export | Business Upturn

India’s cabinet approves ₹19,000 crore deal for BrahMos missiles to enhance naval capability

Rai Sinha — Thu, 22 Feb 2024 13:14:04 +0000

The Cabinet Committee on Security has greenlit a significant defense acquisition plan, approving the procurement of over 200 BrahMos supersonic cruise missiles along with associated systems. This procurement, costing approximately ₹19,000 crore, aims to bolster the firepower of the Indian Navy, as revealed by officials familiar with the matter on Thursday.

The BrahMos missiles, renowned for their exceptional speed and versatility, will be integrated into Indian warships, offering a substantial enhancement to the Navy’s operational capabilities. The acquisition will encompass a mix of BrahMos variants, including those capable of striking targets at distances of up to 290 km, as well as extended-range versions boasting a remarkable reach of nearly 500 km.

Notably, the BrahMos missile stands out as the world’s fastest cruise missile, boasting a staggering speed of Mach 2.8, nearly three times the speed of sound. Its adaptability across land, air, and sea platforms underscores its versatility, with all three variants currently deployed across the Indian armed forces.

Furthermore, India’s defense export endeavors are gaining momentum, with plans underway to deliver BrahMos missiles to the Philippines in March. This marks a significant milestone as it signifies India’s first export order for the BrahMos missile, developed jointly with Russia. The deal, valued at almost $375 million, was inked two years ago, illustrating India’s burgeoning presence in the global defense market.

India’s aspirations for defense exports are ambitious, with a target set at ₹35,000 crore by the fiscal year 2024-25. Recent successes, such as Kalyani Strategic Systems Limited securing an export order worth $155.5 million for artillery guns bound for Armenia, underscore India’s growing prowess in defense manufacturing. Additionally, India’s collaboration with Armenia for the Pinaka rocket system further amplifies its standing as a reliable defense partner.

Beyond traditional markets, countries across South America, Africa, Central Asia, and Southeast Asia are expressing keen interest in India’s defense offerings. The Indian Air Force, under the leadership of Air Chief Marshal VR Chaudhari, is advocating for the development of a compact version of the BrahMos missile tailored for fighter jets. This initiative aims to equip aircraft like the MiG-29, Mirage 2000, and the indigenous Tejas with enhanced strike capabilities.

Looking ahead, India is poised to embark on the development of an extended-range BrahMos missile, capable of striking targets at distances exceeding 800 km. This endeavor underscores India’s commitment to bolstering its strategic capabilities, particularly in the maritime domain.

The recent commissioning of INS Imphal, the latest guided missile destroyer, marked a milestone for the Indian Navy. Notably, INS Imphal became the first Indian warship to successfully launch the BrahMos missile, further solidifying India’s position as a maritime power in the Indian Ocean region.

Thus, India’s approval of the BrahMos missile acquisition represents an essential step in enhancing its naval prowess and consolidating its position as a key player in the global defense arena. With strategic partnerships flourishing and indigenous defense capabilities evolving, India’s trajectory as a defense exporter and innovator remains promising.

Government allows export of 5,841 MT sugar to EU from October 2023

Dixita Hazarika — Sat, 26 Aug 2023 05:42:12 +0000

The government has allowed export of 5,841 MT sugar to EU from October 2023 to September 2024.

A notification has been issued by DGFT to allocate Tariff Rate Quota (TRQ).

In the notification, it stated that in exercise of the powers conferred under Paragraphs 2.04 of the Foreign Trade Policy, 2023, the Director General of Foreign Trade, under TRQ for the year 2023-24 (October 2023 to September 2024) hereby allocates quantity of 5841 MT for export of Sugar to EU from India. As per Notification No. 3/2015-20 dated 20.04.2015, under TRQ export of sugar (HS Code 17010000) to the EU is ‘Free’ subject to the conditions notified in the ‘Nature of Restrictions’ in the notification.

It also stated that Certificate of Origin shall be issued by Additional Director General of Foreign Trade, Mumbai if required for preferential sugar export to EU, on recommendation of APEDA regarding entity and quantity for which eligible. Other prescribed certification requirements, if any, specifically for sugar export to the EU would continue to be followed.

The Agriculture and Processed Food Products Export Development Authority (APEDA), New Delhi will be operating the quota as the implementing agency for export of TRQ items to the EU.

