The US surpassed China to become India's top trading partner in 2021-22, reflecting strengthening economic ties between the two countries. According to the data of the commerce ministry, in 2021-22, the bilateral trade between the US and India stood at USD 119.42 billion as against USD 80.51 billion in 2020-21.

 

Exports to the US increased to USD 76.11 billion in 2021-22 from USD 51.62 billion in previous fiscal year, while imports rose to USD 43.31 billion as compared to about USD 29 billion in 2020-21.

 

During 2021-22, India's two-way commerce with China aggregated at USD 115.42 billion as compared to USD 86.4 billion in 2020-21, the data showed.

 

Exports to China marginally increased to USD 21.25 billion last fiscal year from USD 21.18 billion in 2020-21, while imports jumped to USD 94.16 billion from about USD 65.21 billion in 2020-21. Trade gap rose to USD 72.91 billion in 2021-22 from USD 44 billion in previous fiscal year.

 

Trade experts believe that the trend of increasing bilateral trade with the US will continue in the coming years also as New Delhi and Washington are engaged in further strengthening the economic ties.

 

Federation of Indian Export Organisations Vice President Khalid Khan said India is emerging as a trusted trading partner and global firms are reducing their dependence only on China for their supplies and are diversifying business into other countries like India.

 

'In the coming years, the bilateral trade between India and the US will continue to grow. India has joined a US-led initiative to set up an Indo-Pacific Economic Framework (IPEF) and this move would help boost economic ties further,' Khan said.

 

Rakesh Mohan Joshi, Director of the Indian Institute of Plantation Management (IIPM), Bangalore, too said that India is home to 1.39 billion people with the world's third largest consumer market and the fastest growing market economy with unparalleled demographic dividend provides enormous opportunities for the US and Indian firms for technology transfer, manufacturing, trade and investment.

 

'Major export items from India to the US include petroleum polished diamonds, pharmaceutical products, jewellery, light oils and petroleum, frozen shrimp, made ups etc. whereas major imports from the US include petroleum, rough diamonds, liquified natural gas, gold, coal, waste and scrap, almonds etc,' Joshi said.

 

America is one of the few countries with which India has a trade surplus.

 

In 2021-22, India had a trade surplus of USD 32.8 billion with the US.

 

The data showed that China was India's top trading partner from 2013-14 till 2017-18 and also in 2020-21. Before China, the UAE was the country's largest trading partner.

 

In 2021-22, the UAE with USD 72.9 billion, was the third largest trading partner of India. It was followed by Saudi Arabia (USD 42,85 billion), Iraq (USD 34.33 billion) and Singapore (USD 30 billion).

The Directorate General of Foreign Trade (DGFT) has issued registration certificates for 1.5 million tonnes of wheat to exporters having valid letter of credit, after the grain exports was banned on May 13.

 

At an event organised by the Federation of Indian Export Organisations (FIEO), DGFT Santosh Kumar Sarangi said that some applications are pending and are being scrutinised.

 

The government has allowed wheat shipments for which irrevocable letters of credit (L/C) were issued on or before May 13, when the ban of the export of the foodgrain was imposed.

 

Exporters having valid L/Cs would have to register with the regional authorities of the DGFT to obtain registration of contracts to ship their consignments.

 

FIEO along with GlobalLinker has designed and developed the 'Indian Business Portal', an International Trade Hub for Indian Exporters and Foreign Buyers. The B2B digital marketplace seeks to empower SME exporters, artisans and farmers to identify new markets for their products and grow their sales globally.

 

It will digitise Indian exporters and help them become discoverable online, promote exports from all Indian states, showcase India's strength in a wide range of products and services, and provide a trusted network of Indian exporters to Foreign Buyers.

India is likely to clear exports of 1 million tonnes of wheat, in the first phase after it restricted shipments of the food grain, said trade sources.

 

The government on May 13 banned exports of wheat amid accelerating inflation, but exempted shipments under contracts where letters of credit (LCs) had already been opened. The clearance for the shipment is expected under this exemption, they said.

 

At least half the quantity is likely to go to Bangladesh, largely by rail and road. The decision is expected to be announced after commerce minister Piyush Goyal returns from Davos, where he is attending the World Economic Forum, the sources said.

 

The Director General of Foreign Trade (DGFT) has put up a file before the food ministry after scrutinising the LCs issued on or before May 13, the sources said. It was found that many companies had opened back-dated LCs, and the DGFT has weeded out such applications and compiled a list of genuine LCs to be approved by the commerce minister, they added.

 

'It is learnt that the DGFT has asked for approval of more than 1 million tonnes of export in the first phase against genuine LCs, about 5,00,000-6,00,000 tonnes of which is expected to be for Bangladesh,' said a wheat exporter, who requested not to be named.

