Business Across Borders 2022

15 2. Bilateral treaties to diversify and expand export markets India has always endeavored to engage in regional and bilateral trade agreements to expand its export markets while ensuring access to the raw materials for its value-added domestic manufacturing. India’s new model of BITs (Bilateral Investment Treaties) was published in 2016, which replaced the previous model: Bilateral Investment Promotion Agreement -2003. Under BIT 2015, India has given a notice of termination of its existing BITs to 75 countries. Currently, India is having 11 BITs, out of which 7 are signed under the force category & 4 are not in the force category. Bilateral Investment Treaties (BITs) signed subsequent to the adoption of Model BIT text 2015 • BIT between India and Kyrgyz Republic, 14 June 2019 Bishkek • Investment Cooperation and Facilitation Treaty (ICFT) between India and Brazil, 25 January 2020 New Delhi • Joint Imperative Notes (JIN) with Bangladesh, 4 October 2017 at Dakha • BIT with Belarus, 24 September 2018 at Minsk • Joint Imperative Declaration (JID) with Colombia, 4 October 2018 at Bogota • Bilateral Investment Agreement (BIA) between India Taipei Association (ITA) and Taipei Economic and Cultural Centre (TECC), 18 December 2018 at Taipei 3. Reconfiguration of the global supply chain China’s dominant role as the world’s factory implies that any major disruption puts global supply chains at risk. Hence, many global companies are now planning to extend their supply networks and activate alternate sources of supply, update inventory policy and planning parameters, enhance inbound materials visibility, focus on production scheduling agility and evaluate alternative logistics options. India can play a significant role in reshaping supply chains and could contribute more than US$ 500 billion in annual economic impact to the global economy by 2030. In this endeavor, various government measures like Production-linked Incentive (PLI) scheme, focus on ‘Making India for Global’ can help establish the country as a global manufacturing hub. Key challenge faced by Indian exporters While India aspires to enhance its position in the global supply chain, exporters are facing some challenges, which are impeding exports from scaling to the new heights. High cost & shortages of containers are the major challenges faced by exporters. Higher cost & shortage of containers Based on India Exim Bank’s report on ‘Impact of Covid-19 on India’s International Trade: Strategies and Policy Perspective’ has indicated multiple issues that the shipping industry is facing - (i) Inventory and space issues with reduced available capacity, (ii) congestion at ports, (iii) exorbitant freight rates (iv) on-time container allotment & bookings (v) acute shortage of containers leading to congestion and increased processing time at various Indian ports (vi) higher turnaround time leading to delays in shipments & payment for exported goods. Dun & Bradstreet