From achieving milestones under the PLI scheme to boosting startup ecosystems, streamlining logistics, and enhancing FDI inflows, DPIIT has played a pivotal role in building a self-reliant and globally competitive India.
Some of the key initiatives and achievements of the Department in the year 2024 are:
Product-Linked Incentive (PLI) Schemes
Keeping in view India’s vision of becoming ‘Atmanirbhar’, PLI Schemes for 14 key sectors have been announced with an outlay of ₹1.97 lakh crore (over US$26 billion) to enhance India’s Manufacturing capabilities and Exports. Approved by Cabinet on 11.11.2020, the scheme has achieved significant milestones, including investments of ₹1.46 lakh crore (US$17.5 billion), production/sales of ₹12.50 lakh crore (US$150 billion), exports worth ₹4 lakh crore (US$48 billion), and direct and indirect employment for 9.5 lakh individuals. Incentives disbursed till FY 2023-24 stand at ₹9,721 crore. Over 1,300 manufacturing units across 14 sectors under 10 Ministries/Departments have been established in 27 States/UTs.
The 14 key sectors are: (1) Mobile Manufacturing and Specified Electronic Components, (2) Critical Key Starting materials/Drug Intermediaries & Active Pharmaceutical Ingredients, (3) Manufacturing of Medical Devices, (4) Automobiles and Auto Components, (5) Pharmaceuticals Drugs, (6) Specialty Steel, (7) Telecom & Networking Products, (8) Electronic/Technology Products, (9) White Goods (ACs and LEDs), (10) Food Products, (11) Textile Products: MMF segment and technical textiles, (12) High efficiency solar PV modules, (13) Advanced Chemistry Cell (ACC) Battery, and (14) Drones and Drone Components.
The PLI scheme is going to have a cascading effect on the country’s MSME ecosystem. The anchor units that will be built in every sector will require a new supplier base in the entire value chain. Most of these ancillary units will be built in the MSME sector.
PLI Scheme for White Goods (ACs and LED Lights) Scheme incentivizes manufacturing of components of ACs and LED Lights only. Outlay of ₹ 6,238 crore approved (FY 2021-22 to FY 2028-29). Domestic value addition to increase from 20-25% to 75-80% at the end of the Scheme. 47% of committed investment of ₹ 6,962 crore and 100% of envisaged direct employment of 48,000 generated up to September, 2024. Based on Industry appetite, the 3rd Round of online application window opened which attracted 38 applicants with likely investment of ₹ 4,121 crore.
PM (Pradhan Mantri) Gati Shakti National Master Plan
PM GatiShakti National Master Plan (NMP) was launched on 13th October 2021 by the Hon’ble Prime Minister, Shri Narendra Modi. It is a GIS-enabled platform that integrates data layers of infrastructure such as roads, railway lines, ports, inland waterways, telecom lines, power lines, and social sector assets, enabling comprehensive and integrated planning for multimodal logistics. An inter-ministerial institutional mechanism has been established at the Centre and State levels. Progress under PM GatiShakti includes onboarding of 44 Central Ministries/Departments (8 Infrastructure, 16 Social, 15 Economic, and 5 others) and 36 States/UTs, with 1614 data layers comprising 726 layers from Central Ministries and 888 layers from States/UTs. Additionally, 22 Social Sector Ministries/Departments have been onboarded, with over 152 data layers (like Primary Healthcare Facilities, Post Offices, Hostels, and Colleges). Standard Operating Procedures (SOP) for Data Quality Management have been notified for 8 infrastructure and 15 social Ministries/Departments. A model SOP has been shared with all 36 States/UTs, and Goa has notified its SOP. The Network Planning Group has conducted 81 meetings, evaluating 213 projects with a project cost of ₹15.48 lakh crore. Over 200 projects aimed at improving logistics infrastructure, worth ₹5,496 crore, have been recommended by the States.
National Logistics Policy
To complement the PM Gati Shakti, National Logistics Policy (NLP), launched on 17th Sep. 2022, aims to drive economic growth and business competitiveness of the country through cost-effective logistics networks. It addresses the soft infrastructure and logistics sector development aspect, inter alia, including process reforms, improvement in logistics services, digitization, human resource development, and skilling. There are three broad targets for achieving the vision of NLP: (i) Reduce cost of logistics in India to be comparable to global benchmarks by 2030; (ii) improve the Logistics Performance Index ranking—endeavour is to be among top 25 countries by 2030; and (iii) create data-driven decision support mechanism for an efficient logistics ecosystem. The Policy is implemented through a Comprehensive Logistics Action Plan (CLAP) which lays down a detailed plan for key action areas. To streamline doing business in the logistics sector, 37 logistics-related digital systems/portals integrated across 10 Ministries/Departments. Tracking and tracing of India’s containerized EXIM cargo is being done.
Knowledge Upgradation: Logistics-related courses introduced in 115 Universities. MoU signed with Gati Shakti Vishwavidyalaya. Centre of Excellence (CoE) for City Logistics set up at SPA (School of Planning and Architecture), Bhopal on 8th May 2024; 100+ officials trained. 7 qualification packs validated for imparting skill development. The 6th edition of Logistics Ease Across Different States (LEADS) report will be released in December 2024. 26 States/UTs notified their respective State Logistics policies. Service Improvement Group (SIG): In line with National Logistics Policy 2022, an inter-ministerial consultative group constituted for resolving systemic issues related to the logistics sector.