 

Trade sources said more than 250 railway indents had been booked as on May 13 for the export of wheat to Bangladesh. At 2,450 tonnes of wheat per rake, these can carry about 6,00,000 tonnes. Also, ten railway rakes loaded with the grain have been stranded since May 13, when the ban was announced.

 

About 2,00,000 tonnes of wheat is expected to be exported by road, while the rest may be shipped by vessels, including to other destinations.

 

Traders said Bangladesh was not in a hurry to import Indian wheat as it had limited storage capacity. 'Bangladesh will have to first sell rice from its warehouses to make space for imported wheat,' said a Kolkata-based exporter.

 

Currently, Bangladesh is unloading a shipment from Australia at Chittagong port.

Minister of State for Food Processing Industries Prahlad Singh Patel on Thursday emphasised the need to reduce compliance requirements as well as focus on branding and promotion for the growth of the nascent plant-based food industry. The minister inaugurated the 1st Plant Based Foods Summit organised by the Plant Based Foods Industry Association (PBFIA) and Good Food Institute India (GFI India).

 

According to a statement issued by PBFIA, Patel said he personally supports plant-based foods.

 

However, the minister also said everyone is free to make their own choices when it comes to food.

 

Patel emphasised the need to develop this industry through lesser compliance requirements as well as research and innovation.

 

'By minimising compliance, we can quickly develop this industry. I am urging the need to develop the scientific parameters and supply chains that will allow us to showcase the Indian cuisine culture that has represented us for centuries,' he said.

 

Agricultural And Processed Food Products Export Development Authority (APEDA)Secretary Sudhanshu said, 'we are all aware that the plant food business is on its way to reaching a significant degree of growth and emphasis, as seen in recent years both internationally and in India.'

 

'Food is a customer's choice; it is up to the consumer to decide what he wants to eat. Though awareness is crucial, since it influences the consumer's decision, and the consumer's choice determines the market's demand. Whether it's a domestic or foreign market, the decision determines the market's demand,' he said.

 

Sanjay Sethi, Executive Director of PBFIA, said, 'everyone wants to invest into our plant-based food business in India because they see how quickly it is growing in importance and value in the national and worldwide markets.'

 

'In the sector, there is a link amongst sustainability, nation, health, humanity, and animal welfare,' he added.

 

Going forward, he said the association will campaign for policy reforms to eliminate trade restrictions and unfair practices that restrict growth of the industry.

 

Over 30 startups showcased their products at the summit.

 

European Union Executive Vice-President and Trade Commissioner Valdis Dombrovskis has said the EU will formally launch negotiations for the proposed free trade agreement with India 'very soon'. He has held a meeting with Commerce and Industry Minister Piyush Goyal on the sidelines of the WEF meet in Geneva.

 

'Excellent meeting with Minister Goyal @PiyushGoyal from India. Will formally launch Free Trade Agreement negotiations very soon,' according to a tweet by Dombrovskis.

 

India's Commerce Secretary BVR Subrahmanyam in April had said that India and the 27-nation European Union (EU) will restart negotiations for their long-pending free trade agreement in June.

 

Asked about the decision to ban wheat exports at the World Economic Forum Annual Meeting, Goyal said many misconceptions are doing the rounds on this issue.

 

The proposed agreement, officially dubbed as Broad-based Trade and Investment Agreement (BTIA) between India and the EU has been stalled since May 2013 due to several issues.

 

BTIA is a proposed comprehensive free trade agreement being negotiated by the two sides.

 

India's merchandise exports to EU member countries stood at about USD 65 billion in 2021-22, while imports aggregated to USD 51.4 billion.

The way things are progressing between the two negotiating teams, a free trade agreement (FTA) between India and the UK could be ready by Diwali without the need for an interim early harvest agreement, said Commerce and Industry Minister Piyush Goyal during a visit to the UK.

 

The minister arrived in London from the World Economic Forum in Davos to stock-take and interact with stakeholders and business people ahead of the fourth round of FTA negotiations, set for June 13 in the UK.

 

During a curtain raiser event on Thursday evening for the annual UK-India Week by India Global Forum (IGF) scheduled from June 27, Goyal pointed to the FTAs concluded at speed with the UAE and Australia as a sign of things to come.

 

'Canada is progressing well towards an early harvest agreement. With the UK, we had agreed to do an early harvest agreement - basically, to grab the low-hanging fruits and leave the more difficult elements for the next stage and give the people of both countries the confidence that this agreement is a win-win,' the minister said.

 

'But the way things are progressing, we'll actually land up doing a full FTA with the UK by Diwali. I have had very good meetings on it,' he said.

 

Diwali in October was set as a timeline for a draft FTA after British Prime Minister Boris Johnson's talks with Prime Minister Narendra Modi during his visit to India last month.

