Marching Through Chaos

On a positive note, India’s exports grew 17.3% to US$14.22 billion within the last fortnight in comparison to 2020, reveals data from the Commerce Ministry. The export of products such as rice, gems, jewellery, etc. appeared to be on the rise. However, on the downside, exporters seem to be on the edge as they anticipate lower refunds under the Remission of Duties and Taxes on Exported Products (RoDTEP) than recommended by a technical committee, thus possibly hampering trade.

Moreover, the unforeseen catastrophe of the global shortage of containers continues to dampen international trade as manufacturers struggle to cater to the huge demand for the metal boxes. Experts believe that by the year-end, the situation is likely to get resolved as we are progressively moving out of the Covid economy.

Exports rise 17.3% to $14 bn in first 2 weeks of March

Showing healthy signs of revival, India’s exports grew 17.3% to $14.22 billion during March 1-14 compared with a year earlier, according to the Commerce Ministry’s preliminary data. Imports during the period increased 27.8% to $22.24 billion, leaving a trade deficit of $8.02 billion, the data showed. The key sectors that recorded healthy growth in exports include engineering, rice, gems and jewellery.

Hit to exports: Exporters fear low RoDTEP refunds

The Pillai committee was set up only in late July last year to undertake a humongous exercise of recommending RoDTEP rates for thousands of products. As the government prepares to notify refund rates under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, exporters fear the rates may turn out to be lower than recommended by a technical committee. Inadequate remission of taxes would result in residual embedded taxes in export products and hit Indian industry’s competitiveness in world markets at a time when shipments are witnessing a nascent recovery, they warn.

SME-boost with foreign trade policy: A market intelligence programme under FTP will widen the markets for SMEs

A key aspect of MSME (micro, small and medium enterprises) growth is improved market access. This, in turn, is dependent on market information, which is severely limited due to low levels of awareness. Criticality of the information challenge is evident from a high proportion of large-sized firms (42%) reported having faced difficulty in accessing information and benefits under Covid-19-related programmes for MSMEs announced by their corresponding governments.

Shortage of New Shipping Containers Adds to Global Trade Turmoil

The world’s biggest makers of shipping containers are scrambling to meet a surge in demand for the metal boxes that shuttle some 90% of the goods around the global economy. A trade boom in the second half of last year caught the container producers -- mostly Chinese companies -- by surprise as the pandemic threw the existing supply of about 25 million boxes off their normal routes.

'EU is our largest trading partner, second-largest destination for Indian exports'

India is negotiating a connectivity partnership with the EU which will connect people to people, trade, business, and technology in the coming times, said Sandeep Chakravorty, Joint Secretary (EW), Ministry of External Affairs on Wednesday.