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04 Aug, 2023 News Image Review exporter caution-listing: RBI Panel.
The age-old mechanism of placing exporters who fail to bring in foreign exchange in time on the 'caution list' may be examined.
 
An internal working group of the Reserve Bank of India (RBI) has recommended rationalisation of the caution-listing process, two persons told ET.
 
The going gets tougher for exporters who find themselves on such a list as local banks, processing the trade documents, typically insisting on either arranging advance payment from overseas buyers or an irrevocable letter of credit from the latter's bank.
 
If the RBI accepts the recommendations, industry circles are hoping that there may be a carve-out for cases up to a certain threshold level of exports, or where exporters are faced with genuine hurdles in obtaining payment - for instance, an overseas buyer facing liquidation or bankruptcy.
 
'A shipping bill may remain open on account of a variety of genuine reasons. For instance, there may be short remittances due to the deduction of bank charges or post-shipment discounts offered by the exporter, or reconciliation errors in exports made under long-term contracts. Besides, there could be automatic deductions by foreign online marketplaces towards warehousing charges, service fees, commissions, ad fees, etc. After recommendation by the authorised dealer bank for caution-listing, RBI should grant an opportunity of hearing to the exporter before inclusion in the caution-list,' said Harshal Bhuta, Partner, PR Bhuta & Co, a CA firm.
 
For such mismatches, exporters end up receiving notices from the Enforcement Directorate. A rationalisation of caution-listing would exclude some of these cases and save exporters from dealing with the ED.
 
Last year, there were cases where the Directorate had asked companies to submit a string of information on businesses and key persons as well as old data - including local and offshore bank accounts, identities of directors, and former directors as well as their nature of association with the company along with residential addresses.
 
Exporters have to realise earnings within nine months from the date of export. After this, they may get extensions from the bank for up to three years with each extension not exceeding six months.
 
An exporter is caution-listed by RBI based on the recommendations of the bank which looks into the exporter's track record and possible run-ins with investigative agencies. The system of automatic caution listing based on the information in the export data processing and monitoring system (EDPMS) was discontinued by RBI in October 2020 to give relief to exporters hit by the pandemic. Earlier exporters were automatically caution-listed if any shipping bill against them remained outstanding for more than two years in the EDPMS platform and no extension was granted.
 
'The ED has been verifying many pending cases of parties which have received (or remitted) part of the money for export (or import) of goods but did not complete the actual shipments. These exporters and importers follow up with the respective authorised dealer to knock off the bill of lading with advance funds received and bill entry with advance money remitted. Many times a single transaction is outstanding on both sides. The department checks whether all documents have been properly submitted,' said Rajesh Shah, partner, Jatyantilal Thakkar and Company.
 
ED springs into action as pending receivables or payables create a suspicion of possible money laundering. Some of the companies, which received the recent notices, face the hardship of compiling details of all exports and imports since their inception: date of remittance (from the overseas buyer), name of the remitter (or the identity of the overseas buyer), currency of payment, amount in foreign currency, the equivalent in rupees, date of export, shipping bill number, whether export-related documents were submitted to the bank, and the balance amount in case of partial shipment of export.

 Source:  economictimes.indiatimes.com
04 Aug, 2023 News Image India reviews production incentive scheme amid overhaul push - source.
India's top bureaucrat reviewed a production-linked incentive scheme on Thursday amid a push from industry for faster payouts to improve the programme that aims to boost investment in manufacturing, a government official said.
 
The scheme is crucial to boosting the broader Indian economy which has been starved of private investment for nearly a decade and is struggling to create adequate jobs, particularly in manufacturing.
 
The $24 billion scheme, launched in 2020, covers 14 sectors ranging from electronic products to pharmaceutical drugs, but has so far only been successful in a handful of those.
 
The meeting, headed by India's cabinet secretary Rajiv Gauba, covered sectors that are performing well under the scheme and another meeting, on sectors that have not yet 'taken off' will be arranged soon, the official told reporters.
 
The official did not wish to be named as details of these review meetings have not been made public.
 
