Amidst trade uncertainty, sources added that the government is mulling incentives for exporters and may take a decision in a month.
Though the government is yet to formulate the exact form of incentives to be given, sources indicated that the allocation in the Export Promotion Mission announced in this year’s Union Budget still has flexibility as it’s yet to be notified.
Read more: India in talks to reduce tariffs in bilateral trade agreement with US: Sources
With Commerce and Industry Minister Piyush Goyal slated to hold a meeting with exporters and Export Promotion Councils (EPCs) on 13th March, President of the Federation of Indian Export Organisations (FIEO) Ashwani Kumar said that the Minister may visit the US again for further trade talks.
Expressing hope for tariff reduction and clarity on preferential tariffs with a bilateral trade agreement (BTA) by the fall of 2025, FIEO’s DG Ajay Sahai said that Indian exporters would be seeking better concessions for their products in American markets and vice versa.
Describing reciprocal tariffs on other countries as an opportunity for Indian exporters, he pointed out that competition in non-US markets will grow as those deprived of exports to the US will become more aggressive.
However, he projected an opportunity of $25 billion worth of additional exports, presuming no additional tariff on India due to a potential BTA, adding that the government is in dialogue with exporters as it discusses with the US on what is to be offered in a trade deal.
He stressed on the focus of Indian exporters on labour-intensive sectors like apparel, textiles, footwear, gems and jewellery, pharmaceuticals, automobiles, and auto components, adding that such sectors are not just bringing in foreign exchange but also generating jobs in the domestic economy.
