India and the US are progressing towards a trade agreement. The target is before fall 2025. Piyush Goyal highlights India's strong position with existing FTAs with various nations. Discussions are ongoing with the US, EU, Peru, Chile, and Oman for further trade agreements. Goyal notes the world recognizes India's growing economic strength. India and the US are on track to seal a trade agreement before the deadline of fall 2025 set by PM Narendra Modi and President Donald Trump, commerce and industry minister Piyush Goyal told ET in an interview. Goyal, who is on a four-day visit to Switzerland and Sweden, said the rare earth magnet supply squeeze by China is a wakeup call.
Source: The Economic Times
Synopsis External Affairs Minister S Jaishankar has expressed optimism about the India-EU Free Trade Agreement (FTA) negotiations, stating that significant progress has been made and the year-end timeline for completion seems feasible. He highlighted the broad scope of India-EU relations, encompassing defence, security, and talent mobility. India places a high priority to its relations with the European Union, the centrepiece of which is the Free Trade Agreement negotiations that are making very good progress, External Affairs Minister S Jaishankar said here on Wednesday. During a conversation with The Financial Times Brussels Bureau Chief Henry Foy at the German Marshall Fund (GMF) Forum, the external affairs minister expressed confidence that the year-end timeline set for the completion of the India-EU Free Trade Agreement (FTA) seems "feasible" following his in-depth talks with EU officials this week. He also highlighted the strength of the two-way relationship that goes beyond trade to cover aspects of defence and security, mobility, talent flows and education. "I would give it (India-EU ties) pretty high priority... right now you catch us at a very important moment," said Jaishankar. "We had the (EU) College of Commissioners, very soon after they came into office, visit India collectively. We know that's a very unusual and very positive step, and we are really looking at deepening our ties," he said. "So, the centrepiece is the FTA, which has been under negotiation for some time now but everything I have heard... I think we are making very good progress," he added. Against the backdrop of his talks earlier on Wednesday with MaroS Šefčovič, the EU Commissioner for Trade and Economic Security, Jaishankar was asked about the prospect of completing the FTA by the end of this year. "A lot has been done, and everything that I heard on this trip gives me the confidence that it's within sight, that by the end of the year it is feasible to do this," he said. The conversation session at the high-profile forum covered a broad spectrum of issues governing India's foreign policy perspectives, from its relations with the US and closer in its neighbourhood with China. "We are conditioned to deal with situations and challenges, think it through for ourselves and essentially make decisions based on what capabilities we have and what we are able to leverage from the world. And that's because we have never been an alliance partner. So, by the nature of our foreign policy structure, our strategic choices, we sort of have that mindset and approach," Jaishankar said. Contrasting this with Europe's history and experiences, the minister noted that India is accustomed to dealing with shifting geopolitical realities and any "trans-Atlantic divergences" in outlooks that emerge. "We are objective about it. We value our relations with the US, as we do with the EU, we will deal with each one on terms which are best for both of us," he said. On the issue of the Russia-Ukraine conflict, Jaishankar highlighted India's stance favouring a negotiated settlement of differences. He said: "We have felt from the start that even if two countries, two neighbours, have differences, even very deep differences, it cannot be settled by recourse to war. If war has started, you are not going to get a solution out of the battlefield. If you're not going to get a solution out of the battlefield, then the answer is to negotiate. "And if you are going to negotiate, it makes sense to negotiate directly, rather than through very convoluted signalling. So that's been our position. It wasn't necessarily widely accepted in 2022, but I think a lot of people have come around to that point of view right now... the United States today, under President Trump, also is an advocate of the fact that there has to be a negotiated solution." On China, Jaishankar reflected upon the "incredibly complicated matrix" with several different dimensions. Asked if the EU remains naive vis-a-vis China, he added: "I would point to a certain evolution in Europe's position and stance, but I would also make the point that it's a very differentiated picture. "Not all of Europe is obviously moving at the same speed and on the same wavelength. So, there are some which have different views, some who are more hard-headed. I would make that distinction." Jaishankar has been holding a series of wide-ranging discussions in Brussels this week, including with European Commission President Ursula von der Leyen and EU High Representative for Foreign Affairs and Security Policy Kaja Kallas for the first India-EU Strategic Dialogue.