The reporting requirement as notified vide Notification No. 3/2015-2020 dated 20.04.2015 read with Notification No. 20 dated 07.09.2015 would be followed. And the effect of this Public Notice is that the quantity of 5841 MT Sugar will be exported to EU from India under TRQ for the year 2023-24 (October 2023 to September 2024).

Pakistan suffers massive loss of exports & remittances in FY-23: Report

Sidharth Badlani — Sun, 18 Jun 2023 14:16:48 +0000

A prominent English newspaper in Pakistan- the Dawn has reported that Pakistan has suffered a massive loss of $ 7.15 billion during the first 11 months of FY 23.

Why is Pakistan Facing this Loss?

The loss has been on account of dwindling exports and remittances. With the world and particularly the West entering into a recession, Pakistan’s exports have taken a massive hit. Concomitant to that have been the layoffs in Western companies which have forced Pakistan’s workers to return home.

The stringent inflation afflicting most of Europe and North America has hit the pockets of even those workers who have somehow managed to retain their jobs. The increased prices of daily-use commodities have further impaired the ability of these workers to send money back home.

What do the Critics Say?

The critics are accusing the Pakistan’s Government of lacking a vision and clear strategy. They are accusing the government of being preoccupied with borrowing from the International Monetary Fund and seeking funding from Saudi Arabia and UAE while ignoring more prominent issues.

The critics are saying that even if all things go as planned and the government does secure $3 billion from Saudi Arabia, $2 billion from the UAE and $1.1 billion from the IMF, yet the total funds would be less than the $7.15 billion loss attributable to loss of exports and remittances. Moreover, Pakistan would incur the interest and repayment burdens associated with these borrowings.

The critics are this demanding the government to focus on exports, remittances and other such pertinent issues rather than borrowings from foreign governments and international organisations.

India’s merchandise exports crash 12.69% in April

United News of India (UNI) — Mon, 15 May 2023 12:40:04 +0000

New Delhi, May 15: Amid slowdown in major advanced economies, India merchandise exports slumped 12.69% year-on-year to US$ 34.66 billion in April, 2023.
India’s merchandise exports in April 2022 were valued at US$ 39.70 billion.

The data released by Commerce and Industry Ministry released on Monday showed India’s imports during April 2023 were US$ 49.90.

The trade deficit in April 2023 stood at US$ 15.24 billion.

India’s unexpected wheat export restriction traps 1.8 million tonnes at ports

News Desk — Mon, 16 May 2022 16:08:12 +0000

India’s wheat export restriction had held 1.8 million tonnes of grain at ports. Leaving traders facing hefty losses from the prospect of selling onto a weaker domestic market. 4 dealers informed Reuters exclusively.

As a scorching heat wave curtailed output and domestic prices hit a record high. New Delhi banned wheat exports on Saturday. Just days after saying it was targeting record shipments of 10 million tonnes this year.

India has stated that only exports backed by letters of credit (LCs). Or payment guarantees issued before May 13 will be allowed to proceed before the ban takes effect.

However, traders have LCs for only 400,000 tonnes of the 2.2 million tonnes of wheat currently at ports or in transit, according to a Mumbai-based dealer with a global trading firm who informed Reuters.

Abrupt Ban Hurt Indian Exporters

The sudden ban will also make it more difficult for exporters to profitably sell stocks sitting at ports.

According to a New Delhi-based trader who told Reuters. With a global trading firm, they may have to resell those cargoes into the weaker domestic market. Which has been under renewed price pressure since the export ban news broke. And will also have to pay reloading and transportation costs.

Around 1.4 million tonnes of wheat is currently delayed or in transit at west coast ports like Mundra and Kandla, while another 800,000 tonnes is in east coast ports like Kakinada, Tuticorin, and Visakhapatnam, according to merchants.

According to an exporter, global trading houses are among those affected by the ban because their Indian subsidiaries sold wheat to their regional headquarters in Singapore before obtaining the necessary LCs in some transactions.

Japan’s exports and imports in Fiscal Year 2021 highest since 1979

United News of India (UNI) — Wed, 20 Apr 2022 06:33:52 +0000

Tokyo, April 20: Japan’s exports and imports in fiscal year 2021. Which ended on March 31, have reached their highest figures on record since 1979. The Japanese Finance Ministry said on Wednesday. According to the ministry’s data, imports increased by 23.6% year-on-year. And reached 85.8 trillion yen ($667 billion). Imports of oil and liquefied natural gas (LNG), in particular, increased by 97.6% and 58.8%, respectively. Japan boosted imports from countries such as Australia (an increase of 77.3%), Belgium (an increase of 126.8%), Spain (an increase of 114.6%), Saudi Arabia (an increase of 140.1%), Kuwait (an increase of 100.3%), and Russia (an increase of 68.5%).

