Commerce Minister Plans Meeting with Exporters Amid Rising Tariffs
New Delhi, April 6 (PTI) – Union Commerce and Industry Minister Piyush Goyal is set to meet with exporters on Wednesday, April 9, to discuss the challenges faced by Indian traders following the recent announcement of a 26% increase in tariffs by the Trump administration. This meeting aims to address the concerns of the export community as they navigate these new trade hurdles.
Key participants in the discussion will include senior officials from the commerce ministry, alongside representatives from export promotion councils and the Federation of Indian Export Organisations (FIEO), as highlighted by an industry source.
In light of the tariff increase, one exporter emphasized the need for government support in the form of financial incentives, especially for Micro, Small, and Medium Enterprises (MSMEs), which could suffer from the potential decline in U.S. demand for Indian goods.
This significant tariff hike is expected to start affecting market demand as soon as May, indicating potential challenges ahead for exports.
An industry representative further noted that the broad increase in duties across the globe could lead to higher costs for U.S. consumers, which may, in turn, reduce demand for various products not only in the United States but also in other countries.
Additionally, calls for financial assistance were made, suggesting that interest subsidies should be provided to exporters to help them access credit at lower rates.
Currently, the United States represents about 18% of India’s total goods exports, highlighting the critical importance of this market. However, concerns have arisen as exports have seen a decline for four consecutive months, primarily due to uncertainties in the global economy.
For the fiscal year 2024-25, India’s merchandise exports reached approximately USD 395.63 billion from April to February, slightly increasing from USD 395.38 billion in the same period last year. Service exports also showed growth, valued at USD 354.90 billion compared to USD 311.05 billion during the previous year.
Specific sectors, including shrimp, carpets, medical devices, and gold jewelry, are expected to feel the adverse effects of the new U.S. tariffs.
