Direct flights between Kolkata and China's Guangzhou resumes
Kolkata (PTI): After a hiatus of over four years, direct commercial air services between Kolkata and mainland China's Guangzhou city resumed on Sunday with the first flight taking off from the Netaji Subhas Chandra Bose International Airport here at 10 pm, an official said.
The A320 neo aircraft of private carrier IndiGo flew off from the airport with 176 passengers, the official said.
Direct flights were operational between the two countries till early 2020 before being suspended due to the coronavirus pandemic. The services remained suspended in view of the eastern Ladakh border row.
Private carrier IndiGo resumed direct commercial passenger flight services to China, connecting Kolkata to Guangzhou with daily non-stop flights, following recent diplomatic initiatives.
The occasion was marked by a brief ceremony at the airport, where the lighting of the ceremonial lamp was done by one of the passengers, symbolising the spirit of renewed friendship and cooperation between India and China, an official said.
NSCBI Airport Director P R Beuria, along with officials from the Airports Authority of India (AAI) and IndiGo Airlines, were present at the event.
Beuria said that the revival of this direct route would not only strengthen business and tourism ties but also provide greater convenience to passengers traveling between the two major cities.
The resumption of the daily direct connection between Kolkata and Guangzhou will further reinforce the West Bengal capital's position as a key international aviation hub in eastern India, officials said.
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India proposes preferential trade agreement with Mexico to deal with high tariffs
New Delhi (PTI): India has proposed a preferential trade agreement (PTA) with Mexico to help domestic exporters deal with the steep tariffs announced by the South American country, a top government official said on Monday.
Mexico has decided to impose steep import tariffs - ranging from about 5 per cent to as high as 50 per cent on a wide range of goods (about 1,463 tariff lines) from countries that do not have free trade agreements with Mexico, including India, China, South Korea, Thailand and Indonesia.
Commerce Secretary Rajesh Agrawal said that India has engaged with the country on the issue.
"Technical level talks are on...The only fast way forward is to try to get a preferential trade agreement (PTA) because an FTA (free trade agreement) will take a lot of time. So we are trying to see what can be a good way forward," he told reporters here.
While in an FTA two trading partners either significantly reduce or eliminate import duties on maximum number of goods traded between them, in a PTA, duties are cut or removed on a limited number of products.
Trading partners of Mexico cannot file a compliant against the decision on imposing high tariffs as they are WTO (World Trade Organisation) compatible.
The duties are within their bound rates, he said, adding that their primary target was not India.
"We have proposed a PTA because its a WTO-compatible way forward... we can do a PTA and try to get concessions that are required for Indian supply chains and similarly offer them concessions where they have export interests in India," Agrawal said.
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Citing support for local production and correction of trade imbalances, Mexico has approved an increase in MFN (most favoured nation) import tariffs (5-50 per cent) with effect from January 1, 2026 on 1,455 tariff lines (or product categories) within the WTO framework, targeting non-FTA partners.
Preliminary estimates suggest that this affects India's around USD 2 billion exports to Mexico particularly -- automobile, two-wheelers, auto parts, textiles, iron and steel, plastics, leather and footwear.
The measure is also aimed at curbing Chinese imports.
India-Mexico merchandise trade totalled USD 8.74 billion in 2024, with exports USD 5.73 billion, imports USD 3.01 billion, and a trade surplus of USD 2.72 billion.
The government has been continuously and comprehensively assessing Mexico's tariff revisions since the issue emerged, engaging stakeholders, safeguarding the interests of Indian exporters, and pursuing constructive dialogue to ensure a stable trade environment benefiting businesses and consumers in both countries.
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Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai has said that Mexico's decision is a matter of concern, particularly for sectors like automobiles and auto components, machinery, electrical and electronics, organic chemicals, pharmaceuticals, textiles, and plastics.
"Such steep duties will erode our competitiveness and risk, disrupting supply chains that have taken years to develop," Sahai said, adding that this development also underlines the little urgency for India and Mexico to fast-track a comprehensive trade agreement.
Domestic auto component manufacturers will face enhanced cost pressures with Mexico hiking duties on Indian imports, according to industry body ACMA.
