Food processing attracts heavy investment, US a key contributor: minister

Source: The Hindu Business Line, Sept 15, 2018

New Delhi: India’s food processing sector has attracted heavy investment and the US has played a key role in the industry’s initiatives, Minister of State for Food Processing Sadhvi Niranjan Jyoti said Friday. “India’s goal of bringing food processing to global standards has brought about heavy investment, and America is playing a significant role in the industry’s initiatives,” a statement quoting the minister as said at the 14th Indo-US Economic Summit hosted by the industry body IACC.

Stating that the relations between India and the US in recent years has deepened, she said that the government has worked tirelessly towards the mission of ‘Sabka Saath, Sabka Vikas’.

“This spirit of inclusive growth is not only beneficial for Indian farmers whose income the government has sought to double by 2022, but also for international partners like America, and can create economic prosperity for all,” she added.

Speaking at the event, YES Bank Senior President and Global head (Food and Agri Strategic Advisory and Research) Nitin Puri said Indian government is catalysing a revolution in food processing, and this environment has created many opportunities for collaboration between India and the US.

A recommended pathway for this collaboration can be investment in entire value chains. These can mitigate food wastage losses, bring global best practices and technologies like superior cold chains to India, and sell Indian goods in global markets, he said in a statement.


India in a catch-22 situation on free trade pact with the US

Source: The Hindu Business Line, Sept 16, 2018

New Delhi: The government seems to be in two minds about whether it should go in for a free trade agreement (FTA) with the US. While many officials are against a pact as they believe it will hurt domestic industry and agriculture, there is a small but influential group in the government that favours an FTA, according to two sources aware of the developments.

“There must be a larger debate and consultations involving other ministries and departments as well as industry and farmer groups in case the Commerce Ministry wants to get into negotiations on a free trade pact with the US. A trade agreement with such a powerful nation will have huge economic as well as political repercussions and is not to be taken lightly,” a Delhi-based trade expert told BusinessLine. Although India, because of its indecision on the matter, has not officially spelled out its intention to get into a free trade dialogue with the US, there are indications from the White House hinting at some informal talks on trade deals already happening between the two countries.US President Donald Trump said at a recent event in South Dakota that India had expressed interest in a trade deal with the US for the first time.

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Centre announces new measures to rein in rupee

Source: The Hindu Business Line, Sept 15, 2018

In an effort to rein the rupee, the Government on Friday announced a slew of measures. These include curbing non-essential imports and incentivising the exports.

These measures were announced after the Prime Minister Narendra Modi went into huddle with the Finance Minister Arun Jaitley and the RBI Governor Urjit Patel beside senior Finance Ministry officials and other Government officials to review the economy especially after rupee plunged to below 72 level against a dollar, though closed at 71.85 a dollar on Friday.

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Edible oil import likely to fall first time in 7 years on duty hike

download (4).jpgSource: Business Standard, Sept 15, 2018

Mumbai: India’s edible oil import is estimated to register a fall this oil year (from November, 2017 to October, 2018), first time in seven years. Import of vegetable oils (largely edible oil and some non-edible oil for industrial use) have been on the rise for many years and almost tripled in ten years to 15.4 million tons last year.

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Exports rise at fastest pace in 3 months in Aug; trade deficit narrows to $17.4 bn

Source: The Economic Times, Sept 14, 2018

The country’s exports rose at the fastest pace in three months to reach USD 27.84 billion in August on account of healthy growth in petroleum products, engineering, pharma, and gems and jewellery shipments.

Imports too grew by 25.41 per cent in August to USD 45.24 billion due to costlier crude oil shipments.

In August, the growth rate in overseas shipments touched a three-month high of 19.21 per cent. Earlier in May, exports had recorded a growth of 20.18 per cent.

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Commerce Ministry eases process to avail export incentives under MEIS scheme

download (3)Source: The Economic Times, Sept 16, 2018

The commerce ministry’s foreign trade arm DGFT has simplified the procedure for traders to avail export incentives under the MEIS scheme, a move aimed at promoting ease of doing business for exporters. Under Merchandise Exports from India Scheme (MEIS), the government provides duty benefits depending on the product and country.
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India ranks 3rd globally in terms of number of family-owned businesses

Source: The Economic Times, Sept 14, 2018

India ranks third globally in terms of number of family owned businesses with 111 companies of USD 839 billion total market capitalisation, followed closely after China with 159 firms and the United States with 121 firms, says a report.

According to the ‘Credit Suisse Family 1000 in 2018’ report, published by the Credit Suisse Research Institute (CSRI), in terms of number of family owned businesses, within the non-Japan Asian region, China, India and Hong Kong dominate the list.

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