 

Indian High Commissioner Gaitri Issar Kumar revealed at the event that Prime Minister Johnson has already extended an invitation to his Indian counterpart to visit the UK to sign off on the draft agreement once it is ready later in the year.

 

Asked about the points of contention in the path of such a tight timeline, Goyal said: 'Our approach is that we are very honest and upfront in our constraints, yet willing to be sensitive to the concerns of the other country.'

 

He went on to highlight the 'relentless work, study, focus and engagement with stakeholders' that is required in the entire process towards an FTA.

 

'You are actually writing out the destiny of your trading relations between two nations for the next 30 or 50 years. Particularly in this current world where there is so much dichotomy between countries, so much distrust... the world has realised that they would rather work with a trusted partner like India,' the minister said.

 

'When you do a trade deal, you are crystal gazing 30-50 years into the future, so you have to be very careful. I can't afford to make a mistake... everybody has to be very cautious. Lots of modelling has to be done,' he said.

 

The minister noted that India, as one of the fastest growing economies of the world, even growing at a 'modest 8 per cent every year' would be 10 times from where the economy is now at the least.

 

'That is the opportunity on offer for a fair and equitable agreement... which is what was understood in the UAE and Australia, which is why we were able to close fast,' he said.

 

Earlier on Thursday, the minister said he held 'productive discussions' on carrying forward the ongoing FTA negotiations to further boost the India-UK trade and investment partnership during talks with his UK counterpart, Trade Secretary Anne-Marie Trevelyan.

 

'We discussed progress of ongoing trade talks; opportunities to unlock the full potential of our trade and commercial relationship already worth over 24 billion pounds; and opening new markets for businesses in both the UK and India,' said Trevelyan.

 

The two ministers also co-hosted a 'Small Business Round Table' to discuss the opportunities on offer for businesses with an FTA. Goyal will hold further talks with business and industry on Friday during his two-day visit to Britain.

 

Total trade between India and UK stood at USD 16 billion FY 2021-2022 (Apr-Feb). The UK was India's 17th largest trading partner during the period of FY 2021-2022 (Apr-Feb), according to latest official figures available on the website of the Indian High Commission here.

India's organised dairy sector is likely to achieve 11-12 per cent revenue growth this financial year, the second straight year of double-digit growth, mainly driven by healthy demand for value-added products (VAP), according to a report. Revenue growth of the organised dairy sector this financial year will be a notch below the last fiscal's 13 per cent growth, according to the report by

Crisil NSE 0.70 % Ratings.

 

This revenue growth will be driven by a healthy demand for VAP (28 per cent of overall sales), even as sales of liquid milk stays steady and the full-year benefit of retail price hikes implemented last fiscal is realised, it noted.

 

Within VAP, strong recovery is expected in the demand for ice cream, curd and flavoured milk, the report stated.

 

However, operating profitability would moderate to 5 per cent this fiscal, because of a rise in procurement prices as well as transportation and packaging costs.

 

The improved operating performance, along with adequately managed balance sheets and better control over working capital will support a revival in the capex plans of dairies and yet keep their credit outlooks 'stable'.

 

'We expect demand for ice cream, curd and flavoured milk items to peak this summer due to inordinately hot temperatures. The last two summers were affected by COVID-19. That, along with stable demand growth for household consumption-driven products such as ghee and paneer, strong recovery in the HoReCa (hotels, restaurants and cafe) segment, and price hikes of last fiscal will drive 13-14 per cent revenue growth in VAP this fiscal,' Crisil Ratings Director Aditya Jhaver noted.

 

On the other hand, liquid milk sales should sustain 9-10 per cent revenue growth this fiscal, given the full-year benefit of two price hikes last fiscal, even as volumes remain steady, it added.

 

Dairies had hiked milk prices by Rs 2 per litre each in June 2021 and February 2022, which should result in a 4-5 per cent year-on-year growth in average realisation this fiscal.

 

Also, the impact of inflation on transportation and packaging costs will moderate operating profitability to 5 per cent this fiscal from an estimated 5.3 per cent last fiscal.

 

The report stated that incremental hikes in retail prices will cushion operating profitability.

 

Strong domestic demand for VAP and liquid milk will limit exports of skimmed milk powder (SMP) and prune inventory, it said.

 

'The dairies, including cooperatives, are reviving capex plans this fiscal after staying away for two years. While this will increase long term debt, controlled working capital debt due to moderation in SMP inventory and healthy operating performance will keep their credit outlook 'stable',' Crisil Ratings Associate Director Tanvi Shah added.

 

Bangladesh on Thursday stressed the need for improved relations with India and sought discussions to sort out hurdles that may arise, Deputy High Commissioner of the country in the city Andalib Elias said.

 

Speaking at an interactive session organised by the Indian Chamber of Commerce here, Elias said that there is a golden opportunity for the two neighbouring countries to take trade and investment to new heights.

