Commerce and Industry Minister Piyush Goyal on Thursday said that the government has decided to extend the benefits of the export-boosting scheme Remission of Duties and Taxes on Exported Products (RoDTEP) to e-commerce exports.
The RoDTEP scheme, which came into effect three years ago, refunds the embedded non-creditable central, state, and local levies paid on inputs to exporters. 'Right now, e-commerce exporters are not getting RoDTEP benefits. We are going to notify that RoDTEP will be available for e-commerce, and for whatever IT enablement is required, the Commerce Ministry will do,' a senior government official said. It is difficult to get an estimate of e-commerce exports because a considerable portion of e-commerce exports by large companies such as Amazon and Walmart are a part of merchandise exports. Taking into account postal and courier exports, India exports goods via e-commerce to the tune of $1 to $1.5 billion out of total $421 billion exports.
Source: Business Standard
Synopsis The Indian government aims to boost domestic manufacturing and increase exports to USD 500 billion by 2030 from 10-11 sectors, including automobiles, pharma, textiles, medical devices, and chemicals. The Commerce and Industry Ministry held a meeting to discuss these issues, which were discussed during the Chintan Shivir for Manufacturing. The 11 sectors include auto components, automobiles, capital goods, chemicals, drones, medical devices, aerospace and defense, leather and footwear, textiles, and space. The government is working on boosting domestic manufacturing and increasing exports to USD 500 billion by 2030 from 10-11 sectors, including automobiles, pharma, textiles, medical devices and chemicals, a senior official said on Thursday. These issues were discussed during a meeting called by the Commerce and Industry Ministry on Thursday. The meeting was convened by the Department of Promotion of Industry and Internal Trade (DPIIT) in collaboration with Invest India and SCALE (Steering Committee for Advancing Local Value-Add and Exports) Committee to unveil outcomes and recommendations made during the Chintan Shivir for Manufacturing, held on October 12 at Bharat Mandapam here. The 11 sectors are auto components, automobiles (including EVs), capital goods, chemicals, drones, medical devices, aerospace and defence, leather and "We are looking at investments in these sectors. We will drill down to each of the areas to see how to promote manufacturing and we have kept a target to increase exports in these 10-11 sectors from USD 160 billion to USD 500 billion by 2030," the official added. Overall, the ministry is looking at taking the country's goods and services exports to USD 2 trillion by 2030. The Chintan Shivir witnessed the participation of industry leaders, knowledge partners, and government officials from focus sectors. The deliberations centred on the current scenario, challenges and recommendations tailored to stimulate the country's manufacturing landscape. The meeting was presided over by Commerce and Industry Minister Piyush Goyal, Chemicals and Fertilisers Minister Mansukh Mandaviya and Heavy Industries Minister Mahendra Nath Pandey. When asked about the government's plan to come out with a policy for the electric vehicles (EVs) sector, the official said: "We have to get all the countries on board such as Germany, Korea and Italy. We should invite everybody".
Source: Economic Times
Textiles and clothing industry in India is the worst affected among the textile producing countries due to additional challenges on the raw material front, both cotton and manmade fibres, and steep increase in power cost in most of the textile manufacturing States, said K.V. Srinivasan, the newly-elected president of International Textile Manufacturers Federation (ITMF).Mr. Srinivasan said, in a press release, that “urgent policy measure is required to ensure smooth supply of raw material at an internationally competitive rate by removing 11% import duty on cotton, addressing Quality Control Order (QCO) issues and price issues pertaining to PTA, MEG, Polyester and Viscose and ensure a level playing field.” The government could have avoided these two short-sighted policies when the industry had been facing an unforeseen crisis that had worsened the global competitiveness and performance of the industry, he said in the released. Further, huge incentives offered for new investments by several State governments in the country were eroding the competitiveness of existing capacities and making them unviable as the industry was struggling with excess capacity. India, which was the second largest producer of raw material, was unable to leverage on it while countries such as Bangladesh and Vietnam that did not have a raw material base had achieved exponential growth rate in exports. Indian exports were stagnating at $ 35 billion for more than a decade, he pointed out.
