'India-Australia bilateral trade (in goods and services) has crossed USD 48 billion and I expect it to double to nearly USD 100 billion in the next five years. The recently signed trade agreement is beneficial for India as its trade deficit with Australia has fallen by 15% since the implementation of this pact,' said Ms. Majell Hind, Consul General of Australia in Mumbai, while addressing an event organized by the Indo Australian Chamber of Commerce (IACC), in collaboration with The Australian Consulate-General Mumbai, Newland Global Group, World Trade Center Mumbai, and the All India Association of Industries.

 

Australia, with its large reserves of critical minerals such as Lithium, Cobalt and other rare minerals, can be India’s key strategic partner in attaining mineral security and in its quest for sustainable growth and carbon-neutrality, Ms. Hind added.

 

Ms. Hind further added, 'India-Australia bilateral relations are at their historic peak. Bilateral trade has grown by 50% in the last two years, driven by the Economic Cooperation and Trade Agreement (ECTA). The trade agreement has provided tangible benefits to Indian businesses by offering critical raw materials at a competitive price and providing Australian market access at a preferential rate.'

 

The event marked the launch of a compendium of case studies on 'Advocating Business Success between Australia and India.' This compendium, compiled by Newland Global Group and supported by the Australian Government’s Department of Foreign Affairs and Trade and the Centre for Australia-India Relations, showcases the business journey of 26 companies from both countries, covering diverse sectors such as healthcare, technology, renewables, education and mining, to name a few.

 

Commenting on the importance of the compendium of case studies in strengthening economic cooperation, she remarked, 'The compendium highlights that India’s agriculture exports to Australia has grown 11%, while its apparel exports has increased 20% since the signing of the trade agreement. The ECTA also points out that Indian exports of industrial products have grown 50%, mostly in the areas of insecticides, forklifts trucks and transmission shafts.'

 

 The compendium of case studies was launched by Ms. Majell Hind, Consul General of Australia in Mumbai, Dr. Vijay Kalantri, Chairman, MVIRDC WTC Mumbai, Capt. Somesh Batra, Vice Chairman, MVIRDC WTC Mumbai, Ms. Petula Thomas, CEO of the Indo-Australian Chambers of Commerce along with other dignitaries. 

 

Speaking at the launch event, Dr. Vijay Kalantri, Chairman, MVIRDC WTC Mumbai, stressed the importance of capacity building for both countries to leverage the trade potential offered by the bilateral relationship. Commenting on the compendium of case studies, he added, "The compendium of case studies, illustrating the journey of other businesses, provides crucial insights into the business environment in both countries and can act as a gateway for furthering economic cooperation.'

 

Dr Kalantri raised hope that in the next five years, bilateral trade will double because of the existing trade agreement and with the future implementation of a more comprehensive agreement.

 

He remarked, 'Today, Australia is the 12th largest trade partner of India. In next 5 years, Australia can become top 5 trade partner and trade can double with the increasing interest shown by companies from both the sides.'

 

Dr Kalantri further added, 'The long-standing India-Australia trade ties received a major boost after the signing of the India-Australia ECTA. India's trade deficit with Australia has significantly declined, indicating that Indian businesses have benefited from the preliminary trade agreement. However, we believe that the best is yet to come. With the ongoing negotiations for the India-Australia Comprehensive Economic Cooperation Agreement (CECA), we strongly look forward to more economic opportunities for both countries.'

 

In her remarks, Dr Monika Kennedy, Senior Trade and Investment Commissioner, Austrade in Mumbai pointed out, 'Last year, Australian Hon’ble Prime Minister Mr. Anthony Albanese led a trade delegation to India, which was the highest-ever delegation to leave Australian shores. There is lot of interest and curiosity from companies of both the countries to do business with each other. Lot of groundwork has been done by both the governments to promote two-way trade and investment. I expect remarkable surge in investment from Australia to India in the coming years as more Australian companies get to know the emerging business opportunities in India,'

 

Ms. Kennedy informed that the negotiation on the Comprehensive Economic Cooperation Agreement (CECA) is progressing well and it can be concluded soon.

 

Addressing the event, Ms. Petula Thomas, CEO of the Indo-Australian Chambers of Commerce, said, 'A compendium of case studies like this is very timely and also highlights the ever-growing trade and partnership between India and Australia. It is a practical tool that will guide businesses in leveraging trade agreements and partnerships. Showcasing the power of innovation, the compendium has provided the companies with an opportunity to share their journey.'

