Trade with China is turning into a steep welfare loss for India. Already, the trade deficit - straight indicator to show the trade position of the country has registered $53bn deficit with China. Surprisingly, this is happening when the whole world trade is falling. India’s huge trade deficit is more a result of the country’s inability to produce quality manufacturing. Government has launched several steps including the Make in India initiative. At the same time, China has not shown any interest to accommodate Indian imports so that the deficit may come down from the high unsustainable way. Such an official position by Beijing is compelling the government to make some
India and the US- the fast emerging friends on several fronts continue to differ on IPR issues. In the bilateral Trade Policy Forum meeting held at New Delhi, representatives of the two countries both countries opened new areas of conflicts within the IPR front. Commerce Minister Nirmala Sitharaman firmed the stand of limiting IPR within WTO’s TRIPs agreement. She highlighted the UN High level panel report on access to medicines. “I pointed out to the USTR that a report brought out by a UN high level panel on access to medicines clearly vindicates India’s position on TRIPS plus issues such as data exclusivity and patent linkages,”- the Co
The launch of the Centralized reserves of the five BRICS countries was announced by Finance Minister Arun Jaitely. The CRA was established in 2015 by the five BRICS countries – Brazil, Russia, India and China. It was created as an emergency drawing mechanism to meet immediate balance of payment problem. The CRA’s fund of $100 bn is a major reserve arrangement outside the Bretton Woods system. It is the IMF that holds the largest reserve arrangement under the BWS (Bretton Woods System) and it comprises reserves of 189 countries. India, Brazil and Russia have contributed $18 billion to the CRA and will have an access limit of $18 bn each out of the total $100 reserves.
Anil Ambani’s Reliance Group is set to gain from the just signed Rafale aircraft deal. Reliance signed a Joint Venture with Dassault Aviation France for providing components for construction of the 36 fighter craft that India is going to purchase from the French Company. The Rs 60000 crore deal has a 50% offset content with Indian firms getting opportunity to supply components. Domestic value addition opportunity for the indian industry is estimated to be Rs 24000 crores out of the deal. Nearly 74 percent of the 50 percent offset value should be exported from India. This means that nearly 40% of the total deal amount or approximately Rs 24000 crores. As per indications, do
The external debt of the country reached $486.6 bn as on March end 2016. According to the verification of the trend by the government on the basis of the Report published by the RBI, the external debt of the country increased by $10.6 bn compared to a year ago. NRI Deposits drives external debt Unlike in the past, debt was driven by NRI deposits. The share of NRI deposits increased to 25.1% though commercial borrowings continue to be the major component of external debt with 37.3% share. According to the data, NRI deposits increased from $115 bn to $127 bn during the year. on the other hand, ECBs increased to $ 181.3 bn from $180.6 bn. A positive development about the debt scena
The US has expressed the hope it can find common ground on trade issues with India and other developing countries on controversial trade issues like the Doha round subjects at the WTO. Jeff Zients, Director of the National Economic Council told the PTI that there is the need for enhanced cooperation at global economic platforms. Citing the WTO, Mr Zient asserted that the future looks bright for the WTO. Mr Zient will be in India next week for the second India -US Strategic and Commercial Dialogue. Both countries are in an effort to raise their trade engagement to a higher level because of overall warmth prevailing between them. The new soothing view from the US on evergreen disp
China’s official tabloid looking mouthpiece – the Global Times in an article advised India to accept the China Pakistan Economic Corridor (CPEC) project for the welfare of the entire region. No third party is aimed in the project and according to the article, it is unfortunate that the CPEC has opened a new area of confrontation between the two countries. The article seems to be published in the context of External affairs Minister Sushama Swaraj’s protest and India’s concern at the project running through the PoK. The article without concentrating on the economic content of the CPEC, goes on political lines. Midway through the GT reporter who himself auth
The crucial meeting of the officials of the proposed RCEP is meeting in Vietnam. Meeting of the officials will negotiate on future tariff structure within the RCEP which has 16 members including ASEAN countries, India China, Japan, South Korea, Australia and New Zealand. The RCEP is an Asian alternative to the US led TPP where China is not a member. From the Indian angle, the proposed FTA discussion is very important as the country is the least prepared for the aggressive tariff cut suggested by others especially China. Beijing aims a zero tariff structure for bulk of the manufacturing commodities given its advantage in the sector. ASEAN is also not opposed to such a tariff struc
Discussions for the proposed Free Trade Platform comprising the major Asian countries - the RCEP (Regional Comprehensive Economic Partnership), is entering into a tough round with India resisting zero tax regime advocated by major partners. Commerce Ministry officials have indicated that eliminating import duty on majority of tradable goods will be disastrous for India. Existing data indicate that India’s FTAs with ASEAN and bilateral ones with several other countries have bought only trade deficits. Most of the arrangements caused flooding of goods into the Indian market. East Asia’s’ developed industrial sector and early established advantage in FTA formations
Trade battle between the US -world’s largest economy and India world’s fastest growing economy is on an uptrend and WTO battles have increased in recent years. the latest incident is the US’s follow up compensation demand out of its poultry trade dispute victory at WTO’s DSB(Dispute Settlement Body). In the latest development, the US has requested WTO to initiate compensation from India for the poultry trade restrictions against US imports. Earlier, the US had won a case against India’s import restrictions against US imports including poultry, egg and live pigs at WTO’s DSB. The DSB in June 2015, ruled that Indian ban on import of poultry meat,
Dictionary on Indian Economy
- Logic of withdrawing Rs 1000 and Rs 500 notes
- Why the GST reform is transformational?
- Raghuram Rajan: The Gladiator returns to Chicago
- Good intention but poor thinking - what troubles demonetization?
- India Black Money Report: CBI underestimates black money at Rs 25 lakh crore
- High interest rate rather than inflation is the macroeconomic problem for India right now
- Japan’s first trade deficit in 30 years is part of the Global Shift
- Arvind Subramanian rocks with 'Chakravyuha' in Economic Survey
- Why we need an emergency monetization plan as well?
- NREGS: give respect to the tax payer’s money