Latest news with #UnionCommerceandIndustry
&w=3840&q=100)
Business Standard
11 hours ago
- Business
- Business Standard
India to safeguard national interests, says Piyush Goyal on US tariffs
Union Commerce and Industry Minister Piyush Goyal on Wednesday said the government would take 'all necessary steps to safeguard and advance our national interests' following the United States' decision to impose higher tariffs on Indian imports. This comes a day after US President Donald Trump announced a 25 per cent tariff on all exports from India to the United States, starting August 1. This move also includes a penalty for India's continued purchases of Russian military and energy equipment. Addressing the Lok Sabha, Goyal updated the House on the state of India-US trade relations and negotiations on a Bilateral Trade Agreement (BTA). Tariff rollout and deferral timeline The minister informed Parliament that the baseline tariff of 10 per cent came into effect on April 5, 2025. While the additional country-specific duty was initially scheduled to be implemented from April 9, it was deferred on April 10 for a period of 90 days, and later extended until August 1, 2025. 'These developments are being assessed carefully. The Ministry of Commerce and Industry is in active consultation with exporters and industry stakeholders to understand their concerns and formulate an appropriate response,' Goyal told the House. Goyal said that India and the US have been engaged in structured negotiations for a fair and balanced Bilateral Trade Agreement since March 2025, aiming to conclude the first phase by Fall 2025. The first physical meeting took place on March 29, 2025, in New Delhi, where both sides finalised the Terms of Reference for the talks. 'Four rounds of physical negotiations have taken place, two each in New Delhi and Washington, DC, in addition to several virtual discussions,' Goyal said. Reaffirming confidence in India's economic growth, Goyal said that the government remains committed to protecting the interests of farmers, MSMEs, exporters, and industries. 'In less than a decade, India has emerged from being part of the 'Fragile Five' economies to becoming the fastest-growing major economy in the world,' he said. He credited this transformation to reforms and the efforts of India's entrepreneurs, MSMEs, and farmers. 'India has risen from being the 11th-largest economy to among the top five. It is expected that within a few years, we will become the third-largest economy in the world.' Goyal said that international organisations now view India as a 'bright spot' in the global economy, contributing nearly 16 per cent to global growth. The government has steadily boosted exports and signed trade deals with partners such as the UAE, UK, Australia, and the EFTA nations, he added. Focus on agriculture and development goals The minister also reiterated the government's commitment to Indian agriculture. 'We are continuously working for the welfare of our farmers and Indian agriculture, to ensure food security and overall prosperity,' he said. Goyal said that the government is confident in India's continued high-growth path. 'We will continue our fast-paced journey towards the goal of a developed India by 2047, with inclusive and sustainable growth.'
Time of India
5 days ago
- Business
- Time of India
FTA momentum: Piyush Goyal confirms Oman deal ‘almost finalised'; talks with EU, US & others also moving fast
India's Free Trade Agreement (FTA) with Oman is at an advanced stage and nearly finalised, Union Commerce and Industry Minister confirmed on Saturday. He also noted that negotiations with the European Union, United States, Peru, and Chile are progressing rapidly and making 'fast progress'. Tired of too many ads? go ad free now 'We are in negotiations at an advanced stage with Oman. It is almost finalised,' said Goyal, as per news agency ANI. A t a press conference, Goyal highlighted India's recent track record in concluding major trade agreements with developed economies. These include FTAs with Mauritius, Australia, and the four-nation European Free Trade Association (EFTA) bloc — Switzerland, Norway, Liechtenstein, and Iceland. He also spoke about the recently signed India-UK Comprehensive Economic and Trade Agreement (CETA), calling it 'very comprehensive,' with 30 chapters. The agreement, signed during Prime Minister Narendra Modi's two-day visit to the UK, is aimed at enhancing trade flows and deepening economic cooperation. According to the UK government, India's average tariffs on UK goods will drop from 15% to 3% under the new FTA, potentially boosting bilateral trade to $120 billion by 2030. "The goods and services that India provides to the world have high quality and cost competitiveness," Goyal said. He added that these FTAs underscore India's rising importance on the global economic stage. Regarding the proposed trade pact with the US, Goyal said discussions are progressing fast, with the next round of talks expected in August. As per news agency PTI, the two countries aim to finalise the first tranche of their bilateral trade agreement by fall, targeting a trade volume of $500 billion — more than double the current figure of $191 billion. Tired of too many ads? go ad free now However, trade negotiations with the US involve complex issues, particularly around agricultural and dairy products, where India has so far resisted granting duty concessions. India is also pressing for reduced tariffs on steel, aluminium, automobiles, and a range of labour-intensive sectors like textiles, gems and jewellery, and chemicals. Goyal emphasised that the government's goal is to 'expand frontiers of India's international trade' and strengthen investor confidence. 'Each [FTA] is getting its requisite attention,' he added, pointing to parallel talks with countries like New Zealand and Chile.
