The demand for liquefied natural gas (LNG) in India and Southeast Asia is soaring, driven by factors like rising temperatures and a push towards decarbonization. This has resulted in a significant increase in LNG exports to the region, with both India and Southeast Asia recording substantial growth in 2023 and 2024.
India has significantly increased its medicine exports to the United States, becoming the third largest supplier after Ireland and Switzerland. This growth is attributed to increased exports of pharmaceuticals, antibiotics, and medical devices, indicating India’s expanding presence in global healthcare markets.
BP has given the green light for Venture Global LNG’s Calcasieu Pass facility to begin commercial production, ending a dispute over access to LNG. This move will make Venture Global the second-largest US LNG exporter by the end of the year, bolstering America’s position as a global leader in the sector.
Kobelco Construction Equipment India, based near Chennai, is boosting its local manufacturing capabilities. With its latest SK80 Excavator boasting over 70% indigenisation, the company aims to meet both domestic and international demand, making India a major manufacturing hub for Kobelco’s global operations. The company’s Sri City facility, with an annual production capacity of 3,500 units, already exports a portion of its output to the Middle East and Africa. This commitment to ‘Make in India’ is further solidified by Kobelco’s recent Rs 75 crore investment in plant and machinery expansion.
Australian cannabis cultivators are capitalizing on the burgeoning European cannabis scene, securing multi-million dollar export deals, particularly to Germany, which has recently relaxed its cannabis laws. This growth is fueled by the increasing acceptance of medical marijuana in Europe, with a projected market value of $3.3 billion by 2027. Australian companies are also looking to France, anticipating full legalization of medical cannabis in 2025. Meanwhile, Australian scientists are conducting research on the therapeutic effects of medical marijuana, specifically focusing on menstrual pain relief. Despite this progress, the NSW premier has ruled out decriminalization of cannabis for personal use.
India’s merchandise exports are projected to hit a record $111.7 billion in the second quarter of the current fiscal year (Q2 FY25), marking a 4.2% year-on-year growth. This optimistic forecast is fueled by robust economic activity, government initiatives, and a favorable global environment. However, risks remain, including uncertain economic prospects in advanced economies, geopolitical tensions, and supply chain disruptions.
Amidst a political crisis in Bangladesh, international textile buyers are turning to India, potentially boosting Indian exports by hundreds of millions of dollars. With Bangladesh’s apparel exports facing disruption, Indian textile hubs like Tiruppur are poised to benefit as manufacturers shift their operations and orders are diverted.
Despite ongoing political unrest in Bangladesh, India’s diversified export portfolio and strong external position are expected to remain unaffected. While India’s exports to Bangladesh have declined, the overall impact on India’s trade is anticipated to be minimal.
Indian exporters are expressing concerns over the political crisis in Bangladesh, citing disruptions in bilateral trade due to the country’s economic challenges. While hoping for a swift normalization of the situation, exporters acknowledge potential long-term implications for trade between the two nations, particularly with regards to payments, border closures, and supply chain disruptions.
India, the world’s largest rice exporter, is likely to relax export restrictions on basmati rice and parboiled rice, including lowering the minimum export price (MEP) for basmati and replacing the 20% export tax on parboiled rice with a fixed duty. This move comes as rice inventories in India have reached a record high, exceeding local demand and posing concerns about spoilage. The government is also considering resuming white rice exports after assessing the progress of rice planting.
