Indian horticulture exporters are seeking government intervention as a shortage of vessels disrupts shipments and pushes up freight costs, particularly on routes to the US and Europe, sources told CNBC-TV18.The Horticulture Produce Exporters Association and other exporters are scheduled to meet the Agricultural and Processed Food Products Export Development Authority (APEDA) and representatives of the shipping industry on Friday to discuss the problem and its impact on exports.Exporters have been raising concerns with the government over the timely availability of vessels as the Iran conflict disrupts shipping schedules, the sources said.The disruption has also driven freight rates on US-Europe routes to three to four times their earlier levels, leaving exporters to pay substantially more for each container.The timing is particularly important for exporters because the disruption coincides with the shipping window for meeting festive demand in the US and Europe.Exporters are seeking government intervention at the earliest and have asked for relief measures to help address the impact of higher freight costs and shipping disruptions, according to the sources.The problem extends beyond horticulture. Exporters across industries have been grappling with vessel shortages and shipping delays amid the broader disruption to maritime trade.Also Read: Cholamandalam Financial Holdings Q1 profit jumps 39% as disbursements rise
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Exporters seek government help as vessel shortage sends US-Europe freight rates up 3-4 times
Eight companies including Coal India plan syngas production as India pushes coal gasification
Eight companies, including state-run Coal India, are looking to produce synthesis gas from coal, with work expected to intensify over the next few months as the government pushes to expand coal gasification, Coal and Mines Minister G Kishan Reddy said.The government is already providing incentives for surface coal gasification projects, though no such support is currently available for underground gasification, Reddy said.Coal gasification converts coal into synthesis gas, or syngas, which can then be used to manufacture products including methanol, urea, ammonium nitrate and synthetic natural gas, as well as other chemical feedstocks.The technology is a key part of the government’s efforts to find alternative uses for India’s large domestic coal reserves while reducing dependence on imported fuels and chemicals.India targets 100 million tonnes by 2030India is aiming to gasify 100 million tonnes of coal by 2030.In May, the government approved a ₹37,500 crore coal gasification programme aimed at accelerating the development of projects across the country. This followed an earlier ₹8,500 crore incentive programme for the sector.The government plans to complete 25 coal gasification plants over five years, with four projects currently under construction expected to be completed within a year.The government expects the programme to generate about ₹6,300 crore of annual mining revenue, though it hasn’t provided an estimate of how much liquefied natural gas or liquefied petroleum gas imports could eventually be replaced through coal gasification.CNBC-TV18 had reported in October 2025 that large corporate groups were showing interest in expanding their presence in the sector.Government sources had said at the time that a new policy and action plan were being prepared, with three large conglomerates interested in making further investments in coal gasification.₹25,016 crore Odisha project takes shapeOne of the biggest projects under development is a ₹25,016 crore coal gasification facility at Lakhanpur in Odisha’s Jharsuguda district, for which Prime Minister Narendra Modi laid the foundation stone in June.The project is expected to become India’s first commercial-scale coal-to-ammonium nitrate facility and will have the capacity to produce 2,000 tonnes of ammonium nitrate a day using domestically developed coal gasification technology.It is being developed by Bharat Coal Gasification and Chemicals Ltd., a joint venture between Bharat Heavy Electricals Ltd. and Coal India.The project will be built on about 350 acres held by Coal India subsidiary Mahanadi Coalfields Ltd. A land-leasing agreement between the companies was signed in April.The Coal Ministry has enabled coal-bearing land to be used for such projects and is providing ₹1,350 crore in support for the Odisha facility under its incentive programme.Government sees up to ₹3 lakh crore investment potentialThe Centre has approved incentive programmes with a cumulative outlay of as much as ₹46,000 crore to promote surface coal and lignite gasification.The government hopes greater use of domestic coal for producing industrial and chemical feedstocks will reduce India’s dependence on imports of natural gas, methanol, ammonia and other products.India currently imports end-use and intermediate chemical products worth about ₹2.7 lakh crore annually, according to the Coal Ministry.The ministry estimates its coal gasification push could attract investments of ₹2.5 lakh crore to ₹3 lakh crore and create about 50,000 direct and indirect jobs across 25 projects in coal-producing regions.