Source: The Economic Times
India plans to collaborate with Germany, France, Australia, and other nations. The goal is to enhance skilled manpower in sectors like automotive, electronics, and pharmaceuticals. The Ministry of Skills Development will upgrade five National Skills Training Institutes. These will become National Centres of Excellence. The government has allocated ₹1,000 crore for this five-year project. New Delhi: India could rope in the expertise of Germany, France, Australia, Singapore, Japan, South Korea and Italy to create a pool of skilled manpower that meets global standards for over half-a-dozen sectors, where the country has the potential to substantially scale up manufacturing, a senior government official told ET. The identified sectors include automotive and precision manufacturing, electronics, pharmaceuticals, textile and apparel, aerospace and defence, and engineering and construction technology. The Ministry of Skills Development and Entrepreneurship will transform five National Skills Training Institutes into National Centres of Excellence, as announced in budget 2025-26. The government has earmarked Rs 1,000 crore to upgrade these centres and provide skills training over a period of five years.
“Meetings have been held with top officials of Germany, Australia, Japan, France and Singapore to get technical help from them on machinery needed for world-class skills training, the curriculum and the level of degree for trained candidates,” the official said. The guidelines for running the centres of excellence are expected to be finalised soon. The idea is to provide a continuous stream of skilled and highly skilled labour to support and sustain India’s growing economy aided by manufacturing, and also give a manpower push to the National Manufacturing Mission, the official added. This comes months after finance minister Nirmala Sitharaman said in budget 2025-26 that five national centres of excellence for skilling will be set up with global expertise and partnerships to equip India’s youth with the skills required for ‘Make for India, Make for the World’ manufacturing. The five NSTIs identified to be converted into national centres of excellence are Chennai, Hyderabad, Kanpur, Ludhiana and Bhubaneshwar. The global partnerships will cover curriculum design, training of trainers, a skills certification framework and periodic reviews at all levels to ensure targeted outcomes are achieved. Besides, these centres will also serve as research centres for continuous mapping of the job market to provide evidence-based skill gap analysis. This will enable a change in pedagogy or curriculum of existing skill courses and introduction of new courses based on anticipation of future skills. The plan is to offer diploma and advanced diploma-level certification, with multiple exit and entry options, to Class X pass-outs, working professionals and graduates and post-graduates.
Source: The Economic Times
Synopsis India and the EU concluded five chapters, including intellectual property and trade facilitation, during the 11th round of FTA talks in New Delhi. Discussions also addressed easing certification processes under India's Quality Control Orders. New Delhi: India and the EU have closed five chapters including on intellectual property, and customs and trade facilitation of their proposed free trade agreement (FTA) in the 11th round of talks held on May 12- 16 in New Delhi. The two sides also discussed the EU's proposal for easing the process of certification under India's Quality Control Orders, especially improvements in online application and accreditation of EU Conformity Assessment Bodies, said an official. The 12th round of negotiations is likely in Brussels in July, but intensive intersessional engagement will take place virtually and in person, besides discussions at the political level. The two sides aim to conclude the FTA by the end of 2025. Negotiators also made substantive progress on the text of digital trade facilitation provisions such as e-invoicing, e-authentication, e-contract, paper-less trade, online consumer protection, spam, digital identities and open government data "The focus of the negotiators was on the core elements of a future agreement. The aim is to get closer to an economically meaningful market access package focused on trade in goods, services, investment and rules of origin," the official said.
