TRADE UPDATE #100

The Fiscal Impetus

23/01/2021

The year seemed to have started with fresh signs of economic recovery backed by vaccination drives. Indian exports surged by 11% in the first fortnight of 2021 -- largely led by pharma and engineering goods -- leading to a trade deficit of over US$ 6B.

All hopes are now pinned on the upcoming Union Budget 2021. COVID-19 having raised the bar for expectations from it, the major focus is expected to be on the fiscal impetus to stressed sectors and boosts overall exports.


EXPORTS

Exports grow 11% in the first half of Jan

India’s exports rose around 11% to $11.8 billion during the first fortnight of 2021, while imports went up about 6.6% to $18 billion, resulting in a trade deficit of over $6 billion.


FINANCE

NBFCs, fintech companies urge FM Sitharaman to enhance lending facilities

Non-banking finance companies (NBFCs) and fintech players have urged Finance Minister Nirmala Sitharaman to enhance the lending facilities by three to four years which were announced and extended by the Reserve Bank of India (RBI) during Covid-19 lockdown.


COMMODITY

Comm Min Lays Out Procedure For Exports Of Diagnostic Kits

The commerce ministry on Tuesday laid out procedures for submission and approval of applications for exports of diagnostic kits and their components. The directorate general of foreign trade has fixed quota for exports of diagnostic kits such as VTM Kits (660 lakh), RNA extraction kits (400 lakh), and RTPCR kits (280 lakh) till February 2021, according to a notice.


UNION BUDGET

Export needs budgetary support for overall economic growth

India’s exports are losing their share in the gross domestic product (GDP). And for a considerable period, low oil prices were a key reason for this. But it also means that non-oil exports slogged during that phase. Into the pandemic, exports improved in Q2 but may not have risen greatly in Q3, assuming no change in quarterly GDP from last year’s level.


POLICY

Nearly 20 lakh jobs will be created in five years, says Jagadish Shettar

Minister for Large and Medium Industries Jagadish Shettar has said that through the new industrial policy it had been planned to generate employment for nearly 20 lakh people in the next five years.


OTHER NEWS

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