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Russia now supplies 52% of India’s crude oil imports; GTRI warns against rapid cuts
With Russia now supplying over half of India’s crude oil imports, the Global Trade Research Institute (GTRI) has said that “rapid reduction in Russian purchases could increase India’s import bill, disrupt refinery operations, widen the trade deficit and add to domestic inflation”, and “could also leave India more exposed to instability in West Asia.”GTRI’s Founder Ajay Srivastava said that the dependence also limits India’s ability to reduce Russian purchases at short notice despite the threat of US tariffs. He noted that Russia supplied an estimated 52% of India’s crude oil imports in July 2026, up from 48.6% in June, according to an analysis by the Global Trade Research Initiative (GTRI).Pointing to detailed country-wise trade data available up to June 2026, Srivastava said that India imported $14.8 billion of crude oil globally in the month, including $7.2 billion from Russia. Russia’s share was therefore 48.6%.He highlighted that for July, the “government has disclosed that India’s total imports from Russia reached $8.9 billion but has not provided the value of crude oil within that figure.” In June, crude accounted for 82% of India’s total imports from Russia. Srivastava projected that “Applying the same ratio to July puts India’s Russian crude imports at approximately $7.3 billion,” adding that “India’s total crude imports for July also had to be estimated because the government has reported only the combined value of crude oil and petroleum-product imports.” Also read: Iran’s state media mock Trump over airplane switch, meme shows him hiding in a catering truck Stating that crude oil represented 76.3% of this combined category in June 2026, he projected that “applying that ratio to July suggests that India imported about $14 billion of crude globally.”On the same basis, he pegged Russia’s supply at “an estimated $7.3 billion of India’s total crude imports of $14 billion-equivalent to approximately 52%,” noting that “these estimates should be updated when detailed country- and product-wise trade data for July become available.”Russia’s share of India’s crude imports has increased from about 15% in 2022 to 30.3% in FY 2025–26 and 48.6% in June 2026. Over the same period, the combined share of Gulf suppliers fell from more than 55% in 2022 to below 30% in June 2026. The Iran war and related supply-chain disruptions have accelerated this change. Also read: Why is Karoline Leavitt leaving White House Press secretary post? India could face additional US tariffs of up to 100% if the proposed Russia sanctions legislation is approved by the US Congress and applied to countries that continue purchasing Russian energy. The measure could force India to choose between reducing its Russian oil purchases and protecting its exports to the US.Advocating continued buying of Russian oil “as long as it remains commercially attractive and complies with applicable rules”, GTRI noted that “American tariff threats should not determine India’s energy policy”, adding that “differences with Washington should be addressed through firm negotiations, not unilateral concessions that raise India’s energy costs and weaken its strategic autonomy.”
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India can become a $20 trillion economy by 2036 if it implements all 20 reforms: Equirus
Ajay Garg, Managing Director and Chairman of investment bank Equirus, says India does not need to pick one reform over another — it needs all 20 at once.”I would go for all 20 because India has reached the stage where… we are at $4 trillion GDP, much bigger than most European countries. But we are still at $3,000 per capita,” Garg said, explaining why he would not rank the reforms by priority even if forced to choose just one.The remark came in response to a question on which single reform from Equirus’s new roadmap should be implemented first.Equirus, a Mumbai-based investment bank, released a report this week outlining 20 reforms it says could help India grow its economy roughly fivefold over the next decade, to $20 trillion by 2036. Without the reforms, Garg said, India would still reach that figure — just eleven years later, in 2047.”If the Indian government continues at the rate of growth which we have done in each sector for the last 10 years, we will anyway become a $20 trillion by 2047. But if you do all these reforms, then we could think of 2036 as the year,” Garg said.He added that the roadmap does not rely on the rupee appreciating sharply against the dollar to hit the target. If the rupee does not strengthen as expected, he said, the timeline would slip by a few more years rather than collapse entirely, since the underlying growth math is built to hold even without currency gains.One of the report’s central asks is a deeper corporate bond market. India’s bond market remains far less developed than its equity market, and Garg linked this partly to tax treatment — debt mutual funds lost a preferential capital gains tax regime in recent years and now face slab-rate taxation instead.Garg said the core demand is for bonds to be treated on par with listed equities from a policy standpoint, rather than being benchmarked mainly against bank fixed deposits. He pointed out that equities faced a similar depth problem earlier in his career before mutual funds, AIFs and portfolio management services grew to a scale now comparable to bank current and savings account deposits.He expects bonds to follow a similar path as investors’ wealth and average age increase, pushing demand toward more stable, income-generating instruments.Garg said services will do the heavy lifting, not manufacturing. He named financial markets, Global Capability Centres (GCCs — offshore units multinational companies set up in India for tech, finance and operations work), tourism and education as the four areas needing the most reform attention. Agriculture’s share of GDP will shrink as the economy scales up, he said, while manufacturing will grow only modestly in relative terms.Garg also renewed the case for listing India’s railways, an idea he has raised before. He compared it to the privatisation of India’s telecom sector, which he said took density from near-zero to a billion connections within a decade while pushing tariffs down for consumers.”As investment bankers, we are allowed to dream big and think big,” Garg said, acknowledging the scale of ambition involved.He clarified that listing the railways would not mean full privatisation — the government would likely retain ownership, keeping it a public sector undertaking even after a listing.His preferred structure is to pool government-owned entities into a holding vehicle similar to Singapore’s Temasek Holdings or Abu Dhabi Investment Authority (ADIA) — both sovereign wealth-style structures that hold and manage state assets at arm’s length from day-to-day government control.Garg said this could free up public funds currently tied up in these entities for social infrastructure spending, while still keeping ultimate ownership with the state.Equirus timed the report’s release to coincide with this week’s Independence Day, positioning it as a set of ideas for public debate rather than a finished policy proposal.For the full interview, watch the accompanying videoCatch all the latest updates from the stock market here
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Bharat Forge expects 20-25% growth in FY27, margins to recover to 27-28% in Q2: CMD Baba Kalyani
“We have had almost a 160-basis-point increase in the energy cost, which we will recover from our customers,” Kalyani said.
