Adiray Global

Export Bans & Subsidies: India’s Agri Policies Under WTO Scrutiny 🌾🌍 India's agricultural policies have drawn attention from key nations like the US, UK, Japan, and Canada at the World Trade Organization (WTO). These countries have raised concerns about India's export bans and agricultural subsidies. Rice Export Ban 🍚 India's ban on non-basmati white rice exports, imposed in July last year, has prompted inquiries from multiple nations. They seek clarity on when India might lift this restriction or replace it with export duties. The ban, aimed at ensuring domestic food security, has exceptions for select countries, including Nepal and Namibia. Food Security Concerns 🌾 Canada raised the issue of global food security, particularly in relation to India's wheat export ban, implemented in May 2022 after crop damage caused by a heatwave. Role of Export Enterprises 🚜 India's agricultural cooperatives, such as NCEL and NAFED, have also come under scrutiny, with Canada requesting details on their export volumes, prices, and markets. Subsidy Questions 💡 Japan expressed concerns over India’s growing electricity subsidies for farmers. Meanwhile, Australia and Canada sought details on the PM Kisan Samman Nidhi Yojana, which provided $48.13 billion in subsidies to resource-poor farmers in 2022-23. As India navigates these inquiries, the government continues to invest in agriculture, with Rs 6,000 crore allocated to smart farming technologies, including AI, drones, and IoT. 🚀 #Agriculture #TradePolicy #WTO #India #Farmers #Export

📈 RMG Exports Surge 12% in August Amid Global Challenges India’s readymade garment (RMG) exports are proving resilient, growing 12% in August 2024 to reach $1.26 billion, despite significant global challenges. The sector's momentum continues to defy global headwinds, high logistics costs, and the ongoing Red Sea crisis. 🔹 Fast Facts & Figures 12% growth in August 2024 exports 7.12% growth in April-August FY 2024-25, totaling $6.39 billion Continued expansion in markets like Japan, Korea, Australia, Mauritius, and Norway Focus on quality, environmental, and social compliance driving growth 🔹 Policy Support & Growth Trajectory Apparel Export Promotion Council (AEPC) Chairman, Sudhir Sekhri, attributes the success to the industry’s emphasis on quality and compliance. He remains optimistic about India’s role in the realignment of global garment sourcing and stresses the need for: -PLI 2.0 for capacity enhancement -Flexibility in fabric imports -Extension of the Interest Equalization Scheme with a 5% rate for all exporters 🔹 FTA Boost Mithileshwar Thakur, AEPC Secretary General, highlighted that Free Trade Agreements (FTAs) with countries like Japan and Korea are yielding positive results, contributing to the sector’s upward trajectory. India's RMG sector is well-positioned to continue its growth, supported by robust policy frameworks and expanding global partnerships. #RMGExports #GlobalTrade #IndiaApparel #FTAImpact #SustainableGrowth #ApparelExports #LogisticsChallenges #TradeBoost

India Expands Areca Nut Imports from Bhutan – New Customs Stations Added 🚛🌱 India has recently enhanced its trade collaboration with Bhutan by permitting fresh green areca nut imports without the Minimum Import Price (MIP) restriction. This move, announced by the Directorate General of Foreign Trade (DGFT), adds two new land customs stations (LCS) in Odisha and Assam, facilitating smoother trade flow. 🌟 Noteworthy Developments: ✅ No MIP Requirement – Imports of green areca nuts from Bhutan can now bypass the earlier MIP condition of ₹251/kg. ✅ New Import Points – Fresh areca nut imports are allowed through LCS Hatisar (Odisha) and LCS Darranga (Assam). ✅ Annual Import Quota – India permits 17,000 tonnes of fresh areca nuts from Bhutan each year under this policy. What’s Changing? Expanding Import Access: This latest move adds to the 2022 policy, which already allowed imports from Bhutan under special conditions, further easing access through additional land routes. Support for Trade Growth: By expanding customs stations, India simplifies import logistics and strengthens its trade ties with Bhutan. Impact This change is expected to streamline the supply chain and boost trade efficiency between India and Bhutan, all while maintaining the balance between meeting domestic demand and safeguarding local farmers. 💼 For stakeholders in the agricultural trade sector, this opens up fresh opportunities for smoother and cost-efficient imports. #IndiaBhutanTrade #ArecaNutImports #TradeBoost #DGFT #AgricultureTrade #SupplyChain #InternationalTrade

