The government and companies across sectors are working together amid intensified efforts to find ways of staving off US President Donald Trump’s reciprocal tariff threat aimed at India and others, following up on his measures against Canada, Mexico and China. Commerce and industry minister Piyush Goyal is in Washington, heading a team of negotiators looking to start talks on a proposed Bilateral Trade Agreement (BTA) with the US. The two sides are eyeing a bilateral trade deal by the end of the year.
Source: The Economic Times
India's export growth has been hampered over the past decade due to a combination of high import tariffs and low foreign direct investment (FDI) in mid-tech manufacturing sectors, according to a report by HSBC. The report suggests that potential trade tariffs under U.S. President Donald Trump's administration could serve as a catalyst for change, provided India implements deeper reforms.
The study in the report examines India's economic performance over two distinct periods: the "high growth" decade (FY01-FY10), when the country experienced rapid economic expansion, increased global export share, and strong investment inflows, and the "lower growth" decade (FY11-FY20), when these factors significantly weakened. During the second period, India's FDI inflows were less focused on mid-to-low-tech industries, such as food processing, apparel, furniture, and toys-- sectors that are crucial for job creation and export competitiveness.
Source: The Economic Times
India’s central bank may have room for monetary easing due to falling global crude prices offsetting risks from a weaker rupee. Despite concerns over imported inflation affecting the consumer price index, easing energy prices could help lower import costs, thereby supporting further rate reductions.
Source: The Economic Times
Apart from rising trade barriers and protectionism, India’s exporters face other disadvantages like low credit coverage, high interest rates, no scheme for remission of duties to service exporters, insufficient branding and market outreach. India should have a comprehensive look at its trade and industrial policies, as competitors and developed countries re-evaluate their strategies, to achieve an aspirational target of $2 trillion for exports, Santosh Kumar Sarangi, director-general of foreign trade, said on March 4, 2025.
Source: Financial Express
The second phase of the e-textile portal was created by the Department of Textiles with the intention of improving the management of textile industry subsidies, according to Textiles Minister Sanjay Savkare. After launching the second phase of the textile e-portal’s mobile app and introducing the Texconnect magazine in Mumbai’s Mantralaya, he made the prediction that the textile sector would undergo a digital revolution during this phase. He added that this portal will expedite the grant process and provide transparency and extended services. The e-textile portal will now promote all significant textile sectors, including the silk, handloom, and technical textile industries, following the launch of the second phase. With this growth, every participant in the textile business in Maharashtra will benefit from a rapid, transparent and effective digital platform, remarked Savkare.
Source: Apparel Resource
President Donald J. Trump has announced adjustments to tariffs on imports from Canada and Mexico, aiming to safeguard the American automotive industry while addressing border security concerns. Under the revised structure, a 25 per cent tariff will apply to goods that do not meet US-Mexico-Canada Agreement (USMCA) rules of origin. A lower 10 per cent tariff will be imposed on energy products and potash imports from Canada and Mexico that fall outside the USMCA preference. Goods qualifying for USMCA benefits will continue to enjoy zero tariffs. Trump’s move reinforces his America First Trade Policy, using economic leverage to push for stricter border controls while protecting US manufacturers from trade disruptions.
Source: Fibre2fashion
Nigerian Ports Authority (NPA) director Abubakar Dantsoho recently said the country aims at turning itself into a maritime logistics hub for sustainable port services in Africa, particularly under the Africa Continental Free Trade Area (AfCFTA) agreement. As the AfCFTA sought to collapse all trade barriers within the continent, it was viewed by many as a threat to Nigerian ports, he told an event in Lagos focused on the maritime and logistics sector organised by the Nigerian British Chamber of Commerce (NBCC).
However, he said a seaport should improve its competitive strategy to stay ahead of its rivals to maintain its market position.
Source: Fibre2fashion
The UK manufacturing sector continued to face tough operating conditions in February this year, as ongoing concerns about weak demand and rising cost pressures led to deeper downturns in output, new orders and employment, S&P Global UK manufacturing purchasing managers’ index (PMI) data show. The seasonally-adjusted manufacturing PMI fell to a 14-month low of 46.9 in February, down from 48.3 in January, but above the earlier flash estimate of 46.4. The PMI has remained at a sub-50 level, signaling contraction, for five months in a row Output contracted for the fourth month running in February, as manufacturers scaled back production in response to lower new order intakes, subdued client confidence (at both businesses and consumers) and supply chain issues.
Source: Fibre2fashion