Sectoral Plans for Efficient Logistics (SPEL): In terms of National Logistics Policy 2022, sector-specific plans to bring logistics efficiency are being prepared. SPEL for (coal) and (cement) sector have been finalized. SPEL for Food and Public Distribution, Food Processing Industry, Pharma, Fertilizers, and Steel sector are under preparation.
Make in India Initiative
The "Make in India" initiative was announced by Hon’ble PM on 15th August 2014 and formally launched by Hon’ble PM on 25th September 2014 to facilitate investment, foster innovation, build best-in-class infrastructure, and make India a hub for manufacturing, design, and innovation. Post-launch of the Make in India (MII) initiative in September 2014, the Government has been working closely on 24 sub-sectors chosen based on Indian industries' strengths and competitive edge, the need for import substitution, potential for export, and increased employability. Various initiatives under MII (NSWS, PDC, PMG, IILB, ODOP, IIG, etc.) are also covered under the ‘Scheme for Investment Promotion,’ a Central Sector Scheme for FY 2021-22 to 2025-26 with an outlay of Rs 970 crore. The objectives of SIP include investor targeting and facilitation, investment promotion, and project management activities.
National Industrial Corridor Development Programme
The objective is to create quality infrastructure ahead of demand and keep developed land parcels ready for immediate allotment, attracting investments into manufacturing and positioning India as a strong player in the Global Value Chain. The 5-year action plan focuses on developing 12 new industrial cities through the adoption of Industry 4.0 standards, in addition to 8 already approved projects. These initiatives align with the government's vision of "Atmanirbhar Bharat," aiming to build robust physical and economic infrastructure, address social and gender equity gaps, and create significant employment opportunities for locals and youth. As of June 2024, 308 plots (1789 acres) have been allotted in four cities—Dholera, Shendra Bidkin, Greater Noida, and Vikram Udyogpuri. Currently, 2,104 acres of developed industrial land and 2,250 acres of commercial, residential, or other land use are available for immediate allotment. Commercial operations have commenced in 68 companies, and 83 projects are under construction in these cities. Future expansion plans include the development of 12 new greenfield projects approved by the Union Cabinet on 28th August 2024, covering 25,975 acres with a project cost of ₹28,602 crore. The projects have an employment potential of 9,39,416 and an investment potential of ₹1.5 lakh crore. The 12 projects span less-served industrial areas across the country, requiring planned industrialization. These projects include trunk infrastructure development costs and land costs (equity of states), with land already in possession of the respective states. The focus sectors, identified based on market demand assessments, include Semiconductors, Aerospace & Defence, IT & ITeS, Electronics & System Device Manufacturing (ESDM), Engineering & Logistics, Automobiles & Auto Components, Renewable Energy, Pharmaceuticals, Textiles & Apparels, Food & Beverages, Chemicals & Metals, and Machinery & Equipment. These industrial projects are envisioned as growth centres, driving the transformation of the entire region and fostering balanced regional development.
Intellectual Property Rights
Strengthening IP Administration: Administrative process and procedure streamlined to ensure ease of doing business around submission of Priority Documents. Facility of E-filing of documents & E-hearings - 10% rebate for E-filing of Patent, TM & Design. Introduced AI-ML-based TM search system & Gen AI based Public Chatbot (IP Saarthi). 770 Examiner of Patents & Designs have been newly recruited during 2019-2024 and a total of 470 officials have been promoted to the posts of Controllers from their respective feeder posts in the Patents office during 2022-23. Building Strong Legislative Framework: Process reforms have expedited the examination of patents for startups, SMEs, female applicants, government departments, and academic institutions. Compliance has been reduced by simplifying Form 27 (Statement on the working of patents), waiving the fee for Form 8, and introducing Form 8A to boost the innovation ecosystem. In trademarks, 74 forms have been reduced to 8, and the procedure for registering GI authorized users has been simplified. Fee rebates include an 80% rebate for startups, MSMEs, and educational institutes for patent filings, a 75% rebate for startups in design filings, and a 50% discount for TM filings by startups. Expand Knowledge Capacity & Skill Building: IPR Chairs have been established in 27 Central and State Universities. More than 1200 programs organized for awareness & outreach programs in schools, colleges, universities, M/o MSME and DPIIT covering more than 5 Lakhs students and faculties PAN India. 359 sensitization programs conducted for various law enforcement agencies- Police, Customs and Judicial Training institutes.
Generation of IPRs: Patents (1,03,057) granted in 2023-24 increased by seventeen folds as compared to 2014-15. Trademark registrations increased seven times in 2023-24 as compared to 2014-15. Number of Geographical Indications registered increased to 635 in 2023-24. Continuous Efforts to increase IP awareness among students, academia and industry. India’s rank in Global Innovation Index (GII) increased to 39th position in 2024.
Foreign Direct Investment (FDI) Regulatory Framework
To promote Foreign Direct Investment (FDI), the Government has put in place an investor-friendly policy, wherein most sectors, except certain strategically important ones, are open for 100% FDI under the automatic route without government approval. Almost 90% of the FDI inflow is received under the automatic route.
DPIIT's Role: DPIIT is responsible for the formulation of FDI Policy, enforced through rules notified under the Foreign Exchange Management Act, 1999 (FEMA), which is administered by the Department of Economic Affairs (DEA) and regulated by the Reserve Bank of India (RBI). The Foreign Investment Facilitation Portal (FIFP) manages proposals received under the government route and forwards them to concerned ministries.
