• About
  • Advertise
  • Contact
  • Login
NRI Affairs
Youtube Channel
  • News
  • Video
  • Opinion
  • Culture
  • Visa
  • Other
No Result
View All Result
  • News
  • Video
  • Opinion
  • Culture
  • Visa
  • Other
No Result
View All Result
NRI Affairs
No Result
View All Result
Home News

Exports from India to Australia fell by 62% in December

As the India-Australia trade agreement came into force, several exporters withheld or delayed shipments in order to take advantage of the 5% duty cut.

NRI Affairs News Desk by NRI Affairs News Desk
January 21, 2023
in News
Reading Time: 3 mins read
A A
0
Exports from India to Australia fell by 62% in December

Source: India Briefing

142
SHARES
1.3k
VIEWS
Share on FacebookShare on Twitter
Advertisements

Exports from India to Australia decreased by 62% in December 2022 as a result of exporters delaying shipments in order to benefit from the 5% duty reduction provided by the India-Australia Free Trade Agreement, which went into effect on December 29.

“As the India-Australia Economic Cooperation and Trade Agreement (ECTA) came into effect, many exporters either delayed or held the shipments to get the 5% duty benefit. As a result, the exports declined by 62% in December,” according to Tapan Mazumder, Additional DGFT, Department of Commerce, Ministry of Commerce and Industry, Government of India. He was speaking at a business outreach session on the opportunities and benefits of the ECTA broken down by sector.

Under the ECTA, Australia is granting zero-duty access to India for all of its tariff lines. According to the Certificate of Origin (CO), particularly for industries like gems and jewellery, textiles, engineering products, and transmission lines, he projected that India’s exports would rise dramatically in January.

A CO is a crucial document for international trade that attests that all the products in a specific export shipment were entirely acquired, produced, manufactured, or processed in that nation. He stated that India’s labour-intensive industries, which are currently subject to an import charge of 4-5% by Australia, will see the biggest increase.

Along with its trade agreement with India, the ratification of the double tax avoidance agreement (DTAA) by the Australian Parliament is a significant announcement. The DTAA might go into effect on April 1, 2023, and it’s anticipated to eventually save Indian IT companies doing business in Australia up to USD $1 billion.

Australia is granted duty-free access to 70.3% of India’s tariff lines (40.3 per cent tariff lines from day one and the remaining 30 per cent in a phased manner). Coal, calcined alumina, manganese ore, copper concentrates, bauxite, sheep meat, rock lobster, macadamia nuts, cherries, and wool are all free of duty in India.

The tariff discounts granted by India will enable local/domestic companies to obtain less expensive raw materials and improve their competitiveness since reports indicate that roughly 96% of Australia’s exports to India consisted of raw materials and intermediate products.

Advertisements

It is now clear how a developing recession in the west is affecting India’s overseas commerce. Due to a downturn in demand from important markets following aggressive rate hikes by major central banks and an unfavourable base, merchandise exports decreased 12.2% from a year earlier to $34.5 billion in December 2022, the second decline in three months. 

In October, exports of goods had decreased by 16.65% on a yearly basis; however, November saw a flat growth.

In December, imports decreased as well, though more slowly, by 3.5% to $58.2 billion, which was a result of the recent slowdown in domestic goods demand. Additionally, the value of imports and exports has been impacted by the decline in global commodity prices. The trade deficit increased from $22.6 billion to over $23.8 billion in December as a result of higher imports, while it was still well below the record $30 billion imbalance reached in July.

In the September quarter, India’s current account deficit (CAD) increased to $36.4 billion, an all-time high in absolute terms and 4.4% of GDP, mostly due to a record deficit of $83.5 billion.

On a balance of payments (BoP) basis, there was a significant decrease in foreign exchange reserves of $30.4 billion in the quarter, as opposed to additions of $4.6 billion in Q1FY23 and $31.2 billion in Q2FY22.

According to analysts, the CAD may have peaked in Q2FY23, but it may still be at high levels, even if the prospect of capital outflows is expected to have a greater impact on the rupee’s exchange rate.

Up to 19 of the 30 major industries had a fall from the previous year, including petroleum products, engineering products, gems and jewellery, textiles and apparel, medications, and pharmaceuticals. But when compared month to month (without accounting for seasonal variations), goods exports rose marginally by 7.7% in December.

Share57Tweet36Send
NRI Affairs News Desk

NRI Affairs News Desk

Related Posts

Indian diaspora tensions increase during Federation Square's pro-Sikh vote
News

Indian diaspora tensions increase during Federation Square’s pro-Sikh vote

January 30, 2023
Sania Mirza ends her Grand Slam career in Melbourne
News

Sania Mirza ends her Grand Slam career in Melbourne

January 28, 2023
New UK Graduate Visa rules can severely impact Indian Students
News

New UK Graduate Visa rules can severely impact Indian Students

January 28, 2023
Next Post
Australian airline Qantas adds 8 Indian cities with IndiGo Codeshare Agreement

Australian airline Qantas adds 8 Indian cities with IndiGo Codeshare Agreement

US launches new measures to reduce delays in Indian visa processing

US launches new measures to reduce delays in Indian visa processing

Australian murder suspect, Rajwinder Singh's extradition approved by Indian court

Australian murder suspect, Rajwinder Singh's extradition approved by Indian court

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

The Kashmir files

New Zealand to review release of The Kashmir Files; shows on hold until further notice

11 months ago
Australia Visa Update

Visa update: 400 invitations issued in October round

1 year ago
Opinion: Why I feel the need to bring my Hinduism to the streets

Opinion: Why I feel the need to bring my Hinduism to the streets

1 year ago
the azores 2721586 1920

आदतन सच अगर बताओगे

2 years ago

Categories

  • Literature
  • Multimedia
  • News
  • nriaffairs
  • Other
  • People
  • Top Stories
  • Uncategorized
  • Views
  • Visa

Topics

Air India Australia california Canada caste CECA COVID COVID-19 cricket ECTA Europe free trade FTA Geeta Germany Hindu Human Rights immigration India india-australia Indian Indian-origin Indian Students Khalistan London Melbourne Migration Modi Muslim New Zealand NRI NSW oci quarantine Singapore Sydney travel UAE uk Ukraine US USA Victoria visa women
NRI Affairs

© 2021 NRI Affairs.

Navigate Site

  • About
  • Advertise
  • Contact

Follow Us

No Result
View All Result
  • News
  • Video
  • Opinion
  • Culture
  • Visa
  • Other

© 2021 NRI Affairs.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT