Union Minister of State for Commerce & Industry, Smt. Anupriya Patel has called upon the Small and Medium Enterprises (SMEs) to adopt technology towards raising productivity and promoting sustainability. Addressing the Inaugural Session of the First FICCI Industry 4.0 Awards function and Conference here today, the Minister assured the industry of Government’s support and urged them to take the ‘Industry 4.0’ to Tier-2 and Tier-3 cities.

 

'The adoption of Industry 4.0 is something that we have to do together. Manufacturing (and) Exports, both have to contribute, because in the post-pandemic scenario, you all know how the supply chains have been disrupted and there is a tremendous opportunity which lies ahead for us, for the country,' said Smt. Patel. 

 

Smt. Patel said, after the three Industrial Revolutions, we are now headed towards the 4th Industrial Revolution, - ‘Industry 4.0’, which is the trend of Automation & Data Exchange at all levels of production aimed at increasing productivity, efficiency and also addressing the issues of sustainability, climate change and host of other such relevant ideas.

 

Stating that the Prime Minister Shri Narendra Modi has a big vision for India@2047, Smt. Patel said the Government is committed towards transforming India during the Amritkaal, the next 25 years.

 

'Industry also has a big contribution to make and one such contribution could be moving towards the adoption of Industry 4.0. Industry sector, in a major way, can contribute to the economic development which is both sustainable and also inclusive,' she said.

 

Smt. Patel said both Manufacturing and Exports will be India’s growth drivers during the Amritkaal. She listed out the Government’s initiatives towards facilitating Manufacturing including the PLI and EODB and promoting exports by pursuing various FTAs such as the India-UAE CEPA and India-Australia ECTA.

 

Smt. Patel said the Government is committed to creating industry friendly and a conducive environment.

 

'Today, Government of India’s role has changed from being a regulator to a facilitator… We have given tremendous emphasis on the creation of industrial infrastructure, how much we are reducing the burden of compliances, the National Single Window (System) portal has been launched, we have jumped many positions in terms of Ease of Doing Business,' she said.

 

The Minister said that in just over five years India has emerged as the world’s third largest Startup ecosystem after the US and China and last month we achieved the distinction of having 100 Unicorns.

 

'So just look at the journey of the Startups, and this Unicorn wave is still going on, it is going very strong, this boom is continuing, I don’t know how much more we have to see in this year,' she said.

40 companies will exhibit their latest products and services

 

Over 1,100 industry professionals from more than 60 countries will gather in Dubai for the 39th World Nut and Dried Fruit Congress from May 11-13 organized by the International Nut & Dried Fruit Council (INC).

 

The INC Congress is the only international event purely dedicated to the nut and dried fruit industry, and the stimulating three-day program will provide attendees with the latest look into the industry from the sector’s top leaders.

 

A series of roundtables on the products under the c, almonds, Brazil nuts, cashews, hazelnuts, macadamias, pecans, pine nuts, pistachios, walnuts, peanuts, dates, dried apricots, dried cranberries, dried figs, prunes, raisins, sultanas, and currants will give updates on the latest statistics on production, consumption, and trade.

 

Moreover, 40 companies will exhibit their latest products and services. The congress will feature seminars on sustainability and nutrition research. Sunny Verghese, the Co-Founder and Group CEO of Olam International, and Saket Modi, Co-Founder and CEO of Safe Security will give presentations.

 

Marta Moren Abat, the International Relations Coordinator for the Directorate General for Maritime and Fisheries at the European Commission will give a presentation on water resources opportunities and challenges and the relation to agriculture and food security.

 

Farm gate

The INC is the international umbrella organization for the nut and dried fruit industry. Its members include more than 850 nut and dried fruit sector companies from over 80 countries. INC membership represents over 85 per cent of the world’s commercial “farm gate” value of trade in nuts and dried fruits. The INC’s mission is to stimulate and facilitate sustainable growth in the global nut and dried fruit industry.

 

It is appropriate to hold the conference in Dubai on account of the India, UAE trade pact that came into force, says J.Rajmohan Pillai, Chairman, Beta Group which owns the brand NutKing. The industry is expanding at a fast pace and the requirements of dried fruits and nuts as healthy foods is zooming forward. But logistics cost are crippling both the Indian and world dried fruits and nuts industry, he said.

Indian wheat and other agricultural products must be of high quality to be the world’s standard source for food, Prime Minister Narendra Modi told a review meeting on Thursday, indicating that the government might not immediately curb exports of the food grain.

 

Modi called upon government officials to help farmers after the meeting briefed him on India’s wheat supply, stock and exports. He was also appraised on the impact of high temperatures in the months of March-April 2022 on crop production, the status of procurement and export and also the prevailing market rates which are beneficial to farmers, an official statement said.

 

 

The meeting was attended by top officials of the Prime Minister’s Office and secretaries of the department of food, public distribution and agriculture.

 

On Wednesday, food secretary Sudhanshu Pandey told reporters that though India’s wheat production in 2022-23 marketing is expected to fall by almost 5.7 per cent to 105 million tonnes from an earlier estimate of 111.32 million tonnes and official purchases are set to halve to just 19.5 million tonnes, but still it won’t impose any curbs on exports as year-end closing stocks are seen adequate after meeting all requirements.

 

 

Pandey said the agriculture ministry has revised the wheat production estimate downwards to 105 million tonnes for the 2021-22 crop year from 111.3 million tonnes earlier due to early onset of summer. India's wheat production stood at 109.59 million tonnes in the 2020-21 crop year (July-June).

 

Meanwhile, on procurement, the food secretary said that government's wheat procurement is expected to fall to 19.5 million tonnes in the 2022-23 marketing year (April-March), much lower than the last year, due to several factors, including higher market prices of wheat in some states compared to the minimum support price (MSP), stocks being held by farmers and traders in anticipation of further price rise and lower production than estimated in some states.

Offers its expertise in floriculture, horticulture and food processing to India 

 

The Dutch government is keen on sharing its expertise in the dairy sector with India and will soon set up a Dairy Trading Centre of Excellence (DTCE) in southern Uttar Pradesh, says Michiel van Erkel, Agriculture Counsellor, Kingdom of the Netherlands.

 

Holland is willing to set up more than one DTCE in India as also Centres of Excellence (CoE) for horticulture, floriculture and food processing.

 

In the floriculture, it would help Indian floriculturists in packing and send their products to various parts of the country as well as abroad, the Dutch agriculture counsellor said. 

 

 

In talks with Centre

'We are in discussion with the Indian government. It has indicated that it would prefer to set up DTCE in southern Uttar Pradesh as there is already a genetic centre there,' van Erkel, who was in Chennai along with the Netherlands Ambassador to India Marten van den Berg for discussions with the Tamil Nadu government, told BusinessLine.

 

The DTCE will help dairy farmers adopt Dutch technology and improve the quality and quantity of milk. 'Farmers will learn about managing dairy farms, including getting insights into marketing and will be provided training. They will be educated on dairy farming. They can also get details on the genetic materials,' he said.

 

The DTCE will also have a small-scale cheese plant like the one Dutch dairy farms have put up next to their farmgates in Holland and sell these products.

 

Milk yield per animal

The Netherlands Ambassador van den Berg had discussed setting up a similar centre of excellence for dairy training in Chennai. 'India can have more than one such centre of excellence,' van Erkel said.

 

The Netherlands agriculture counsellor said the milk yield per animal in the Netherlands is much higher than in India. Also, 2-3 people manage a farm having about 150 cows, while Indian dairy farmers have 10-20 cows only. 'We have huge cooperatives in Holland compared to the ones in Tamil Nadu,' he said.

 

According to 2019-20 statistics, the per animal milk yield in Holland is at least five times higher at 8,900 kg per year than Indian cattle’s yield of 1,777 kg.

 

Lack of genetic material

'One of the problems that Indian dairy farmers face is not getting the right quality cows. We toured 3-5 States in India and found out that the right genetic material is not available in India to put it on the dairy map of the world,' van Erkel said.