Asked when margins would return to the 27-28% range, Kalyani said, “I think this quarter (Q2FY27) itself.”Kalyani expects the company’s growth momentum to strengthen through the year, with the second quarter expected to be reasonably strong and the December and March quarters likely to be even stronger.
“We should see quarter two reasonably strong, and of course, quarter three, quarter four will be even stronger,” he said.
June-quarter performance
Bharat Forge reported a consolidated net loss of ₹90 crore for the June quarter, compared with a net profit of ₹284 crore in the year-ago period. The result was impacted by exceptional items amounting to ₹358 crore.
Consolidated revenue rose 18.7% year-on-year to ₹4,640 crore, ahead of the CNBC-TV18 poll estimate of ₹4,591 crore. EBITDA stood at ₹709.4 crore, below the poll estimate of ₹783 crore, while the consolidated EBITDA margin declined to 15.29% from 17% a year ago.
On a standalone basis, net profit fell 5% year-on-year to ₹321.3 crore, while revenue increased 11.5% to ₹2,347.4 crore. Standalone EBITDA stood at ₹585.6 crore.
Kalyani attributed the higher costs to inflation arising from the West Asia conflict, shortages of LPG and the subsequent switch to other fuels. He said customers, both domestic and overseas, are expected to reimburse the company for higher metal, energy and transportation costs.
“The understanding with all our customers, both domestic and export, is that these are metal prices, energy prices and, of course, transportation. In the case of exports, that’s a big cost increase. They will get reimbursed,” he said.
The company is also seeing growth from newer areas outside its traditional businesses, although Kalyani said it needs to put the required capacity in place to take advantage of the opportunity.
“The growth momentum is very strong for us, and we just have to put in the requisite capacities in place to take advantage of this,” he said.
₹1,800 crore investment in new growth areas
Bharat Forge plans to invest ₹1,800 crore over the next 12-18 months in sunrise sectors, including aerospace, defence, semiconductors and data centres.
Kalyani said the data centre component business is expected to be operational by February-March 2027, while the aerospace facility should be ready by December 2026 or January 2027.
The company is setting up a large forging facility to manufacture components used in data centre power generation engines.
Kalyani expects the data centre business to generate an additional annual opportunity of around $100-120 million, while aerospace could add another $100 million in annualised business.
US operations, European restructuring
Bharat Forge faced a specific operational issue in the US during the quarter, where two of its three forging presses broke down, affecting operations for around two months. Kalyani expects the US business to deliver better results in the next quarter.
The company also does not expect significant additional exceptional charges in FY27 as it continues to restructure its European operations.
Bharat Forge has signed an agreement with the Works Council as part of the restructuring of its German subsidiary CDP, and expects the process to be completed by the middle of next year.
“Right now, no. I think right now we are quite busy with getting the CDP restructuring done,” Kalyani said when asked whether the company was evaluating further restructuring of its global manufacturing footprint.
He said the difficult operating environment in Europe continues to weigh on companies across the region.
₹2,500 crore equity raise
Bharat Forge has obtained an enabling resolution to raise up to ₹2,500 crore through equity. Kalyani said the company needs additional capital to fund capacity expansion in newer, technology-intensive businesses over the next three to four years.
He clarified that the resolution is intended to provide the company with flexibility to raise funds as required.
The company also has a defence order book of around ₹11,000 crore. Kalyani said production of artillery guns and small arms is awaiting regulatory clearance, which is expected next month.
