US tariffs impact: Govt is expediting export promotion mission to help exporters, says official
The Indian government is expediting its export promotion mission to assist exporters issues amid hiked tariffs by the US. An official stated that diversification of exports will support long-term trade sustainability.
US tariffs impact: The Indian government is trying to expedite rollout of its export promotion mission to help exporters, an official told PTI on August 28.
“Exporters have sought help on liquidity front, the issue is under consideration. The government is seized of the issues being faced by exporters, positive work going on to help them,” the government official stated.
Speaking to the news agency, the official added that the diversification of exports will help exporters sustain trade trajectory in long run.
Donald Trump's tariffs on Indian imports into the US, have doubled from 25 per cent since April, to 50 per cent from August 27, after he imposed “punishment” for oil purchases from Russia amid the Ukraine invasion.
‘Positive work is underway to best implement industry suggestions’
Meanwhile, speaking to ANI, an official with the Commerce Ministry also confirmed that the promotion mission will be expedited, added that the government is hearing concerns from the industry and is working to best implement suggestions to mitigate impact of the US tariffs.
“It is an understood thing that 50 per cent tariffs are going to impact trade. There will be an impact on the textile, chemicals and machinery sectors in the short run, but it will not be a very long-term loss,” the official said.
On the industry's reaction, they added, “The industry is worried; they have been sending representations. The industry has pointed out that in the short run, their orders will face slow down, they will face a liquidity crunch. They will be under financial strain to run their operation. They have been writing to the government to help them meet this liquidity crunch in the short run.”
He added that the government aims to support the industry, stating, “Positive work is underway to determine the best way to implement their suggestions. Their suggestions are on the govt's agenda. We are trying to expedite the rollout of the Export Promotion Mission (EPM) as soon as possible, so that it will give some impetus and support to the industry. We need to create resilient supply chains, whether these are export supply chains or import supply chains. Every challenge or crisis, is a new opportunity. So it's a wake up call for industry, for governments, everybody, to see how we can diversify our exports…”
FM Sitharaman holds inter-ministerial meet on exporters
Finance Minister Nirmala Sitharaman on August 28 held an inter-ministerial meeting to discuss possible support measures for exporters to cushion them against the impact of US tariffs, sources told PTI.
Senior officials from different ministries including finance, commerce, textiles, MSMEs, chemicals, and fisheries attended the meet, they said.
The sources said that during the meeting, Sitharaman sought feedback from senior officials and discussed support measures which can be considered for exporters.
Earlier in the day, apex exporters' body Federation of Indian Export Organisations (FIEO) said that the finance minister has assured them that the government stands firmly with them in this challenging time and is committed to addressing their concerns, while exploring every possible avenue to safeguard their interests amidst high US tariffs.
They apprised her of the challenges faced by Indian exporters due to the recent escalation of tariffs imposed by the US.
India's counter to Trump's 50% tariff
Earlier on August 27, an official told PTI that India plans to counter the US' hiked 50 per cent tariffs on textiles, through dedicated outreach programmes in 40 countries. It would be a “targeted approach”, positioning India as a “reliable supplier of quality, sustainable, and innovative textile products”.
The official added that these 40 countries include, Australia, Belgium, Canada, France, Germany, Italy, Japan, Mexico, Poland, Russia, Spain, South Korea, Turkiye, the Netherlands, the United Arab Emirates, and the UK.
Notably, India already has export ties with more than 220 countries. However, the 40 importing countries listed for outreach hold the real key to diversification. This official had stated that India's Export Promotion Councils (EPCs) would be the “backbone” in the diversification strategy.
(With inputs from Agencies)