Source: The Hindu
The income tax department on Thursday clarified the applicability of TDS liability of eretailers trading through the government's ONDC initiative. As per the FAQ issued by the Central Board of Direct Taxes (CBDT), a 1 per cent TDS will have to be deducted from the gross sale amount after including convenience/ packaging/shipping fees as charged by e-commerce trading platforms for the order placed on ONDC. As ONDC or Open Network for Digital Commerce is a new initiative of the Department for Promotion of Industry and Internal Trade (DPIIT), the CBDT had received representations seeking clarity on who should be liable for Tax Deducted at Source (TDS) compliance under I-T laws. Under the law, every e-commerce operator is required to deduct TDS at the rate of 1 per cent of the sales amount of goods/services sold through its platform. The CBDT has clarified that in a situation where multiple e-commerce operators (ECOs) are involved in a single transaction through the ECO platform, the TDS compliance is to be done by the supplier side, who finally releases the payment to the supplier. Incorporated on December 31, 2021, ONDC is a Section 8 company. It is an initiative of the DPIIT to create a facilitative model to help small retailers take advantage of digital commerce. It is not an application, platform, intermediary, or software but a set of specifications designed to foster open, unbundled, and interoperable open networks.
Source: Business Standard
Tamil Nadu is the second-largest economy in India and the state’s gross state domestic product (GSDP) stood at around Rs 23 trillion in 2021-2022. Between 2005 and 2023, it posted an average growth rate of 10 per cent year-on-year.
It has now set an ambitious target of becoming a $1 trillion economy by 2031. As a precursor to the much-anticipated Tamil Nadu Global Investors Meet 2024, scheduled for January 7 and 8, it has launched a campaign called “OneTrillionDreams” to boost its $1 trillion economy plans and to honour people who have contributed to the state’s industrial sector. Here is a look at the key sectors from where the majority of investments are expected to come on the state’s road to the $1 trillion target.
Source: Business Standard
In a meeting with President Vladimir Putin, External Affairs Minister S Jaishankar underscored the significant progress in India-Russia bilateral trade, surpassing USD 50 billion. Jaishankar emphasised the potential for further growth and the need to give the trade relationship a more sustainable character."I would like to highlight the progress we have and trade, which is in excess of a turnover of USD 50 million, and we believe that this is something whose potential is now only beginning to be visible. It is important that we give it a more sustainable character, and we discussed how we should do that," said Jaishankar. Addressing key aspects of collaboration, the EAM discussed the nuclear sector, highlighting the signing of crucial agreements related to the Kudankulam project. He revealed the finalisation of a substantial agreement on nuclear fuel supply, indicating advancements in India-Russia cooperation in the nuclear domain. "The second aspect pertains to the nuclear side and we signed agreements yesterday that would take the Kudakulam project forward. And, we have finalised a very significant agreement on nuclear fuel supply," he added. During the meeting, Jaishankar conveyed Prime Minister Narendra Modi's personal greetings to President Putin. He mentioned that PM Modi had sent a letter expressing thoughts on the state of cooperation and recent progress. "Please allow me to convey the personal greetings of Prime Minister Modi and he has also, through me, sent a letter to you, a letter expressing his thoughts about, the state of our cooperation and the progress that we have made in recent days. And I will have the honour to give you the letter," said Jaishankar. " Certainly, he (PM Modi) looks forward to visiting Russia next year. And I'm sure that we will find a date that is mutually convenient from the political calendars of both countries," the EAM said, responding to President Putin's invitation to PM Modi. Jaishankar took the opportunity to update President Putin on the progress made over the last two days, including discussions with Deputy Prime Minister Denis Manturov and Foreign Minister Sergey Lavrov."I would also, extensively, like to take the opportunity to share with you aspects of the progress that we have made and in the last 2 days, I had a chance to discuss it with Deputy Prime Minister Denis Manturov and today with Lavrov," the EAM said. Following his meeting with the Russian President, Jaishankar took to his social media handle on X and said that he appreciated Putin's guidance on the further developments of India-Russia ties. "Honoured to call on President Vladimir Putin this evening. Conveyed the warm greetings of PM Narendra Modi and handed over a personal message. Apprised President Putin of my discussions with Ministers Manturov and Lavrov. Appreciated his guidance on the further developments of our ties," the EAM posted on X.
