Goyal to assess US tariff impact with export promotion councils on Wednesday

New Delhi: As India intensifies efforts to recalibrate its global trade strategy, Commerce and Industry Minister Piyush Goyal is scheduled to hold consultations with representatives of all major export promotion councils on Wednesday to assess the implications of the recent US tariff hikes and explore the road ahead in trade talks with Washington.

The meeting, to be held in the national capital, is expected to focus on the current state of engagement over a proposed Bilateral Trade Agreement (BTA) and the emerging challenges Indian exporters face due to tightening regulatory and tariff measures imposed by the US, two people aware of the matter said.

Also read | India-UAE non-oil trade nears $100 billion under CEPA

According to the two people aware of the development, the interaction will focus on gathering sector-specific inputs and aligning industry feedback with the government’s negotiating position.

With US President Donald Trump’s administration adopting a reciprocal tariff policy and imposing an additional 26% duty on Indian goods effective 9 April, Indian exporters in key sectors such as textiles, engineering goods, chemicals, and gems and jewellery are seeking urgent clarity and support from the government. As the US presses trade partners to open their markets further, the Indian industry is increasingly looking to New Delhi for a coordinated response to safeguard export competitiveness and maintain trade momentum.

“The minister will take stock of the concerns raised by the councils and brief them on the contours of India’s engagement with the US,” said the first of the two persons mentioned above.

“Exporters are expected to flag key compliance hurdles and seek better access to the US market,” this person said.

India's exports to US may decline

According to a recently released report by the trade think tank Global Trade Research Initiative (GTRI), India could see a $5.76 billion or 6.41% decline in merchandise exports to the US this year (CY2025) following the Trump administration's reimposition of higher tariffs.

The study estimates a 6.4% decline in India’s overall exports to its top trading partner in the calendar year 2025, with key sectors such as gems and jewellery, marine products, electronics, and auto parts bearing the brunt of the impact.

“The issues facing the industry will be discussed, and a possible way forward to mitigate the impact of the reciprocal tariff is also expected to be taken up,” said the second person.

Also read |  Global South not responsible for environmental damage: Piyush Goyal

While no announcement is expected immediately after the meeting, the person said the interaction will help shape India's next moves in the ongoing bilateral discussions. “India is taking a calibrated approach. The idea is to engage constructively and secure a balanced outcome that helps both economies grow,” the second person said.

All senior officials of the commerce ministry are also expected to attend the meeting, which will serve as a platform for detailed consultations with export bodies across sectors.

The commerce ministry is also expected to hold follow-up discussions with specific sectors following the 9 April meeting as it prepares for the next formal round of talks with U.S. trade officials.

India has several Export Promotion Councils (EPCs) that work under the Ministry of Commerce and Industry to promote and support exports across various sectors. These include the Apparel Export Promotion Council, Engineering Export Promotion Council, Gem and Jewellery Export Promotion Council, Electronics and Computer Software Export Promotion Council, and Pharmaceuticals Export Promotion Council among others. 

Also read | Govt confident of economic rebound despite global challenges, says Piyush Goyal