TRADE UPDATE #132

A Trade Meet of World Leaders

09/09/2021

Boosting bilateral trade, investments, and addressing critical issues like barriers in trade and development was on India’s agenda heading into the 13th BRICS summit, which was hosted virtually on September 9. The meeting between the world leaders of Brazil, Russia, India, China, and South Africa, intended to reaffirm the BRICS strategy 2025, which includes a new framework for greater cooperation in services trade and promises easier movement of professionals across BRICS nations.

Besides this, a few ministers hailing from various sectors were scheduled to meet this week to discuss and draft a slew of contingency measures to tackle the logistical challenges that have gripped the global economies in the wake of the coronavirus. Priority berthing for bulk carriers, speeding up the movement of empty containers from ports to the hinterland, to higher supply of rail wagons, and stopping empty boxes from being taken out of the country are some plans on the horizon. Keeping in mind the fragile supply chain and the economic and political disruptions in India’s neighboring nations, the policy tank needs to gear up its resources so that India’s trade remains unaffected in the coming months.


INTERNATIONAL TRADE

13th BRICS Summit: PM Modi to push for greater trade, investment as part of Strategy 2025

Prime Minister Narendra Modi will keep the focus on closer bilateral trade and investment between nations of the BRICS grouping (Brazil, Russia, India, China, and South Africa) when he hosts the 13th BRICS Summit on September 9.


SHIPPING & LOGISTICS

Ministers to meet Industry on high freight rates, container shortage

Commerce and industry minister Piyush Goyal, railway minister Ashwini Vaishnaw, and minister for ports, shipping, and waterways Sarbananda Sonowal will meet industry representatives on Thursday to discuss issues related to export logistics amid container shortages at ports and skyrocketing freight rates.


ECONOMY

Exporters worried about stuck payments as Sri Lanka declares economic emergency

Sri Lanka’s economic emergency declared by the country’s President Gotabaya Rajapaksa last week to control spiraling food prices and declining foreign reserves has exporters in India worried as the curbs placed by the island nation on imports and foreign currency may worsen payment problems they are already facing.


EXPORT SCHEMES

Govt to extend incentive scheme IFLADP for leather, footwear industry till FY26

Commerce and industry ministry has submitted a proposal for the implementation of the Indian Footwear Leather and Accessories Development Programme (IFLADP) with an outlay of ₹1,700 crores, to be incurred during 2021-22 to 2025-26.


COVID-19 IMPACT

China's economy gets welcome boost from surprisingly strong Aug exports

China's exports unexpectedly grew at a faster pace in August thanks to solid global demand, helping take some of the pressure off the world's second-biggest economy as it navigates its way through headwinds from several fronts.


OTHER NEWS