Latest news with #S.C.Ralhan
Mint
10-07-2025
- Business
- Mint
Services sector may catch up with merchandise exports in FY26
NEW DELHI : Even as global headwinds weigh on India's merchandise exports, the services sector is emerging as a vital cushion, delivering robust growth and helping anchor the country's external balance. At the current pace, services could catch up with merchandise exports in 2025-26, on an annual basis, marking a significant structural shift in India's external trade dynamics, showed figures shared by exporters. In the first five months of 2025, services exports rose 16% year-on-year to $173 billion, while the services trade surplus surged 21% to $90 billion, according to data from the Union commerce ministry, offering crucial support to the current account at a time of volatility in goods trade. Merchandise exports slipped 1.4% to $192.53 billion, and the trade deficit widened nearly 15% to $106.88 billion during the same period. The strong performance underscores the resilience of India's technology, consulting, financial, and business services, even as traditional goods trade remains vulnerable to a turbulent global landscape. Counterbalance June services exports are expected to post a multi-month high, bolstered by record output during the month. The HSBC India Services PMI, compiled by S&P Global, rose to a 10-month high of 60.4 in June, from 58.8 in May, reflecting strong sales, new orders, and buoyant demand. The index has remained well above the 50-mark, indicating continued expansion, since January. The Federation of Indian Export Organisations (FIEO) expects this momentum to continue in the coming months and sees services as a key growth engine in achieving the government's ambitious $1 trillion export target for 2025-26, up from $825 billion in the previous fiscal. 'We expect about a 24% annual increase in services exports in value terms in 2025-26, on the back of strong growth reported in recent months," said S.C. Ralhan, president, FIEO. 'For merchandise exports, we are expecting a 10% growth in 2025-26, but there is a condition: if the war (Russia-Ukraine) continues, it may come down to 5-6%," he added. In absolute terms, the FIEO projects services exports to reach around $476 billion in 2025-26, while merchandise exports are expected to range between $459 billion and $481 billion, indicating that services exports could catch up with goods exports by the end of the fiscal year. In 2024-25, merchandise exports stood at $437.42 billion, marginally higher than the $437.07 billion recorded in the previous year, while services exports rose to $383.51 billion from $341.06 billion. 'The merchandise exports depend on several global factors, like the ongoing wars and US trade tariffs. We do expect the Indian government to sign a bilateral trade agreement with the US soon," Ralhan said. 'However, services exports will not be impacted as the agreement mainly deals with merchandise trade," he added. A spokesperson of the ministry of commerce didn't respond to emailed queries. Leading services exports Software and IT services, classified under telecommunications, computer, and information services, account for around $150 billion annually, roughly half of India's total services exports, according to the New Delhi-based think tank Global Trade Research Initiative (GTRI). Other business services, including consultancy, engineering, R&D, and technical services, follow, contributing about $80 billion, or a quarter of overall services exports. 'The growth in this sector is mainly driven by the rise of global capability centres (GCCs) in India," the GTRI report noted. Meanwhile, India Ratings expects services trade to largely remain insulated from tariffs, though the broader uncertainty in global trade could cast a shadow on the sector. 'The global trade in commercialservicesgrew at a healthy 6.8% on-year in 2024. The globalservicesPMI moderated to 52.0 in May 2025 from 53.8 in December 2024. However, it has remained in expansion for the past 29 months," India Ratings said in a recent report. However, the rating agency expects theservicestrade surplus to moderate to around $48 billion in 1QFY26. The World Trade Organization (WTO) also expects global services trade volume to grow 4% on-year in 2025, lower than its earlier baseline forecast of 5.1%. This follows a strong 6.8% growth in global commercial services trade in 2024.
India.com
23-06-2025
- Business
- India.com
India's Export Sector Stands Strong Amid Rising Geopolitical Tensions: FIEO
New Delhi: While geopolitical tensions in the Middle East, including the ongoing Iran-Israel conflict, pose certain challenges to global trade dynamics, India's export sector remains resilient and adaptive, the Federation of Indian Export Organisations (FIEO) said on Monday. The country's trade with both Iran and Israel, while important, constitutes a small share of the overall export-import basket. "The government and industry are jointly monitoring developments to ensure minimal disruption," FIEO President S.C. Ralhan said. "We do anticipate some short-term impact on demand and logistics, particularly in the Gulf region, which serves as a crucial hub for Indian exports. Increased shipping costs, longer transit times, and rising marine insurance premiums may add pressure, especially in price-sensitive sectors," he said in a statement. A wider Middle East conflict is expected to have an impact on oil supplies from Saudi Arabia, Iraq, Kuwait and the UAE, which would lead to a sharp spike in oil prices. Shipping could also get hit as Yemen's Houthi rebels have already warned that they would resume their attacks on ships if the US attacked Iran. India imports around 85 per cent of its crude oil requirement. However, Indian exporters have time and again demonstrated agility in re-routing shipments, diversifying markets, and managing financial exposures, the FIEO said. The robust MSMEs and large-scale exporters, coupled with strong government support mechanisms, will help cushion any near-term shocks. Crude oil price volatility is being closely watched, as it can influence both inflation and logistics costs. But India's diversified energy procurement strategy and the Reserve Bank's proactive stance help maintain liquidity and macroeconomic stability. "Overall, while there are temporary headwinds, we see this as an opportunity for Indian exporters to explore alternate routes, strengthen regional partnerships, and consolidate India's role as a reliable trade partner in uncertain times," Ralhan said. The FIEO said it is committed to supporting exporters with timely guidance, market intelligence, and policy advocacy to ensure continued momentum in our global trade journey. Meanwhile, India's total exports of merchandise and services stood at $71.12 billion in May, which represents a growth of 2.77 per cent over the same month of the previous year.