Once approvals are received, production should begin within a few months, with the company expecting to see an impact from the business towards the end of the third quarter or beginning of the fourth quarter.
India to become key base for global revenues
Kalyani said Bharat Forge increasingly expects India to serve as the manufacturing base for its global revenues, given the country’s cost competitiveness.
“Our global revenues are largely going to happen out of India going forward, because that’s the best cost position that we have in terms of global revenue and global operations,” he said.
He added that Bharat Forge and its subsidiaries are seeing traction in exports of castings, aluminium castings and other products.
Meanwhile, the company is still awaiting environmental clearance for its planned Odisha project. Kalyani said the process could take another two to three months.
This is the slightly edited transcript of the interview.
Q: Usually, we get you to give us the big picture, but maybe we do the reverse this time. Margins, Mr. Kalyani, if you will allow me, have come off a little bit, about 170-odd basis points lower, and I think the commentary is that margins would have been 28% normalised for input cost increases. So, could you give us a sense of how much of this is sort of temporary? How much of this can be passed on? These input price increases can be passed on to customers, and when should we expect the reported numbers to get back to the 27% to 28% range, sir?
Baba Kalyani: Actually, you would have seen the same range, even in these results that we came out with. We have had almost a 160-basis-point increase in the energy cost, which we will recover from our customers. And, you know, with the growth that we have, as we have committed, we will see better margins coming up. I mean, even for that last quarter, we will recover these cost increases that have taken place.
Q: So, could you give us a sense of when you will be back in that 27% to 28% range?
Baba Kalyani: I think this quarter itself.
Q: The quarter we are in, Q2.
Baba Kalyani: Yeah, yeah. Q2.
Q: So this basically was an inability to pass this on immediately.
Baba Kalyani: The problem is when you have this kind of inflation, and this is largely because of the West Asia war and shortage of LPG to start with, then switching to other fuels and all those things, it takes a little time with customers to give them all the information that they need, in the level of detail that they need, for us to get our increases. But all the understanding with all our customers, both domestic and export, is that these are, you know, metal prices, energy prices and, of course, transportation. In the case of exports, that’s a big cost increase. They will get reimbursed.
Q: So, in the press release, the language you’ve used is “continue to re-evaluate the current global manufacturing footprint”. Does this go beyond the CDP restructuring, which is already ongoing? Will we have more exceptional costs related to CDP? And are you looking to further wind down any of your other global operations? Is that getting extended? And if yes, some details about it.
Baba Kalyani: Right now, no. I think right now we are quite busy with getting the CDP restructuring done. We have now signed an agreement with the Works Council, so that is pretty much finalised. And I think we will complete that. It will take probably until the middle of next year to complete it, and we will see how things go. You know, Germany is in a bad shape right now, as you probably heard. Almost all the companies are suffering in Europe because of this problem. So let’s see what happens.
Q: you’re talking about growth bouncing back in the second half of the year. Will that mean that quarter two as well will be a little bit softish, or are you expecting to get back?
Baba Kalyani: We should see quarter two reasonably strong, and of course, quarter three, quarter four will be even stronger. You know, the problem is that we are seeing growth from many areas which were not traditional, and I think it takes a little time to prepare for that growth and get it going. Actually, the growth momentum is very strong for us, and we just have to put in the requisite capacities in place to take advantage of this. So we are doing that. So we will see growth. We will definitely grow this year by 20-25%, as I had committed last time in our standalone business. All our other subsidiaries in India are doing well. They are also growing.
And of course, we have a problem in Europe. We are—you’re all aware of this—and we will fix this.
Q: You’ve also taken an approval to go ahead and raise some money via equity. That’s ₹2,500 crore. Something we should hear about? It’s just an enabling resolution, or are you going to be tapping the market soon?
Baba Kalyani: No, I think, you know, we’ve taken an enabling resolution from the board to raise funds because, to make the growth happen in the next three-four years, we need to put in a lot of capacity in addition to our normal capacities, because our growth is happening in a lot of new areas, and those new areas require new things to be put in, and they are far more technologically sophisticated and also good-margin businesses.
Q: Just to go back to the earlier point about the global operations and the global footprint, Mr. Kalyani. Should we expect? I mean, I think there is a ₹358 crore consolidated exceptional charge in the first quarter. Should we expect more of this this year in FY27, sir?
Baba Kalyani: No, I don’t think so. I don’t think. I think, you know, look, it takes a lot of time and effort to restructure a business. So we’ve been able to now restructure CDP in a very appropriate manner, a very beneficial manner to our company matter of fact. We’ve been able to sign an agreement with the Works Council there, which is the most important part in Germany. So I think by the middle of next year all this will be done. We will get a lot of new business because of that, so things will get much better.
