited the ports of Vladivostok, Vostochny, Nakhodka and Kozmino, which contributed to understanding the requirements for the full-scale commissioning of the Eastern Sea Corridor. In general, it should be noted that India has a special interest in the Russian Far East. The area, a vast territory designed to become Russia’s calling card in Asia, is open to Indian business and, as expected, should become one of the platforms for deepening economic partnership between the two countries.

 

What are the engineering goods Russia is looking to import from India?

The Russian industry is confidently following the path of import substitution, which has intensified after many Western companies left our market. This process requires some time, which provides good opportunities for further increasing Indian imports, as well as investments.

 

Russia has formed a significant competence in the infrastructure of roads and railways, ports and airports and is ready to offer the necessary technologies, equipment and experience to help India implement its infrastructure project.

The Indian government yesterday approved export of 170,000 metric tonnes of non-Basmati white rice to Malaysia as mark of special friendly gesture between the two countries.

 

'The decision by the Government of India is reflective of the close ties between India and Malaysia and in line with India’s continued policy of supporting efforts of governments in the friendly countries towards safeguarding domestic food security,' according to the Indian High Commission in Kuala Lumpur.

 

The decision to allow special allocation of white rice to Malaysia was conveyed by Indian External Affairs Minister S Jaishankar to Malaysian Foreign Minister Datuk Seri Zambry Abdul Kadir over a telephone call on the same day, it added.

 

Zambry expressed his appreciation to the Government of India for extending support to the Malaysian people in view of the current supply situation.

 

The necessary notification for the export of the special quota of non-white Basmati rice for Malaysia has been issued by Indian Directorate General of Foreign Trade on October 18, it added.

 

Since September, consumers in Malaysia have witnessed a significant increase in the price of imported white rice due to the global rice supply disruption caused by climate change and export restrictions imposed by major rice-exporting countries, including India.

A committee of secretaries chaired by the cabinet secretary, on Thursday, took stock of the status of the ongoing talks under India-UK free trade agreement on issues such as rules of origin, tariffs and phasing out of duties to iron out the knotty areas.

 

According to people familiar with the development, the commerce department made a detailed presentation on the pending issues in the run-up to the finalisation of the trade pact, which is expected to be inked later this month in the presence of UK Prime Minister Rishi Sunak.

 

'Trade negotiations with the UK are happening at a fast pace. A committee of secretaries was briefed about the pact,' said an official.

 

Senior officials from the departments of agriculture, pharmaceuticals, food processing, finance and heavy industries took part in the meeting, a key step in the run up to inking of the trade pact.

 

Last week, senior commerce and industry ministry officials made a presentation to the Prime Minister's Office on the agreement and the two sides are engaged in hectic negotiations.

 

It will be New Delhi’s first such comprehensive deal with an industrialised nation that seeks to spur bilateral annual business beyond the current $20 billion.

 

The pact will have 26 chapters. Product-specific rules, value addition, change in the chapter heading, and certification are being discussed in the rules of origin chapter, where an in-principle agreement has been reached.

 

'Since the supply chains of the UK and EU are closely integrated, the UK is keen on liberal rules of origin and this is a sticking point,' said a trade expert.

 

India has sought assurance that the UK will not be used to route goods from other countries, as New Delhi is keen to check its burgeoning trade deficit that hit $263 billion in the 2022-23 financial year, up from $191 billion the year earlier.