 

Speaking on this occasion, Mr. Dipen Rughani, Chief Executive Officer, Newland Global Group informed that India is emerging as a strategic economic partner of Australia under the current evolving geopolitical circumstances. Australia is keen to strengthen ties with India to diversify and make its supply chain resilient. India also offers a huge consumer market for Australian companies. 

 

Following the launch of the compendium of case studies, experts engaged in a panel session to discuss their experiences, challenges, and prospects of business in the India-Australia economic framework. The discussion also emphasized the role of business literacy with regard to the Indian market in developing and strengthening the bilateral relationship. The panelists at the session were Indian representatives of successful Australian companies.

 

Ms Malini Dutt, Trade and Investment Commissioner, Investment NSW proposed vote of thanks for the event.

 

Mr. Dipen Rughani, Chief Executive Officer, Newland Global Group (2nd from left) being felicitated by Dr Vijay Kalantri, Chairman, MVIRDC WTC Mumbai. Also seen in the photograph are (from left to right) Ms. Majell Hind, Consul General of Australia in Mumbai, Capt. Somesh Batra, Vice Chairman, MVIRDC WTC Mumbai and Dr Monika Kennedy, Senior Trade and Investment Commissioner, Austrade in Mumbai

India would not negotiate any other issue in the agriculture sector till a permanent solution on public stockholding for food grains is found by the WTO members, an official said on Thursday.

 

The issue would prominently figure in the 13th ministerial conference (MC) of the WTO (World Trade Organisation), scheduled from February 26-29 in Abu Dhabi.

 

MC is the highest decision-making body of the 164-member global trade watchdog WTO.

 

'The public stockpiling of food grain is the longest pending issue. The promise was made by the members in Bali MC, and then later endorsed by subsequent conferences.

 

'Without that, we will not take part in any discussion on any other issue on agriculture, unless the mandated issue is settled. This is our first ask,' the official said.

 

Developed countries have raised flags over India's food security programmes, such as buying rice and wheat from farmers at a government-administered price for distribution through public ration shops. They allege that this public procurement at subsidised rates and storage distorts global agri trade.

 

However, India has maintained they have to protect the interest of poor and vulnerable farmers, besides taking care of the food security needs of a large section of the population.

 

The government provide 5 kilogrammes of free foodgrains per month to around 80 crore poor people, free ration to about 80 crore people under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). The Covid-19 pandemic has proved the importance of such initiatives.

 

Over 80 countries, including from Africa, are backing India's stand.

 

As part of finding the solution, India has pitched for changes in the formula to calculate the food subsidy cap and inclusion of programmes implemented after 2013 under the ambit of the 'Peace Clause'.

 

The WTO members at the Bali ministerial meeting in December 2013 had agreed to put in place a mechanism popularly called the 'Peace Clause' and committed to negotiating an agreement for a permanent solution.

 

Under the Peace Clause, WTO members agreed to refrain from challenging any breach in the prescribed ceiling by a developing nation at the dispute settlement forum of the WTO. This clause is there till a solution is found.

 

Under global trade norms, a WTO member country's food subsidy bill should not breach the limit of 10 per cent of the value of production based on the external reference price (ERP) of 1986-88.

 

Subsidies over and above the prescribed ceiling are seen as trade-distorting. The limit is fixed at 10 per cent of the value of food production for developing countries like India.

 

India has earlier informed the WTO that it has used the peace clause to provide excess support measures to rice farmers for the marketing year 2020-21, in order to meet the domestic food security needs of its poor population.

 

Some WTO nations, including the US and Europe, have been trying to shift the narrative of food security from public stockholding (PSH) to value-chain, market access and export restrictions.

 

'India strongly opposes any comprehensive outcome on agriculture, linking PSH with domestic support or work programme as suggested by some developed country members,' the official added.

 

These members want discussions on issues like providing information on export restrictions at least 30 days prior to the notification, which is not feasible.

 

India has also conveyed that support measures given by them to its poor farmers like input subsidies such as on electricity, irrigation, fertiliser and even direct transfers are non-negotiable.

 

Further, New Delhi is pitching for reducing support measures by the developed countries to their agri sector, which runs into billions of dollars.

 

The Geneva-based 164-member multi-lateral body deals with global exports and import-related norms. Besides, it adjudicates trade disputes between the member countries.

