The commerce ministry on Thursday assured domestic exporters, particularly those in labour-intensive sectors like leather and textiles, to protect their interests amid the US tariff threats.
Allaying concerns of the industry over the US tariff threats, Commerce and Industry Minister Piyush Goyal called on the EPCs (export promotion councils) to reflect on their strengths and share their demands and interests with the government for better engagement with the US
The commerce ministry on Thursday assured domestic exporters, particularly those in labour-intensive sectors like leather and textiles, to protect their interests amid the US tariff threats.
Allaying concerns of the industry over the US tariff threats, Commerce and Industry Minister Piyush Goyal called on the EPCs (export promotion councils) to reflect on their strengths and share their demands and interests with the government for better engagement with the US.
The issues related to the country's exports were discussed during the virtual meeting chaired by Goyal.
"Held a stakeholder consultation meeting with Export Promotion Councils and Industry Associations to discuss strategies for strengthening India's export ecosystem.
"The optimism among our industry stakeholders in transforming global challenges into opportunities is truly encouraging. With an evolving global trade landscape, we explored ways to expand into new markets and strengthen competitiveness to drive India's export growth," the minister said in a post on X.
Sectors like steel flagged concerns over the possible impact of US tariffs on exports. Commerce Secretary Sunil Barthwal and Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi also attended the meeting.
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One of the industry representatives, who participated in the deliberations, said that the ministry is working overtime on the proposed bilateral trade agreement with the US.
"The ministry assured that India's export interests will be protected," they said, adding that the industry was advised not to be overly protective as "reciprocity" is the new world order at present.
The discussion assumes significance as Goyal has recently returned from Washington after holding trade talks with his US counterparts.
The US has proposed to impose reciprocal tariffs from April 2. It has already imposed these tariffs on steel and aluminium.
Another industry official said the exporting community is concerned about the US threat to impose reciprocal tariffs as it could impact India's exports to America, which is its largest trading partner.
"Overall, in the meeting, most sectors stated potential opportunities for Indian exporters from this tariff war...we can look at imports which can be diverted from China to the US," an industry participant said, adding that India is expected to announce initiating free trade agreement talks with another developed country.
In the meeting, concerns were expressed about declining exports.
India's exports declined for the third month in a row in January, falling by 2.38 per cent year-on-year to USD 36.43 billion, while the trade deficit widened to USD 22.99 billion in the month.
Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said: "We are getting good orders from the US to India but actual dispatches are small in value in view of the uncertainty in tariff. We are waiting for tariff clarity".
Another exporter said there is also a need to look at dumping of goods by China in those countries, where India has a good market share in exports.
The apparel sector is suggesting a "zero for zero" tariff with the US to increase exports to American markets.
CHEMEXCIL (Basic Chemicals, Cosmetics & Dyes Export Promotion Council) Chairman Abhay Udeshi said that in the meeting, discussions were held on ways to push exports.
"We have suggested that certain petroleum products, which are not manufactured in India, can be imported," Udeshi said, adding the council urged the ministry for speedy issuance of environmental clearances as it would help double exports in the short to medium term.
The meeting was attended by representatives of export promotion councils and industry associations.
Meanwhile, the ministry said in a statement that reflecting on the changing global scenario, the minister has assured all the EPCs that the government is working on an overtime basis, and will leave no stone unturned to ensure a good future for Indian exporters, both merchandise and service and to protect the interest of the country.
On the ongoing efforts on bilateral agreements, the minister has stated that the government is concurrently acting on several tracks and each one of those tracks is aimed at ensuring the best interest of the Indian exporters, indicating that the government has reached the final stages in FTAs with a few.
"The minister was positive that it will lead to much better opportunities for Indian exporters and will also bring in higher investment," it said, adding that he has cautioned the EPCs to come out of their protectionist mindset and encouraged them to be bold and ready to deal with the world from a position of strength and self-confidence.
Informing that India is on the path to cross USD 800 billion this year with the major share of Services exports, the minister urged the merchandise exporters to remain ahead of the curve and increase their exports.
Additional increase in exports in the last fortnight will usher in the confidence of the exporters to try and aspire to cross USD 900 billion dollars exports in the coming year, the statement said.