Import of sensitive items shows increased share of gross imports with shifts in edible oil composition and source countries.
Import of sensitive items increased by 7.8% in April-March 2011 versus the prior year and comprised a larger share of gross imports; commodity shifts included declines in pulses, cotton & silk, spices and tea & coffee, and increases in edible oil, automobiles, fruits & vegetables, rubber, SSI products, dairy, alcoholic beverages, marble & granite and food grains. Edible oil imports rose overall due to higher crude palm oil and fractions despite a fall in refined oil; imports varied by source country with some suppliers rising and others falling.

Broad-based Trade and Investment Agreement negotiations enter final leg, inviting Polish firms to infrastructure and addressing market access.
The India-EU Broad-based Trade and Investment Agreement (BTIA) negotiations are in their final stage covering goods, SPS, TBT, services, investment, IP, competition, customs, trade facilitation, trade defence, dispute settlement, government procurement and sustainable development under a TERC mandate. India also invited Polish companies to invest in infrastructure, citing existing Polish supplies and services to India and urging Poland's role in resolving EU-level market access and SPS-related issues, with facilitation through Invest in India and industry coordination.

Export exemptions and quotas adjusted for organic products and bilateral supplies, with new licensing, MEP and compliance changes.
DGFT exempted specified organic edible oil, pulses, lentils and sugar from export prohibitions when APEDA-certified, each with a 10,000 MT annual ceiling and removed the Directorate of Sugar release-order for organic sugar. Bilateral quotas to the Maldives for wheat flour, stone aggregate and river sand were authorized via new export licensing notes. MEP for onions was raised and the cotton export cap increased. Procedural changes included a new EDI ANF 3B for SFIS, amended Declaration of Intent rules for Chapter 3 benefits, DEPB extension, Certificate of Origin authority under IMCECA, phased barcode requirements, and revised Drugs & Cosmetics enforcement guidelines.

Export growth momentum signals stronger trade performance but rising imports widen the trade deficit and affect external balance.
India's merchandise exports showed substantial year on year growth in April-June with broad sectoral strength in engineering, petroleum products, electronics, gems and textiles, while exports of iron ore, fruits and vegetables and tobacco declined due to export bans. Concurrently imports expanded-driven by petroleum, precious stones and machinery-widening the trade deficit; figures are provisional and attributed to commodity price effects and exporter/manufacturer efforts.

Trade liberalisation under WTO affecting agricultural exports as pressures on commodity prices persist, urging measured policy responses.
Pressure on agricultural commodity prices is likely to persist, requiring measured policy responses rather than knee-jerk reactions. Domestic constraints-limited R&D, poor infrastructure, small land holdings and low commercialisation-undermine export competitiveness. Trade liberalisation under WTO brought both opportunities and challenges, and the Agreement on Agriculture has not yielded expected benefits because of external market access barriers and internal structural shortcomings. The seminar sought to identify constraints and craft a roadmap of domestic reforms and trade-policy measures to boost agricultural export capacity.

FDI liberalization increases entry flexibility and reduces prior approval requirements, aiming to expedite foreign investment inflows.
The FDI policy has been consolidated and liberalised to simplify rules and ease regulatory burden: higher thresholds and exemptions reduce cases needing prior Government approval; FDI into LLPs is permitted subject to conditions; downstream investment through internal accruals is allowed; pricing of convertible instruments can use a formula; shares may be issued for specified non cash considerations; and prior approval requirements for new joint ventures in the same field have been removed, collectively intended to expedite inflows.

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.

Trade and investment partnership expands India Africa economic ties through preferential tariff access, exhibitions and targeted business delegations.
The India-Africa economic partnership has developed into a coordinated trade and investment engagement: Indian investments across sectors have reached substantial levels and bilateral trade has risen significantly, with a policy objective to raise trade further by 2015. The Government is using diplomatic and promotional measures - including a Duty Free Tariff Preference Scheme for eligible African countries, high level business delegations, trade exhibitions, business seminars and cultural exchanges - to expand market access, facilitate partnerships, and promote sectoral diversification and capacity building.

SEZ exports growth underpins national export share and employment while awards incentivise high-performing export units.
SEZ export performance for 2010-11 shows substantial year on year growth and a meaningful share of national exports, with reported employment supported by SEZ units and aggregate capital investment noted as of the financial year end. The SEZ Council and an Export Promotion Council scheme (EPCES) award annual Export Awards to EOUs and SEZ units across multiple sectors to recognise and incentivise export performance.

Trade cooperation to strengthen India Africa linkages, including DFTP implementation and WTO capacity building for developing countries.
Ministers will exchange views on Doha Round multilateral negotiations and safeguarding developing countries' interests, discuss strengthening trade and investment relations, and address access to the Indian market through implementation of the Duty Free Tariff Preference scheme for LDCs, alongside proposed Indian technical assistance on WTO Dispute Settlement and WTO Negotiations capacity building.

Deemed export policy review invites stakeholder submissions; committee to harmonize notifications and reassess policy priorities.
A ministerially constituted committee chaired by the Director General of Foreign Trade invites stakeholder submissions by e-mail and will examine the Deemed Export policy to harmonize various Customs Notifications with the policy, improve drafting to remove ambiguities, and reassess alignment with Government priorities, conducting consultations with senior officials and preparing recommendations.

Comprehensive Economic Cooperation Agreement pathway to deepen trade and investment ties between India and Australia, launching formal negotiations.
Launch of formal negotiations for a Comprehensive Economic Cooperation Agreement between India and Australia to broaden merchandise trade, remove non tariff barriers to services, and facilitate two way investment, with negotiation rounds commencing in India and a parallel CEOs Forum to mobilise private sector input and advance sectoral cooperation in minerals, energy, services, skills and agriculture.