 

The problem in India is that only a few are 100 per cent dairy farmers and they feel the cost of importing genetic material is high. 'We are talking to some of the Dutch companies on the high costs but it is a fact that our firms are expensive. We cannot compete against Israeli firms that are much cheaper. But a business relationship with a firm in the Netherlands is for a long term,' he said.

 

‘Bureaucratic delay’

The Dutch government has come forward to help India in the fields of horticulture, floriculture, food processing, and potato by setting up at least seven CoE. 'Of the seven, only three are functional like one in Baramati in Maharashtra for horticulture, one in Telangana for floriculture and the third one in Punjab for potato,' he said.

 

van Erkel said setting up of CoE was getting delayed, pending bureaucratic clearances. 'In the Indian federal set-up, the States have to get permission from the Centre, which also has to allocate funds,' the agriculture commissioner said, adding that the DTCE could become functional in a year’s time.

 

The prime ministers of India and the Netherlands have met twice in the last couple of years. After their first meeting, both the governments resolved that 25 CoE would be set up by 2025. But after Indian Prime Minister Narendra Modi pointed out that setting up 25 CoE by 2025 was ambitious, they changed their statement to say more CoE would be set up after their second meeting.

 

Strawberries, blueberries

The Netherlands will also help set up a horticulture centre of excellence in Tamil Nadu to improve the shelf life of food products, especially to overcome post-harvest losses. 'We will also look at setting up a similar centre for floriculture to improve packaging for exports and help in bundling cut flowers and send them to various markets in India and abroad,' van Erkel said.

 

The Dutch government is also keen to help produce imported products such as strawberries, blueberries and avocados in India, including through inter-cropping.

 

Pointing out to the Dutch venture in Sri Lanka to help rejuvenate tea plantations to raise the value and income for farmers, the Netherlands agriculture counsellor said his country could also help in supporting cold storage and links, particularly with Indian firms looking at backward integration.

 

van Erkel expressed happiness over two Indian agtech start-up firms – CropIn and Innoterra – having entered the Netherlands, the gateway to conquering Europe. He said Holland can learn many things from Indian start-ups, while India can learn about developing climate-smart seeds.  

 

Venture capital firms based in Holland are investing in agtech and innovation start-ups in India. These firms have invested in Ankur Capital, Omnivore and other such start-up investment funds, he said.

 

A Bengaluru biotech firm was getting help from the Netherlands’ Wageningen University, the top university in plant and animal sciences, for its incubation, the Dutch official said. 

India, the world's second largest sugar producer after Brazil, has exported 7 million tonnes of the sweetener so far in the ongoing 2021-22 marketing year, and exports from the country may touch a new record of 9 million tonnes, industry body ISMA said on Thursday. Indian Sugar Mills Association (ISMA), in a statement, said the country's sugar output has risen to 34.23 million tonnes till April of the current marketing year, from 30 million tonnes in the year-ago period.

 

Sugar marketing year runs from October to September.

 

The country had exported a record 7.23 million tonnes of the sweetener in the 2020-21 marketing year with much of the shipments undertaken with the help of government subsidy.

 

 

'As per reports from the trade, around 8.2-8.3 million tonnes of sugar export have been contracted for so far. Out of that, about 6.8-7 million tonnes of sugar is estimated to have been physically exported from India up to April,' ISMA said.

 

Accordingly, it is estimated that the 'Indian sugar industry should be able to export over 9 million tonnes,' it said.

 

The sugar being exported this year is without the government subsidies.

 

On sugar production, ISMA said it has risen by 14 per cent to 34.23 million tonnes during the October-April period of the 2021-22 marketing year, from over the year-ago period.

 

Out of which, sugar production in Maharashtra -- the country's leading sugar producing state -- has increased to 13.20 million tonnes till April of the current marketing year, compared to 10.56 million tonnes in the year-ago period.

 

About 123 mills are still operating in the state but they are facing problems in harvesting, the industry body said.

 

Production in Uttar Pradesh, the country's second largest sugar producing state, however, declined to 9.89 million tonnes so far this marketing year, from 10.56 lakh tonnes in the year-ago period.