 

The official said that taking the ERP at 1986-88 basis will give a distorted picture of the support measures.

 

'In a session on agriculture, we gave a presentation about how the India programme is beneficial and also on the ERP, many delegates were surprised to see the kind of stark comparison in the ERP...what caught their attention was that one burger price is equivalent to 1,000 kg of wheat or rice prices...because ERP is 1986-88 price,' the official added.

A surge in the export of soyabean meal helped India to register a 24 per cent growth in the export of oilmeals during the first nine months of 2023-24.

 

Data compiled by the Solvent Extractors’ Association of India (SEA) showed that India exported 34.96 lakh tonnes (lt) of oilmeals during April-December of 2023-24 against 28.16 lt in the corresponding period of 2022-23, a growth of 24.16 per cent.

 

BV Mehta, Executive Director of SEA, said the export of oilmeals increased by 19 per cent in Q1 of 2023-24 due to the export of soyabean meal. India exported 12.16 lt of oilmeals during Q1 of 2023-24 (10.16 lt in Q1 of 2022-23). Of this, the share of soyabean meal was at 3.64 lt (75,454 tonnes).

 

He said the export of oilmeals increased by 43 per cent in Q2 of 2023-24, mainly due to a sharp increase in the export of soyabean and rapeseed meal. India exported 10.66 lt of oilmeals during Q2 of 2023-24 (7.46 lt). Of this, the share of soyabean meal was at 2.22 lt (45,885 tonnes), and that of rapeseed meal was at 7.23 lt (5.33 lt).

 

Though the export of oilmeals increased by 16 per cent in third quarter of 2023-24, it was down from the Q2 due to the ban on the export of de-oiled rice bran. India exported 12.20 lt of oilmeals during Q3 of 2023-24 (10.53 lt).

 

Competitive rapemeal supplier

On demand for Indian soyabean meal in the international market, he said improved price competitiveness and the shortage of Argentine export supplies in recent months helped boost the demand. The total export of soyabean meal was reported at 12.11 lt (4.47 lt) during April-December 2023-24.

 

India exported 18.24 lt of rapeseed meal (16.69 lt) during the first nine months of 2023-24. He said India is the most competitive supplier of rapeseed meal to South Korea, Vietnam, Thailand and other Far-East countries.

 

Major importers

South Korea imported 7.30 lt of oilmeals (7.15 lt) during April-December 2023-24. This included 5.13 lt of rapeseed meal, 1.83 lt of castorseed meal, and 32,946 tonnes of soyabean meal.

 

India exported 3.61 lt of oilmeals (6.84 lt) to Vietnam during the first nine months of 2023-24. This included 90,540 tonnes of ricebran extraction, 2.19 lt of rapeseed meal, 50,506 tonnes of soyabean meal, and 905 tonnes of groundnut meal.

 

Thailand imported 4.95 lt of oilmeals (5.09 lt) during April-December 2023-24. This included 4.81 lt of rapeseed meal, 8,445 tonnes of soyabean meal, 4,666 tonnes of ricebran extraction, and 701 tonnes of castorseed meal.

 

India exported 6.62 lt of oilmeals (2.81 lt) to Bangladesh during the first nine months of 2023-24. This included 27,771 tonnes of ricebran extractions, 3.14 lt of rapeseed meal, and 3.21 lt of soyabean meal.

The total horticulture production in the year 2022-23 is estimated to be 2.32% higher over the previous year on account of higher output of fruits and vegetables, according to the Third Advance Estimate of 2022-23 released by the ministry of agriculture.

 

While the production of vegetables is estimated to be 213.88 million tonnes in the year 2022-23, over 209.14 million tonnes of last year due to an increase in potato and tomato output, the data for onions has not been included.

 

Sowing of rabi (winter) onions has fallen up to 20% in some main producing regions in Maharashtra and Karnataka till the first week of January due to erratic rainfall pattern and lower reservoir levels which have hampered irrigation activities.

 

Potato production is expected to be 60.22 million tonnes, while the production in the year 2021-22 was 56.18 million tonnes.

 

Tomato production is expected to be 20.37 million tonnes in the year 2022-23 as against 20.69 million tonnes in the year 2021-22.

 

The production of fruits is estimated to increase from 107.51 million tonnes in the year 2021-22 to 109.53 million tonnes in the year 2022-23.

 

The total horticulture production in the year 2022-23 is estimated to be 355.25 million tonnes, which is approximately 8.07 million tonnes more as compared to the year 2021-22, the statement issued by the ministry said.