Total incentives worth 34.20 billion rupees ($413.29 million) have been claimed up to March this year. Little has been paid out to businesses in six sectors including speciality steel products, solar modules, and car components, according to a government report seen by Reuters.
 
As part of the ongoing review, the government in June met large global firms such as Foxconn, Samsung Electronics Wistron, and Reliance Industries, and others that stand to benefit from the scheme's incentive payouts.
 
Suggestions from those keen on securing incentives under the scheme include quicker payouts against claims, the government official said.
 
'In some cases, manufacturers have sought faster approval to visa applications of their vendors from China for instance, in cases where such expertise is required for local production to pick up,' the official added.
 
The program had drawn investments totalling 625 billion rupees up to March, and investments are expected to rise further to 2.74 trillion rupees as the program runs its course, according to government estimates.
 
So far, most investments and incentives have come in large-scale electronics manufacturing, pharmaceutical drugs production, medical devices, bulk drugs, telecom products, food products, drone and drone components, the government report said.

 Source:  economictimes.indiatimes.com
04 Aug, 2023 News Image Four food processing units approved under Pradhan Mantri Kisan Sampada Yojana.
The Ministry of Food Processing Industries (MoFPI) has approved four food processing units in the state launched since 2017-18 till date, under the scheme for the creation/expansion of food processing and preservation capacities (CEFPPC).
 
In reply to a question from BJP MP Aparajita Sarangi, Minister for Food Processing Industries Pashupati Kumar Paras informed Lok Sabha that the project sanctioned under Pradhan Mantri Kisan Sampada Yojana (PMKSY) where a fish and marine processing unit of B-one Business House Pvt Ltd with an In project cost of Rs 22.31 crore was approved in February 2018 and grant-in-aid of Rs 5 crore, has been released.
 
The unit set up in Khurda district has a capacity to process 6,000 tonnes per annum and has created employment for 300 people. Around 25 farmers are availing direct benefits from the unit. A milk processing unit of Pragati Milk Products Pvt Ltd was sanctioned in January 2019 and a grant-in-aid of Rs 5 crore has been released. Set up at a cost of Rs 20.52 crore in Cuttack district, the unit has the capacity to process 60,000-tonne milk per annum. The unit has provided employment to 538 people and supports 150 dairy farmer families.
 
The Ministry approved two projects - a food and vegetable processing unit in Rayagada and a marine fish processing unit in Khurda in December 2022.TABA Snacks and Beverages Pvt Ltd has proposed to set up a fruit and vegetable processing unit at a cost of Rs 14.39 crore with employment opportunities for 325 people. It will have an annual processing capacity of 38,000 tonnes and support 250 farmers.
 
Similarly, Flamingo Shrimpex (P) Ltd proposed to set up its fish processing unit in the Khurda district at an estimated cost of Rs 35.96 crore with an annual processing capacity of 11,000 tonnes. Around 200 fish farmers will be benefitted and 257 people will get employment. However, the Ministry is yet to release the grant-in-aid component to the two units, Paras said.
 
Under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme, Rs 58.22 crore has been released to Odisha and 838 loans sanctioned for micro food processing enterprises, he added.

 Source:  newindianexpress.com
04 Aug, 2023 News Image India's Latin America, Caribbean Ties Grew Under PM Modi, Trade Reached $50 Billion: Jaishankar.
India’s engagement with Latin America and Caribbean (LAC) countries has increased in the past nine years under Prime Minister Narendra Modi’s leadership and moved towards a new trajectory, External Affairs Minister S Jaishankar said on Thursday as he underlined country’s the upgraded engagement in the region.
 
Addressing the 9th CII India - LAC Conclave here, Jaishankar said India’s bilateral trade in the region surged close to USD 50 billion during the financial year 2022-23. The external affairs minister said these figures are a 'testament to the strength and potential of our economic partnership.'
 
During the conclave, Jaishankar noted that the future of the India-LAC partnership would be based on four important pillars, which include supply chain diversification, resource partnerships, sharing developmental partnerships and addressing global challenges.

