PM Modi Meets Exporters Amid Jitters in Sector; India Eyes Alternate Markets to Boost Trade

With the export sector taking a massive hit from the US reciprocal tariffs, Prime Minister Narendra Modi on Monday held a high-level meeting with export bodies to discuss ways to revamp India’s export competitiveness, media reports said. The meeting comes against the backdrop of a massive decline in India’s shipments, especially in sectors including gems and jewellery, textiles, and agriculture.

“Exporters say the pain is most acute in labour-heavy industries, those that also hold high political sensitivity in states like Tamil Nadu, Gujarat, and Bihar,” according to reports.

Who Were at the Table for Talks?

According to a report by The Times of India, the meeting was held between representatives of the textiles and apparel, seafood, engineering, leather, and gems and jewellery sectors. Kirit Bhansali, chairman of the Gems and Jewellery Export Promotion Council, urged the government to ease credit flows along with amending the Special Economic Zones Act and overhauling the Customs Act. The industry bodies have raised their concerns across ministries and the Reserve Bank of India and await relief from the authorities.

Tapping Alternate Markets

The government has advised exporters to diversify market access, likely shifting focus to Europe, West Asia, and Africa to offset losses from the US market. Officials have geared up trade talks with the European Union, New Zealand, and Chile, which are expected to yield a mutually beneficial pact in the next few months. “FTAs are India’s best route to maintain export momentum,” TOI said, citing a senior official.

Logistics and Capital Costs Continue to Erode Competitiveness

In a separate meeting, the Federation of Indian Export Organisations (FIEO) sought relief on Quality Control Orders (QCO), seeking loan moratoriums and fiscal support. FIEO flagged the issue to Finance Minister Nirmala Sitharaman, arguing that the QCOs are delaying imports of critical inputs. They also demanded a resolution for goods purchased before the Goods and Services Tax (GST) cuts due to input tax credit mismatches.

Export Mission 2025

According to media reports, the Commerce Department is seeking an ambitious Export Mission to tackle structural inefficiencies, which was proposed in the FY26 Union Budget. According to TOI, the plan has cleared most consultations and could be unveiled in the coming weeks. “We’re almost through the clearances,” Commerce and Industry Minister Piyush Goyal told exporters last week.