🚀 India’s Path to Avoiding the Middle-Income Trap: A 3-I Strategy World Bank Chief Economist, Indermit Gill, highlights the importance of India opening up further to foreign investment and innovation to avoid the Middle-Income Trap. He shares insights into the World Bank’s “3 I strategy” – Investment, Infusion, and Innovation – and how they can guide India's development trajectory. 💡 Strategic Takeaways: Investment: India has effectively leveraged public and private investment to boost infrastructure, achieving a per capita income of $2,500. However, further growth requires more than just increasing investment. Infusion: India must continue importing cutting-edge technology and applying it across sectors. Gill points out the success of digital technologies like Aadhaar, but urges similar focus on agriculture and manufacturing, where the productivity gains could be even higher. Innovation: As India nears the global technology frontier, developing homegrown solutions becomes vital. However, Gill cautions against skipping the infusion phase, comparing it to stalling a car by shifting from first to fifth gear. 🇮🇳 Developed Country Status by 2047? Gill remains optimistic but realistic, noting that while the target is ambitious, it can be motivational. Growth at 7%–10% is essential to reach high-income status by 2047. Nonetheless, Gill stresses that development is not one-size-fits-all for a diverse economy like India. #India #Investment #Innovation #EconomicGrowth #WorldBank #MiddleIncomeTrap

Indian Diamond Workers Urge for Government Intervention Amid Job Loss Fears The diamond polishing industry in India is facing a significant downturn as the global recession tightens its grip. Workers fear large-scale layoffs and are calling for urgent government action to protect their livelihoods. Here's what's happening: 🔹 Industry Shutdowns on the Rise -Kiran Gems, one of the largest players, began a 10-day closure on August 17th. -Small and medium-sized diamond polishing companies are also facing shutdowns or are cutting back on working hours. 🔹 Fear of Artisan Exodus - The Diamond Workers Union Gujarat (DWUG) has raised concerns about mass layoffs, with workers being let go in small numbers to avoid labor law compliance. - 25% to 50% of diamond artisans are being laid off randomly, as highlighted by Bhavesh Tank, Vice President of DWUG. 🔹 Call for Immediate Support DWUG has urged the government and industrial leaders to step in before it's too late. The industry risks a shortage of skilled artisans, similar to the crisis during the 2008 recession. 💡 Key Takeaway: If the government doesn't act, India’s globally renowned diamond industry could face a serious collapse. 🔹 What Needs to Be Done? -Financial aid for affected workers. -Job protection measures to prevent further layoffs. -Collaboration between government and industry to stabilize the sector. India’s diamond industry is at a crossroads—swift action is essential to protect jobs and sustain this vital sector. 💼✨ #DiamondIndustry #JobLoss #Recession #GovernmentSupport #IndiaEconomy #SkilledWorkers #ArtisanProtection

India’s Concern Over Cheap Steel Imports: Protective Measures Taken The Indian government has taken significant steps to safeguard its domestic steel industry, recently imposing countervailing duties of 12-30% on steel imports from China and Vietnam. This move comes after a sharp increase in cheap steel imports that have put pressure on local steel producers. Insights into India’s Steel Industry Challenges: 📉 Surge in Imports: Over the past six months, Chinese steel imports to India surged by 200%, while imports from Vietnam doubled. This rapid increase has strained the domestic steel industry, impacting production and profitability. 💼 Deflation in Steel Prices: Domestic steel prices have faced deflationary trends due to the influx of cheaper imports. This price pressure is challenging Indian manufacturers, who are struggling to compete with low-priced foreign steel. 📊 Rising Share of Chinese Steel: China’s share in India’s steel imports is once again on the rise, posing a growing threat to local producers. With cheaper alternatives flooding the market, India’s export prospects have also been negatively impacted. 🔑 Protecting Local Producers: The countervailing duties aim to level the playing field by addressing the unfair pricing practices of imported steel, thus helping Indian steelmakers remain competitive and maintain market stability. #SteelIndustry #IndiaTrade #SteelImports #DomesticManufacturing #TradePolicy #GlobalEconomy #MakeInIndia

🚀 India Targets Rs 8,000 Cr in Alcoholic Beverage Exports! 🍹 India is gearing up to make a mark in the global alcoholic beverage market, with plans to boost exports to Rs 8,000 crore (USD 1 billion) in the coming years. As part of the ‘Make in India’ initiative, the country is unlocking its untapped export potential, aiming to climb from its current rank of 40th in global alcoholic beverage exports. Sip into Success: Key Numbers & Markets 🍸 🔸 FY 2023-24 Exports: Rs 2,200 crore 🔸 Top Markets: UAE, Singapore, Netherlands, Tanzania, Kenya, Rwanda 🔸 Product Focus: Premium Indian whiskies, rum, and the new 'Godawan' single-malt whisky 🔸 Opportunities: US, Africa, and Europe are key markets for growth. Premium Spirits on the Rise 🥃 Diageo India (United Spirits Ltd.) is set to launch ‘Godawan,’ a premium single-malt whisky crafted in Rajasthan, into the UK market, boosting India’s reputation as a producer of quality whiskies. This move is expected to elevate India’s profile in the global spirits industry. Expanding Global Reach 🌍 Vinod Giri, Director General of the Brewers Association of India, notes that while premium single-malts will build India’s brand image, affordable Indian whiskies and rum will drive the bulk of export volumes. To capture these opportunities, the government is urged to integrate export promotion strategies into state excise policies, creating a pathway for even greater success. 💡 India’s global spirits industry is poised for tremendous growth! #MakeInIndia #ExportGrowth #IndianWhiskey #PremiumSpirits #GlobalTrade #AlcoholicBeverages #SpiritsIndustry #WhiskeyLovers

