France
(Source : Embassy of India, Paris)

Category : Trade in goods

Details of significant trends/analysis - Trade – In Jan-May 2019 (*), India France bilateral trade stood at € 5.01 billion (+15.33%) as compared to the corresponding period the previous year. India’s exports to France increased by 9.06% during this period with a rise in exports of following top 10 category products: mineral fuels & oils (15.37%); natural or cultured pearls (79.94%); organic chemicals (29.22%); articles of leather, saddlery and harness, travel goods, handbags (37.10%); electrical machinery & equipment (24.78%); automobiles and parts (16.02%); nuclear reactors, boilers, machinery and mechanical appliances (2.45%); articles of apparel & clothing accessories, knitted or crocheted (1.73%). However there was a drop in exports of footwear (-8.79%) & articles of apparel & clothing accessories, not knitted or crocheted, (-3.35%).

Meanwhile, French exports to India increased by 24.7% during the same period: Exports of following top 10 ranked products increased: iron & steel (143.77%); pharmaceutical products (7.27%); organic chemicals (11.29%); articles of iron & steel (21.55%); miscellaneous chemical products (65.16%); optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus & parts thereof (7.61%) & plastics and articles thereof (6.78%); aircraft & spacecraft (60.02%), electrical machinery & equipment (-3.54%). However, exports of following products decreased: nuclear reactors, boilers, machinery & mechanical appliances (12.19%).

Category : Investment

Details of significant trends/analysis - Investment – According to the ‘Business France Annual Report 2018’, a public operator supporting French investors in India and Indian investors in France, there are over 150 Indian companies operating in France (including sub-subsidiaries), employing around 7,000 people. Seventeen investments from India were recorded in 2018, Indian projects often involved decision-making centres (59% of projects; 53% of jobs) and production/manufacturing operations (18% of projects; 34% of jobs). Investments were mainly made in the software and IT services sector (24% of projects; 30% of jobs), and the machinery and mechanical equipment sector (12% of projects; 21% of jobs).

Mozambique
(Source : High Commission of India, Maputo)

Government invests US$95 million in railway transport financed by India: The ministry of Transport and Communications plans to buy up to May of next year, five new locomotives, 90 carriages and 300 wagons and 5 automotives, estimated at US$95 million, financed by Indian credit line. The Minister of Transport and Communications Carlos Mesquita said that the locomotives and wagons will bring an additional capacity to the transport of iron ore and other circulating between the border of Ressano Garcia and the port of Maputo, in view of transferring more road cargo to rail cargo, and avoid road congestion and car accidents. Mesquita added that the North region has not been forgotten, the point is that the northern logistics corridor is managed by a private operator, whose concession also includes passanger transport, so the operator increases its capacity whenever necessary from Nampula-Cuamba and Cuamba-Lichinga.

Thailand
(Source : Embassy of India, Bangkok)

India considering relaxing foreign investment rules for several sectors
Krungthep Turakij 08.07.2019

The Indian government said it will consider further liberalizing foreign direct investment (FDI) rules in certain sectors, part of its efforts to make Asia’s third-largest economy a more attractive investment destination. Presenting the annual budget for 2019/20, Finance Minister Nirmala Sitharaman said the government would hold discussions with stakeholders to relax FDI rules in the aviation, media, animation and insurance sectors, and ease rules for single-brand retailers. Sitharaman said the government would allow 100% FDI in insurance broking and ease local-sourcing regulations for the single-brand retail sector.

India continues EV car plan
Krungthep Turakij 09.07.2019

India is pushing to become a global manufacturing hub for electric vehicles after the government offered financial incentives to spur demand and eased several regulatory restrictions. Finance Minister Nirmala Sitharaman last Friday presented the country’s new budget where she said her government will provide additional income tax deduction of 150,000 rupees (about $2,185) on the interest paid on loans to purchase electric vehicles. Electric vehicle buyers can accrue around 250,000 rupees in total benefits over their entire loan period, she said. India also lowered the taxation cost of electric vehicles compared to those that run on combustion engines. Gupta explained that an SUV that runs on fuel is charged 28% in Goods and Services Tax (GST). On top of that, an additional tax of around 20% is levied.

Massive valued economy
Khao Sod  10.07.2019

India has unveiled plans to ramp up foreign investment and meet its ambitious target of growing into a $ 5 trillion economy by 2025. The most urgent task confronting Prime Minister Narendra Modi as he starts his second term in office is to restore momentum to an economy that has lagged to its slowest pace in five years. India grew by 5.8 percent in the first three months of the year, falling from its perch as the world`s fastest growing major economy. Ahead of the budget, a government report said India will reverse the slowdown on the back of higher investment, savings and exports, in a way similar to how China propelled its growth. The government also promised to give tax breaks and other benefits to boost start-ups, which help generate jobs that India needs, as its unemployment rate soars to a 45-year high.

India enthusiastic about sealing RCEP
Bangkok Post 13.07.2019

Asean`s plan to complete talks this year on the Regional Comprehensive Economic Partnership (RCEP) got a boost after India, one of the dialogue partners outside Asean, gave a positive political commitment to support negotiations that are to conclude in November. According to acting commerce minister Chutima Bunyapraphasara, who just returned from a three-day visit to India, the country welcomed the chance to finish all negotiations relating to the RCEP later this year. The conclusion of the talks is expected to be announced at the Asean summit held in Bangkok in November, Ms Chutima said. She and Enggartiasto Lukita, Asean secretariat and Indonesia`s minister of trade, met Piyush Goyal, India`s commerce and industry minister, to discuss ways to speed up the negotiations, especially in the opening of goods, services and investment, so that the pact is in place by year-end.

Vibrant Goa Global Expo and Summit
Bangkok 15.07.2019

Embassy of India, Bangkok organized a Roadshow on `Vibrant Goa Global Expo and Summit` in collaboration with Goa Investment Promotion and Facilitation to sensitize the Thai Companies for participation in the above Summit to be held from 17-19 October 2019 in Goa.  Around 75 business people, representing various Thai companies, chambers, media etc. attended the roadshow. Dr Jagat Shah from Vibrant Goa Foundation made a detailed presentation on the Goa Global Expo and the Summit.   Deputy Chief of Mission, Embassy of India, Mr Adul Chotinisakorn, Director General, Department of Foreign Affairs of Thailand and Ms. Prim Jitcharoonphorn, Chairperson of Thailand-India Business Council also addressed the gathering.