Piyush Goyal stresses need for export diversification amid tariff heat

At a meeting with exporters, Goyal reviewed FTA talks with EU, Chile and New Zealand, and discussed challenges from US tariffs and quality control orders

Don't want to miss the best from Business Standard?

Commerce and Industry Minister Piyush Goyal held discussions with exporters and the industry on key issues, including the ongoing advanced free trade agreement (FTA) talks with the European Union (EU), Chile and New Zealand, and the challenges pertaining to the quality control orders (QCOs).

 

Goyal reiterated the need to focus on diversification of the export market, considering the current volatile geopolitical environment and higher tariffs imposed by the US on several Indian products.

 

The discussion took place as Goyal chaired a meeting with export promotion councils (EPCs) and industry associations at Vanijya Bhawan on Wednesday evening.

 

An industry official, who attended the meeting, said that the minister wasn’t too glad with the export market diversification being made and suggested that more efforts be made on that front.

 

“One of the positive aspects of the higher US tariff is that companies are looking to diversify. We are also seeing some improvement in some sectors such as marine products, where exports are being diverted to regions other than the US,” said Ajay Sahai, director general (DG) and chief executive officer (CEO), Federation of Indian Export Organisations (FIEO).

 

“However, the problem has compounded because of the aggressive approach of China elsewhere (offering deep discounts),” Sahai said, adding that the industry is hopeful that the new FTAs that India is on the verge of signing will accelerate the pace of diversification.

 

During the meeting, the Directorate General of Foreign Trade (DGFT) and the Department of Commerce made detailed presentations on the major reforms undertaken during the first half of 2025-26 (H1FY26), upcoming reform measures aimed at facilitating exports, and the export performance during the period.

 

For instance, during the meeting, senior officials from the commerce department pointed out the next phase of automation of authorisations or licences to reduce manual interventions and improve compliance efficiency. They also pointed out other major reforms that are in motion, including the work on e-commerce export hubs, the proposed Export Promotion Mission to safeguard MSMEs (micro, small, and medium enterprises), and labour-intensive sectors, while preparing for a $2 trillion export vision.

 

“The discussions focused on issues and challenges faced by the industry, achievements in export diversification, and the views and expectations of stakeholders for further promotion of exports from the country,” an official statement issued by the commerce department on Thursday said.

 

On the other hand, EPCs and the industry continued to urge the government for some support and intervention to deal with the US tariffs.

 

The meeting took place at a time when the industry has been grappling with the steep 50 per cent tariff imposed by the US on several Indian products since August. During the first six months of the financial year – April-September – India's goods exports rose to $220.12 billion from $213.68 billion a year earlier. However, this was mainly because exports to the US were being frontloaded. The real impact on trade and whether diversification is taking place will be clear October/November onwards, government officials had said in the past.