TRADE UPDATE #128

Fishing for New Markets

13/08/2021

A joyful weekend is likely to be on the cards for the exporter community after commerce secretary BVR Subrahmanyam on Wednesday promised to announce the refund rates under the Remission of Duties and Taxes on Export Products (RoDTEP) scheme by this weekend. While the government has been dilly-dallying on this matter ever since the scheme was devised in January 2021, exporters hope the move will provide India’s exports with a better footing by giving a competitive edge to businesses here. Another good news is that India, in its bid to revamp its foreign trade strategy, is all set to fast-track trade negotiations with at least six countries, with UAE probably being the first.

Moreover, much is being discussed about the upcoming foreign trade policy (FTP) and how it needs to be different in the post-pandemic world. With that being said, it seems that the policymakers are also keen on doing just that. From developing a district export hub initiative to scale-up manufacturing, addressing the supply chain constraints to promoting e-commerce, mapping the Geographical Indication (GI) products to boost trade, the FTP looks quite promising.

Besides this, marine exporters have finally decided to fish for new territories to market their products after China suspended the supply from Indian seafood companies citing covid reasons. Some experts believe this is to be a blessing in disguise as now local firms can manufacture value-added marine products and cater to novel geographies like Singapore, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the UAE, to name a few.


ECONOMY

Exports up over 50% to $7.41 billion during August 1-7

The country's exports rose by 50.45 percent to USD 7.41 billion during August 1-7, on account of healthy growth in the shipments of engineering goods, gems and jewellery as well as petroleum products, according to provisional commerce ministry data.


POLICY

New FTP to focus on e-commerce, GIs, district hubs, SEZs and R&D

The new five-year Foreign Trade Policy, scheduled to be in place from October this year, is likely to focus on promoting e-commerce, geographical indication (GI) products, district export hubs initiative, special economic zones, and research & development, an official tracking the development said.


INTERNATIONAL TRADE

Piyush Goyal: Need to exploit strengths for FTAs

Free trade agreements (FTA) will only be possible if Indian companies are willing to be generous and potentially exit some lines of business where they are uncompetitive, Commerce and Industry Minister Piyush Goyal said Thursday.


EXPORT SCHEMES

Govt to notify RoDTEP rates by Friday: Commerce secretary BVR Subrahmanyam

The much-awaited tax refund rates under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme would be notified as early as August 13, commerce secretary BVR Subrahmanyam said on Wednesday. The move will help exporters better firm up their contracts, factoring in the tax reimbursement.


BILATERAL TRADE

India, Australia eye early harvest agreement by end of this year: Tony Abbott

India and Australia are strengthening their trade negotiation teams aiming to hammer out an “early harvest" agreement at least by the end of this year, said former Australian Prime Minister Tony Abbott who was in India last week as special envoy on trade.


OTHER NEWS

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