Q: So you mentioned Europe specifically, but even the U.S., right? I think has—I mean, Q1 FY27 year on year has kind of sort of turned negative if you look at the EBITDA.
Baba Kalyani: We had a specific problem in the United States in our forging plant. We had two forging presses out of the three broken down all of a sudden, and that created a lot of problems for two months. Hopefully, you will see better results in the next quarter from the U.S. side.
Q: You’re saying no exceptional charges now ahead in FY27, essentially, right?
Baba Kalyani: Yeah, exactly.
Q: So, did you also absorb a tariff impact in Q1? Was that also the reason for the margin drag?
Baba Kalyani: No, no. This tariff impact is not that much. It has been the same as what it has been. There is no new tariff yet, but the problem is, you know, in the aluminium business, a lot of U.S. has no primary aluminium capacity, so all the aluminium comes from Canada, and there is a hefty duty on aluminium coming from Canada. So, the raw material prices are high, and that’s a big problem.
Q: Sir, the other announcement that you’ve made is an investment plan of ₹1,800 crore over the next 12 to 18 months for sunrise sectors. Can you tell us which of these sectors and when do these planned investments come on stream and start showing up in your P&L?
Baba Kalyani: Actually, the sectors are fundamentally aerospace, our defence sector, and our sector on semiconductors and data centers.
Data center, component sector, will be up and running by February-March of 2027. So we are making a big investment there. We are putting up a big forging facility to make those large components. It should also help our aerospace business. That also will be up and ready by December, January—December of this year or January of 2027. So this is all going to happen in the next six, seven months.
Q: And how sizeable, sir, is your capacity, which caters to data centers?
Baba Kalyani: We make all the large engine crankshafts and components for data center power generation engines. So that business is pretty large. I think it’s almost close to $100-120 million in addition on an annual basis.
And on the aerospace side also, we see almost like $100 million new business coming in on an annualised basis.
Q: Mr. Kalyani, on the defence side, order book is north of ₹11,000 crore. Could you give us a sense of how much of this is going to be executed in FY27 and FY28? What’s the timeline looking like for this order book?
Baba Kalyani: You know, we still have to get clearance to start production on the artillery gun and the small arms. Hopefully—that’ll happen next month, and once that happens, then it’s a question of a few more months. We’ll start production, so we should see something happening at the end of quarter three and the beginning of quarter four.
Q: And once the global operations are completely restructured, what will be the contribution of global revenues to the overall portfolio?
Baba Kalyani: Our global revenues are largely going to happen out of India going forward, because that’s the best cost position that we have in terms of global revenue and global operations. So I think more and more you will see India contributing to global revenues, not only from Bharat Forge but from all our subsidiaries. We are exporting castings. We are exporting aluminium castings out of our subsidiary. We will soon start exporting other products. So there is a lot of traction that is happening on global revenues from all our companies.
Q: Just one last question, Mr. Kalyani, on your plans in Odisha. What is the situation on that environmental clearance? I think I asked you this last quarter as well.
Baba Kalyani: We haven’t got it yet. We are working on it. I hope it’ll come. That’s’ all I can say.
Q: Any line of sight to this visibility in terms of—I mean, is it back and forth?
Baba Kalyani: No, no. I think it’s a process that takes time. It’s just probably in a couple of months, two-three months, we should be able to get it.
Watch accompanying video for entire conversation.