Source: The Economic Times
In a bid to enhance India’s textile exports at a time when the country is signing trade deals with developed nations, the government has set up a new task force that will look into sector-specific bottlenecks such as regulatory hurdles, cost competitiveness and lack of enough export credit. Commerce Secretary Sunil Barthwal has been appointed as the chair of the task force with representation from officials of Department of Commerce, Ministry of Textiles, Directorate General of Foreign Trade, along with representatives from export promotion councils, industry associations and exporters. In its first meeting, the task force decided to set up several issue-specific sub-groups, which will be led by relevant ministries in coordination with export promotion councils and industry representatives. These sub-groups will provide actionable recommendations to the task force, the commerce and industry ministry said. The discussion touched upon a wide range of issues affecting the textile value chain. These included upgradation of Environmental, Social and Governance infrastructure in garment manufacturing, use of renewable energy in manufacturing, European Union’s Deforestation Regulation (EUDR), strengthening e-commerce for export growth, labour issues, cost competitiveness for productivity enhancement, skilling, and branding. Participants also raised issues with export-related incentives such as RoDTEP (Remission of Duties and Taxes on Exported Products) and RoSCTL (Rebate of State and Central Taxes and Levies). They also sought collateral support for export credit for MSMEs. Stakeholders also discussed PM MITRA textile parks, development of new Jute Diversified Products (JDPs), separate harmonised system (HS) codes for Geographical Indication products, productivity enhancement for natural fibres such as jute and matters about the Export Promotion Mission.
Source: Mint
India and the US will expedite trade talks to conclude an agreement that includes “early wins” for both sides, an official said, as the two nations race to clinch a deal before Washington’s tit-for-tat tariffs kick in next month. Trade official. Trade officials from India and the US met in New Delhi for about a week to discuss issues including greater market access, digital trade, customs rules and technical barriers to trade, the official told reporters in New Delhi, asking not to be identified as the information isn’t public. The US trade team arrived in New Delhi last week to advance trade negotiations. Trade officials from India and the US met in New Delhi for about a week to discuss issues including greater market access, digital trade, customs rules and technical barriers to trade, the official told reporters in New Delhi, asking not to be identified as the information isn’t public. The US trade team arrived in New Delhi last week to advance trade negotiations. India and the US are working on a phased trade deal with an early agreement targeted for July, the deadline for implementation of the Trump administration’s so-called reciprocal tariffs. Those tariffs — which target Indian exports with 26 per cent levies — are facing legal challenges in Washington. he latest discussions also covered rules and standards for food safety and plants and human health, the official said, adding the two sides made good progress toward concluding a balanced agreement. The official added that the talks for concluding the first tranche of the trade deal will continue to be expedited. In an interview with French newspaper Le Figaro on Tuesday, Indian Foreign Minister Subrahmanyam Jaishankar said he is hopeful of reaching an agreement with the US before the reciprocal tariffs take effect.
Earlier this month, US Commerce Secretary Howard Lutnick said he’s “very optimistic” about prospects for a trade deal between the US and India “in the not-too-distant future.” Last month, Indian Commerce Minister Piyush Goyal met Lutnick and described his meeting as “constructive.”
The two nations may have an opportunity to further advance trade talks next week, as the Indian Prime Minister Narendra Modi and the US President Donald Trump are both expected to meet at the Group of Seven summit in Canada.
Source: Business Standard
Tashkent, Uzbekistan— the Tashkent International Investment Forum hosted a panel session focused on investments in textile manufacturing, garment production, and logistics chains. The session highlighted Uzbekistan’s rich cultural and industrial heritage in the textile sector, while exploring new opportunities for growth and modernization. Participants discussed strategies to boost the global competitiveness of Uzbekistan’s textile industry, enhance logistics efficiency, and ensure environmental sustainability. Emphasis was placed on improving product quality through foreign investment, adopting advanced technologies, expanding export markets, and supporting local manufacturers. Akmal Primkulov, Director of Wildberries Uzbekistan, spoke about the ongoing digital transformation in modern retail:
“We’re witnessing a radical shift in the structure of commerce. At Wildberries, we’ve built a digital ecosystem that directly connects producers with millions of buyers worldwide — eliminating geographical and technological barriers. For Uzbek companies, this is a massive opportunity.” He noted that COVID-19 was a catalyst for e-commerce growth, and today offers a rare chance for full integration into the global digital economy.“It’s not just about selling goods — it’s about transforming entire business models,” he said. Primkulov emphasized that in the new digital reality, speed, reliability, and transparency are paramount.“Companies still relying on outdated methods risk being left behind. Adapting to 21st-century standards is no longer optional — it’s vital.”