News18
5 days ago
- Business
- News18
India-UK FTA 'Game-Changing', Every Section To Benefit: Piyush Goyal
Goyal says 99% of India's exports to the UK would now be duty-free, significantly boosting India's trade footprint in one of the world's largest economies. Union Commerce and Industry Minister Piyush Goyal has described the recently signed India-UK Free Trade Agreement (FTA) as a 'game-changing" deal that will benefit every section of Indian society, from farmers and youth to the MSME sector and large industries. Speaking at a press conference at the BJP headquarters on Saturday, Goyal announced that 99% of India's exports to the UK would now be duty-free, significantly boosting India's trade footprint in one of the world's largest economies. The Comprehensive Economic and Trade Agreement — as the FTA is officially known — was signed on Thursday in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer. The agreement was formalised by Piyush Goyal and UK Trade Secretary Jonathan Reynolds. Calling it a landmark moment, Goyal said, 'It is a game-changing agreement." He added that it would bring 'immense opportunities to the farmers of India, Indian industry, the MSME sector, the workers, youth and fishermen". Goyal also emphasised that the agreement was negotiated confidently and on India's terms, ensuring protection for sensitive sectors such as agriculture and ethanol. The Minister credited Prime Minister Narendra Modi's leadership for the successful conclusion of the deal and expressed confidence in the positive long-term impact of the agreement. 'I believe that this FTA carries a very big message for the future economy of India. We will all see the benefits that India will get under it in the coming years," Goyal said. The agreement will come into force after it is ratified by the UK Parliament. Goyal also urged Indian businesses to explore new opportunities under the FTA in sectors like footwear, leather, toys, pharmaceuticals, gems and jewellery, food processing, and services. 'I appeal to the Indian Industry to study the agreement and start looking for markets," he added. The trade deal, the UK's biggest such agreement since Brexit and India's first with a European economy, aims to expand the bilateral trade. The FTA is expected to boost bilateral trade between India and the UK by 25.5 billion pounds every year. India and the UK on Thursday inked a landmark free trade agreement (FTA) that will cut tariffs on British whisky, cars and an array of items, besides boosting bilateral trade by around USD 34 billion annually The deal was signed by Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynold in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer. The FTA is expected to benefit 99 per cent Indian exports from tariff and will make it easier for British firms to export whisky, cars and other products to India, besides boosting the overall trade basket, according to Indian officials. The deal, the UK's biggest such agreement since Brexit and India's first with a European economy, aims to expand the bilateral trade. The India-UK FTA, firmed up after three years of negotiations, is expected to ensure comprehensive market access for Indian goods across all sectors and India will gain from tariff elimination on about 99 per cent of tariff lines (product categories) covering almost 100 per cent of the trade values, they said. The UK said Indian consumers will benefit from improved access to the best British products — from soft drinks and cosmetics to cars and medical devices — as average tariffs will drop from 15 per cent to 3 per cent after the FTA kicks in. First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
&w=3840&q=100)
Business Standard
24-07-2025
- Business
- Business Standard
India, UK dismantle trade walls with landmark deal amid global tensions
India and the United Kingdom (UK) on Thursday signed a modern and comprehensive trade agreement, marking a major milestone in their bilateral relationship at a time of rising geopolitical polarisation and trade wars. Under the agreement, 99 per cent of Indian exports will enter the UK duty-free, while 90 per cent of UK goods will gain market access in India with zero tariffs. The deal, known as the Comprehensive Economic and Trade Agreement (CETA), was signed by Union Commerce and Industry Minister Piyush Goyal and his British counterpart Jonathan Reynolds, 42 months after negotiations began in January 2022. The signing took place in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer at Chequers, the official countryside retreat of the British PM, in the Chiltern Hills of Buckinghamshire. 'This agreement is more than just an economic partnership; it is a blueprint for shared prosperity. On the one hand, it paves the way for enhanced market access in the UK for Indian textiles, footwear, gems and jewellery, seafood, and engineering goods…. On the other hand, UK-made products such as medical devices and aerospace components will become more accessible and affordable for Indian consumers and industries,' Modi said during the joint press statement in the UK. The agreement will come into effect once ratified by both countries. While the Union Cabinet in India has approved the deal, it still requires approval from the UK Parliament. CETA will reduce India's applied trade-weighted average tariff on goods imports from the UK from 15 per cent to 3 per cent, according to the UK government. However, the agreement does not address