US sells 10-year debt at highest yields in nearly 20 years, most since 2007 financial crisis
A $42 billion auction of 10-year US Treasuries resulted in the highest yield for the benchmark securities since 2007, luring decent appetite from investors who’ve been demanding more compensation to finance the US government.The yield at Wednesday’s sale came in at 4.683%, the most since the global financial crisis, and just above the prevailing level seen in the market before the 1 p.m. bidding deadline in New York — a sign that demand only slightly lagged expectations. Most Treasuries ended the day little changed before yields inched lower in Asia on Thursday.It sets the scene for a 30-year sale on Thursday that is expected to take place at the highest financing rate in a quarter of a century. Inflation running above the Federal Reserve’s target and swelling budget deficits are contributing to elevated long-dated yields.“It’s still hard for yields to come down with outsize deficits, growth running solid, the war and inflation running above the Fed’s target,” said Gregory Faranello, head of US rates trading and strategy for AmeriVet Securities.Beyond heavy borrowing, long-end bonds are also grappling with macro pressures. Crude oil’s rebound, driven by tensions in West Asia, threatens to keep inflation sticky and tighten the commodity’s grip on long-dated debt. Meanwhile, robust US growth continues to undermine traditional safe-haven demand for Treasuries, while a heavy slate of corporate bond issuance is forcing sovereign debt to compete harder for investments.The strain is global. Rising Japanese government bond yields on expectations of the Bank of Japan normalising policy are making domestic debt more attractive, draining a crucial source of foreign demand for US Treasuries.That shift has hit investors’ bottom lines. The Bloomberg US Treasury Index ended July with a 1.1% loss, the most since March, before a slight rebound this month.Also Read: Only 8,000 new active clients in July: What NSE data says about India’s broking market
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India eyes smaller trade deals with developing countries to cut tariffs without hurting local firms
India is considering limited trade agreements with several developing economies as it looks to expand market access for exporters without exposing domestic industries to a broad surge in low-cost imports, according to government sources.The government is exploring Preferential Trade Agreements (PTAs) with trading partners including the Brazil-led Mercosur bloc, the South Africa-led Southern African Customs Union (SACU), Kenya and Mexico, the sources said.Unlike a Free Trade Agreement (FTA), which typically covers a large share of goods traded between two countries or blocs, a PTA offers tariff concessions on a narrower list of products.The approach marks a contrast with India’s recent trade strategy involving developed economies. India has finalised FTAs covering 38 developed economies over the past four years, where the government sees greater complementarity between the two sides’ exports and relatively limited competition across many sectors.With developing economies, New Delhi is considering a more targeted approach. The aim is to identify products where lower tariffs can make goods cheaper and create employment opportunities through increased trade while protecting industries on both sides that could be vulnerable to cheaper imports.India looks to expand Mercosur pactIndia already has a PTA with Mercosur dating back to 2004. The South American bloc comprises Brazil, Argentina, Paraguay, Uruguay and Bolivia.The two sides are now working on the scope for expanding the agreement beyond the roughly 450 tariff lines it currently covers.Mercosur represents a significant part of the South American economy. Its member countries have a combined economic size of about $2.94 trillion, compared with $4.38 trillion for South America as a whole.Mexico tariffs add urgency to trade talksIndia is also exploring a PTA with Mexico, where higher import tariffs have created fresh concerns for Indian exporters.The Commerce Ministry said in December 2025 that the two countries were looking at a World Trade Organization-compatible PTA because negotiating a broader bilateral trade agreement or FTA would take longer.Mexico raised its most-favoured-nation import tariffs to between 5% and 50% across 1,455 tariff lines from January 1, 2026, as part of an effort to support domestic manufacturing and address trade imbalances.The tariffs apply to countries that don’t have an FTA with Mexico.Preliminary estimates from India’s Commerce Ministry suggested that the changes could affect about $2 billion of Indian exports, particularly automobiles, auto components, textiles, iron and steel, plastics, leather and footwear.The government has said the Mexican measures aren’t specifically aimed at India and are also intended to curb Chinese imports.An earlier version of the tariff proposal, first floated in September 2025, was estimated to affect about $3.8 billion of Indian exports. The proposal was subsequently revised following concerns raised by non-FTA trading partners and industry.India and Mexico have since stepped up engagement. India’s embassy raised concerns with Mexico’s Ministry of Economy in September 2025, after which Mexican authorities said the measures weren’t directed at India and reaffirmed their commitment to bilateral ties.Following further discussions in December, the two sides agreed to pursue a trade agreement aimed at mitigating the impact of the tariffs, with technical discussions beginning later that month.India-Mexico merchandise trade stood at $8.74 billion in 2024, according to DGCI&S data. India exported goods worth $5.73 billion and imported $3.01 billion, giving it a trade surplus of $2.72 billion.India’s major exports to Mexico included light vehicles worth $880 million, base metals worth $760 million, auto parts worth $740 million, machinery worth $460 million and textiles and clothing worth $410 million. Pharmaceuticals, chemicals and motorcycles were among the other significant exports.India’s imports from Mexico were dominated by crude petroleum, worth about $1.7 billion, followed by smartphones and gold.Could the same approach work for BIMSTEC?The idea of beginning with narrower trade agreements has also surfaced in India’s discussions with BIMSTEC countries.BIMSTEC—the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation—comprises Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand.A framework agreement for a BIMSTEC free-trade area was signed in 2004, but 22 rounds of negotiations have failed to produce a final agreement.Commerce and Industry Minister Piyush Goyal in August 2024 called on BIMSTEC governments and businesses to consider whether negotiations for a full-fledged FTA should continue in their existing form.Goyal suggested that a PTA could instead provide a starting point for deeper trade engagement and help countries determine whether a broader FTA was necessary.He also called for an assessment of whether non-tariff barriers, trading practices, individual countries’ preferences or their participation in other regional trade agreements were holding back negotiations.Thailand and Myanmar, for instance, are members of the Regional Comprehensive Economic Partnership (RCEP), the Asia-Pacific trade bloc that India decided not to join in 2019.Goyal also advocated greater use of local currencies for regional trade, faster processing of import-export documents and streamlined border controls to deepen economic integration among BIMSTEC countries.A Confederation of Indian Industry study has separately recommended a phased regional FTA among BIMSTEC members to speed up implementation and expand intra-regional trade.The broader strategy points to a more calibrated approach as India expands its network of trade agreements: comprehensive FTAs where the economies are considered complementary, and narrower preferential agreements where a full opening of markets could expose domestic industries to greater competition.
