Malta
(Source : High Commission of India, Malta)
Significant Trends in trade investment (Source: DGCIS)
Details of significant trends : Exports by India to Malta for the period June and July 2018 stood at US$ 15.88 million and India’s imports from Malta stood at US$0.96 million.
Exports by India to Malta during 2017-2018 stood at US$ 195.86 million and India’s imports from Malta stood at US$15.95 million.
The main items of India`s exports to Malta are marine products, drugs, pharmaceutical & fine chemicals, inorganic/organic/agro chemicals, manufactures of metals, transport equipments, and other commodities. The main items of India`s imports from Malta are pulp and waste paper, metal scraps, organic chemicals, medicinal & pharmaceutical products, and electronic goods.
Analysis : During 2017-2018, there is an increase in export by India to Malta amounted to US$58 million and decrease in import by Malta to India amounted to US$6.42 million as compared during 2016-2017.
Peru
(Source : Embassy of India, Lima)
The increasingly accessible Indian market
In the last twenty years, Peru has followed a commercial policy of openness and global integration that has brought great benefits for its economy, with greater opportunities for Peruvians, access to cutting-edge technology, more inputs for the industry and a greater variety of products at lower prices. Thus, since 2009, when the main trade agreements entered into force, until 2017, the exchange with the world grew 73.3%, which contributed to the reduction of poverty, which fell by 11.8 percentage points in that period. In this way, the Ministry of Foreign Trade and Tourism (Mincetur) has been leading the opening of new markets, despite the fact that a section of the business sector would seek to trap the negotiations of what would be an important trade agreement for the country: the free trade agreement (FTA) Peru-India.
India, a country with more than 1,300 million inhabitants, a GDP per capita of US $ 1,964, a growth projection of around 7.5% for 2019 and 2020, and which is shaping up as the second world economy by 2050, only behind China, represents a great opportunity to boost exports to the Asian continent and investments in Peru. Therefore, converting it into a business partner with an FTA is not only part of the state policy that Peru has been promoting, led by Mincetur, but also is strategic to ensure growth through integration and commercial diversification.
What does Peru commercialize with India?
The commercial exchange between Peru and India has grown exponentially, and it could do even more with the FTA. In the last five years alone there has been an accumulated growth of 111%, driven mainly by the dynamism in exports, which since 2016 exceeded imports from this country. Shipments to this market grew by an average of 34.8% per year between 2013 and 2017, and by July 2018 (US $ 1.517 billion) they grew by 39.8% compared to the same period of 2017. These were highly concentrated in the traditional mining sector, which accounted for more than 90% of exports, in which gold accounted for 73% of mining shipments, followed by copper ores and concentrates. All these products currently pay an average tariff of 8.5%. Nonetheless, export of non-traditional products are growing. Although in 2017 these fell, by July 2018 (US $ 21.7 million) they showed a growth of 23.8%. Since 2017, shipments of jewelry, cocoa in several presentations were registered for the first time, and shipments of fresh grapes, among others, were maintained. Therefore, the FTA represents an enormous opportunity to enhance and diversify non-traditional exports, which currently face high tariffs. Coffee, grapes, cocoa and fishmeal being sent to India pay average tariffs of 56.3%, 29.4%, 56.3% and 29.9% respectively.
On the other hand, the FTA will generate significant savings for the local industry, thanks to the import of supplies with lower tariffs. In the last five years, they maintained an average annual growth of 3.2% and upto July 2018 (US $ 516.6 million) they grew by 14%. Around 50% of the total importation from India corresponded to intermediate goods or raw materials for industry, among which the vehicles and yarns stand out. Consumer goods are also imported, and importantly, medicines in general and those for oncological treatment or HIV, which would be favored with a better tariff treatment.