As well as the African region (an increase of 77.3%). Japanese exports grew by 33.3% to 91.2 trillion yen ($709 billion), the ministry said. Exports from japan grew the most to countries such as Indonesia (an increase of 67.9%), Chile (an increase of 116%), Brazil (an increase of 47%), Ireland (an increase of 61.9%), and Russia (an increase of 37.4%).

(Except for the headline, this story has not been edited by Business Upturn staff. And is published from a syndicated feed.)

India signs free trade agreement (FTA) with UAE

Vineet Jain — Fri, 18 Feb 2022 14:38:28 +0000

India and the United Arab Emirates (UAE) have agreed to decrease import taxes on the bulk of Indian exports to the nation. The Comprehensive Economic Partnership Agreement (CEPA) is the Narendra Modi government’s first significant trade agreement after taking office in 2014.

Commerce and Industry Minister Piyush Goyal and UAE Economy Minister Abdulla bin Touq Al-Marri inked the agreement in New Delhi. While it reduces import levies on a wide variety of items, the government anticipates it to enhance exports of gemstones and jewels, as well as clothes, to the UAE, and to increase overall trade to $100 billion over the next five years.

After the United States and China, the UAE is India’s third-largest trading partner internationally. Bilateral commerce between the two countries was valued at $43.3 billion in 2020-21, with hundreds of products transferred. The two nations’ commerce was anticipated to be $59 billion in 2019-20, the pre-pandemic year.

The agreement was highlighted at the India-UAE virtual summit earlier in the day, which was hosted by Prime Minister Narendra Modi and Sheikh Mohamed bin Zayed al Nahyan, Deputy Supreme Commander of the United Arab Emirates (UAE) Armed Forces and Crown Prince of Abu Dhabi.

Negotiations on the agreement were finished in record time, with the arrangement set to be officially launched in September 2021. The newest agreement is an “early harvest” component of a much larger trade and economic cooperation agreement that will be signed in the future. An early harvest trade agreement is one in which both sides agree on a set of deliverables that are relatively easy to achieve.

Haryana government to set up Export Promotion Bureau to promote exports

Ayisha Farah — Tue, 21 Sep 2021 15:06:48 +0000

The government of Haryana will be setting up an Export Promotion Bureau to encourage exports, providing institutional assistance to exporters. Director-General, Industries and Commerce Department Dr Saket Kumar revealed this information at the inauguration of the two-day ‘Vanijya Utsav’ organised in Gurugram on Tuesday.

The state-level ‘Vanijya Utsav’ is organised by the Department of Industries and Commerce and the Apparel Export Promotion Council operating under the Ministry of Textiles of the Central government upon Azadi Ka Amrit Mahotsav. He said that District Level Export Promotion Committee (DLEPC) is established in every district of the state to promote exports.

Likewise, a Trade Promotion Committee has been established at the state level to examine issues related to trade like logistics, agricultural exports and service exports. Giving more knowledge about the facilities and incentives being offered to entrepreneurs and exporters in Haryana, Saket Kumar said that Haryana is an economy that is growing quickly with an export value of Rs 1,74,572 crore in the year 2020-21.

He also notified that Haryana is shipping goods to the US, Saudi Arabia, the UK, Germany, Nepal etc. An official statement announced that the main districts transporting goods are Gurugram, Panipat, Karnal, Sonipat and Faridabad. Rice, readymade clothing, handlooms and handicrafts, automobiles and their parts, metalware, machinery and components, medicines, and pharmaceutical products are mainly transported from these districts.

MoS Anupriya Patel says exports to ASEAN estimated at $46 billion in FY22

Shivya Kumar — Wed, 25 Aug 2021 06:30:48 +0000

On Tuesday, Anupriya Patel the commerce minister of the state announced that the Association of South Asian Nations will be marked as very important in terms of trade structure for India. India initialises export price of $ 46 billion to meet the terms of the global target of $400 billion in this annual year.

“ASEAN, with over 15 per cent share in India’s global engineering shipment, is likely to be a key region to focus on with a target of around $ 16 billion of exports for 2021-22,” Patel said at the India-ASEAN Engineering Partnership Summit organized by EEPC India.

The current estimates of India for April-July was $35.3 billion and aspires to achieve $ 105 billion in the current fiscal year.