 Source:  news18.com
04 Aug, 2023 News Image G20 member countries & 9 guest countries convene to strengthen local & global partnerships.
As the current G20 Presidency, India has prioritised food security by promoting sustainable agricultural practices, reducing reliance on imports, and enhancing resilience to climate change. To drive this progress forward, The Global FoodBanking Network (GFN) and Thinkthrough Consulting (TTC) is hosting the Global Food Security Summit 2023 under the aegis of  G20 to foster cross-sectoral conversations around building a sustainable ecosystem, paving the way to ensuring ‘Food For All’.  
 
The two day Summit will be held at Dr Ambedkar International Centre, New Delhi on August 8 and 9, 2023, to initiate a conversation on the challenges of food security and the need to design resilient food systems to tackle the issue unfolding worldwide.
 
High Commissioners, Ambassadors, and Senior Officials of the G20 member countries and 9 guest countries invited by India, including Bangladesh, Egypt, Mauritius, The Netherlands, Nigeria, Oman, Singapore, Spain, and UAE, will collectively participate to spread awareness and express their viewpoints Multilateral and Bilateral Organizations - World Bank, Asian Development Bank, United Nations Development Programme (UNDP), and Industry Thought Leaders like Invest India, the Federation of Indian Chambers of Commerce and Industry (FICCI), the Confederation of Indian Industry (CII), and the Indian Council for Agricultural Research (ICAR), among others, will have representation in the discussions at the Global Food Security Summit.
 
Lisa Moon, president and CEO of The Global FoodBanking Network, said, 'As people around the world face growing hunger and food insecurity, we need to accelerate relief efforts and longer systemic shifts for people in crisis. Food banks provide multiple benefits like improving access to nutritious meals, strengthening communities, and reducing food waste and the emissions that cause climate change. GFN member food banks provided support to 32 million people worldwide in 2022. This is nearly double the number of people served by member food banks before the Covid-19 pandemic, signaling a sustained increase in demand for food assistance since 2020. In 2022, more than two-thirds of the food distributed was locally sourced. We are witnessing the food banking model gaining traction to improve food security and hope leaders will include this as part of the solution set in the G20 conversations.'
 
The summit will facilitate collaboration and partnership amongst food banks and key stakeholders. It will also raise awareness about reducing food loss and promoting community resilience.
 
Parul Soni, global managing partner, Thinkthrough Consulting, said, “Food loss and malnutrition is a global challenge that requires collective efforts from all the stakeholders. Today, about one-third of all the food produced worldwide is wasted when about 10% of the entire population goes to bed empty stomach. Even if they have access to food, it is either not edible or nutritious enough for their healthy physical and mental development. Through this summit, we aim to encourage food security and promote the concept of food banking that can provide food to the needy and minimise the food inequality gaps.'
 
Nutritional deprivation and food wastage continue to be crucial issues that plague the world and require immediate attention. Based on the Food Waste Index Report 2021 by the United Nations Environment Programme (UNEP), approximately 1 billion metric tonnes of food are wasted annually worldwide, while over 700 million people continue to remain undernourished. There could be many reasons for this such as seasonal supply exceeding demand, lack of storage facilities, unequal distribution of food, poor harvest losses and consumer behaviour.  
 
Moreover, the global food crisis has been further aggravated by conflicts, climate change, and the Covid-19 pandemic. This has led to a rapid rise in the cost of food and fertilisers, putting enormous pressure on vulnerable and low-income communities. This dire situation demands urgent action, which begins with raising awareness and engaging in open dialogue with all stakeholders.
 
Prioritising food security is one of the main agendas of the country, therefore, it is imperative to comprehend the significance of food banking which is a pivotal step towards ensuring food security Furthermore, food safety is also a crucial objective of the UN’s Sustainable Development Goals.

 Source:  fnbnews.com
04 Aug, 2023 News Image India rice stocks at three times target, easing supply concerns.
India's rice stocks were at nearly three times its target at the start of August, two government sources in the world's second biggest producer country said on Thursday.
 
Coupled with the new season crop that is due to start trickling into the market by October, the surplus will raise market hopes of New Delhi relaxing a recent export ban.
 
The world's biggest rice exporter last month ordered a surprise halt to non-basmati white rice exports, its largest category, driving prices to multi-year highs.
 