 

The area under horticulture crops is estimated to increase marginally to 28.34 million hectares over last year’s 28.04 million hectares.

The government is seeking to import 4.5 million tonnes of rice and wheat from India through the quota system. Official discussions have commenced to secure food grains from India, driven by concerns over domestic price hikes and the global supply crisis.

 

It’s worth noting that India has halted the export of rice (atap) and wheat to stabilise supply and prices within its own markets. Nevertheless, they continue to provide essential commodities to certain countries under the quota system.

 

According to sources from the Ministry of Food and the Ministry of Commerce, Bangladesh is seeking the opportunity to import 1.8 million tonnes of rice under the quota system. Out of this, the government aims to bring in 800,000 tonnes, while 1 million tonnes are earmarked for the private sector. Additionally, requests have been made for the import of 2.7 million tonnes of wheat, with the government aiming for 700,000 tonnes and the private sector targeting 2 million tonnes.

 

It’s worth noting that in December 2022, quotas were already sought from India for the import of six essential commodities, including rice and wheat. However, the recent emphasis on this matter suggests a renewed focus. Sources indicate that discussions at the highest levels of both countries took place after the 7 January election.

 

Commerce Secretary Tapan Kanti Ghosh informed Prothom Alo on Tuesday, stating, 'Last year, we initiated discussions regarding the import of certain products, including rice and wheat, through quota from India. A draft Memorandum of Understanding (MoU) on this matter has been sent to India. Following the recent election, discussions have resumed, and I am optimistic about swift progress between the two countries.'

 

This renewed discussion on the import of rice and wheat comes at a critical time when the prices of these essential grains are on the rise in the country. At the outset of the year, the wholesale price of rice has witnessed an increase of Tk 4-5 per kg. Simultaneously, the price of packaged flour has also seen a rise of Tk 5 per kg.

 

According to the government agency Trading Corporation of Bangladesh (TCB), coarse rice is currently priced at Tk 50 to Tk 52 per kilogram in the Dhaka market, reflecting an increase of Tk 2 per kg. Similarly, medium rice has seen a price hike of Tk 1 to Tk 2 per kg, now ranging from Tk 52 to Tk 56, and fine rice has experienced a rise of Tk 2, reaching a price range of Tk 62 to Tk 75 per kg.

 

Furthermore, the cost of a one-kilogram packet of flour has surged by Tk 5, now being sold at Tk 60 to Tk 65 in the market.

 

The Food Ministry convened a meeting with rice mill owners and traders on Wednesday to address the sudden surge in rice prices. During the meeting held in the conference room of the Ministry of Food, concerns were raised about the escalating rice prices despite an ample supply, prompting the ministry to inquire into the reasons behind the increase.

 

Subsequently, Food Minister Sadhan Chandra Majumder urged the traders to restore the rice prices to their previous levels within four days. He remarked, 'It is unwarranted to increase the price by leaps and bounds,' and emphasised, 'The way you increased the price in four days, bring it down the same way. Whether you agree or disagree, state your position.'

 

During this discussion, some businessmen responded affirmatively, saying, 'Yes, sir.'

 

Initiatives to import from India

According to the Bangladesh Bureau of Statistics (BBS), the country produced 39.1 million tonnes of rice in the fiscal year 2022-23, significantly surpassing the domestic demand. However, government officials have raised concerns about the accuracy of production and demand calculations. Notably, the government occasionally resorts to rice imports when prices spike. Conversely, the demand for wheat heavily relies on imports, ranging from 5 to 6 million tonnes annually.

 

India serves as the primary source for rice and wheat imports into Bangladesh. However, India imposed a ban on wheat exports in May 2022 to stabilise its own market. Subsequently, restrictions were placed on the export of atap rice, and a 20 per cent duty was imposed on the export of parboiled rice.

 

Bangladesh faces challenges if India imposes export bans on essential commodities. Consequently, Bangladesh sought quotas for six daily commodities during the Bangladesh-India commerce minister level meeting in New Delhi in December 2022, with a formal letter subsequently submitted. The six products include rice, wheat, onion, sugar, ginger, and garlic, and India has been known to grant such quotas to some neighbouring countries.