Permitted FDI: FDI is permitted through two entry routes;the Automatic Route and the Government Route. Under the Automatic Route, no prior approval is required from the Government or RBI, with most sectors open for 100% FDI. In FY 2023-24, over 98% of FDI equity inflow was received through this route. The Government Route requires prior approval from the respective sector ministries or departments via FIFP and applies to investments in notified sectors or activities, as well as investments from countries sharing land borders with India.
Prohibited FDI: FDI is prohibited in notified sectors or activities, including Lottery Business, Gambling and Betting, Real Estate, Manufacturing of Tobacco, Atomic Energy, and other sectors not open for private investment.
FDI Reforms in India: The Government has progressively liberalized FDI policies across sectors between 2019 and 2024. In 2019, 100% FDI under the automatic route was allowed in coal and contract manufacturing, while 26% FDI in digital media was allowed under the government route. In 2020, 100% FDI was permitted in insurance intermediaries under the automatic route, and revised limits were set for the Air Transport and Defence sectors. In 2021, FDI in the insurance sector was increased to 74%, Telecom was included under the automatic route, and PSUs in the petroleum and natural gas sector were opened for FDI. In 2022, 20% FDI in LIC was permitted under the automatic route. In 2024, the space sector was liberalized.
Trends of FDI Inflow:. From 2000 to 2024, a total FDI inflow of USD 991 billion was recorded, with 67% (USD 667 billion) received during the last ten financial years (2014-2024). FDI equity inflow in the manufacturing sector increased by 69%, rising from USD 98 billion in 2004-2014 to USD 165 billion in 2014-2024.
FDI Inflow in FY 2024-25 (up to June 2024): In the first quarter of FY 2024-25, FDI inflow reached USD 22.5 billion, a 26% increase compared to USD 17.8 billion in the first quarter of FY 2023-24.
Startup India
Launched by the Hon’ble Prime Minister on 16th January 2016, the Startup India Initiative has become a launchpad for innovative ideas across the country. Over the years, several programs have been implemented under the initiative to support entrepreneurs, build a robust startup ecosystem, and transform India into a nation of job creators rather than job seekers. More than 1,49,000 startups have been recognized under the initiative, with around 48% having at least one-woman director and about 50% based in tier 2 and tier 3 cities. Recognized startups are present in every State and Union Territory, covering over 95% of the districts. These startups have reported the creation of over 16 lakh direct jobs. (self-reported)
Key initiatives under the program include the States’ Startup Ranking Framework and National Startup Awards, which aim to recognize and promote the startup ecosystem. Efforts like the Bharat Startup Knowledge Access Registry (BHASKAR) and manufacturing incubation are driving product startups. Events such as Startup Mahakumbh have further strengthened the startup culture in the country. Following the vision of the Hon’ble Prime Minister, "Don't just keep your dreams local, make them Global," Indian startups are increasingly venturing beyond India’s borders. These startups are making a mark in both emerging economies and the developed world, showcasing their scalability and affordability on the global stage.
Ease of Doing Business
As part of Reducing Compliance Burden exercise India has already reduced 42,028 compliances, with 2,875 under review and 7,204 retained compliances being monitored. Of the total identification, 93% was achieved in 2021-22, 5% in 2023, and 2% in 2024 (as of September 26, 2024). A total of 3,765 provisions have been decriminalized by Ministries, Departments, and States/UTs. The Jan Vishwas Act, 2023, decriminalized 42 Central Acts administered by 19 Ministries/Departments. The Jan Vishwas 2.0 initiative has also been launched, incorporating learnings from its predecessors.
National Single Window System (NSWS): Currently, 32 Central Ministries/Departments are onboarded onto the NSWS platform, providing 277 G2B approvals. As of October 14, 2024, 7.10 lakh approvals have been applied for, and 4.81 lakh approvals have been granted through NSWS. The platform is integrated with 29 States/UTs’ Single Window Clearances (SWCs), and the Know Your Approvals (KYA) service is live for 33 States/UTs. The Business Reforms Action Plan (BRAP) 2024 framework, consisting of 344 reforms (57 Central and 287 State), has been circulated to States and Ministries. Following the discontinuation of the Doing Business Report in 2020, the World Bank developed the B-READY framework for assessing 184 economies globally. India's report (Part III)to be published in April 2026.
One District One Product (ODOP)
The One District One Product (ODOP) initiative aims to foster balanced regional development across India's districts by promoting indigenous products and supporting artisans. To achieve this, 1256 products from over 780 districts in all 36 states and union territories have been identified. The mandate of the ODOP Programme includes identifying, understanding, and solving problems associated with each of the chosen products at all points in their respective supply chains, improving the market accessibility of the chosen products, and dedicated handholding of the producers to harness the potential of their products. The Union Budget 2023-24 allocated funds for setting up PM Ekta Malls in all states under the "Scheme for Special Assistance to States for Capital Investment," with the aim of promoting ODOP products, enhancing market access for indigenous products, and generating employment. 28 states submitted development project reports (DPRs), of which 27 were approved by the DPIIT and the Department of Expenditure, resulting in the release of funds for 27 states. Nine states have already completed the foundation stone laying ceremonies for their PM Ekta Malls. The 2nd edition of the National ODOP Awards in 2024 witnessed participation from 587 districts, 31 states, and 23 Indian Missions abroad, with a total of 641 applications received on the Rashtriya Puraskar Portal. Ongoing capacity building programs for stakeholders are being conducted in collaboration with the National Institute of Design (NID) and other organizations. Additionally, 110+ brands have been tagged under the ODOP initiative.
