Results for: Trade

Indian Prime Minister Narendra Modi proposed a new ‘Global Development Compact’ aimed at fostering trade, technology sharing, and concessional financing for developing nations. The initiative, announced at the third India-hosted Voice of the Global South Summit, seeks to address concerns over the debt burden faced by many countries, particularly in light of China’s Belt and Road Initiative. The compact emphasizes a human-centric approach, focusing on sustainable development and avoiding debt traps. India also announced funding for trade promotion and digital public infrastructure development in the Global South.

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.

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.

Pakistan has implemented new border security measures, requiring truck drivers from Afghanistan to carry passports for entry. This decision, made due to security concerns, has led to the suspension of bilateral trade and stranded cargo trucks on both sides of the border. The move comes amidst heightened tensions between the two countries and ongoing concerns about terrorist activity emanating from Afghanistan.

Italian Prime Minister Giorgia Meloni is in China this week to strengthen economic ties, despite tensions over electric vehicles and Italy’s withdrawal from the Belt and Road Initiative. Her visit comes amid concerns of a trade war with the European Union, while Italy remains interested in attracting Chinese investment in various sectors.

Nepal has decided to forgo a long-promised economic and technical package from China for the Araniko Highway upgrade, opting to fund the project independently due to delays in Chinese aid disbursement. The decision highlights the complexities of Nepal’s border relations with China and India, with concerns raised about trade restrictions, job losses, and a lack of parliamentary attention to borderland issues.

India has issued advisories to its citizens in Bangladesh and facilitated the return of over 4,500 Indians as protests in the neighboring country turn violent. The protests, sparked by student demands for a merit-based job system, have led to a standstill in Indo-Bangladesh trade, heightened security measures along the border, and a debate on providing refuge to those fleeing the unrest.

Malaysia’s plantation industries and commodities minister, Johari Abdul Ghani, has called upon India to relax its export restrictions on essential food commodities, particularly rice, sugar, and onions. Ghani emphasizes the importance of maintaining open trade routes with India, highlighting Malaysia’s role in fulfilling India’s palm oil needs. The minister’s request follows India’s imposition of export curbs on these items in 2023 to control domestic prices, which has disrupted Malaysia’s supply chain.

China’s economy grew at a slower-than-expected 4.7% annual rate in the second quarter, according to government data released on Monday. While growth was below forecasts, the report highlighted positive trends in factory output, income, and investment, suggesting a stabilization of the economy. Despite these improvements, weak consumer demand and reduced government spending remain key challenges for the world’s second-largest economy.