Venezuela
(Source : Embassy of India, Caracas)
Bilateral Trade
|
Period
|
Imports from Venezuela
|
Exports to Venezuela
|
Total trade
|
|
US$ million
|
Rs. Lacs
|
US$ million
|
Rs. Lacs
|
US$ million
|
Rs. Lacs
|
|
2017-18
|
5,866.37
|
3,779,668.44
|
79.21
|
51,053.33
|
5,945.58
|
3,830,721.77
|
|
2016-17
|
5,512.06
|
3,696,429.07
|
62.22
|
41,615.42
|
5,574.28
|
3,738,044.49
|
|
2015-16
|
5,701.81
|
3,715,029.41
|
130.66
|
85,177.63
|
5,832.47
|
3,800,207.00
|
|
2014-15
|
11,729.89
|
7,158,579.90
|
258.07
|
158,004.43
|
11,987.96
|
7,316,585.00
|
Source: Export Import Data Bank, Department of Commerce, Ministry of Commerce & Industry, Government of India and Export Import Data Bank, National Institute of Statistics (INE), Government of Venezuela. Venezuela has not published any official data in respect of trade after 2014.
Top 10 items of Venezuela Imports from India
(US$ million)
|
S.N.
|
Exports
|
2014-15
|
2015-16
|
2016-17
|
2017-18
|
|
1
|
Pharmaceutical Products
|
143.55
|
73.17
|
24.55
|
54.48
|
|
2
|
Nuclear Reactors, Boilers, Machinery and Mechanical Appliances
|
11.95
|
14.58
|
11.01
|
5.58
|
|
3
|
Man-Made Staple Fibers
|
15.6
|
3.69
|
1.91
|
3.85
|
|
4
|
Organic Chemicals
|
4.41
|
3.39
|
1.75
|
1.75
|
|
5
|
Cotton
|
22.1
|
6.58
|
3.11
|
1.56
|
|
6
|
Optical Photographic and Cinematographic Equipment
|
16.22
|
1.91
|
1.02
|
0.86
|
|
7
|
Articles of Apparel and Clothing
|
3.7
|
3.99
|
2.78
|
0.77
|
|
8
|
Electrical Machinery and Equipment
|
2.99
|
4.79
|
1.21
|
0.54
|
|
9
|
Articles of Iron or Steel
|
4.56
|
1.43
|
2.24
|
0.01
|
|
10
|
Vehicles and Parts
|
0.39
|
0.12
|
1.18
|
0.00
|
Source: Export Import Data Bank, Department of Commerce, Ministry of Commerce & Industry, Government of India.
India eyes rupee-route, barter for Venezuelan crude: According to media reports, India is considering setting up a rupee-payment mechanism for trade with Venezuela, besides exporting rice and drugs to the South American nation, all in return for crude oil. As per the report, the Ministries of Commerce, Finance and Petroleum are looking into the proposal. The news article adds that Venezuela is among the top 10 crude oil suppliers to India. The report indicates that since the size of the business would run into several millions, it needs to have a proper trade balance and that the rupee-payment mechanism is not a new concept, but there is a general agreement that the strategy for Venezuela cannot be similar to that for sanctions-hit Iran. The article further indicates that this mechanism is also being considered to benefit Indian exporters, particularly pharmaceutical products and non-basmati rice. “Rice is well-consumed in Venezuela and we see a huge potential, provided a proper payment mechanism is established,” said Mr. BV Krishna Rao, President of the Rice Exporters Association. He also said that so far, the efforts of exporters to tap the Venezuelan market through the Dubai route have not been successful due to payment issues. Mr Rao estimates that India could export up to half-a-million tonnes to Venezuela on a regular basis, if a rupee-based payment mechanism is set up.
India Mulling Dumping Dollar in Oil Trade with Russia, Iran and Venezuela: According to media reports, India`s Central Bank and Ministry of Finance have been tasked with exploring the feasibility of rupee and barter-based trade agreements with crude oil producing nations such as Russia, Iran and Venezuela. The report indicates that a potential scheme is of trading Indian pharmaceuticals for Venezuelan oil. The media outlet further mentions that in its meeting on 04 October 2018, the Indian inter-ministerial panel headed by Commerce and Industry Minister Suresh Prabhu also asked the Central Bank to explore the possibility of rupee-yuan trade with China, trade deals using the euro instead of the dollar, and the promotion of gold-related initiatives, such as gold-denominated savings accounts and sovereign bonds, and measures to cut gold imports. The panel also proposed the need for barter and deferred payment arrangements with Russia in the trade of raw diamonds. The meeting came amid a sharp slide in the value of the rupee against the dollar this week, with the Indian currency settling at a record low of 73.81 rupees against the dollar on 04 October.