 

Importing from India proves cost-effective due to lower prices within the country and the ease of transportation. Currently, there are approximately 1.6 million tonnes of rice and wheat in government warehouses. However, the possibility of increased open market sales (OMS) in response to rising prices poses a risk of diminishing rice stocks. Again, there is a continuous need for wheat imports, driving the initiative to import from India.

 

Food Secretary Ismail Hossain informed Prothom Alo on Tuesday that discussions aimed at reaching an agreement on the emergency import of rice through a quota system are advancing positively.

 

Additionally, the import of food grains entails a substantial amount of foreign exchange. In July of the previous year, trade between Bangladesh and India was inaugurated in rupees instead of the US dollar. Advancing this form of trade was among the topics discussed during the meeting between Indian Ambassador Pranay Verma and Foreign Minister Hasan Mahmud last Monday.

 

Prices and figures

The government is actively working to curb inflation, a priority highlighted in the Awami League's election manifesto. The Bangladesh Bank has implemented measures in the new monetary policy to address inflation, including adjustments in the prices of 13 products, such as rice and wheat, at the beginning of the year. The increase in rice prices often contributes to inflation.

 

In response to this, the Food Ministry convened a meeting Wednesday, attended by rice mill owners, wholesale and retail traders, and importers. The meeting, chaired by Sakhawat Hussain, the Director-General of the Food Directorate, also had the participation of Food Secretary Ismail Hossain and Additional Director-General Abdullah Al Mamun. The aim of the meeting was likely to discuss strategies and measures to manage and control rice prices in the context of inflation.

 

Food Minister Sadhan Chandra Majumder expressed his dissatisfaction with the rise in rice prices, questioning why a Tk 2 increase at the millgate translates into a Tk 6 hike in the wholesale market.

 

He emphasised that those involved in illegal hoarding or unjustified price increases are not above the law and must be held accountable. The minister issued a warning, stating that individuals stockpiling rice without proper licensing will face consequences.

 

Directing his message to traders, the food minister emphasised the importance of releasing rice into the market, asserting that there is an abundant supply and no shortage.

 

Nirod Baran Saha Chandan, President of the Naogaon Paddy and Rice Owners' Association, countered accusations against mill owners, suggesting that corporate companies are responsible for artificially inflating the prices of paddy and rice in the market.

 

In response, representatives of corporate companies asserted that their influence in the rice market is minimal, and they lack the capacity to control market dynamics.

 

Abdur Rashid, President of the Bangladesh Auto Major Husking Mill Owners Association, emphasized that mill owners operate within a competitive business environment and don't have the opportunity to form syndicates. He acknowledged that while prices did increase, they have now begun to decrease in the market.

 

Rice trader Farid Uddin has raised concerns about the accuracy of the information provided by the Department of Agricultural Extension regarding rice production. He suggested that the data should be verified for its accuracy.

 

According to the Ministry of Agriculture's information, there is a surplus of rice in the country, but Farid Uddin expressed that this surplus is not apparent in reality. He specifically mentioned discrepancies in the data related to paddy production.

 

Kamruzzaman Kamal, Director (Marketing) of PRAN-RFL Group, added that the lack of precise data on the demand and supply of rice is hindering an accurate reflection of the market. He also commented that the government's plan is not functioning as intended due to these data discrepancies.

More and more districts need to be integrated with export initiatives to help boost the country's outbound shipments, a senior official said on Wednesday.

Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi also said that an increase in exports helps in enhancing per capita income.

 

He said that four states - Gujarat, Maharashtra, Karnataka and Tamil Nadu - account for 65 per cent of India's exports and they also have a high per capita income.

The DGFT also noted that only 62 districts out of over 760 in the country contribute about 80 per cent of India's exports.

 

'So there is a need to integrate more and more districts in our export initiatives. Imagine if another 700 districts get involved in export activities, then our export potential will multiply,' Sarangi said here while inaugurating the Federation of Indian Export Organisations' (FIEO) 'Sourcex India' exhibition.

The three-day show will end on January 19 here.

'There is a very positive correlation between exports and increase in per capita income. It's not only exporters who get benefited but the whole value chain associated with exports get benefits,' he said.

Speaking at the event, FIEO President (Officiate) Israr Ahmed said that this event is a testament to our commitment to showcasing Indian brands on the global stage.

 

'It is not merely an exhibition, but a platform designed to facilitate the global launch of Indian brands. Sourcex India 2024 transcends being just an exhibition. In the upcoming three days, B2B meetings, knowledge-sharing sessions and interactive workshops will unfold, providing invaluable insights into global market trends and enabling Indian companies to better understand the preferences of international buyers,' Ahmed said.

