Govt committed to safeguard exporters' interests, says Piyush Goyal

Government pledges policy interventions and trade support to ease impact of 50% US tariffs

Commerce and Industry Minister Piyush Goyal on Wednesday assured exporters that the combination of ‘ease of doing business initiatives’, ‘targeted trade support’, and ‘timely policy interventions’ will be put in place to mitigate the impact of the 50 per cent tariff imposed by the United States (US) on several Indian products.

 

The minister chaired a meeting with export promotion councils and industry associations on Wednesday, to address the rising global tariffs, explore solutions, and chart a path forward amid the shifting trade dynamics.

 

Top officials from the department of commerce also attended the meeting.

 

The minister emphasised on the government’s ongoing efforts to find long-term solutions to deal with the current scenario and urged exporters to upgrade product quality, align with global standards, diversify supply chains, and explore alternative markets. 

 

 

“There was a broad consensus on the need for alternative mechanisms, with the government committed to addressing sectoral concerns and driving sustained export growth,” the department of commerce said in a statement.

 

“Goyal reaffirmed the government’s unwavering commitment to safeguarding the interests of Indian exporters amidst the evolving global trade scenario. He assured industry representatives that the government is actively engaged in creating an enabling environment to help exporters navigate recent challenges,” the statement said. 

 

Exporters and the industry representatives shared the challenges due to the steep additional tariffs, their impact on the competitiveness of Indian goods in key international markets, and the need for targeted, sector-specific interventions. It is learnt that Indian exporters also urged the government to step in and share the burden of the additional cost due to the imposition of the 50 per cent tariff by the US. They also sought support to roll out schemes under the proposed Export Promotion Mission (EPM) at the earliest.

 

Export Promotion Mission worth ₹2,250 crore was announced in the Union Budget in February for the current fiscal but has not been rolled out yet.

 

The government officials said consultations with the finance ministry regarding the scheme are still on.

 

Various schemes have been designed under the Mission to include the World Trade Organization-compliant interventions, focusing on trade finance and making market access easier for exporters.

 

The government is also working on measures to tackle the liquidity-related challenges by small exporters in labour intensive sectors and prevent stress on the working capital, protect employment and allow exporters to sustain operations until new markets are tapped. Among the most vulnerable sectors are textiles and apparel, gems and jewellery, leather and footwear, chemicals and engineering goods, and agriculture and marine exports.

 

Engineering Export Promotion Council of India Chairman Pankaj Chadha said that we have urged the government to roll out the Export Promotion Mission at the earliest and to also include schemes such as the interest subvention scheme and Market Access Initiative under the mission.