free trade agreement

New Zealand's deputy prime minister, Winston Peters, announced that free trade agreement talks with India are progressing meaningfully, despite delays due to tariff disagreements on dairy products. While no specific timeline was given, Peters emphasized the potential for strengthened economic ties, highlighting New Zealand's strengths in various sectors.

Commerce Minister Piyush Goyal expressed optimism about finalising a comprehensive free trade agreement between India and the European Union ahead of the December deadline. He highlighted the complementary nature of both economies and India's commitment to addressing policy concerns like carbon border adjustment mechanisms.

New Zealand is actively pursuing a free trade agreement with India, with negotiations underway to enhance economic ties. Winston Peters, New Zealand's Deputy PM, emphasized the commitment to boosting trade beyond the current 1.5% of exports, focusing on sectors like food, agriculture, and renewable energy. Strengthening defense and security cooperation in the Indo-Pacific region is also a priority.

India and the United Kingdom signed a free trade agreement. The agreement aims to boost economic cooperation. India will reduce tariffs on British goods. The UK will eliminate tariffs on Indian products. Bilateral trade is expected to increase significantly. Indian exports to the UK could reach GBP 45 billion by 2030. Key Indian sectors will benefit from improved market access.

JSW Steel's CEO Jayant Acharya advises Indian steelmakers to monitor Chinese exports and FTA partner imports closely, despite no current import surge. India remains a net steel importer, prompting a provisional safeguard duty on flat steel products. Investigations are ongoing regarding injurious imports to protect the domestic industry, as JSW Steel maintains a 35 million tonne production capacity.

British Airways is significantly expanding its operations in India, its largest market outside the US, with a 25% capacity increase since pre-pandemic levels. The airline will reintroduce first-class service on the Mumbai-London route and aims to capitalize on cargo opportunities arising from the proposed India-UK FTA.

Amidst a US trade court's rejection of Trump-era tariffs, the Global Trade Research Initiative (GTRI) advises India to proceed cautiously in FTA talks with the US. The court's ruling, invalidating tariffs imposed without Congressional approval, raises concerns about the legality of past US trade measures.

Rajiv Memani, EY India Chairman and CEO, has assumed the role of president at CII, succeeding Sanjiv Puri of ITC. This transition occurs as India actively negotiates trade agreements, including a BTA with the US. R Mukundan of Tata Chemicals is set to become CII’s president-designate for 2025-26.

GTRI advises India to address Trump's new steel and aluminium tariffs within the ongoing FTA talks with the US. This approach aims to persuade the US to reduce or eliminate these tariffs, leveraging the FTA negotiations for market access benefits.

India's FTA with the UK includes a nuanced offer for the auto sector, involving phased tariff reductions and quotas based on engine capacity and vehicle price. This aims to boost trade, potentially benefiting companies like Tata Motors and JLR. While luxury carmakers see it as positive, the impact on high-end car prices may be limited.

India's apparel and home textile trade with the UK is poised for substantial growth, potentially doubling in the next five to six years, fueled by the recently finalized free trade agreement. The FTA, expected to take effect in 2026, will eliminate tariffs on most Indian textile exports, leveling the playing field with competitors and driving investment in production capacity.

India is considering Prime Minister Modi's visit to the Maldives in July, potentially on their Independence Day, following an invitation from President Muizzu. This visit signals a renewed effort to strengthen bilateral ties amidst regional concerns. Discussions will encompass development, security, trade, and a potential free trade agreement, reinforcing the partnership in the Indian Ocean region.

The Indian economy is projected to maintain a promising outlook in 2025-26, fueled by revived consumption, government capex, and healthy financial conditions. RBI's report highlights the National Manufacturing Mission and expanding global trade engagements as further growth catalysts. India's resilience, digital payment leadership, and focus on AI contribute to a positive economic trajectory, though geopolitical uncertainties remain a risk.

External affairs minister Jaishankar asserted that India's military actions, not US mediation, compelled Pakistan to agree to a ceasefire. He criticized China's close defense ties with Pakistan and highlighted Pakistan's open support for terrorism. Jaishankar also addressed India's relationship with Russia, European double standards, and the progress of the India-EU free trade agreement, expressing optimism about Indo-German defense cooperation.

India's exports are projected to reach $1 trillion by FY26, driven by global diversification and new FTAs, according to FIEO. Merchandise exports are expected to rise to $525-535 billion, while services exports should hit $465-475 billion. Electronics, engineering, and agriculture are key growth sectors, though non-tariff barriers like the EU's Digital Product Passport pose challenges.

A new report by GTRI is challenging US President Trump's claims of a large trade deficit with India, asserting that the actual deficit is significantly lower than stated. The report highlights a 'hidden surplus' where the US earns billions annually from India through sectors like education, digital services, and defense.

Diageo Plc anticipates reducing Scotch whisky prices in India following the India-UK FTA, potentially benefiting consumers in the world's largest whisky market. The FTA will slash tariffs, leading to price drops, though the actual impact depends on state taxes and company strategies. While the deal may boost demand, concerns remain about red tape, minimum import pricing, and potential price wars.

India's trade surplus with the UK has slightly increased over the last decade, and the new free trade agreement is poised to significantly boost trade between the two nations. The FTA is expected to eliminate tariffs on 99% of Indian exports and reduce tariffs on 90% of Indian imports, creating new opportunities across various sectors and enhancing economic cooperation.