Commerce and Industry minister Piyush Goyal on Tuesday chaired the second meeting of the reconstituted Board of Trade (BoT) that focused on reviewing India’s export performance to achieve the $2 trillion export target by 2030.

The minister urged the industry to leverage the free trade agreements (FTAs) signed by India to its benefit. 

There were also discussions on the priorities identified in the Foreign Trade Policy (FTP) 2023 and the strategies and measures to be adopted in order to take forward the export growth.

'The reconstituted BoT provides an opportunity to have regular discussions and consultations with trade and industry and advises the Government on policy measures connected with the Foreign Trade Policy in order to achieve the objectives of boosting India’s trade,' an official statement said.

 

The meeting that saw participants from the Centre, states, and industry, took place at a time when global trade has been witnessing challenges over last four years, starting with the Covid 19 pandemic, Russia Ukraine conflict, recessionary trends in major economies, followed by Israel-Hamas conflict and Red Sea crisis. 

Over the next three-four months, the government will launch an intermediary platform–Trade Connect ePlatform–to help Indian exporters and entrepreneurs get information on various regulations to access markets, sectors, export trends, as well as easy access of benefits under FTAs, the minister said. He also asked the industry to share data on non-tariff trade barriers faced by them in other countries.

 

During the meeting, presentations were made on India's import/export performance and state export performance, Gati Shakti national master plan leveraging FTAs for boosting export growth, intervention to boost pharma exports, among others.

During the meeting, Federation of Indian Export Organisations (FIEO) urged the government to launch a planned scheme to address the infrastructure gaps through centre-state funding, which will help in exponential growth in exports from the districts.

EEPC India said that the government could consider connecting waterways with sea ports as it will significantly reduce transportation costs for moving cargo locally.

An egg crisis in Russia may present an opportunity for Namakkal in Tamil Nadu.

Since the escalation of the Russia-Ukraine war in 2022, India became one of the largest importers of crude oil from Russia.

 

Now, if negotiations between both the countries are successful, Namakkal may well be an answer to the ongoing shortage of eggs in Russia. According to traders, Namakkal is the ‘Egg City’ and reportedly exports 95 per cent of India’s table eggs. Talks are already on with Russia for export of eggs.

This comes at a time when Russian President Vladimir Putin issued a rare apology last month regarding the price hike and shortage of eggs.

'I apologise for this, but this is a failure of the government's work... I promise that the situation will be corrected in the near future,' Putin said, according to a Reuters report. 

A combination of high inflation and sanctions imposed by the West has led to the egg crisis in Russia. This resulted in prices going up by 42 per cent in the last 12 months.

'Russia is going through a huge shortage and has asked for eggs. We need government intervention. If it works out, Russia will be a huge market for us,' said Vangili Subramaniam, president of Tamil Nadu Egg Poultry Farmers Marketing Society. Currently, Oman, Sri Lanka, Maldives, Qatar and UAE are the top five countries to which India exports eggs.

'Russia is not yet open. It is just an early stage and will be a huge opportunity. We are requesting the government to speed up the process of tying up with Russia. Only dialogue is going on now,' said Valsan Parameswaran, secretary of All India Poultry Products Exporters’ Association (AIPPEA). He added that going by the demand in that country, the requirement for Russia may be over 50 containers a month.

India exported eggs worth $110,000 to Russia during April-October 2023 compared to $10,000 a year ago, commerce department data showed. India's total egg exports nearly doubled to $53.37 million during the first seven months of the current financial year.

 

However, experts feel that export of eggs to Russia may not be easy for India.

A senior government official said that when it comes to human health, countries, especially western nations, are sensitive about the quality of products they import. These include items such as eggs, milk, fruits or vegetables, among others. In the case of eggs, there aren’t any export restrictions imposed by India.

'For instance, if countries intend to import a particular food item, they generally reach out to the concerned government department. They put up a request to check Indian facilities and we will see if import-related standards are met,' the official said. 'They also raise queries, if required,' the person added.

Standards vary, depending on the product and the country of export.

The Indian economy is expected to grow 7 per cent in fiscal 2024-25, said the Reserve Bank of India's governor Shakatikanta Das at the World Economic Forum (WEF) Annual Meeting 2024 in Davos.

