CARGOCONNECT-AUGUST 2025 - Flipbook - Page 6
In FY25, India’s goods
and services shipments
reached a record high of
US$825 billion.
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India and the EU will hold the next
round of negotiations on the proposed
Free Trade Agreement (FTA) in
September here and both sides have
exchanged offers related to the
services sectors last week. The last (12th)
round of talks concluded in the second week
of July in Brussels. Separately, India expects
to reach some kind of conclusion on the review
negotiations of the existing FTA in goods with
the 10-nation Association of Southeast Asian
Nations (Asean) bloc before the Asean-India
Summit, scheduled for October.
A FTA in goods between India and
the 10-nation bloc Asean was
signed in 2009. The Asean trade deal
came into force in January 2010. In
August 2023, both sides announced
a complete review of the existing agreement in
goods by 2025. Asean as a group is one of India’s
major trade partners with about an 11% share
in the country’s global trade. India is asking for
a review to eliminate barriers and misuse of the
pact. Asean members include Brunei, Cambodia,
Indonesia, Laos, Malaysia, Myanmar, the
Philippines, Singapore, Thailand, and Vietnam.
India and the US are negotiating
a bilateral trade agreement. The
Indian team was in Washington for
the fifth round of talks for the pact.
Reportedly, India’s goods exports to
the US rose by 23.53% to US$8.3 billion in June
while imports dipped by 10.61% to about US$4
billion during the month. During April-June, the
country’s exports to the US increased by 22.18%
to US$25.51 billion, while imports rose 11.68%
to US$12.86 billion. The US emerged as the
largest trading partner of India in the April-June
quarter of 2025-26.
6 | CARGOCONNECT AUGUST 2025
China, another major trading
partner of India, saw a 17.18% jump
in exports from India to US$1.38
billion in June and a 17.87% growth
in April-June to US$4.4 billion.
Imports from the neighbouring country in June
rose by 2.48% to US$9.51 billion while in the
first quarter of 2025-26 by 16.33% to US$29.74
billion. Singapore, Germany, France, Brazil, and
Korea were also among the countries which saw
positive growth in exports from India during the
month under review.
After the implementation of the
agreement, India’s exports stood
at only about US$38-39 billion
annually, while imports from the
10-nation Asean bloc jumped to
US$86 billion. Asean countries have opened
fewer number of tariff lines or product
categories for India. India has offered duty
concessions on over 71% of the tariff lines to
Asean countries. Indonesia has opened 41% of its
tariff lines, Vietnam 66.5% and Thailand 67%.
India’s new EV policy gives import
duty benefits to businesses that
commit to local production and job
creation under the Make in India
initiative. This change focusses on
growing domestic
industries rather
than relying on
imports. In 2024,
India’s EV sales
surpassed 2 million
units. With a total
sales of 20,22,873 units of EV, India’s EV industry
hits record sales across all vehicle segments.
Reportedly, EVs accounted for 7.7% of overall
automobile sales in 2024. e-Goods Carrier is an
up-and-coming category gaining traction with a
Y-o-Y growth of 127.7%.
In 2024, the penetration of electric
vehicles in the cargo 3W category
reached an impressive 24.2%, up
from 22% penetration in 2023. EV
penetration in the passenger 3W
category more than doubled over the year,
reaching 20.8%. EV Penetration for 2Ws marked
a slight increase of 1.1%, making for 6.2% of
total 2W sales in India in 2024. EV penetration in
the 4W segment slightly increased, making for
2.5% of total 4W sales in India in 2024.
Electric three-wheelers are taking
on the job of delivering e-commerce
packages and providing transport in
cities and nearby areas. The people
behind these vehicles aren’t trying
to make a statement with electric models.
They are simply looking to cut fuel costs, avoid
constant repairs, and make better profits.
Recent predictions show India’s EV market could
expand five times to hit 15% by FY30. Right now,
commercial three-wheelers are leading the way
in EV adoption across India.
India is building its semiconductor
capabilities through the `76,000
crore India Semiconductor
Mission and the `23,000 crore
components incentive programme
announced earlier this year. India’s electronics
manufacturing is worth about US$145 billion
and that’s increasing at a CAGR of 20%. Looking
ahead, Tata Electronics’ chip assembly plant in
Assam is set to serve telecom manufacturers
worldwide, while Micron’s facility in Gujarat will
supply memory chips, and the CG plant which is
also in Gujarat will focus on power electronics.