how to deal with the UK's Carbon Border Adjustment Mechanism when it comes into force in January 2027, despite India having raised concerns. India has granted tariff concessions on alcohol and automobiles -- key demands from the UK -- though in a staggered manner. Tariffs on whisky will be reduced from 150 per cent to 40 per cent over 10 years. For cars, where tariffs currently stand as high as 110 per cent, rates will fall to 10 per cent but within a quota. India will also eliminate or gradually phase out duties on consumer goods including soaps, perfumes, shaving creams and nail polish. However, the deal does not extend concessions to electric, hybrid and hydrogen-powered vehicles for the first five years. Tariff cuts have also excluded products such as apples, cheese, whey, gold bars, and smartphones, with India seeking to protect sensitive domestic sectors. Britain, in turn, has excluded meat, rice, sugar and eggs from tariff liberalisation. A standalone Double Contributions Convention (DCC) was also signed alongside the CETA. The treaty will prevent double payment of social security contributions -- roughly 20 per cent -- for a period of three years, benefiting an estimated 75,000 Indian professionals working in the UK. As part of the deal, India has committed to granting UK firms access to its vast government procurement market. British companies will be able to bid for around 40,000 tenders annually, with a total value of at least £38 billion. UK-origin goods with just 20 per cent domestic content will be treated as 'Class II' local suppliers under India's Public Procurement Order, a category previously reserved for Indian suppliers with 20–50 per cent local content. Experts said the move signals a shift away from using public procurement as a lever for domestic industrial development. 'The 20 per cent local content rule allows UK firms to use up to 80 per cent inputs from third countries -- such as China or the European Union -- while still receiving preferential treatment, effectively diluting the benefits that programs like 'Make in India' and Atmanirbhar Bharat were designed to protect,' according to a report released by Delhi-based think tank GTRI.
The Hindu
24-07-2025
- Business
- The Hindu
The India-U.K. FTA spells a poor deal for public health
India and the United Kingdom have signed their Free Trade Agreement (FTA), with the Union Commerce and Industry Minister, Piyush Goyal, and the British Business and Trade Secretary, Jonathan Reynolds, signing the deal on July 24, 2025, during the visit of Prime Minister Narendra Modi to the U.K. On July 22, 2025, the Union Cabinet, Government of India had approved the FTA. Officially called the Comprehensive Economic and Trade Agreement, this FTA was first announced on the conclusion of negotiations on May 6, 2025. The India-U.K. FTA is good news from the economic perspectives of both countries. However, the FTA could pose a public health challenge for India. It will allow tariff-free entry — and thus lower prices — for U.K.-made food products such as biscuits, chocolates and soft drinks in India, many of which would fit into the categorisation of High Fat, Sugar and Salt (HFSS), posing grave long-term health risks. Cheaper prices supplemented by the expected aggressive marketing and advertising campaigns could prove harmful from the point of view of the health of citizens. The case of Mexico Concerns about the FTA and its adverse public health impact are not hypothetical. In 1992, when the North American Free Trade Agreement (NAFTA) was signed between Mexico, the United States and Canada, Mexico made the mistake of not implementing robust public health safeguards. In the years that followed, Mexico experienced the following: a dramatic rise in imports of cheap, sugary drinks, snacks and processed foods; a surge in the consumption of HFSS food products, and a steep rise in diet-related diseases, obesity and diabetes. Mexico could halt the rise in the sale of HFSS products and manage lifestyle diseases only when it introduced stringent public health regulatory mechanisms such as a 'Soda Tax' and warning labels upfront in 2014. From a public health viewpoint, the India-U.K. FTA is a concern for India. While the sale of unhealthy food products in the U.K. is relatively better regulated, the regulatory framework is sub-optimal in India. For example, the U.K. has implemented a ban on the advertising of HFSS products on television and online. The ban on such TV advertisements before 9 p.m., and a complete ban on paid online advertisements for HFSS products will come into effect on October 1, 2025. Similarly, the U.K.'s traffic light Front-of-Pack Nutrition Labelling (FOPNL) system uses a colour-coded system to help consumers quickly understand the nutritional content of packaged foods and drinks. For example, green indicates low levels of fat, saturated fat, sugar, and salt, amber indicates medium, while red indicates high. This system helps consumers make healthier choices. India lacks binding restrictions on junk food advertisements targeting children; the existing regulations are not effectively enforced and routinely flouted. India relies on self-regulation through the Advertising Standards Council of India, which is an industry body. There is ample evidence that in the food sector 'industry self-regulation' is rarely and partially effective. There are a few regulations that prohibit misleading advertisements, i.e., the Advertising Code of