‘Export target of $900 billion by 2020 not feasible’

Source : Hindu Business Line  25 May 2017

New Delhi, May 25:  Exporters say meeting the export target of $900 billion by 2020 seems tough, given the current global economic scenario; a more realistic goal would be $700-750 billion.

The Federation of Indian Export Organisations (FIEO) has also expressed apprehensions that paying input taxes first and then claiming refunds under the Goods and Services Tax (GST) regime could lead to losses worth 2 per cent of export value, and has asked the government to bear that burden.

“Reaching the target of $900 billion set in the Foreign Trade Policy would require exports to grow at a compound rate of 27 per cent (from the current fiscal to 2019-20). Given the current global scenario, the possible rate of growth might be 15 per cent, which would translate into exports of $700-750 billion by 2019-20,” said FIEO Director General Ajay Sahai.

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Africa eyes $ 100 bn bilateral trade with India

Source: The Hindu Business Line, May 20, 2017

Ahmedabad: Driven by infrastructure and manufacturing sectors, the bilateral trade between India and Africa is expected to touch US $ 100 billion (approx Rs. 6,50,000 crore) in the next two years, as the continent advances towards industrialization, informed a top official of the African Development Bank (AfDB) here on Saturday.

“In 2005-06 the total bilateral trade between India and Africa stood at US $ 11.7 billion, which has reached to US $ 56.9 billion by 2015-16. Now we expect the bilateral trade to exceed US $ 100 billion in the next two years, helped by the Prime Minister Narendra Modi’s push for India-Africa partnership,” said Dr Akinwumi A. Adesina, President, African Development Bank ahead of the 5-day annual meeting of the AfDB Group at Mahatma Mandir.

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Steel exports surge 142%, imports down 23% in April

indexSource : Business Standard 15 May 2017

Overtaking imports, India’s steel exports jumped by 142 per cent in April to 0.747 million tonnes (mt) as compared to 0.308 mt in the same month last year, said a Steel Ministry report.

Steel imports were down by 23 per cent to 0.504 mt in the last month from 0.654 mt imported in the corresponding month of the last financial year (FY).

“Export of total finished steel was up by 142 per cent in April 2017 to 0.747 mt over April 2016 and declined by 54 per cent over March 2017. Import of total finished steel at 0.504 mt in April declined by 23 per cent over April 2016 and also declined by 16 per cent over March 2017. India was a net exporter of total finished steel in April 2017,” said the report of Joint Plant Committee.

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India to revamp foreign trade policy to give leg up to exports

download (2).jpgSource : Economic Times 8 May 2017

NEW DELHI: India plans to revamp its foreign trade policy and relook at incentives to give a leg up to the export sector, which is hurt by lower global demand as well as an appreciating rupee.

The government proposes to come out with a mid-term review of the Foreign Trade Policy (FTP) 2015-20 in September, commerce and industry minister Nirmala Sitharaman told ET.

“We have asked stakeholders, whoever is interested, to give us inputs,” she said. “We are looking at it in-depth and in all its details.”

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US apple producers to target small towns in India

download (6).jpgSource : Economic Times 5 May 2017

SILIGURI: Despite being world’s fifth largest apple producer, India, has become an important target market for US Apple industry, world’s second largest producer of the fruit after China.

“Enormous size of Indian market hosts sky high-level hidden potential. Especially the smaller towns. We are eager to explore that,” said K Sunderlal, India representative of Washington Apple Commission (WAC).

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India’s gold demand drops 18% to 131 tonnes in second quarter: WGC

download (2)Source : Business Standard

 MUMBAI, AUG 11:  India’s gold demand in the second quarter this year fell 18 per cent to 131 tonnes on account of rise in prices, government regulations and jewellers’ strike, the World Gold Council said in its latest report.

Total gold demand stood at 159.8 tonnes in the corresponding quarter last year, according to the WGC Gold Demand Trends Q2 2016 report.

In terms of value, India’s gold demand for April-June period dropped 8.7 per cent to Rs 35,500 crore compared with Rs 38,890 crore in the corresponding quarter of 2015.

“Consumer demand fell 18 per cent in the country to 131 tonnes in Q2 2016, as it was a truncated period for sales as jewellers’ strike extended into April and remained more or less effective until ‘Akshaya Tritiya’ (considered auspicious occasion for buying gold), when sales saw a brief boost,” Somasundaram PR, Managing Director—India, WGC, told PTI here.

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India export subsidies may have to be phased out soon

Source: LiveMint.com, Apr 28, 2017

New Delhi: India may soon have to phase out its export subsidy regime in the current form as World Trade Organization (WTO) rules bar it from offering export incentives to any sector, including textiles, when it reaches certain thresholds that it is nearing. The deadline for ending direct subsidies to textile companies is December 2018.

Under the special and differential provisions in the WTO’s Agreement on Subsidies and Countervailing Measures, least developed countries and developing countries whose gross national income (GNI) per capita is below $1,000 per annum at the 1990 exchange rate, are allowed to provide export incentives to any sector that has a share of below 3.25% in global exports.

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