 

Most mills in Uttar Pradesh are expected to close by next fortnight.

 

Sugar production in Karnataka, the country's third largest sugar producing state, has increased to 5.9 million tonnes till April of this year, from 4.24 million tonnes in the year-ago period.

 

Few mills might operate in Karnataka during the special season commencing June-July.

 

On the ethanol front, ISMA said mills have supplied 168.66 crore litres of ethanol to oil marketing companies till April 24 of this year.

 

Mills have contracted for supply of 410.32 crore litres of ethanol against the total letter of intent quantity of 425.17 crore litres for this year, it added.

Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal today asked project exporters to diversify and foray into markets of the developed world and urged them to not restrict themselves to Government Line of Credit Projects and projects in the developing world.

 

He was delivering the Keynote Address at the ‘Summit on Enhancing Global Opportunities for Indian Project Exporters’ organized by the Exim Bank in New Delhi today.

 

Developed countries may very well offer advantages of low risk and lower capital requirement with higher credit rating of projects which will enable companies to for higher credit limits, he elaborated.

 

He complimented India Exim Bank for supporting exporters, for organizing the Summit by including international stakeholders, and for conducting the study on Indian Project Exports.

 

Outlining the challenges that global economy has been facing since the start of 2022 such as the Omicron wave, global supply chain disruptions, soaring raw material costs, container shortages, global financial market volatility and geopolitical tensions, the Minister observed that it was in this context that the summit is both timely and important.

 

Observing that several heads of governments and ministers had chosen India as their first destination post Covid, the Minister said that it signalled the tremendous interest that the India story has generated in the world. It is a recognition of efforts put in by each citizen and is indicative of a bright future for the nation, he added.  

 

The Minister congratulated all the stakeholders for the blockbuster export performance of nearly USD 675 billion in 2021-22 and the record-breaking services export of nearly USD 254 billion, even with a pandemic induced slow down in travel and hospitality. Even the export figures of April 2022 which touched almost USD 38 billion are historic, he noted.

 

Shri Goyal said that the IT sector’s performance during the pandemic was especially noteworthy and added that India did not let down a single international commitment during the pandemic. Thanks to visionary initiative like Digital India, the nation adapted very well to the exigencies of covid and made record service exports possible in a covid year, he explained.

 

Setting a target of USD 1 trillion worth of goods and services export each by 2030, the Minister said that the target could be achieved only with the whole-hearted participation of every single stake holder.

 

The Minister also urged the banking sector to abandon the mindset of conservatism that has set in the sector and be open to taking some risks and added that risk taking was an integral part of business.

 

India has all the necessary ingredients to become a global player in project exports, the Minister said and added that the world has realized that it is absolutely essential to invest in infrastructure. Project exports would also help our services and goods export to grow, he opined.

 

He asked the project export sector to look at credit enhancement schemes and find backstop arrangement for private banks to come into project financing.

 

Highlighting the Government’s Lines of Credit (LOC) programme that has particularly been pivotal in creating opportunities for Indian project exporters, the Minister said that through Concessional Financing Scheme (CFS),Government has been supporting Indian companies bidding for strategic infrastructure projects in the overseas market.

 

He specified the need for building businesses that are independent of government aid and said that with such businesses, chances of growth and chances of us penetrating the markets of the developed world are better. He urged Exim bank to help exporters by studying what developed world markets wanted and by guiding our infrastructure companies to meet those requirements.

 

He also asked project export sector to proactively engage with government’s FTA negotiations and give inputs and feedback about the market access problems or discriminations they faced with FTA countries. He assured that these concerns would be factored into India’s FTA negotiations.

 

Quoting Prime Minister, Shri Narendra Modi, the Minister said ‘The world has great expectations from the India of 21st Century’. Our techies are leading the world from the front, our Farmers are now feeding the world, he said and added that it was time for our engineers and Project Managers be building the world.He assured to fully support Indian Project Exporters and take forward suggestions emanating from the deliberations at the summit to make India 'The destination' for project exports.

