“India re-iterated its keenness to get into the CMPA with USA, leading to a pathway under the IR Act,” the commerce department said in its year-end review for 2024.
The two sides inked an MoU on Critical Minerals Supply Chains in October, with the aim of leveraging their complementary strengths to ensure greater resilience in the critical minerals sector.
New Delhi expects the conversion of the MoU into a partnership agreement would give it the status of a free trade agreement (FTA) that would enable it to benefit from the EV tax credit that the US gives under its IRA.
The tax credit depends on critical minerals’ origins, requiring that a percentage of materials in EV batteries come from the US or countries with which the US has an FTA.
The access to the US EV tax credit of up to $7,500 per vehicle would attract substantial foreign investment and make large-scale manufacturing of components in India commercially viable.
As per the review, China has granted market access for Indian export of key fish species including Pampus chinensis (Chinese pomfret), Pampus argenteus (silver pomfret), and Scylla serrata (mud crab).
Besides, Russia has allowed the export of dairy products from the already listed two establishments and already listed five export establishments from India and one more establishment from India for export of egg products.
Trade pacts
The department also said that India is engaged in FTA negotiations with the UK, EU, Oman, Peru and Sri Lanka besides a Comprehensive Economic Cooperation Agreement.
The India-Sri Lanka Economic and Technology Cooperation Agreement negotiations are ongoing with the 14th round of negotiations concluded in July 2024.
“Except the track on goods dealing with specific lines pertaining to garments, negotiations on almost all chapters including services and Rules of Origin have been concluded,” it said in a statement.
The ongoing review of the Asean-India Trade in Goods Agreement (AITIGA) will target addressing injury to industries from the existing pact and the inequitable tariff liberalization by all the partner countries. The review is targeted to conclude in 2025.
Export credit
The Export Credit Guarantee Corporation of India (ECGC) has extended the scope of its Whole Turnover Export Credit Insurance for Banks (WT-ECIB) scheme to export credit working capital limits up to Rs 80 crore with effect from July 1 to reduce the export credit gap, according to the department.
This is expected to benefit about 1,000 new small exporters, in addition to the existing 8,000-odd by facilitating the availability of adequate and affordable export finance from banks for working capital.
The department also said that around Rs 954 crore were recovered as duty/interest from a one-time Amnesty Scheme for exporters to close the old pending authorizations under the Advance Authorisation/EPCG Schemes and start afresh.