Time of India
02-06-2025
- Business
- Time of India
Indian exporters worried over US tariff hikes on steel, aluminium goods
The Federation of Indian Export Organisations ( FIEO ) has expressed concern over the recent announcement by US President Donald Trump to double import tariffs on steel and aluminium from 25 per cent to 50 per cent, citing potential disruption to India 's steel and aluminium exports, particularly in value-added and finished steel products and auto- components. Reacting to the development, FIEO president S.C. Ralhan stated that the proposed increase in US steel and aluminium import tariffs will have a significant bearing on India's steel exports, especially in semi-finished and finished categories like stainless steel pipes, structural steel components, and automotive steel parts. "These products are part of India's growing engineering exports, and higher duties could erode our price competitiveness in the American market," he said. India exported approximately $6.2 billion worth of steel and finished steel products to the USA in the financial year 2024-25, including a wide range of engineered and fabricated steel components and about $0.86 billion of aluminium and its products. The US is among the top destinations for Indian steel manufacturers, who have been gradually increasing their market share through high-quality production and competitive pricing. The FIEO president further added that while it is understandable that the decision stems from domestic policy considerations in the US, such sharp increases in tariffs send discouraging signals to global trade and manufacturing supply chains. "We urge the Government to take up the issue at the bilateral level to ensure that Indian exporters are not unfairly disadvantaged as 25 per cent additional duty on steel shipments will be a huge burden, which is difficult to be absorbed by the exporter or importer. The FIEO chief also emphasised the need for Indian exporters to diversify their markets and invest in higher-grade value-added products to mitigate the impact of such protectionist measures. Meanwhile, as part of ongoing discussions on the India-US Bilateral Trade Agreement , representatives of India's Department of Commerce and the Office of the US Trade Representative held fruitful discussions at a meeting in Washington from April 23-25 to conclude the first tranche of the Bilateral Trade Agreement by Fall (September-October) of 2025, The ongoing discussions are part of bilateral efforts in line with the Leaders' Statement. Prime Minister Narendra Modi , during his visit to Washington in February this year, held talks with US President Donald Trump on negotiating the first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement by the fall of 2025. The two leaders resolved to deepen the US-India trade relationship to promote growth that ensures fairness, national security and job creation. To this end, the leaders set a bold new goal for bilateral trade - 'Mission 500' -- aiming to more than double total bilateral trade to $500 billion by 2030. --IANS sps/uk
Time of India
01-06-2025
- Business
- Time of India
Indian exporters worried over US tariff hikes on steel, aluminium goods, ET Manufacturing
Advt Advt Advt Advt Join the community of Top industry professionals Subscribe to our newsletter to get latest insights & analysis. Get updates on your preferred social platform Follow us for the latest news, insider access to events and more. New Delhi: The Federation of Indian Export Organisations ( FIEO ) has expressed concern over the recent announcement by US President Donald Trump to double import tariffs on steel and aluminium from 25 per cent to 50 per cent, citing potential disruption to India 's steel and aluminium exports, particularly in value-added and finished steel products and auto- to the development, FIEO president S.C. Ralhan stated that the proposed increase in US steel and aluminium import tariffs will have a significant bearing on India's steel exports, especially in semi-finished and finished categories like stainless steel pipes, structural steel components, and automotive steel parts."These products are part of India's growing engineering exports, and higher duties could erode our price competitiveness in the American market," he exported approximately $6.2 billion worth of steel and finished steel products to the USA in the financial year 2024-25, including a wide range of engineered and fabricated steel components and about $0.86 billion of aluminium and its products. The US is among the top destinations for Indian steel manufacturers, who have been gradually increasing their market share through high-quality production and competitive FIEO president further added that while it is understandable that the decision stems from domestic policy considerations in the US, such sharp increases in tariffs send discouraging signals to global trade and manufacturing supply chains."We urge the Government to take up the issue at the bilateral level to ensure that Indian exporters are not unfairly disadvantaged as 25 per cent additional duty on steel shipments will be a huge burden, which is difficult to be absorbed by the exporter or FIEO chief also emphasised the need for Indian exporters to diversify their markets and invest in higher-grade value-added products to mitigate the impact of such protectionist as part of ongoing discussions on the India-US Bilateral Trade Agreement , representatives of India's