ONGC expects crude oil prices to go higher: According to media reports, Oil and Natural Gas Corporation (ONGC) expects crude oil prices to continue their upward trajectory in the backdrop of impending Iran sanctions and declining production in Venezuela. Speaking at India’s largest exploration and production firm’s annual general meeting on 28 September, Shashi Shanker, chairman and managing director said, “Within a period of two years, the trajectory of prices changed dramatically. A barrel of crude in early 2016 fetched just about US$ 30; by the end of 2017 it had already more than doubled.” A high crude oil price projection by ONGC that accounts for 73% of India’s oil and gas production comes in the backdrop of Brent crude oil spot prices breaching the US$ 80 per barrel mark. Increasing tensions between the US and Venezuela, the US demanding an end to all imports of Iranian oil by early November and the rupee’s performance as Asia’s worst performing currency of the year have compounded the situation and put India, the world’s third-largest oil importer, in a difficult spot. “Today Brent crude is selling over $75 a barrel and could go even higher as Iran approaches another era of sanctions and Venezuela grapples with rapidly declining oil production,” Shashi Shanker added. The international crude oil prices had registered an all-time high of US$ 147 per barrel in July 2009.
Potential products of exports for India
Pharmaceutical products : Venezuelan pharmaceutical industry is severely affected by the lack of private investment and relies heavily on the imports for drugs and pharmaceuticals. India is one of the leading manufacturers and exporters of pharmaceuticals in the world and enjoys acceptance in the Venezuelan market due to its quality and competitive prices.
Auto-parts : India is one of the top manufacturers of auto-parts in the world. Venezuela is in dire need of auto-parts for all kind of Vehicles.
Egypt
(Source : Embassy of India, Cairo)
Proposal for maintenance and repair of railway tracks in Egypt
We have been informed by the Embassy of India, Cairo that have received the proposal from Eng. Mostafa Abd El-latif Abo El Makarem, Chairman of the Egyptian Railways for Track Renewal and Maintenance Company (ERTRAC) for collaboration with Indian company for maintenance and renovation of Egyptian railway tracks. ERTRAC is one of the private companies registered with the Egyptian Ministry of Transport to undertake railway maintenance and repair work.
In this proposal, Eng. Makarem has mentioned following:
(i) ERTRAC is looking for the collaboration with the Indian company to undertake the maintenance and renovation of 200 kms of railway main track and 200 outlines.
The details are attached.
(ii) ERTRAC expects that Indian company should provide the equipments and the supervisors/technical experts for this work.
(iii) The wagons and locomotives required to be used during repair and maintenance work will be provided by the Egyptian side.
(iv) The feasibility study would have to be undertaken by the Indian company. The project is expected to last over three years.
(v) As a first step ERTRAC would like to hold discussion with relevant Indian companies over video conferencing to get the idea on estimated cost, time
line and implementation. The proposals from Indian companies would then be put up to the Egyptian Minister of Transport for his approval to take it forward.
Renovations of Railways and proposed outlines
Straight lines
Cairo / Aswan 60 K.M.
Kabbary / Matrouh 90 K.M.
Nefesha / Suez 120 K.M.
Bahariya Oasis Line 80 K.M.
Outlines
Cairo / Aswan 150 outlines
Nefesha / Suez 120 outlines
Embaba / Etay El Baroud 120 outlines
Renovations (renewal) proposal 200 K.M. straight lines + 200 outlines
The details of concerned officer in ERTRAC are given below:
Eng. Mostafa Abd El-latif Abo El Makarem
Chairman of the Board and CEO
Egyptian Railways for Track Renewal and Maintenance Company (ERTRAC)
18, Mahmoud Bassiouni St. - Tahrir
Cairo, Egypt
Mobile: 0020-1222393333
Email: ertarac@hotmail.com
Interested member-exporters are requested to contact the above directly under intimation to Embassy of India, Cairo, Egypt. Also, they may discuss the proposal further with ERTRAC over video conferencing.