To ensure a whole-of-government approach, coordination is maintained with various departments, including the Department of Post, Department of Personnel and Training, Ministry of Food Processing Industries, Ministry of Agriculture, Ministry of Textiles, Ministry of Rural Development, and NITI Aayog.
Open Network for Digital Commerce (ONDC)
Open Network for Digital Commerce (ONDC) is a Digital Public Infrastructure (DPI) initiative launched by DPIIT to democratize e-commerce in India. It is based on an open-source methodology, employing open specifications and open network protocols independent of any specific platform. ONDC protocols standardize various operations such as cataloguing, inventory management, order management, and order fulfillment. The core principles of ONDC are openness, unbundling, and interoperability. Institutionalized as a Section-8 not-for-profit company in 2021, ONDC has grown rapidly, recording 12.8 million orders in September 2024, with total orders reaching 113.4 million to date. Currently, the network has 115 active Network Participants (NPs), including 26 Buyer NPs, 80 Seller NPs, and 18 Logistic Service Providers. ONDC is operational in over 1,100 cities, with a network of 7.01 lakh sellers and service providers.
Industrial Park Rating System (IPRS)
Industrial Park Rating System (IPRS) is an exercise which recognizes best performing parks, identifying interventions and serving as a decision support system for investors and policy makers. This exercise is being undertaken by DPIIT, Invest India and Asian Development Bank (ADB). DPIIT released a pilot phase report in 2018 on Industrial Park Rating System aimed at enhancing industrial Competitiveness. DPIIT developed ‘Industrial Park Rating System 2.0’ that widened its coverage and aimed to bring in qualitative assessment further to the pilot phase. 51 SEZs, including 29 Private, were nominated by the States/UTs for the IPRS 2.0. 24 Private Sector Industrial Parks were also nominated. Ratings were undertaken for 449 out of 478 nominations received. The feedback survey involved responses from 5,700 tenants. 41 Industrial Parks have been assessed as “Leaders” in the Industrial Park Ratings System Report. 90 Industrial Parks have been rated as under “Challenger” category while 185 have been rated as under “Aspirers” category. These ratings have been assigned on the basis of key existing parameters and infrastructure facilities etc.
National Single Window System (NSWS)
The National portal integrates the existing clearance systems of the various Ministries/ Departments of Govt. of India and State Governments. Currently, approvals of 32 Ministries/ Departments and 29 States/UTs Single Window Systems have been integrated with the NSWS Portal. A total of 277 Central approvals and 2,977 state approvals can be applied through NSWS. Information pertaining to 660 central approvals and 6,294 state approvals are available to businesses via the Know Your Approval (KYA) module. Till 14th Oct 2024, 7.10 Lakhs approvals have been applied and 4.81 Lakh approvals have been granted via NSWS, including FDI Approvals, Petroleum-related services, Hallmarking and Start-up Registration. PAN as single business ID (SBID): NSWS infrastructure has been revamped to support PAN as a single unique identifier for all the departments. i.e., it is mandatory for each entity registering on NSWS to submit their PAN. An SOP for ministries/states and UTS to link their databases with PAN has been drafted and shared with all the Central Ministries/Departments and States. Reverse Integration of State SWS with NSWS using PAN as SBID is in progress and it has been completed for Andhra Pradesh, Tamil Nadu, Telangana and Odisha and went live.
Reducing Compliance Burden on Businesses and Citizens
The Reducing Compliance Burden on Businesses and Citizens initiative aims to simplify, rationalize, digitize, and decriminalize government-to-business and citizen interfaces across various ministries, states, and union territories. This program focuses on simplifying procedures, rationalizing legal provisions, digitizing government processes, and decriminalizing minor technical or procedural defaults. Significant progress has been made, with 42,028 compliances reduced by ministries, departments, and states/UTs, and 3,765 provisions decriminalized.
Jan Vishwas (Amendment of Provisions) Act, 2023
Jan Vishwas (Amendment of Provisions) Act was passed decriminalizing a total of 183 provisions in 42 Central Acts administered by 19 Ministries/Departments.
The Jan Vishwas Act, 2023 is a landmark step in rationalizing these laws, removing unnecessary barriers, and fostering business growth. Decriminalization reflects this Government’s move towards ‘trust-based governance’ where its citizens may not be imposed with criminal sanctions for minor or procedural defaults. Continued comprehensive review of Acts to segregate and decriminalize non-malicious offences and compliance defaults shall further enhance Ease of Living. This would also open a route for alternate means to ensure compliance rather than deterrence of imprisonment like notification system for reporting and penalties for non-compliance.
By introducing administrative adjudication mechanisms along with appellate mechanism, the Act reduces pressure on the justice system, helps in reducing case pendency, and facilitates a more efficient and effective justice dispensation. The direct impact of rationalizing business regulations is improving investor confidence, providing a conducive business environment, and promoting MSMEs to work without fear of imprisonment for minor offences. Minimizing compliances leads to efficient policy making, builds an overall ecosystem conducive for economic growth, encourages MSMEs in generating jobs, supports the start-up ecosystem and boosts investor confidence through transparency. Rationalized regulations are the goal as it enhances not only Ease of Doing Business but also Ease of Living. Decriminalization is a step towards creating a universe of voluntary compliances and ensuring continuous review of regulations.
