Hours after US President Donald Trump announced a 25 percent tariff on Indian exports, the Indian government began engaging with exporters to assess the impact and consider support measures. The commerce department quickly initiated consultations to reassure exporters while urging them to explore new international markets.
A meeting led by Rajesh Agarwal, Special Secretary in the commerce department, saw exporters recommend swift government action to soften the blow of the US tariffs. “There is low-hanging fruit the government can address immediately,” said a source from an export promotion council.
Among the key suggestions was the urgent launch of the export promotion mission, announced earlier in the Union Budget but yet to be implemented. The scheme includes marketing support and help in dealing with trade barriers. The total budget allocation stands at a little over ₹4,000 crore for the current financial year, though officials are hopeful this could be increased.
The government is also considering speeding up reforms to special economic zones. These changes would support exporters and improve capacity utilisation by making it easier to sell within the domestic tariff area.
Exporters also stressed the need for financial relief in the form of interest subsidies to counter immediate order losses and potential cash flow issues. Faster processing of duty drawback claims and GST refunds was another major demand, aimed at ensuring sufficient liquidity for businesses.
While businesses have expressed concern about the specifics of the proposed US penalty, Indian officials said they are still waiting for further clarity on the matter.
Some exporters believe that a swift bilateral trade agreement with the US would help minimise market disruptions. Industry leaders are optimistic that upcoming trade discussions, scheduled to begin on 25 August, may lead to a favourable outcome.
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