India Seeks Review of Key Provisions in India-UAE Trade Deal Amid Silver Import Surge ⚖️ India is calling for a review of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) following a 439% surge in silver imports from the UAE. Concerns over rules of origin violations have prompted the review, as India aims to safeguard its economic interests and ensure compliance with trade norms. 📊 Key Trade Data Highlights: Silver imports surged to $165.74 million in July 2023, up from $30.74 million in the same period last year. The UAE ranks as India’s third-largest trading partner, with bilateral trade reaching $83.65 billion in 2023-24. 🔎 Why the Review? Commerce Secretary Sunil Barthwal emphasized the need to revisit: Value addition norms to ensure fair trade practices. Customs duty reductions, particularly under the CEPA agreement. "We are in active discussions with the UAE and will holistically review all provisions once finalized," Barthwal stated. 🚨 Concerns Raised by GTRI The Global Trade Research Initiative (GTRI) highlighted potential risks from CEPA, allowing unlimited imports of gold, silver, platinum, and diamonds at zero tariffs in the coming years. Revenue losses and a shift of the import business from banks to private traders could occur if these tariff concessions are not addressed. Next Steps 🔄 India’s review will focus on whether the rules of origin are being adhered to and explore future actions to safeguard its trade interests. #IndiaUAETrade #SilverImports #CEPAReview #GlobalTrade #TradeCompliance #EconomicPartnership

🌍 Rising Freight Costs & Container Shortages: Key Challenges for India's Export Sector The Global Trade Research Initiative (GTRI) has highlighted urgent issues threatening India's exports—increasing freight costs and container shortages. Between 2022 and 2024, shipping rates for a 40-foot container fluctuated significantly, reaching an average of $4,775 in 2024, compared to $1,420 pre-pandemic in 2019. 🚢 Key Challenges: 1. Dependence on Foreign Shipping: 90-95% of India’s cargo is carried by foreign lines, leading to higher costs and limited control over freight rates. 2. Container Shortage: India produces less than 1% of global container supply, leaving exporters vulnerable to disruptions. 3. Reliance on Major Hubs: Around 25% of India's cargo is transshipped through ports like Colombo and Singapore, increasing transit time and costs. 🔑 GTRI’s Recommendations: - Boost Domestic Container Production: India must ramp up container manufacturing to reduce dependency on imports. - Strengthen Local Shipping Companies: Promoting Indian shipping firms to handle a larger share of exports will help cut costs and mitigate geopolitical risks. - Reduce Reliance on Chinese Containers: As China dominates global container production, India's vulnerability to supply chain disruptions is high. 📈 Why It Matters: - Freight costs have more than doubled for Indian exporters shipping to Europe and the US. - The US-China trade tensions could further exacerbate supply chain issues, impacting India's export potential. Investing in domestic container production and shipping is crucial to safeguarding India's exports from future global disruptions. #GlobalTrade #FreightCosts #IndianExports #SupplyChain #Logistics #TradeChallenges #GTRI #ExportIndustry #India

🚜 Govt Lifts Minimum Export Price on Basmati Rice & Raises Duties on Edible Oils 🌾 In a major move, the Indian government has announced key changes to boost the agricultural sector and support farmers' incomes. Here are the key highlights: 🌾 Basmati Rice Export Boost - MEP Threshold Removed: The government has eliminated the Minimum Export Price (MEP) of USD 1,200/MT on basmati rice exports, enabling Indian farmers to access global markets more easily. - Enhanced Export Opportunities: APEDA will ensure transparency and prevent price manipulation in basmati rice exports. - Farmer Support: This decision aims to improve farmer incomes and sustain India’s leadership in basmati rice exports. 🛢️ Increased Duty on Edible Oils - Duty Hike on Refined Oils: The basic duty on refined edible oils is now 32.5% with an effective total duty of 27.5%. - Boost for Domestic Crops: Higher duties will increase demand for domestic crops like mustard, sunflower, and groundnuts, helping farmers get better prices. - Employment Growth: The rise in refining activity in rural areas will lead to new job opportunities. 🧅 Onion Export Changes - Onion MEP Removal: The government has also removed the MEP on onion exports, following a favorable monsoon and expected bumper crops, benefiting farmers across the country. These policy shifts reflect the Modi government’s commitment to enhancing the livelihoods of farmers and strengthening the agricultural economy. #BasmatiRice #EdibleOils #AgricultureReform #IndianFarmers #FarmersIncome #ExportGrowth #GovernmentPolicy #MustardCrops #SunflowerCrops #GroundnutCrops 🌾🚜