New Central Sector Scheme, 2021 for Industrial Development of UT of Jammu & Kashmir
New Central Sector Scheme, 2021 for Industrial Development of UT of Jammu & Kashmir was launched as a flagship program for the duration of 2021-22 to 2036-37 with total financial outlay of Rs. 28,400 Cr. Under the Scheme, four types of incentives have been envisioned i.e. Capital investment incentive, Capital interest Subvention, GST Linked Incentive and Working Capital Interest Subvention. The scheme has received a significant response, with 1209 applications submitted through the JKNIS Portal as of March 31, 2024. Out of these applications, 787 units have been granted registration, and a total of 680 claims amounting to Rs. 204.30 crore have been released so far.
Uttar Poorva Transformative Industrialization (UNNATI) Scheme, 2024
The Uttar Purva Transformative Industrialization Scheme for the Northeast Region was notified on March 9, 2024, with a duration of 10 years from the date of notification, followed by an additional eight years for fulfilling committed liabilities. Under the Scheme, incentives will be provided to new/ existing industrial units under three categories Capital Investment Incentive, Central Capital Interest Subvention Incentive Manufacturing & Services linked incentive (MSLI) basis their eligibility under Zone A (industrially advanced districts) and Zone B (industrially backward districts). The scheme has a total outlay of Rs. 10,037 crore and consists of two parts. Part A provides incentives to eligible units and has a budget of Rs. 9,737 crore. Part B focuses on enabling activities and ecosystem development for industrialization with a budget of Rs. 300 crore.
Source: PIB
Synopsis India prepares to offer tariff cuts on US goods like pork, medical devices, and motorcycles, seeking a broader trade deal with the incoming Trump administration. To address trade imbalances, India proposes increased purchases of US LNG and defence equipment. Officials see opportunity in Trump's China tariffs, pitching India as an alternative manufacturing hub. India is preparing to offer taris cuts on some farm and other goods mainly imported from the U.S., aiming to clinch a broader trade and investment deal once president-elect Donald Trump takes charge, government and industry sources in New Delhi said. To tackle Trump's threat of a "reciprocal tax" on Indian goods for high taris, some officials of the Indian commerce ministry are ready to consider cuts on certain products such as pork, a senior government source said. Currently India slaps about a 45% import tari on pork, which is mostly supplied by the U.S. Taris could also be reduced on high-end medical devices such as pacemakers and luxury motor-cycles, including Harley Davidson, said a second official with direct knowledge of trade issues, citing the 25% to 60% taris on these products. With bilateral trade between India and the U.S. exceeding $118 billion in the 2023/24 fiscal year ending in March, and India enjoying a $32 billion trade surplus, the country is readying for trade talks with the U.S., aiming to clinch a broader trade and investment deal once president-elect Donald Trump takes office. To address Trump's concerns over the trade imbalance, officials have also proposed buying more LNG and defence equipment from the U.S., the second official said. India's energy imports from the U.S., including crude oil, refined fuel and coal, were estimated at $12 billion in scale 2024, and aircraft and parts at $2 billion. Such imports could rise by $5 billion to $10 billion annually, a third government source, said. The government and industry sources spoke on condition of anonymity because the discussions remain confidential. A commerce ministry spokesman declined to comment. Commerce ministry officials have previously said they would wait for the Trump administration to take voice before any over of trade talks, while working out plans for possible negotiations. Indian officials are also sensing an opportunity in Trump's plans to impose up to 60% taris on Chinese imports, by pitching India as an alternative manufacturing base. The government has held consultations on the issue within ministries, as well as with local think-tanks and industrial groups, said a government source who attended some of the meetings. TRUMP GOOD FOR INDIA "That is an opportunity," said Arvind Virmani, a government adviser and member of the state-run policy think-tank NITI Aayog. "It is in the interest of the U.S. and India that more of critical manufacturing or the sensitive manufacturing be done in India rather than China," he said, adding a "preferential trade cum investment deal," which is more ambitious than an earlier proposed mini-trade deal, would benefit both countries. Ajay Sahai, director general at the Federation of Indian Export Organisations, said high taris on goods from China would accelerate the process of global companies moving to India. "We have to do our homework... Overall the coming of Donald Trump is definitely good for India," he said. During Trump's first term, a proposed mini-trade deal aimed at addressing trade imbalances and strengthening trade ties through limited agreements faltered over disagreements on taris, market access and intellectual property. India is now seeking a broader deal, overing significant concessions including. production-linked incentives for shipping and support for logistics companies. "Under Trump's 'Make in America programme', India could extend concessions for U.S. companies for manufacturing low-end products in India for their supply chains," said Ram Singh, a trade analyst at the state-run Indian Institute of Foreign Trade. In the semiconductor sector, for instance, he said, India could become a hub for the production of low-end chips as part of the global supply chain while U.S. companies focused on high-end products. Noting that India has attracted investments, such as Apple Inc's iPhone production, the sources said the government plans to oer further incentives in sectors like aircraft maintenance, semiconductors, electronics and renewables. India also plans to allow 100% foreign direct investment in the insurance sector, up from the current 74% in a move that could help leading US insurers like AIG. The plan would require parliament approval.
