Comprehensive Economic Cooperation Agreement expands trade, services commitments and investment facilitation between India and Malaysia.
India and Malaysia implemented a Comprehensive Economic Cooperation Agreement (CECA) effective 1 July 2011 to liberalise trade in goods, services and investment. The goods package extends tariff liberalisation beyond prior India-ASEAN commitments while preserving safeguards for sensitive sectors. Services commitments include temporary movement of business persons and market access in sectors such as accounting, engineering, medical and dental, computer services and management consulting. Investment provisions aim to create a liberal, facilitative, transparent and competitive regime to promote cross-border investment.

Manufacturing productivity: modest TFPG and wide efficiency gaps, with trade liberalisation linked to improved productivity.
The study measures productivity and efficiency in India's manufacturing sector using parametric and non parametric methods and finds modest Total Factor Productivity growth for organised manufacturing with divergent estimates across methodologies. Industry and inter state analyses reveal clear performance heterogeneity, with Machinery and Transport Equipment and Chemical industries outperforming, and Food, Beverages and Tobacco and Textiles underperforming. Firm level efficiency estimates show considerable scope for improvement, and unorganised sector labour productivity remains far below organised levels. Post reform openness and dismantling of trade barriers are positively associated with TFPG.

Central petroleum tax adjustments: customs and excise cuts with modest retail price increases to curb OMC under-recoveries.
The measures eliminate customs duty on crude oil and reduce customs duties on petroleum products, cut central excise on diesel, and permit modest retail price increases for diesel, PDS kerosene, and domestic LPG to reduce OMC under-recoveries, while noting central revenue loss and calling for corresponding reductions in state levies.

Inflation expectations show households foresee rising prices, signaling near term inflationary pressure and sectoral implications.
RBI's June Bulletin contains four special articles: a review of merchandise trade in 2010-11 showing strong export growth, divergent oil and non oil import trends, commodity and destination disaggregation; an Inflation Expectations Survey of 4,000 urban households indicating anticipated price rises driven by food and differing by demographic groups; a Quarterly Industrial Outlook reporting moderation in business conditions via a lower Business Expectation Index; and a software and IT services export survey showing stable global share, US dominance as destination and invoicing currency, and increased off site delivery.

Import of sensitive items rose 9.3%, driven by higher edible crude oil and shifts in commodity composition.
Total imports of designated sensitive items for April-February 2011 were Rs.65,596 crore (9.3% increase), constituting 4.7% of gross imports. Commodity movements: increases in edible oils (notably crude palm oil), automobiles, fruits & vegetables, rubber, SSI products, milk products, alcoholic beverages, marble & granite and food grains; declines in pulses, cotton & silk, spices and tea & coffee. Edible oil imports rose with crude up 16.6% and refined down 1.5%. Supplier country shifts and a provisional tariff line table accompany the estimates.

Trade liberalization: push to reduce sensitive lists and lower tariffs to remove protectionist barriers in regional trade.
India urged accelerated reduction of SAFTA's sensitive list and lowering of tariff levels on remaining items to advance regional trade integration, framing tariff moderation as complementary to trade liberalisation and essential for achieving regional economies of scale. The statement also announced dedicated financial support for neighbouring countries' basic infrastructure projects and referenced bilateral ministerial consultations to advance economic cooperation and implementation of SAFTA commitments.

Export quota for essential commodities extended to improve supply, paired with concessional credit scheme to support project exports.
India extended the export quota for essential commodities to the Maldives for three years to improve supply, and launched a long-term concessional credit scheme for project exports to promote Indian participation in Maldivian infrastructure projects, alongside invitations for Maldivian delegations to identify appropriate technologies in India.

Trade liberalization: urge to lower tariffs on sensitive items and pare sensitive lists to boost regional integration.
Urges reduction of protectionist barriers by narrowing the sensitive list and lowering tariff levels on items remaining in that list to further trade liberalization under SAFTA; notes India has earmarked funds for basic infrastructure in neighbouring countries and that member states have ratified the Accession to Agreement on SAFTA, with bilateral meetings to advance economic cooperation.

Export growth drives higher exports but rising imports widen the trade deficit, with provisional import estimates noted.
India's exports rose substantially in May 2011 and for April-May 2011 overall, but imports also increased, producing a notable trade deficit; import figures reported are provisional. Export gains are concentrated in engineering, petroleum and oil products, electronics, gems and jewellery, cotton yarn and made-ups, and marine products, while exports of iron ore, fruits and vegetables, and tobacco fell due to export bans. Imports showed strong growth in pearls and precious stones, gold and silver, POL products and machinery, with a decline in iron and steel imports.