India's Commerce Secretary, Sunil Barthwal, has weighed in on the recent 45 basis points interest rate hike by the European Union's Central Bank, suggesting that it could trigger a reduction in demand within Europe. He contends that this potential decline could work to India's advantage, as it may impact the EU's manufacturing sector positively.

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Barthwal said that the green shoots noted in export growth last month appear to be stabilising now. He noted that the export order books are much better according to the industry. Pointing out that the World Trade Organization (WTO) goods barometer has signalled an upturn in trade backed by strong auto demand in the past two months, he added that the commodity prices declining last year due to lower fuel prices are expected to firm up with higher fuel prices this year.

The Commerce Ministry informed that India is slated to hold the G20 Standards dialogue with member countries in November 2024. With the BIS and FSSAI expected to participate from the Indian side, the regulatory dialogue is aimed at easing business for exporters of marine products and other items.

The government-to-government export of wheat and rice for food security purposes is continuing in several countries, even as non-government export continues to remain banned.

In the recent actions taken by the Directorate General of Trade Remedies (DGTR), the duty imposed on fishing nets from China has now been extended to Malaysia, too, while duty has also been imposed on flat-based steel wheels from China found to be injuring the Indian market.

Updates on India's trade talks

Speaking on India-UK FTA talks, the Commerce Ministry said that investment led by DEA is being negotiated as a separate agreement, i.e. a Bilateral Investment Treaty (BIT), which is slated to be concluded simultaneously with the FTA. With the next round of talks scheduled to begin on September 18, the, ministry is looking at an ambitious deal without binding itself on any timelines, even as it has noted good progress in bilateral talks on BIT and rules of origin.

The 6th round of India-Australia CECA negotiations is proposed to be held in mid-September 2023, where chapters on sports, traditional knowledge, innovation, gender, labour, and environment have also been included for discussions. Even as the government is planning another virtual round of CECA negotiations in the first week of November, the 6th round of India-EU FTA negotiations is scheduled in Brussels from October 16 to 20.

The AITIGA (ASEAN India Trade in Goods Agreement) joint committee is also scheduled to meet in November 2023. On the pause in India-Canada trade talks, government sources informed CNBC-TV18 that there were several political developments in Canada that India had objected to, and for the time being, the talks have been paused till these political issues are sorted out.

First Published:Sept 15, 2023 10:18 PM IST