Source: Economic Times
The 55th Goods and Services Tax (GST) Council meeting on Saturday may provide relief to intermediaries such as brokers, agents, and online bidding portals that offer their services to entities abroad.
This will be done by classifying them as exporters, making them zero-rated. At present intermediary services are charged at 18 per cent under the Central GST Act. According to sources, the fitment committee of the GST Council has proposed an amendment to the Integrated GST Act by deleting Section 13(8)(b). “This amendment would alleviate the financial burden of the 18 per cent GST currently imposed on these services, thereby creating a more level playing field for Indian intermediaries in comparison to their foreign counterparts,” a source said.
This proposal comes in the light of show-cause notices (SCNs) of Rs 3,357 crore issued to these intermediaries. This may be dropped if the amendment takes effect. In India, many individual and corporate brokers work as brokers or agents in the commodities market, especially related to textiles and leather goods. So providing the zero-rated benefit will give big relief to them. Experts said online bidding portals like Mjunction, ONDC (Open Network for Digital Commerce) and MSTC would also benefit from the proposed amendment. Vivek Jalan, partner with Tax Connect Advisory Services, said: “Ideally the service of the agent should be treated as export of services under Section 2(6) of the IGST Act and should be zero-rated. However, Section 13(8)(b) of the same Act comes in the way and provides that the place of supply of services of such intermediaries should be the place of the service provider, in India.” He added the 18 per cent was an additional burden on these intermediaries because the recipients of such services abroad would not even get input tax credit on such claims. Separately, the law committee has recommended the GST Council simplify providing input tax credit through the recently launched Invoice Management System (IMS), which helps businesses to track GST liabilities. “The current system disregards the challenges of accounting timelines and reconciliation processes. This has led to financial burdens on suppliers who are often compelled to pay GST liabilities for which they are not liable,” said Rajat Mohan, senior partner, AMRG & Associates.
Source: Business Standard
The commerce department is working on a mega meet in January to devise a concrete strategy to push exports of six key product categories, including engineering goods and electronics, to 20 “focus countries” including the United States, Australia, France, China, Russia, the United Kingdom, Japan, South Korea, Singapore, and Indonesia, two senior government officials aware of the matter said. Indian missions in these countries have been tapped and the ambassadors have been invited. That apart, officials in other departments related to the products and key office holders in the commerce department and finance ministry will be present.
Source: Business Standard
With rising pressure on the rupee and growing cost of foreign exchange (FX) interventions, the opportunity for a rate cut by the Reserve Bank of India (RBI) is narrowing, with chances of a cut in February looking uncertain, said analysts. “As for the RBI, a new Monetary Policy Committee (MPC) in 2025 (with the new governor, deputy governor, and three fairly new external members) will be facing substantially different policy challenges along with a diverse macro and global landscape,” said Madhavi Arora, chief economist, Emkay Global Financial Services.
“With mounting FX pressure and increasing cost of FX intervention, conventional rate cut window is only going to get tighter. February cut call gets trickier from here on. The spillover of bond/FX volatility via the global financial markets route could also mean the aim of financial stability may even precede inflation management for the RBI ahead,” she added.
India’s foreign exchange reserves fell by $50 billion in the current quarter (Q3FY25) as of December 13, latest RBI data showed. The US Federal Reserve's latest dot plot revealed a significantly more hawkish stance, with only two rate cuts projected for 2025 — half the number anticipated in September — and just as many additional cuts expected in 2026, against the previous expectation of four rate cuts. The dot plot shows Fed policymakers' estimates for interest rates at the end of the next several years and over the longer run. After the US rate-setting panel’s meeting outcome, the benchmark 10-year US Treasury yield surged by 11 basis points (bps). Analysts said that a rate cut, under the current circumstances, could exacerbate currency pressures by reducing the rupee's attractiveness and further widening the interest rate differential with global markets. “There is not so much with regard to a rate cut in February because of how currency is panning out,” said the treasury head at a private bank. However, a segment believes that there is a need to consider external sector dynamics alongside growth and inflation trends, emphasising that it is too early to draw conclusions with some time remaining before February. “We have to look at the external sector, and we have to look at growth and inflation. I think it is early days, we should just wait. There is still time between now and February,” said Sameer Narang, head of economics research at ICICI Bank. After increasing the repo rate by 250 bps to 6.5 per cent between May 2022 and February 2023, the domestic rate-setting panel has kept the rate unchanged. The MPC had changed the stance to neutral in October from withdrawal of accommodation. In October, the RBI had revised the growth forecast for FY25 lower to 6.6 per cent, from the previous estimate of 7.2 per cent. The central bank also revised the inflation forecast upward to 4.8 per cent, against the earlier estimate of 4.5 per cent.
Source: Business Standard
According to sources, the GoM has recommended removal of GST on premiums of term life insurance and health insurance for senior citizens. The Group of Ministers (GoM) panel under the GST Council, tasked with deciding the levy on health & life insurance premiums, has submitted its report to the Council, a senior official said on Wednesday. The Council is likely to take up the matter for discussion in its meeting on December 21, in Jaisalmer. Meanwhile, the state finance ministers are also slated to meet the Union finance minister on Friday for pre-Budget consultations. Besides, the Council is also expected to take up the GoM’s report of rate rejig of about 150 items for discussion in the Saturday meeting. Sources say, the rate rationalisation exercise–hiking rates on some items, while reducing on others–is expected to fetch Centre & states an additional revenue of around Rs 22,000 crore per annum.