Indian rice stocks, including unmilled husk varieties at state warehouses, totalled 37.6 million metric tons on Aug 1, the sources told Reuters.
 
'We are quite comfortable in rice,' said one of the sources, who asked not to be identified.
 
'We are in the tail end of the 2022-23 rice marketing year, and as you can see, our stocks are more than adequate. And then the next crop the round the corner.'
 
Stocks held as of Aug 1 include 24.6 million metric tons of rice and 13 million metric tons of the unmilled variety, the sources said.
 
State-run warehouses must have 13.5 million metric tons of rice, including strategic reserves of 2 million metric tons for the quarter beginning July 1, according to local government rules.
 
Indian farmers, who typically start planting rice in the rainy months of June and July, will start harvesting the new season crop from October.
 
New season purchases by India's state-run Food Corporation of India (FC), the main state-run grain buyer, would bump up rice inventories at state granaries.
 
FCI bought 84.6 million metric tons of rice paddy from domestic farmers during the 2022-23 marketing year, yielding around 57 million metric tons of rice.
 
Indian farmers harvested a record 135.5 million metric tons of rice in 2022-23, according to the Ministry of Agriculture & Farmers Welfare.
 
Indian farmers have planted 23.7 million hectares with summer-sown rice so far, according to the farm ministry's latest data, up 1.71% year-on-year, as crucial monsoon rains revived in July and helped farmers accelerate sowing.
 
India is likely to receive below-average rainfall in August due to the El Nino weather pattern, after an above-average monsoon in July helped farmers accelerate crop planting.
 
Still, rice-growing states in eastern India could receive surplus rainfall in August, according to the weather office.
 
A good crop would force FCI to buy large quantities of rice from farmers, further boosting stocks at government granaries, B.V. Krishna Rao, president of the Rice Exporters Association, told Reuters.
 
The export ban would increase domestic supplies and bring down rice paddy prices to the government-set support or guaranteed price of Rs 2,183 per 100 kg, compelling FCI to buy more, he said.
 
'The government is already holding more rice than required under buffer norms,' Rao said referring to the state-set target.

 Source:  economictimes.indiatimes.com
04 Aug, 2023 News Image Implement millet revival programme across UP: CM.
Asserting that UP can play a big role in export of millets from the country, chief minister Yogi Adityanath has issued directions to authorities concerned to step up the millets revival programme across the state.
 
'The state government is funding the Uttar Pradesh Millets Revival Programe that includes a detailed action plan to spread awareness about millets (Sri Anna) among the public. It not only aims to promote millet-based recipes but also seeks to raise awareness about their nutritional value,' a government spokesperson said on Tuesday. He said the government intends to take a step further by conducting consumer awareness programmes in all districts and incorporating millets in school curriculum.
'To ensure effective implementation, the government is planning to provide training to teachers across the state to familiarise them with the significance of millets. By doing so, they hope to create a widespread positive impact on millet consumption and nutritional awareness among the people,' the state government said in a statement.
'As many as 200 teachers will be given special training across the state. Through these, other teachers of the state will also be linked to the millets awareness programme and will be trained to use Sri Anna, dispel the myths related to it and spread awareness. Different types of competitions on millets will be organised,' he said.

 Source:  timesofindia.indiatimes.com
03 Aug, 2023 News Image India s overall export (merchandise plus services) at US$ 776.3 billion in 2022-23 is the highest in terms of overall exports until now

India’s overall export (merchandise plus services) was US$ 776.3 billion in 2022-23 which is the highest in terms of overall exports until now.