The EAM is on a Russia visit from December 25 to 29 as a part of the ongoing high-level exchanges between the two sides.
Source: Business Standard
India is likely to remain the fastest-growing major economy in the world in 2024 on the back of strong consumer demand leading to a pick up in investment across sectors such as construction, hospitality and infrastructure including railways and aviation, Assocham said on Thursday. India retained the tag of the world's fastest-growing major economy, with its GDP expanding by a faster-than-expected rate of 7.6 per cent in the July-September quarter on booster shots from government spending and manufacturing. The country's Gross domestic product (GDP) growth of 7.6 per cent beat most estimates, including 6.5 per cent projected by the Reserve Bank of India (RBI). The growth compares to 6.2 per cent in the same quarter last year and 7.8 per cent expansion in the preceding quarter, official data released on Thursday showed. India's GDP growth beat China's 4.9 per cent rise in July-September, while the Western economies are getting crushed under high-interest rates and energy prices. "India's macro picture looks quite convincing with the overall economy following a trend growth of seven per cent with critical building blocks combining to give it brighter prospects,'' Assocham Secretary General Deepak Sood said. According to the industry body, India Inc led by financials, construction, hotels, aviation, automobile and other manufacturing areas like electronics are on a strong pitch to further improve performance in the coming year. The trajectory is being helped by the low crude oil prices, keeping inflation in check with a big positive on raw material cost. "Sectors like construction have several related industries which too have gained momentum. These include steel, cement, mining, electricity generation and consumer durables,'' Assocham stated. The macro economic indicators including government balance sheet reflected in strong tax collections, record foreign exchange reserves, stability in the rupee against major currencies and signs of revival in merchandise exports are expected to further improve, it estimated.
Source: Economic Times
Refiners in India, the world’s third-largest crude oil importer, are seeking to boost supplies from the Middle East and other nearby nations as recent attacks on ships in the Red Sea raise the risk of longer shipping time and higher costs, according to people familiar with the matter.
Shippers turned cautious about entering the Red Sea in recent weeks due to multiple attacks by Yemen’s Iran-backed Houthi rebels. That prompted massive diversions, with many ships taking a longer route around the Cape of Good Hope, adding as much as three weeks to the voyage. Vessels carrying cargoes from the producers in the Mediterranean and North Sea are among those affected, as they travel the Suez Canal and Red Sea en route to Asia. Shipping companies are asking Indian firms to bear the risk premiums for deliveries via the usual route, said the people, who asked not to be identified because of the sensitivity of the issue. The refiners are not willing to bear the additional liability and are scouting for alternative suppliers, they said. Indian refiners are concerned their margins may come under pressure due to a sharp rise in insurance and freight costs. However, they also need to keep pace with domestic demand, which is rising because of the South Asian nation’s rapid economic growth. State-owned Bharat Petroleum Corp Ltd. has already arranged crude oil from other sources, a company official said, but didn’t provide more details.
The government is advising merchants to take longer routes and diversify energy imports, with greater emphasis on buying from the Persian Gulf and Central Asia, officials from India’s trade ministry said on condition of anonymity. Talks are also underway with countries such as Saudi Arabia and the United Arab Emirates to strengthen maritime security cooperation in the Red Sea region, they said. A spokesperson from the ministry didn’t immediately respond to an email seeking comment. The flow of Russian oil from the Black Sea region may be affected and rerouted, leading to a higher premium for crude from the Middle East, said Madhavi Arora, lead economist at Emkay Global Financial Services Ltd. India’s refined fuel product exports to the EU too could be impacted, she said.