Furthermore, the Council may discuss the taxability issues related to food delivery services. Sources say the Council may clarify whether or not 5% GST on delivery charges by food delivery apps–such as Zomato and Swiggy–will be levied, on a retrospective basis from 2022.
The GST authorities recently sent notices to food delivery companies, over non-payment of such dues. Last week, Zomato received a GST shortfall notice of Rs 803 crore for the period of 2019-2022. The authorities have taken a view that delivery charges attract an 18% GST.
Food delivery platforms currently do not pay GST on delivery services, arguing that their delivery partners, who are typically unregistered, handle the direct delivery of orders to customers. These delivery partners are generally presumed to earn less than the GST registration threshold of ₹20 lakh in annual turnover, exempting them from the registration requirement.
Sources say the GoM has decided to recommend slashing the GST on readymade garments priced up to Rs 1,500 to 5% from 12%; but for garments priced between Rs 1,500 and Rs 10,000, it has proposed to hike it to 18% from 12%.
The panel has also decided to suggest lowering GST rates to 5% for 20-litre packaged drinking water bottles (existing 18%), bicycles (18%) and exercise notebooks (12%); and raising the GST on wristwatches priced above Rs 25,000 and shoes above Rs 15,000 to 28% from 18% currently.
Moreover, the GoM has proposed a ‘special rate’ of 35% on several sin items such as tobacco, tobacco products and aerated beverages. Currently, assorted tobacco items, pan masala and aerated water are among those attracting 28% tax. Some sources, however, say these items may attract a 40% rate, the highest permissible rate.
According to sources, the GoM has recommended removal of GST on premiums of term life insurance and health insurance for senior citizens. It has also suggested reduction of the GST rate on all health insurance premiums (excluding senior citizens) to 5% from 18% currently. A complete exemption of term-life insurance from GST will cost the exchequer about Rs 200 crore annually, while exempting senior citizens’ health insurance premiums will cost another Rs 3,000 crore, sources say. Between FY22 and FY24 the total GST collected from health insurance premiums was about Rs 21,000 crore.
Earlier this month, Finance Minister Nirmala said that if the GST rates are reduced, post recommendation from the Council, the cost of insurance to the policy holder is expected to come down.
Source: Financial Express
For the first time in four months, US container imports in November this year dipped below 2.4 million twenty-foot equivalent units (TEUs)—a threshold that has historically strained US maritime logistics. They fell by 5 per cent month on month (MoM) to 2,368,758 TEUs, according to logistics and supply chain technology platform Descartes. The drop is consistent with seasonal month-on-month (MoM) decreases seen in previous years, though smaller than the 9-per cent decrease over the same period last year. In November, US container imports from China also declined MoM by 7.5 per cent, ending a four-month stretch of volumes exceeding 900,000 TEUs, and were 13.2 per cent lower than the peak in July 2024 (1,022,913 TEUs). November 2024 imports from China increased by 13.3 per cent year on year (YoY), reflecting the overall upward trend in 2024, a release from the Canadian company said. November 2024 imports reflect a softer seasonal slowdown compared to November 2023. TEU volume in November this year was higher by 12.8 per cent year on year (YoY), and up a remarkable 24.6 per cent from pre-pandemic November 2019. Compared to the first 11 months of 2019, import volumes have grown by 17.6 per cent over the same period in 2024. These results continue to underscore the strength of U.S. container imports throughout 2024, Descartes noted. Notably, total imports for the first 11 months (25,829,192 TEUs) of 2024 have already surpassed the 12-month total (24,957,640 TEUs) for 2023 by 871,552 TEUs, or 3.5 per cent. In November this year, container import volumes at the top 10 US ports declined by 140,242 TEUs, a 6.6 per cent decrease MoM. Tacoma (up 4,677 TEUs) was the only port that recorded a volume increase. The remaining nine ports all recorded volume decreases, with the ports of Long Beach (down 64,187 TEUs), New York/New Jersey (down 43,969 TEUs), and Los Angeles (down 12,888 TEUs) experiencing the most significant MoM declines.
In November 2024, U.S. container import volume from the top 10 countries of origin fell by 116,104 TEUs, representing a 6.4 per cent decline MoM. Among these, Germany (up 5,950 TEUs) and Italy (up 3,693 TEUs) experienced the largest volume increases. In contrast, China (down 72,235 TEUs), Vietnam (down 27,148 TEUs), and Thailand (down 12,774 TEUs) recorded the most significant volume decreases.
Source: Fibre2fashion
a microcap textile company, reached an all-time high on December 20, 2024, just 1.3% shy of its 52-week peak. The stock gained 2.19% in today's trading, marking its fourth consecutive day of increases, and has delivered a 158.02% return over the past year, outperforming the Sensex. VTM, a microcap player in the textile industry, has achieved a remarkable milestone by touching an all-time high on December 20, 2024. The stock has demonstrated impressive performance, currently just 1.3% away from its 52-week high of Rs 156.
In today's trading session, VTM outperformed its sector by 2.19%, marking its fourth consecutive day of gains with an impressive 8.68% return over this period. The stock opened with a notable gain of 2.19%, reaching an intraday high of Rs 154. Throughout the day, it has maintained this price level, showcasing stability in its trading range.
VTM's strong performance is further highlighted by its position above key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. Over the past year, VTM Ltd has delivered a remarkable return of 158.02%, significantly outpacing the Sensex, which recorded a performance of 12.22%. This impressive trajectory underscores VTM's robust standing in the textile sector.