Russia has proposed to revive decades-old practice of submitting 'paper LC (letter of credit)' citing economic sanctions as it seeks to ensure uninterrupted exports from India through a state debt rupee mechanism, a dedicated window for India’s sovereign debt repayment that allows 9-10% exchange rate discount to Russian importers, said people familiar with the matter.

 

If the proposal is accepted, exports to Russia are likely to witness a surge.

 

The Bank of Russia and the Reserve Bank of India (RBI) are examining how to make this workable and at the same time comply with international sanctions.

 

Both the central banks did not reply to ET’s queries.

 

'Officials of the two central banks have met twice and continue to be in talks, although the final decision has not been reached,' one of the persons told ET on condition of anonymity.

 

Russian representatives have also submitted an album of signatures by Russian banks and dignitaries, a key document that helps authenticate the practice of paper LCs to the RBI, said the people. If the local Russian embassy can validate such an album, it should help earn the RBI’s comfort level, they said.

 

'If the practice of physical hard copy or paper LC is revived and accepted by the RBI soon, it will support the state credit debt rupee mechanism, which in turn holds huge potential for Indian exporters, particularly after the global economic sanctions on Moscow,' said Sachin Bhansali, director, Girnar Food & Beverages.

 

The state credit mechanism originated during the erstwhile USSR regime when the Soviet Union supported India by supplying essential items which were required for the development of infrastructure, energy and defence.

 

When the USSR was split, there was a bilateral agreement between Russia and India regarding a sovereign loan India had taken. India keeps repaying in rupees to an RBI account held by VEB Bank, the Russian development bank. Repayment term will be over by 2037, according to people aware of the matter.

 

A Russian importer has an advantage in paying Indian exporters via such a route. It pays about 90 cents against $100 to its local bank, which in turn asks the RBI to debit rupees equal to $100 and credit to the Indian exporter’s account.

 

Economic sanctions barred Russia from accessing SWIFT payment system, a global payment gateway earlier used for sending LCs.

 

'Payments are not coming against the goods shipped already,' said Mohit Agarwal, director, Asian Tea Company. 'We had shipped teas on rupee LCs confirmed by the RBI. Now the Indian banks are not willing to handle the documents on the goods that are already on the high seas.'

 

Exporters have reached out to all government authorities as they await resolution.

 

'We have been following up with the RBI but no clear-cut indication has come from the central bank yet on rupee trade,' said Naeem Motorwala, director, Al-Gyas Exports, a rice exporter to Russia. 'We are now looking at doing exports in dollars and against pre-payments.'

 

Russia buys 43-45 million kg of tea from India annually. It imports 70,000 -100,000 lakh tonnes of non-basmati rice from India. Coffee, tobacco, fertilisers and pharmaceuticals are other items of export from India to Russia.

Shri. Pashupati Kumar Paras, Union Minister of Food Processing Industries in the august presence of Sh. Prahlad Singh Patel, MoS (FPI) Smt. Anita Praveen, Secretary, MoFPI, and Senior Officials from the Ministry and NAFED launched Three One District One Product (ODOP) brands under the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme today in New Delhi.

 

The Ministry of Food Processing Industries has signed an agreement with NAFED for developing 10 brands of selected 20 ODOPs under the branding and marketing component of the PMFME scheme.

 

Out of these, 7 ODOP Brands and 9 Products have been successfully launched in collaboration with NAFED, These include - Brand : Cori Gold; District/State: Kota, Rajasthan Product : Coriander Powder, Brand - Makhana King ; District/State: Darbhanga and Muzaffarpur from Bihar, Product: Plain and Chatpata Makhana), Brand - Dilli Bakes ( District/State: Delhi, Product: Cookies and Rusk), Brand  - Amrit Phal ( District/State: Gurgaon, Haryana Product: Amla Juice), Brand  - Madhumantra ( District/State: Saharanpur, Uttar Pradesh, Product: Multiflora Honey), Brand  - Somdana ( District/State: Thane, Maharashtra, Product: Millet Flour) and Brand  - Kashmiri Mantra ( District/State: Kulgam, Jammu and Kashmir Product: Red Chilli Powder). Out of the 7 ODOP Brands, the Brand Dilli Bakes was launched in October 2021 in New Delhi followed by the Brand Makhana King launched in January 2022 in Patna. The remaining 5 Brands were also launched in January 2022 in New Delhi