Source: Financial Express
he commerce ministry has proposed revised election bye-laws for all export promotion councils (EPCs) including apex exporters’ body FIEO, under which a chairman will hold office for two years and will not be eligible for the immediate next election. The revised model articles of associations/bye-laws for EPCs and Federation of Indian Export Organisations (FIEO) are required to be adopted by these bodies and conduct elections of their office-bearers. This was proposed by a three-member panel set up by the ministry in May to review the eligibility criteria for the election to make them more inclusive and representative. It was reviewing the eligibility criteria for the election of office bearers of EPCs and FIEO. The panel reviewed the existing guidelines and made suitable recommendations about representation of different stakeholders in the managing committee and other posts. After that elections in these bodies were put on hold. Now after adoption of these new revised bye-laws the councils and FIEO can start the election process. So far the elections were conducted on bye-laws made in 2015. According to the model bye-laws, a chairperson shall be eligible for re-election as vice-chairperson in the same/any other council, only after a gap of four years.
Source: Financial Express
Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution, and Textiles, Shri Piyush Goyal presided over a meeting convened today in New Delhi to unveil pivotal outcomes and recommendations made during the Chintan Shivir for Manufacturing held on 12th October 2023 at Bharat Mandapam, New Delhi. The Meeting featured the esteemed participation of Union Minister of Health & Family Welfare and Chemicals & Fertilizers, Shri Mansukh Mandaviya and Union Minister of Heavy Industries, Dr. Mahendra Nath Pandey. Shri Goyal underscored that it is imperative for the Industry to assume a leadership role in national manufacturing, with the Government’s commitment to provide comprehensive facilitation support. Shri Mandaviya delved into opportunities within the Chemicals, Medical devices, and health sectors, while Dr. Pandey highlighted the progress achieved in the automotive and capital goods sectors. Dr. Pawan Goenka, Chairman of the SCALE Committee, presented the outcomes pertaining to the focus sectors, eliciting feedback and way forward from the Line Ministries/Departments. The Meeting was organized by the Department of Promotion of Industry and Internal Trade (DPIIT) in collaboration with Invest India and the Steering Committee on Advancing Local value-add & Exports (SCALE Committee). The 11 focus sectors included: (i) Auto Components, (ii) Automobiles (including EVs), (iii) Capital Goods, (iv) Chemicals, (v) Drones, (vi) ESDM, (vii) Medical Devices, (viii) Aerospace & Defence, (ix) Leather & Footwear, (x) Textiles and (xi) Space.
The Chintan Shivir witnessed an active participation of Industry leaders, Knowledge partners, and Government officials from focus sectors. The deliberations centered on the current scenario, challenges and recommendations tailored to stimulate the country's manufacturing landscape. These insights emanated from extensive discussions with Industry leaders elucidating challenges pertaining to their respective sectors.
Source: PIB
Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution, and Textiles, Shri Piyush Goyal released the comprehensive "E-Commerce Exports Handbook for MSMEs" prepared by the Directorate General of Foreign Trade (DGFT) in New Delhi today. The Minister said that the Handbook, a significant initiative supporting the objectives of Foreign Trade Policy 2023, will prove to be a definitive guide for MSMEs seeking to harness e-commerce platforms for expanding their exports. During the launch event, Shri Goyal highlighted the collaborative effort involving various ministries and private sector stakeholders in developing this handbook. The handbook, envisioned as a one-stop repository, provides detailed insights into strategies for promoting exports via e-commerce, facilitating MSMEs to venture into global markets effectively. The Minister said that India's traditional products like 'Shree Anna' (millets) and numerous other agricultural goods hold substantial demand across the globe, especially in regions with a significant Indian diaspora. He noted that through e-commerce, our goal is to bridge the gap and connect Indian MSMEs, craftsmen, farmers, and food processors with global markets. Shri Goyal reaffirmed the government's commitment to fostering an environment conducive to entrepreneurship, echoing Prime Minister, Shri Narendra Modi's vision of a 'Wed in India' initiative. This initiative aims to position India as a premier wedding destination, aligning seamlessly with the e-commerce promotion of traditional Indian goods, catering to diverse requirements for weddings. Shri Goyal further announced that the benefit of the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) would be extended to courier and postal exports and for this, the necessary IT framework and other enablers are being put in place. He further emphasized that this step should help the SME sectors to take advantage of Government schemes, further pushing the e-Commerce exports and boosting overall export growth from the country to achieve the target of 1 trillion USD merchandise exports by 2030.