He also highlighted the importance of branding:
“Uzbekistan has unique creative and artisanal potential that can be promoted internationally. We aim to prove that ‘Made in Uzbekistan’ products can compete with global brands like Zara. Those who adapt to digital trade today will be market leaders within five years.” Jae Yong Pak, President of South Korea’s Youngone Corporation, stressed the need for Uzbekistan to move beyond its traditional reliance on cotton and natural fibers: “Yes, Uzbekistan is known for its textiles and raw materials. But to leap forward rather than grow incrementally, the country must invest in high-tech areas, such as synthetic fiber production — a critical part of industry modernization.” He also underlined the importance of human capital development:
“Without a skilled workforce and a strong production culture, there can be no consistent quality or efficiency. Real industrial transformation happens on the factory floor — that’s where growth or stagnation is determined. My advice: don’t fixate on cotton. Look to innovation and workforce development — that’s the foundation of sustainable global competitiveness.” Mansurjon Rasulov, Acting Director of Uzbekistan’s Agency for Attracting Foreign Investment, called for a broader investment perspective on the textile sector. “When we present Uzbekistan to potential investors — whether at forums or roadshows — we often highlight the obvious advantages: low labor costs, affordable energy, and a large workforce. But other markets offer that too. So, what makes Uzbekistan unique?” He noted that until 2017, Uzbekistan was largely closed to the outside world, with total foreign investment at under $3 billion. Today, that figure stands at $35 billion. “That’s a tenfold increase. Yes, there was skepticism at first. But eight years of consistent and active reforms is a track record that speaks for itself.” Rasulov pointed to another strategic milestone ahead: Uzbekistan’s accession to the World Trade Organization (WTO), expected by 2026, as instructed by the President. “This will be a game-changer. Those who invest in Uzbekistan before this turning point will reap the greatest benefits. The historic window of opportunity is open — and now is the time to act.”
Source: UzDaily.com
The United States has reached a trade agreement with China that would ease curbs imposed by the latter on export of rare earth minerals and magnets to the former, President Donald Trump announced yesterday, saying total tariffs on imports from China now would be 55 per cent. Chinese President Xi Jinping and Trump held a phone call regarding their ongoing tariff dispute last week.
“Our deal with China is done, subject to final approval with President Xi and me,” Trump said in a post on Truth Social. “Full magnets, and any necessary rare earths, will be supplied, upfront, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!). We are getting a total of 55 per cent tariffs, China is getting 10 per cent,” Trump added in his post.US and Chinese officials agreed on a framework to get their trade truce back on track after two days of negotiations in London recently.
An earlier round of negotiations in Geneva had faltered over China’s curbs on critical minerals exports, leading the US administration to respond with export controls preventing shipments of semiconductor design software, aircraft and other goods to China.
Source: Reuters
Business conditions in Australia eased further in May, falling to 0 index points, marking a continued decline from the average of +6 seen in September 2024. Employment weakened and profitability remained negative at -4 index points, according to the National Australia Bank (NAB). “Our trend business conditions measure has fallen steadily since late 2024 despite the pick-up in activity over the past two quarters. Weak profitability is a key driver, which remains in negative territory,” said NAB chief economist Sally Auld. Although business confidence rose by 3 points to +2, it remains below the long-run average in trend terms, especially in retail and wholesale sectors.
The employment index fell by 3 points in May to a new cyclical low, underscoring continued softness in labour demand. Capacity utilisation improved slightly to 82.3 per cent, partially reversing April's sharp decline. Labour cost growth remained strong at 1.7 per cent on a quarterly basis, but easing purchase costs (1.1 per cent) and slower final product price growth (0.5 per cent) reflected ongoing margin pressure. Retail prices remained unchanged at 1.2 per cent.
Across industries, retail and manufacturing posted the sharpest declines in conditions. Regionally, business conditions weakened in New South Wales, Queensland, Western Australia, and Tasmania. Victoria and South Australia continued to show the weakest performance, though conditions in Victoria appear to have stabilised. “Overall, business conditions remain weak. If this continues in coming months, it will be difficult for confidence to rise from current levels. We will watch whether there is a more sustained softening in labour demand, with the employment index easing to below average levels,” said Dr Auld.
Source: Fibre2fashion