 

7 ODOP Brands and 9 Products, 3 ODOP Brands and 5 Products namely Madhurmithas, Anaras, Pind Se and two products Masala Paste and Lemon Honey under the newly developed brands Kashmiri Mantra and Madhumantra respectively were successfully launched.

 

The Brand Madhurmithas has introduced Jaggery Powder and has been exclusively developed under the ODOP concept for the district Muzaffarnagar, Uttar Pradesh. The product is a sweetener without any chemicals and also healthier and more delicious than sugar. The 500g standy zip pouch is resealable to allow convenient & safe storage and is attractively priced at Rs. 80.

 

Brand Anaras has been developed under the ODOP concept for dried spicy pineapple from the district Ri Bhoi, Meghalaya. The product has been made from handpicked pineapples, naturally sundried and flavored with a secret spice mix to give it an irresistible unique taste. In addition to its zesty flavor, dried spicy pineapple is also an excellent source of vitamin C. It is priced at Rs. 110 for a 55g pack.

 

Brand Pind Se for Mango Pickle brings you the authentic taste of Ghar ka bana aam ka achaar. This delightful pickle is prepared from the choicest mangoes, premium quality ingredients, and a traditional recipe. The product is hand-made in small batches to maintain quality and consistency. The brand is developed under the ODOP Concept from the district of Amritsar, Punjab, and strives to bring you the Pind Ka Swad in every single bottle which is competitively priced at Rs. 95 for a 500g pet jar.

 

Two new products have also been introduced under the recently launched brands, Kashmiri Mantra and Madhumantra under the ODOP concept from the district Kulgam, Jammu and Kashmir, and the district Saharanpur in Uttar Pradesh respectively.  The use of traditional mixed masalas is an integral part of the Kashmiri vegetarian and non-vegetarian cuisines. Locally called ‘ver’, the masala paste in tikki form is the second product to be launched after Kashmiri Lal Mirch under the brand. The 200g PET jar is priced at Rs. 200. In addition to this, Lemon Honey from Saharanpur offers an element of uniqueness to plain old honey by infusing it with high-quality lemon extract. Simply adding it to your favorite beverage can transform it in a whole new way. A 500 gm glass bottle is competitively priced at Rs 245.

 

According to NAFED, for the benefit of consumers, all the products come in unique and attractive packaging that keeps moisture and sunlight at bay, thus ensuring a longer shelf life of the product and keeping it fresh.

 

In total 10 ODOP brands and 14 products have been launched under the MoU between NAFED and the Ministry of Food Processing Industries under the scheme. Each product has been developed based on the extensive knowledge and legacy of the marketing expertise of NAFED as well as its capabilities and experience in processing, packaging, supply chain, and logistics. Each brand is being supported with increased investments in brand communication in relevant markets and a strong push on digitization across the value chain.

 

All the products are available on E-commerce platforms, and prominent retail stores across India.

 

Through this initiative under the PMFME scheme, the Ministry of Food Processing Industries aims to encourage the micro food processing enterprises (MFPEs) across the country about the vision, efforts, and initiatives of the Government to formalize, upgrade and strengthen them and take them a step closer to Aatmanirbhar Bharat. MFPEs are encouraged to come forth and avail branding support under this initiative.

 

About the PMFME Scheme:

 

Launched under the Aatmanirbhar Bharat Abhiyan, the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme is a centrally sponsored scheme that aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and to promote formalization of the sector and provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain. With an outlay of Rs. 10,000 crore over a period of five years from 2020-21 to 2024-25, the scheme envisions to directly assist the 2,00,000 micro food processing units for providing financial, technical, and business support for up-gradation of existing micro food processing enterprises.