The comprehensive handbook, initially released in four languages namely English, Hindi, Gujarati and Kannada, will be translated into all official languages across India, ensuring accessibility and benefitting consumers, entrepreneurs, farmers, and women entrepreneurs looking to contribute significantly to trade and commerce. To further supplement, the Department of Commerce’s efforts to hand hold, promote new and first-time exporters and other MSME producers to export from India, especially through the E-Commerce route, an Memorandum of Understanding (MoU) was also signed between DGFT and Shiprocket, an E-Commerce enabler for holding capacity building and handholding sessions, as part of the E-Commerce outreach conducted by DGFT Regional Authorities under its Districts as Export Hubs Initiative. This is part of the DGFT’s collaboration with different E-Commerce platforms/enablers to hold training sessions in districts across the country with focus on promoting E-Commerce exports. The E-Commerce exports handbook for MSME will be a key resource for creating awareness on E-Commerce exports through these outreach events in the districts.
India's Foreign Trade Policy 2023 has a stated objective to support Cross-border E-Commerce exports. The policy focuses on empowering artisans, weavers, craftsmen, and MSMEs. An Inter-Ministerial Working Group has also been constituted to address the challenges of E-Commerce Exporters and provide comprehensive solutions. E-Commerce exports is one of the key focus areas in the Foreign Trade Policy. The release of the Handbook also saw the participation of Director General of Foreign Trade, Shri Santosh Sarangi; Development Commissioner (MSME) Dr. Rajneesh; Additional Director General, Department of Posts, Shri Prannoy Sharma; and senior officers from the Department of Commerce.
Source: PIB
Cambodia has witnessed reduced customs and excise revenue collection due to a fall in tariffs for partner nations with which it has bilateral and multilateral free trade agreements. The general department of customs and excise (GDCE) collected $2.8 billion in the first 11 months this year, representing a loss of $400 million compared to the corresponding period last year. GDCE director general Kun Nhem attributed the decline in customs revenue collection primarily to the implementation of the FTAs. Development in the country’s manufacturing sector have also led to reduced imports as domestic products replace imported ones, he was quoted as saying by a Cambodian newspaper. The Cambodia-China FTA, implemented from January 1 last year, made nearly 98 per cent of the country’s exports to China and 90 per cent of imports from China exempt from tariffs. The Regional Comprehensive Economic Partnership also boosting exports but reduced some import tax revenue. The country will soon implement the Cambodia-South Korea FTA.
Source: Fibre2fashion
Bangladesh’s commerce ministry recently unveiled the draft of a proposed economic partnership agreement (EPA) with Japan covering 17 sectors, including trade in goods, customs procedures, trade facilitation, investment and e-commerce.
Both sides have decided to sign the EPA by December 2025.
"As a result of this agreement, Bangladesh will be easily included in the global value chain. At the same time investment, and trade will increase," the ministry’s senior secretary Tapan Kanti Ghosh told a press conference in Dhaka. Japanese ambassador to Bangladesh Iwama Kiminori said the proposed agreement will facilitate development on both sides. The two countries have already completed a joint feasibility study on the matter, media outlets in Bangladesh reported. The study assessed the status in various sectors on both sides.
Source: Fibre2fashion