Department of Commerce and the Office of the US Trade Representative held fruitful discussions at a meeting in Washington from April 23-25 to conclude the first tranche of the Bilateral Trade Agreement by Fall (September-October) of 2025,The ongoing discussions are part of bilateral efforts in line with the Leaders' Statement. Prime Minister Narendra Modi , during his visit to Washington in February this year, held talks with US President Donald Trump on negotiating the first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement by the fall of two leaders resolved to deepen the US-India trade relationship to promote growth that ensures fairness, national security and job creation. To this end, the leaders set a bold new goal for bilateral trade - 'Mission 500' -- aiming to more than double total bilateral trade to $500 billion by 2030.--IANSsps/uk
Entrepreneur
13-05-2025
- Business
- Entrepreneur
Tariff Truce Between U.S.-China Sparks Mixed Reactions in Indian Industry
You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Indian industry leaders and government bodies are divided in their response to the recent easing of the U.S.-China tariff war that has been brewing since April 2025. For the next 90 days, the United States has announced that it will bring down the tariff rate imposed on China from April's 145 per cent to 30 per cent. In response, China has cut the duties on U.S. imports to 10 per cent from 125 per cent. While certain companies term it as a "loss of steam for India's momentum", others claim that this is just a "temporary headwind". "The recent pause in tariffs on Chinese goods by the U.S. has been a major development, a loss of steam for the momentum that India was building in the 'China Plus One' framework. Over the last few years, we have witnessed a rising acceptance of India as a dependable, scalable, and democratic alternative to China for manufacturing and supply chain operations. However, the tariff relief will make Chinese goods competitive again just in time for the U.S. market, where, unlike before, the immediate urgency to diversify away from China may get diluted," said Appalla Saikiran, founder & CEO, SCOPE. An official of a leading manufacturing company in India said the U.S.-China development was very recent to understand its impact on Indian sectors that were expected to benefit from the heightened tariff rates. "We are employing wait and watch before commenting on something, as there has been a lot of back and forth in their policies before," the senior official said. The Federation of Indian Export Organisations (FIEO) said the recent development was both a challenge and an opportunity for India. "While such developments are broadly positive for global trade stability, they present both challenges and opportunities for India," said S.C. Ralhan, president, FIEO. The FIEO president said the tariff reduction will likely result in a surge of U.S.-China bilateral trade in high-value segments such as electronics, machinery, and chemicals. "However, India can leverage this shift to strengthen exports in sectors that remain relatively insulated from US-China trade, such as Pharmaceutical APIs, Gems and Jewellery, Engineering goods, Organic chemicals, and IT-enabled services etc.," he added. The president of the apex industry body said the tariff cuts' temporary nature may lead companies to hedge against future volatility by expanding manufacturing in India, especially in electronics, auto components, and textiles. The U.S. has suspended a 26 per cent tariff, initially imposed on April 2, on Indian imports till July 9. After the announcement, Ritesh Goenka, managing director, Damson Technologies, had said the U.S. has always been a key trading partner for India, and the new tariffs will steer the global electronics industry in a new, uncertain direction. "But uncertainty doesn't always signal a setback. Indian electronics players should recognize that when tariffs rise in competing economies, global investors look for alternative partners. India is well-positioned to step in here. As one of the largest consumer electronics markets in Asia-Pacific, India already has the resources, skilled workforce, and operational efficiency required to support large-scale production. The 145 per cent tariff on Chinese exports presents a timely opportunity for us to step up and position India as the next global manufacturing hub," Goenka had said. Does this change with China once again entering the ring? "This may intensify competition for Indian exporters in third markets like Southeast Asia, Africa, and Latin America, where India has recently made inroads, capitalizing on US-China trade disruptions," FIEO president Ralhan said. Some industry leaders, however, still believe that any new development in the tariff rates concerning other countries won't affect India's growth path. "India is irrevocably on the path to manufacturing excellence. The 'China Plus One' strategy is a reality, and tariffs, temporary or permanent, will not change this. India's commitment to infrastructure development, digitalisation, innovation, emerging technologies, and ease of doing business long term will continue to drive investment and manufacturing growth. The India story is backed collectively by political will and the 1.4 billion strong Indian population with over 50 per cent below the age of 25," said Terrence Miranda, managing director, Phillips Machine Tools – a subsidiary of Philips Corporation.