the Ministry of Information and Broadcasting; however, regulatory bodies are often unable to identify misleading advertisements or, if done so, no penalty is assigned. The cartoon mascots on food products targeted at children on the one hand and celebrity endorsements on the other normalise unhealthy choices. The use of celebrities and sportspersons are key to these tactics. Many of these celebrities have privately acknowledged that they do not use the products which they publicly promote and advertise. Yet, such deceitful behaviour has never resulted in social or public outrage. The problem with India's 'star rating' In India, the issue of a mandatory FOPNL is pending for want of a decision on the right type of labels and amendments under the Food Safety and Standards (Labelling and Display) Regulations, 2020. While evidence from various studies is that all types of warning labels help in reducing the consumption of HFSS, the most effective are the use of warning labels. Yet, Indian authorities are more interested in the use of 'star rating', which could be misleading and less effective. Therefore, the process of introducing a warning system on packaged food is slow. For example, in September 2022, there were proposed amendments to introduce mandatory warning labels. Yet, three years later, the amendments remain on paper. After a Public Interest Litigation in April 2025, the Supreme Court of India has directed the authorities to make a decision on warning labels in a time-bound manner. Many independent subject experts believe that a part of the reason for the delay in the adoption of the Food Safety and Standards Authority of India (FSSAI)'s 2022 draft regulations for FOPNL is because of industry lobbying — this has diluted the proposals, opting for 'star ratings' that are confusing instead of clear warnings such as Chile's black octagonal labels (when 'food products exceed certain thresholds of sugar, sodium, saturated fat, and/or calories'). India and many parts of the world are already facing a challenge of rising lifestyle diseases. In March 2025, The Lancet published two studies which indicated that obesity is on the rise across large parts of the world. Ultra Processed Food (UPF) and HFSS food items have witnessed a CAGR of 13.3%, in India, from 2011-21. Not surprisingly, the burden of lifestyle diseases such as obesity, diabetes and hypertension is rising at an alarming rate, in all age groups — more so in children and adolescents. A position statement on FOPNL in India, released in June 2025 and signed by 29 organisations, provided comprehensive evidence on the harmful effects of HFSS and UPF; it also advocated having warning labels being a mandatory part of HFSS and UPF packages. Commercial activities, i.e., trade and treaties have been integral part of human life and the economic ambitions of nations. The FTAs have economic benefits and multiple rationales. However, getting cheaper junk food as a result of an FTA can be costly in public health terms. These apprehensions are founded in sound global evidence. In fact, in the last decade, global health agencies have begun talking about the Commercial Determinants of Health — the conditions, actions and omissions by commercial actors that affect health. There is news that India may sign another deal, the India-European Free Trade Agreement Trade and Economic Partnership Agreement (TEPA), involving Iceland, Liechtenstein, Norway, and Switzerland, in October 2025. Trade deals and FTAs are likely to be signed with some more countries. They could be good for the economy, but from the point of view of public health they could prove to be the Trojan horses of non-communicable diseases, unless sufficient safe-guards are implemented. There is a need to balance the economic benefits of FTAs with the need to protect public health and ensure restrictions on the marketing and labelling of food products. It is still not late Now that the India-U.K. FTA has been signed, the legal text will be drafted in the weeks ahead, and this is the opportunity for India to make the right move, it needs to act immediately to mitigate the FTA's public health impact. It is time for strong measures to regulate the advertising of HFSS, as also suggested in the Economic Survey 2024-25 and in line with the recent 'Dietary Guidelines for Indians', published by the National Institute of Nutrition in May 2024. The mandatory FOPNL in the form of warning labels should be implemented at the earliest. The proposed 'sugar boards' and 'Oil Boards' in schools are a good entry point to having 'health promoting schools. However, 'a more holistic approach of 'HFSS boards' needs to be considered. School meals and school college canteens should stop the sale of packaged and unhealthy food items. Protective measures must be implemented with urgency to counter the potential effects of current and future FTAs. Public health practitioners and health policymakers need to be more engaged on issues that are related to trade deals, and when it comes to ultra-processed food and high fat, salt and sugar food. It is an issue of public health, which affects nearly every Indian in every age group, and a subject that must be treated with urgency. Dr. Chandrakant Lahariya is a practising physician who has worked with the World Health Organization and other United Nations agencies for nearly 17 years. Dr. Arun Gupta is a paediatrician and the lead of Nutrition Advocacy in Public Interest–India (NAPi)