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Explained | India has a trillion dollar exports target this year. How far is it?
India’s target for exports in the current financial year is $1 trillion, compared to $863.1 billion, which itself was a record. To reach $1 trillion this year, India needs a growth rate of 15.8%.While the official data for the month of July is due to be released, Commerce and Industry Minister Piyush Goyal revealed today that Indian exports grew 15% year-on-year in the first four months, nearly at par with the government’s annual target rate.That would mean a faster growth in exports in the month of July, considering that the growth between April and June 2026 was 11.37%. India had a total export of $129.3 billion at the end of the first quarter of the financial year ending March 2027.The estimates for the rest of the year continue to be encouraging:CategoryJuly-Sep estimateImplied growth (YoY)Total merchandise exports$131.2 billion17.6%Non-oil exports$113.8 billion20.3%Others (excl gems & jewellery)$105.8 billion20.5%Source: India EXIM Bank data released on Aug 12India’s trade minister Goyal attributed the growth to a series of free trade agreements that India has signed in recent months. The cumulative size of the economies that India has an FTA with has gone up to $60 trillion now, compared to $10 trillion before 2014, Goyal added.Here’s a list of trade agreements that India has signed in the last five yearsCountryNature of the pactYearMauritiusComprehensive Economic Cooperation and Partnership AgreementApril 2021UAEComprehensive Economic Partnership May 2022AustraliaEconomic Cooperation and Trade Agreement Dec 2022EuropeTrade and Economic Partnership AgreementOct 2025OmanComprehensive Economic Partnership AgreementJune 2026UKComprehensive Economic and Trade AgreementJuly 2026India now has preferential access to global trade worth $25 trillion due to these trade pacts, as per the minister. Data at the end of June 2026It’s also important to note that Indian exporters benefitted from a weaker rupee, which makes exports competitive. The Indian currency is weaker by over 9% at the of July 2026 compared to a year earlier.A strong growth in exports is good is likely to lead to fresh investments and job creation. “India’s positive export outlook is expected to be driven by sustained expansion in domestic manufacturing and exchange rate movements. However, there are downside risks emanating from geopolitical conflicts, and volatility in international commodity markets,” the India EXIM Bank report added.Read more: Why the financial health of Indian states should worry us all(Edited by : Sriram Iyer)
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Explained | India has a trillion dollar exports target this year. How far is it?
