Union Minister of Commerce and Industry Piyush Goyal (file photo)
| Photo Credit:
ANI
Pushed by demands for deep discounts by US buyers who have put orders on hold after reciprocal tariffs of 26 per cent kicked in on April 9, Indian exporters on Wednesday sought government support to offset some of their disadvantages till the India-US bilateral trade agreement (BTA) is signed.
Commerce & Industry Minister Piyush Goyal, who met representatives of various export promotion councils on Wednesday, asked exporters not to panic and look at the “silver lining” assuring them that his team, working on the BTA was exploring the right mix and the right balance, per a government release issued after the meeting.
An exporter who attended the meeting said that Goyal warned them against flouting rules and routing their exports to the US through some other country that attracted lower reciprocal tariffs, and also not allow the reverse to happen. “The Minister said that no matter what, Indian exporters must abide by the rule book,” the exporter said.
Exporters shared their concerns with the Minister and asked the government for support.
“Most orders from the US have been put on hold as buyers are doing their own calculations to see how they will fund the reciprocal tariffs. It is only after 10-15 days that the situation will be clear and orders will start flowing in. Importers will surely expect at least some discount. Till the time the BTA was signed and the reciprocal tariffs reversed, exporters said the government had to help them stay in business,” a source tracking the matter told businessline.
Some exporters called for immediate restoration of the interest equalisation scheme (IES) for exporters (that lapsed December-end) at a higher rate of 5 per cent and extension of the Remission of Duties and Taxes on Export Products beyond September 30 to help them stay in the race, a source close to the development told businessline.
The US is India’s largest export market with exports in FY 24 at $77.51 billion and imports at $42.19 billion.
The Minister pointed out that different countries were approaching the tariff imposition differently. “As far as India is concerned, there is a potential for an increase in manufacturing and creation of additional jobs because it can attract big players in the global supply chain as India has been able to establish itself as a trusted and reliable partner and with a predictable business friendly destination,” the release said.
India’s Asian competitors like Bangladesh, Vietnam, Indonesia and Cambodia have been slapped higher reciprocal tariffs than India by the US and many of them are also looking for pacts with the US.
The Minister complimented the exporters and the industry for achieving the highest ever export of above $ 820 billion in the fiscal 2024-25 which is nearly 6 per cent growth over previous fiscal year. The Commerce Department is expected to officially announce the trade data for fiscal 2024-25 next week and goods exports is likely to be almost at the same level as the previous fiscal going by the performance of the first eleven months.
Published on April 9, 2025