 

Speaking at a CII session on 'High growth, low risk: The India story' here during the World Economic Forum Annual Meeting, Das said, with strong domestic demand, India remains fastest growing major economy. 'Real GDP growth is expected at 7.2 per cent this fiscal,' he added.

 

Das said, amid a challenging global macroeconomic environment, India presents a picture of growth and stability.

 

In addition to this the RBI guv said that headline inflation has substantially eased from the highs of summer 2022 and this shows monetary policy action is working.

 

'Structural reforms undertaken by government in recent years boosted medium, long term growth prospects of Indian economy,' he added.

 

Earlier the RBI chief had said, inflation in India is moderating and steadily approaching the central bank's 4% target while growth prospects remain robust.

 

'Inflation has come under control and is within the band we have, which is 2% to 6%. Target is 4%,' Das had said in a fireside chat at Davos organised by Invest India, the country's national investment promotion and facilitation agency.

 

Annual retail inflation rose the fastest in four months in December but core inflation, which strips out volatile food and energy prices, dropped to a four-year low of 3.8% to 3.89% from 4.05% to 4.2% in November.

Production Linked Incentive (PLI) Schemes witness over Rs. 1.03 lakh crore of investment till November 2023, which has led to production/ sales of Rs. 8.61 lakh crore and employment generation (direct & indirect) of over 6.78 lakhs. PLI Schemes have witnessed exports surpassing Rs. 3.20 lakh crore, with significant contributions from sectors such as Large-Scale Electronics Manufacturing, Pharmaceuticals, Food Processing, and Telecom & Networking products.

 

As on date, 746 applications have been approved in 14 Sectors with expected investment of over Rs. 3 lakh crore. 176 MSMEs are among the PLI beneficiaries in sectors such as Bulk Drugs, Medical Devices, Pharma, Telecom, White Goods, Food Processing, Textiles & Drones. Several MSMEs are serving as investment partners/ contract manufacturers for large Corporates.

 

Incentive amount of around Rs. 4,415 crore disbursed under PLI Schemes for 8 Sectors viz. Large-Scale Electronics Manufacturing (LSEM), IT Hardware, Bulk Drugs, Medical Devices, Pharmaceuticals, Telecom & Networking Products, Food Processing and Drones & Drone Components.

 

Manufacturing of various electronic components like battery, chargers, PCBA, PCB, camera modules, passive components and certain mechanics have been localized in the country. Green shoots in the component ecosystem wherein large companies such as TATAs have entered into component manufacturing. PLI beneficiaries account for ~ 20% of the market share only, however, have contributed to ~ 82% mobile phones exports during FY 2022-23. Production of mobile phones increased by more than 125% and export of Mobile Phones increased ~4 times since FY 2020-21. Foreign Direct Investment (FDI) increased by ~254% since the inception of the PLI scheme for LSEM.

 

Due to the PLI Scheme, there has been a significant reduction in imports of raw materials in the Pharma sector. Unique intermediate materials and bulk drugs are being manufactured in India including Penicillin-G. Production of 39 Medical Devices have commenced such as CT-Scan, Linear Accelerator (LINAC), Rotational Cobalt Machine, C-Arm, MRI, Cath Lab, Ultrasonography, Dialysis Machine, Heart Valves, Stents, etc.

 

Import substitution of 60% has been achieved in the Telecom sector and sales of Telecom & Networking Products by PLI beneficiary companies in FY 2023-24 increased by 370% vis-a-vis Base Year (FY 2019-20). Significant impact on investment in the Drone industry with a CAGR of 90.74%.

 

Under the PLI Scheme for Food Processing, sourcing of raw materials from India has seen significant increase which has positively impacted income of Indian farmers and MSMEs. Sales of Organic Products increased and Indian brand visibility enhanced in the international market through Branding & Marketing abroad. The Scheme has also led to increased Millet procurement – from 668 MT (FY 20-21) to 3,703 MT (FY 22-23).

 

Keeping in view India’s vision of becoming ‘Atmanirbhar’, PLI Schemes for 14 key sectors [with an incentive outlay of Rs. 1.97 lakh crore (over US$26 billion)] are under implementation to enhance India’s Manufacturing capabilities and Exports.

 

PLI Scheme across these key specific sectors has started to make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology; ensure efficiencies; create economies of scale; enhance exports and make India an integral part of the global value chain.

 

PLI Schemes have transformed India’s exports basket from traditional commodities to high value-added products such as electronics & telecommunication goods, processed food products etc.