The Government has taken the following measures to promote India’s export and to develop its large domestic market to the optimum level and expand its reach across the world:

  • New Foreign Trade Policy has been launched on 31st March, 2023 and came in to effect from 1st April, 2023.
  • Districts as Export Hubs has been launched by identifying products with export potential in each district, addressing bottlenecks for exporting these products and supporting local exporters/manufacturers to generate employment in the district and to develop its large domestic market to the optimum level and expand its reach across the world.
  • Interest Equalization Scheme on pre and post shipment rupee export credit has also been extended upto 31-03-2024.
  • Assistance provided through several schemes to promote exports, namely, Trade Infrastructure for Export Scheme (TIES) and Market Access Initiatives (MAI) Scheme. 
  • Rebate of State and Central Levies and Taxes (RoSCTL) Scheme to promote  labour oriented sector export has been implemented since 07.03.2019.
  • Remission of Duties and Taxes on Exported Products (RoDTEP) scheme has been implemented since 01.01.2021. With effect from 15.12.2022, uncovered sectors like pharmaceuticals, organic and inorganic chemicals and article of iron and steel has been covered under RoDTEP. Similarly, anomalies in 432 tariff lines have been addressed and the corrected rates have been implemented with effect from 16.01.2023.
  • Common Digital Platform for Certificate of Origin has been launched to facilitate trade and increase Free Trade Agreement (FTA) utilization by exporters.
  • 12 Champion Services Sectors have been identified for promoting and diversifying services exports by pursuing specific action plans.
  • Active role of Indian missions abroad towards promoting India’s trade, tourism, technology and investment goals has been enhanced.
  • Regular monitoring of export performance with Commercial Missions abroad, Export Promotion Councils, Commodity Boards/ Authorities and Industry Associations and taking corrective measures from time to time.

This information has been provided by the Union Minister of State for Commerce and Industry, Smt. Anupriya Patel in a written reply in the Lok Sabha today.


 Source:  pib.gov.in
03 Aug, 2023 News Image India, UK free trade agreement: 12th round of talks from Aug 7
As India and the UK are close to concluding negotiations for a proposed free trade agreement (FTA), chief negotiators of both countries will hold the 12th round of talks from August 7 here, an official said. Both sides are looking at concluding the talks before the end of the year.
 
The main issues which could come up for discussions in this round include investment treaty, reduction of duties on auto and whiskey and matters pertaining to services, the official said.
 
The 11th round of talks was concluded last month. For that round, Commerce and Industry Minister Piyush Goyal and Commerce Secretary Sunil Barthwal visited London and took stock of the negotiations.
 
Out of the total 26 chapters in the FTA, 19 have been closed. Investment is being negotiated as a separate agreement (bilateral investment treaty) between India and the UK and it would be concluded simultaneously with the free trade agreement.
 
In the rules of origin chapters, product specific rules are being negotiated which include value-addition norms for each product category, change in chapter heading, and certification.
 
The 'rules of origin' provision prescribes minimal processing that should happen in an FTA country so that the final manufactured product may be called originating goods in that country.
 
Under this provision, a country that has inked an FTA with India cannot dump goods from some third country in the Indian market by just putting a label on it. It has to undertake a prescribed value addition in that product to export to India. Rules of origin norms help contain dumping of goods.
 
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, and certain confectionary items.
 
Britain is also looking for more opportunities for UK services into Indian markets in segments such as telecommunications, legal and financial services like banking.
 
The bilateral trade between the countries increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22.
 
India's main exports to the UK are ready-made garments and textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, transport equipment, spices, machinery and instruments, pharmaceuticals and marine products.
 
Main imports include precious and semi-precious stones, ores and metal scraps, engineering goods, professional instruments other than electronics, chemicals and machinery.
 
In the services sector, the UK is the largest market in Europe for Indian IT services. In the field of investment, the UK is one of the top investors in India. In 2022-23, India received USD 1.74 billion in foreign direct investment from the UK as against USD 1 billion in 2021-22.
 
During April 2000 and March 2023, investments stood at USD 33.9 billion. Under such pacts, two trading partners significantly reduce or eliminate customs duties on the maximum number of goods traded between them, besides easing norms to promote trade in services and investments.

 Source:  economictimes.indiatimes.com
03 Aug, 2023 News Image Vietnamese Delegation visits India to enhance bilateral cooperation in infrastructure and logistics sector
Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry hosted a delegation from Vietnam to promote bilateral cooperation between India and Vietnam in the infrastructure and logistics sector. The five-day visit of the delegation from 31st July to 04th August 2023, is a follow-up to an Indian delegation’s visit, headed by Special Secretary, DPIIT, Smt Sumita Dawra to Vietnam between 29th and 31st March, 2023.
 