Source: Market Mojo
Cambodia has witnessed significant growth in its apparel, textile and footwear exports during January to November 2024 period. As per official data released by the General Department of Customs and Excise (GDCE), the country upped its exports by 25.8 per cent on Y-o-Y basis to US $ 10.64 billion. It’s worth mentioning here that these export figures represent 44.45 per cent of Cambodia’s total exports in 11-month period of 2024 that amounted to US $ 23.93 billion. Of total exports, knitted apparel contributed US $ 6.11 billion (up 22.70 per cent); woven apparel contributed US $ 2.83 billion (up 33.30 per cent); footwear amounted US $ 1.51 billion (up 24.30 per cent) and other textiles shipped from the country valued US $ 186.97 million (up 37 per cent). Talking about the reasons behind this growth, Lim Heng, Vice-President of the Cambodia Chamber of Commerce, commented that the country currently is seeing the establishment of various textile and apparel factories since investment is pouring in.
The Council for the Development of Cambodia (CDC) approved 43 investment projects, including 11 for the textile sector, worth US $ 940 million in November 2024 which is expected to create nearly 39,000 jobs.
Source: Apparel Resource
Textile exports witnessed an increase of 10.51 percent during the first five months of the current financial year (2024-25) as compared to the corresponding period of last year, Pakistan Bureau of Statistics (PBS) reported. The textile exports from the country were recorded at US $ 7,607.263 million during July-November (2024-25) against the exports of US $ 6,883,595 million during July-November (2023-24).
The textile commodities that contributed in trade growth included cotton cloth the export of which increased by 4.18 percent to $ 815.849 million from $ 783.087 million while the export of knitwear surged by 18.42 percent to $ 2,173.933 million from $ 1,835.780 million.
The other commodities that witnessed growth in trade included bed wear, the export of which rose by 15.05 percent to $ 1,324.011 million from $ 1,150.777 million, towels by 7.08 percent to $ 441.746 million from $ 412.544 million, tents, canvas, and tarpaulin up by 9.63 percent to $ 53.243 million this year compared to the exports of $ 48.567 million last year. Similarly, the export of readymade garments grew by 23.10 percent to $ 1,687.388 million from $ 1,370.732 million, art, silk and synthetic textile rose by 10.50 percent to $ 161.405 million from $ 146.067 million, made up articles (excl. towels and bed wear) increased by 11.61 percent to $ 326.905 million from $ 292.890 million while the export of other textile materials went up by 4.70 percent to $ 306.084 million from $ 292.331 million. The textile commodities that witnessed negative trade growth included cotton yarn, the exports of which declined by 38.70 percent to $302.366 – million from $493.278 million whereas the export of raw cotton and cotton carded or combed dipped by 100 percent from 39.733 million and 0.586 million respectively to zero export during the months under review. The exports of yarn other than cotton yarn declined by 16.78 percent to $14.333 million from $17.223 million. Meanwhile, year-on-year basis, the textile exports witnessed an increase of 10.81 percent during November 2024 as compared to the same month of last year. The textile exports from the country during November 2024 were recorded at US $ 1,461.072 million against the exports of US $ 1,318.536 million in November 2023. On a month-on-month basis, the textile exports from the country however witnessed a decrease of 10.14 percent during November 2024 as compared to the exports of $ 1,625.875 million recorded in October 2024, according to the data.
It is pertinent to mention here that the overall merchandize exports from the country increased by 12.57 percent during the first five months of the current fiscal year as compared to the corresponding months of last year. Exports during July-November (2024-25) were recorded at $13.691 billion against $12.162 billion during July-November (2023-24), according to PBS data. On the other hand, imports into the country also went up by 3.90 percent by growing from $21.503 million last year to $22.342 million during the first five months of the current year. Based on the figures, the trade deficit during the months under review was recorded at $8.651 billion against the deficit of $9.341 billion last year, showing a decrease of 7.39 percent.
Source: Daily Times
Grogan and Company’s upcoming specialist carpet auction, “Fine Rugs and Textiles,” will take place on 16 January 2025, at 11:00 AM EST in Boston. This live auction features an extensive selection of 205 rugs, carpets, and textiles, including fine antique Caucasian, Anatolian, Turkmen, East Turkestan, Chinese, and Persian rugs, among others. Notably, antique Caucasian rugs and carpets are prominently represented, with 76 lots available. Among the highlights of this auction is a ca. 1800 Single Medaillion Kazak rug, lot 7, from the Collection of George Gilmore, with an estimate of $30,000 – $50,000.
Source: Jozan Net
ISLAMABAD: The Shebhaz Sharif government succeeded in increasing exports of all important sectors on an annual basis in November. After a ten percent increase last month, the export volume of textile and leather recorded the highest volume of $1.70 billion. According to government sources, in November 2024, agro and food sector exports increased by 4 percent year-on-year basis, exports of other manufacturing products by 3 percent, while exports of metals and gems increased by 19 percent as chemicals, fertilizers and pharmaceutical exports increased by 13 percent.
Sources said that exports of textiles and leather in November was $1.70 billion, exports of agro and food sector were $800 million and exports of other manufacturing products were $20 million. Last month, exports of metals and gems were $11 million and $51 million respectively, while the volume of exports of chemicals, fertilizers and pharma sector $347 million.
Source: Pk News