 

'A proper discussion could solve the hurdles which lie ahead in order to achieve that,' he said.

 

West Bengal Minister for Agriculture Sobhandeb Chatterjee said there is tremendous opportunity in the economic relationship between the two countries and West Bengal being a close neighbour, the state can reap benefits from that. West Bengal can also export agricultural products to Bangladesh, he added.

 

President of Dhaka Chamber of Commerce and Industry Rizwan-ur Rahman said that in the last financial year the bilateral trade volume between both the countries was USD 9.9 billion but the potential is much higher.

 

According to him, Bengal is the second largest trade partner of Bangladesh and almost 54 per cent of the foreign medical visitors to India are from that country. Both the countries are continuously exercising the institutional framework for a sustained partnership, he added.

 

ICC president Pradeep Sureka said India and Bangladesh share a historical relationship besides economic and cultural ties. Both India and Bangladesh had worked towards strengthening the bilateral relationship, he said.

 

New Delhi, May 26 Union Minister of State for Food Processing Industries, Prahlad Singh Patel on Thursday said that the Centre will encourage and promote not just the production of millets but also processed millet products for the global market.

 

'Next year, i.e. 2023, is the International Year of Millets. India produces 40 per cent of world's millets. Our government has made tremendous efforts to promote millets and not just for production but also for processed millet foods for supplying to international markets,' Patel told mediapersons.

 

Patel was speaking on the sidelines of the first Plant-Based Foods Summit organised by Ministry of Food Processing Industries (MoFPI), Agriculture & Processed Food Products Export Development Authority (APEDA), and Plant Based Foods Industry Association (PBFIA).

 

In his speech, he batted for millets and spoke of the parameters and enabling factors by APEDA for millets and plant-based food and such processed food.

 

'Our Ministry has been allotted over Rs 10,000 crore for promotion of this kind of food. The only condition is that the company should be Indian,' Patel said, and gave example of several traditional Indian food items that just 'need to be validated by scientific documentation of traditional practices'.

 

'India has traditionally been a supporter of plant-based food. It has been our strength,' the Minister said and assured support for the plant-based industry.

 

Sanjay Sethi, Exective Director of PBFIA, appealed to the animal-based food industry 'to not look at us as competitors but rather as a younger brother' and also suggested hand-holding for the nascent industry.

 

With sustainability and human health as key driving forces behind the activities of the Association, the foremost aim of PBFIA is to make plant-based foods mainstream while providing new avenues for economic growth.

 

Inoshi Sharma, Executive Director, FSSAI, pointed to the increasing disconnect with India's traditional food items, which is evident much more in urban areas. 'If I say, I am eating roti and baingan bharta, I am looked down upon. But the moment I say, I am having baba ganoush and pita bread, I am cool. Why are we going away from our own food?'

 

Sharma also assured full support from FSSAI.

 

Rachel Dreskin, CEO, Plant Based Food Association, US, drew attention to the main reasons for promoting plant-based food: environmental benefit vis-a-vis reduction of green house gases; human health and social justice.

 

The event also saw the launch of a pertinent report, 'The Dawn of a Plant-Based Age: India to Lead the Way to World Food Security and Nutrition'.

 

A consignment of 1.2 million tons of bhindi, kundru and litchi was exported to the Gulf countries by Fair Export of the Lulu group of Hypermarket from Lal Bahadur Shastri International airport in presence of the divisional commissioner Deepak Agrawal and other officials on Thursday. The exported vegetables and fruits were procured from the farm producer organisation (FPOs) of eastern UP region.

 

The vegetables and fruits export has proved to be milestone in the direction of doubling the income of farmers of Varanasi as well as the districts of eastern UP, said the divisional commissioner. For the export, Agriculture and Processed Food Products Export Development Authority (APEDA) has associated FPOs of Varanasi with Lulu Group. He said, the newly constructed pack house near Babatpur would be ready soon, and the farmers would get the requisite support to send their products to other countries, and better facilities for packaging will be available.

 

Agrawal said that the second consignment of vegetables and fruits would also be dispatched soon. The commissioner, while encouraging the farmers and FPOs present on the spot, laid special emphasis on quality and said that the quality of products should be ensured at par with the international market standards.

 

The regional head APEDA, Dr CB Singh said procurement of produces for export to Gulf countries like Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates is done by FPOs.

 

To make Purvanchal an agri export hub, the APEDA had held a meet and farm visits with Fair exports officials. These measures were initiated to promote export of potential agricultural and horticulture produces and provide market linkage to producers. The APEDA has also launched a farmer connect portal for providing a platform to FPOs and cooperatives to directly interact with exporters. According to Singh, 400 metric tons of fresh vegetables procured from Varanasi and nearby areas were exported to the Gulf countries in the last six months.