Union Minister of State for Commerce and Industry, Sh. Som Parkash graced this event with his presence. In his address, he stated that these bilateral interactions will foster collaboration and foreign investments in the logistics sector in both countries and promote investments.
 
First two days of the programme included Government to Business (G2B) and Business to Business (B2B) meetings with stakeholders from private and public sectors from both countries. Followed by site visits planned to Integrated Industrial Township - Greater Noida, Aurangabad Industrial City (AURIC), Maharashtra and Airport Cargo Terminal and Custom Facility, Bangalore, Karnataka, to gain first-hand experience of the logistics ecosystem in the country.
 
Around 80 participants including Vietnamese delegates from various logistics and supply chain companies and associations such as Sotrans Group, InterLogistics, Vietnam Logistics Association, KNF Global Supply Chain Co., Ltd, etc.; Indian Officials from M/o Textiles, Council of Leather Exports, Central Warehousing Corporation, Invest India, National Industrial Corridor Development Corporation Limited (NICDC) and States (Gujarat, Haryana, Karnataka, Tamil Nadu and Uttar Pradesh), and Indian industry representatives from Activair Airfreight India Pvt Ltd, Transport Corporation of India Ltd., (TCIL), FIEO, Association of Multimodal Transport Operators of India (AMTOI), Federation of Freight Forwarders Associations in India (FFFAI), FICCI, Warehousing Association of India, among others, had fruitful discussions on both days. 
 
On Day One, Government to Business (G2B) Sessions were held. Focus of G2B meetings was on showcasing investment opportunities across NICDC industrial parks; logistics parks across different States; textile PM MITRA parks, leather parks, etc.
 
Secretary, DPIIT, Sh. Rajesh Kumar Singh set the context, and emphasized on the importance of this visit in identifying areas of mutual interest, exploring investment opportunities and knowledge sharing between both the countries.
 
Key takeaways from Day one is summarised below:
 
Direct shipping route between India and Vietnam, is a potential area of interest for both sides.
 
Investment opportunities in industrial parks and greenfield industrial smart cities such as Dholera Special Investment Region, Shendra Bidkin Industrial Area etc. can be explored by Vietnamese businesses.
 
M/o Textile highlighted that the growth in the sector with forward looking schemes such as production-linked incentive (PLI 2.0), Pradhan Mantri Mega Integrated Textile Region and Apparel Parks (PM MITRA) etc. will enhance investments.
 
Council for Leather Exports showcased potential for setting-up production units in mega leather, footwear and accessories clusters, for attracting investments.
 
Investment opportunities in modernization and monetization of infrastructure at 85 locations in Tier-I and Tier-II cities under public-private partnership mode, could be explored by the Vietnamese side.
 
Presentations from officials from Gujarat, Haryana, Uttar Pradesh, Tamil Nadu, and Karnataka focused on highlighting the key developments and investment opportunities in respective states. For instance, Haryana’s Integrated Multi Modal Logistic Hub that offers investors an opportunity to partner as project concessionaire for building and operating internal infrastructure. Similarly. collaboration can be sought in Multimodal logistic Hub (MMLH) Dadri, Mega Food Park, Bareill, etc. in Uttar Pradesh.
 
On Day One, the session ended with the closing remarks from Special Secretary, DPIIT, Smt. Sumita Dawra who reemphasized on the potential areas of cooperation and how Vietnam should be part of Indian growth story
 
On Day Two, Business to Business Sessions were held. The B2B sessions covered the following deliberations:
 
Vietnamese companies showcased development in their logistics and supply chain network, along with investment opportunities in various sectors including logistics facilities, air cargo, container shipping, maritime, etc. 
 
The Indian businesses presented development and opportunities in the warehousing sector, airfreight, supply chain management, EXIM cargo handling, etc.
 
In his closing remarks, Consul General of India in Vietnam, Sh. Madan Mohan Sethi, reiterated the commitment of both nations to enhance bilateral trade and investment and expressed confidence in the positive outcomes of the delegation's visit. He invited Indian entrepreneurs to explore trade and investment opportunities in Vietnam.

 Source:  pib.gov.in