India-U.K. trade pact discussions are centered around the entry of dairy products, tariff on liquor and easier visa access, according to two government officials.

 

Indian dairy industry wants to export to the U.K. But cow produce is subsidised there, and that makes the market competitive, one of the officials quoted above told BloombergQuint. Also, India exports buffalo produce, while the U.K. banks on cow produce. There have been extensive discussions with the dairy industry along with the U.K. representatives on this issue, the official said on the condition of anonymity.

 

The Commerce Ministry’s estimates showed India’s annual milk production approximates to 206 million tonnes compared with the U.K.’s 15 million tonnes.

 

According to a February 2022 U.K. Parliamentary report reviewed by BloombergQuint, 'the Indian dairy sector is not currently permitted to export dairy products to the UK'. The report cited standardisation issues as the reason. 'There is considerable concern over the uncontrolled use of antibiotics by Indian dairy farmers… Aside from product quality issues, the failure to manage antibiotic usage has major implications on the global development of anti-microbial resistance.'

 

Another difficulty in respect of standards is that currently no organic dairy equivalence exists between India and the U.K., the same official quoted above said.

 

This comes after U.K. Prime Minister Boris Johnson last month visited India, starting with Gujarat—considered a hub of the domestic dairy industry that has been demanding a greater access to the U.K. market.

 

BloombergQuint’s emailed queries to the Ministry of Commerce remained unanswered.

 

Tariff on Liquor

The U.K.’s Scotch whisky industry has been demanding a gradual reduction in tariff to allow better access to the Indian market. Currently, India imposes 150% import tariff on spirits. There have been discussions around reaching a zero tariff policy in the next five years depending on how the markets react to initial deductions, the second government official quoted above said.

 

India imported U.K. spirits worth Rs 1,266.43 crore in the last financial year, up to February 2022, according to the commerce ministry’s website. Surveys by consumer data firms, Statista and YouGuv, showed that India tops the list of countries by alcohol consumption.

 

India is a very lucrative market for whiskies due to the volume consumed. But imported liquor accounts for a small percentage due to high pricing, the official said.

 

Other Issues

There have also been discussions around relaxing the U.K.’s immigration rules by offering cheaper and easier visas for Indian tourists, students and professionals, much like India’s trade pact with the UAE and Australia.

 

The deal will also see specific focus on the pharmaceuticals and automobile sector. Discussions around this will be taken up soon, the official said.

 

India and the U.K. had formally launched negotiations for the free-trade agreement in January this year. Three rounds of negotiations have been held. Future rounds will take place about every five weeks.

Italian Foreign Minister Luigi Di Maio's three-day visit to India from Wednesday will provide an opportunity for both sides to further expand bilateral ties in trade and investment, defence and security, and clean and green energy, the Ministry of External Affairs said.

 

It said the visiting dignitary is scheduled to hold talks with External Affairs Minister S. Jaishankar on Friday.

 

This will be Mr. Di Maio's first visit to India, and he will be accompanied by a high-level official and business delegation.

 

'The foreign minister's visit will provide an opportunity to discuss the entire gamut of the bilateral relations and further expand and deliver on our close partnership, especially in priority areas like trade and investment linkages, defence and security, clean and green energy, and science and technology cooperation,' the MEA said in a statement.

 

It said Mr. Jaishankar and Mr. Di Maio will review the progress in the implementation of the 'Action Plan 2020-24' launched at a virtual summit in November 2020 and also exchange views on regional and multilateral issues of mutual interest.

 

The Ukraine issue is likely to figure in the talks.

 

Mr. Di Maio will also meet with Union Commerce and Industry Minister Piyush Goyal and co-chair a business round-table.

 

Before reaching Delhi, Mr. Di Maio will visit Bengaluru, where he will be meeting with the chief minister of Karnataka.

 

'India and Italy enjoy long-standing, friendly relations which have witnessed a fresh momentum in recent years with the successful virtual summit in November 2020 and the visit of Prime Minister of India to Italy in October 2021 where both countries announced a strategic partnership on energy transition,' the MEA said.