India’s target for exports in the current financial year is $1 trillion, compared to $863.1 billion, which itself was a record. To reach $1 trillion this year, India needs a growth rate of 15.8%.While the official data for the month of July is due to be released, Commerce and Industry Minister Piyush Goyal revealed today that Indian exports grew 15% year-on-year in the first four months, nearly at par with the government’s annual target rate.That would mean a faster growth in exports in the month of July, considering that the growth between April and June 2026 was 11.37%. India had a total export of $129.3 billion at the end of the first quarter of the financial year ending March 2027.The estimates for the rest of the year continue to be encouraging:CategoryJuly-Sep estimateImplied growth (YoY)Total merchandise exports$131.2 billion17.6%Non-oil exports$113.8 billion20.3%Others (excl gems & jewellery)$105.8 billion20.5%Source: India EXIM Bank data released on Aug 12India’s trade minister Goyal attributed the growth to a series of free trade agreements that India has signed in recent months. The cumulative size of the economies that India has an FTA with has gone up to $60 trillion now, compared to $10 trillion before 2014, Goyal added.Here’s a list of trade agreements that India has signed in the last five yearsCountryNature of the pactYearMauritiusComprehensive Economic Cooperation and Partnership AgreementApril 2021UAEComprehensive Economic Partnership May 2022AustraliaEconomic Cooperation and Trade Agreement Dec 2022EuropeTrade and Economic Partnership AgreementOct 2025OmanComprehensive Economic Partnership AgreementJune 2026UKComprehensive Economic and Trade AgreementJuly 2026India now has preferential access to global trade worth $25 trillion due to these trade pacts, as per the minister. Data at the end of June 2026It’s also important to note that Indian exporters benefitted from a weaker rupee, which makes exports competitive. The Indian currency is weaker by over 9% at the of July 2026 compared to a year earlier.A strong growth in exports is good is likely to lead to fresh investments and job creation. “India’s positive export outlook is expected to be driven by sustained expansion in domestic manufacturing and exchange rate movements. However, there are downside risks emanating from geopolitical conflicts, and volatility in international commodity markets,” the India EXIM Bank report added.Read more: Why the financial health of Indian states should worry us all(Edited by : Sriram Iyer)
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Assam Cabinet okays funds for land acquisition for Guwahati satellite city
The Assam Cabinet on Tuesday (August 11) sanctioned funds for the first phase of land acquisition for developing a satellite city near Guwahati airport, besides also approving a proposal for a new hotel by the Taj group near the upcoming semiconductor unit in Jagiroad.It also granted relaxation for people of Moran and Matak communities for applying for new Aadhaar enrolment till March 31 next year.Chief Minister Himanta Biswa Sarma, addressing a press conference after chairing the meeting, said the Cabinet has granted administrative approval for utilisation of ₹2,100 crore towards land acquisition and development of the Aerotropolis Satellite City Project, coming up near the Guwahati airport.“An amount of around ₹4,000 crore will be required for the total land acquisition. The amount for the first phase was approved today. We are already in talks with the public for the acquisition, and the process is going on,” he said.Sarma said the Taj group will be developing a hotel at Jagiroad, which will serve the ecosystem coming up around the Tatas’ semiconductor facility there.“The Cabinet has approved the draft lease deed proposed to be executed between Assam Industrial Development Corporation Ltd and Indian Hotels Company Ltd for a Taj Gateway Hotel,” he said.The council of ministers has granted relaxation to Moran and Matak communities from the ban on fresh Aadhaar enrolment for applicants aged 18 years and above in the state up to March 31, 2027, Sarma said.Initially, the relaxation was given only to Tea Tribes and Adivasis, but with a sizeable chunk of these two indigenous communities also yet to apply for Aadhaar and there being no scope of any illegal migrants among them, the decision was taken, he added.In a step to benefit small tea growers, the Cabinet has approved Zero Agriculture Tax till ₹10 lakh net income, keeping most of them outside the ambit of agriculture tax, the CM said.For promoting foreign language training, the Cabinet okayed a revised payment structure to the Foreign Language Training cum Implementation Partner (FLTIP) under the CM-FLIGHT programme.Each candidate will receive a total amount of ₹1.50 lakh in four varying instalments under the new structure, Sarma said.A budget provision of ₹118.58 crore for 2026-27 for implementation of the Chief Minister’s Jibon Prerana Scheme, under which graduates receive ₹2,500 per month for a year, was approved by the Cabinet.It also gave its nod for issuance of OBC Non-Creamy Layer (NCL) certificates in a prescribed state format to eligible persons belonging to six communities, which are included in the state list of OBCs for Assam but not in the central list of OBCs for the state.Sarma further said that in line with a Supreme Court order, the Cabinet approved the requirement of a police verification report for government jobs.The verification has to be completed by the police within six months of a candidate joining the job, with the provision that non-submission by the police will lead to automatic confirmation of the position for the candidate.“The candidate does not have to run after the police for the report. The job will be provisional for the first six months to enable the police verification report. If there is no report within the period, it will be assumed that there is nothing objectionable against the candidate, and their job will become permanent,” Sarma said.For streamlining jail management, the Cabinet approved the amendment of the Rules for Superintendence and Management of Jails in Assam under the Assam Jail Manual and the Assam Superintendence and Management of Jails (Supplementary Provisions) Rules of 2022.It has been done to end caste discrimination and marginalisation, modernise sanitation and security, and ensure fair work allocation.The chief minister further said that the Cabinet okayed execution of the Power Purchase Agreement between Assam Power Distribution Company Limited and APGCL OIL Green Power Limited for procurement of power at ₹3.45/unit from 25 MW Namrup Solar PV Project for a period of 25 years.The release of the SOPD-G fund of ₹450 crore to the Bodoland Territorial Council as the first instalment for the financial year 2026-27 was also given the nod by the Cabinet, Sarma added.
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