- India records trade deficit with nine of top ten trading partners in 2023-24
- India has recorded a trade deficit with nine of its top 10 trading partners including China Russia Singapore and Korea.
- The trade deficit with China rose to $85 billion.
- China has emerged as India’s largest trading partner with $118.4 billion of two-way commerce edging past the US.
- The bilateral trade between India and the US stood at $118.28 billion.
- India has a free trade agreement with top 4 of its top trading partners – Singapore, UAE, Korea and Indonesia.
- India has a trade surplus of $36.74 billion with the US. The surplus is also with the UK, Belgium, Italy, France and Bangladesh.
- The List of largest trading partners of India include the UAE, Saudi Arabia, Russia, Indonesia, Iraq, Singapore, Hong Kong, and South Korea
2. Current status with respect to spice exports
- Hong Kong and Singapore recently recalled certain spice mixed products of certain companies allegedly over the presence of a higher than prescribed level of the sterilising agent ethylene oxide.
- India does not use ethylene oxide as a pesticide but only as a sterilizing agent to reduce microbial load in finished spice goods.
- Countries have different standards for ethylene oxide and maximum residue levels (MRL)
- A quick export estimate data available with the spices board India shows that India enjoys a significant share in the global market for spices and spice products.
- Ethylene oxide is a man-made chemical that is used primarily to make ethylene glycol. A small amount (less than 1%) is used to control insects in some stored agricultural products and a very small amount is used in hospitals to sterilize medical equipment and supplies. It mainly impacts human central nervous system depression and irritation of the eyes and mucous membranes.
3. Warming climate intensifies flash droughts worldwide
- Sudden and severe dry spells known as flash droughts are rising in intensity around the world with a notable exception in Mountaineers Central Asia where flash drought extent is shrinking.
- Heat and changes to precipitation patterns caused by a warming climate are driving these trends according to a study.
- South America particularly southern Brazil and the Amazon is experiencing strong intensification in all three dimensions of flash drought.
- A considerably long dry spell with significantly low precipitation anomalies during the monsoon results in an increase in air temperature. Increased air temperature and precipitation deficit together cause a rapid depletion of soil moisture leading to flash drought.
4. Brazil, EU urge India to give timely notices on sugar subsidies in WTO
- A group of WTO member countries including Brazil Canada and the European Union have urged India to submit timely notification on sugar subsidies in the world trade organisation.
- These countries are also major sugar exporters like India and they allege that support measures by India distort global sugar trade.
- Brazil, Canada, Costa Rica, Paraguay, New Zealand and the European Union along with Guatemala have urged India to submit timely notifications on the subsidies.
- India has stated that the central and state governments neither paid for nor procured sugar cane from farmers as all purchases were made by private sugar mills hence this information was not included in its notification of domestic support.
- This allegation follows a previous one from 2019 when Brazil, Australia, and Guatemala initiated a dispute against India at the WTO, alleging that India’s sugar subsidies are inconsistent with global trade rules. Consequently, a WTO panel in 2021 confirmed the claims, however, India appealed the findings and prevented the panel’s report from being adopted by the WTO’s Dispute Settlement Body.
5. LTCG liability
- Long term capital gains liability on the sale or transfer of any capital asset is expected to be lowered this year as the cost inflation index has been fixed at 363 which is a rise of 4.3% from 348 of last financial year.
- The Centre Board of direct taxes has notified the index and said that it will come into force with effect from April 1st 2025.
- The cost inflation index is a way to calculate inflation. Indexation is used to adjust the purchase price of an investment to reflect the effect of inflation on it.
- CII number is used to adjust the purchase price of assets on the basis of inflation. The CII number helps an individual to ascertain the inflation-adjusted current price of an asset. This helps in calculating capital gains from a transfer or sale of capital assets after taking inflation into account.
ONE LINER
- Tamil Nadu leading the country in higher education and 34% rise in student enrollment due to Pudumai Pen scheme – Tamil Nadu Government
- The 2024 AI summit at Seoul was co- hosted by the South Korean and British Government
