Centre forms panel to review export duties, GST, and clearance processes.
Committee to suggest reforms, ease logistics, and adopt global best practices.
US tariffs at 50% spur India’s export diversification, brand promotion drive.
₹20,000 crore Export Promotion Mission to boost credit and counter trade barriers.
Amid a global trade uncertainty, the Centre has set up a committee to examine the effect of customs duties, export incentives and refunds as well goods and services tax and export clearance procedures on India’s outgoing shipments.
According to an Economic Times report, the committee which comprises senior officials from the Ministry of Commerce and Industry as well as of Finance, trade bodies will suggest solutions in order to ease documentation, customs processes, port clearances and logistics.
Commenting regarding the same, an official said, "The committee will look at export-related tax structure and customs clearances for all geographies and see where all easing can be done.”
In the month of June, India’s goods exports reduced 0.05% year-on-year to $35.14 billion, a seven-month low. On the other hand, the country’s imports fell 3.71% to $53.92 billion, thereby leaving a trade deficit of $18.78 billion as compared to the $20.84 billion in June 2024.
The committee will identify challenges, study global best practices and propose reforms to streamline the export processes, in addition to examining the tax and export clearance issues faced by the domestic manufacturing industry. The setting up of the committee comes at a time when the US has hit 50% tariffs on India and the government is thereby working on a three-pronged strategy to face the onslaught.
On Wednesday, US President Donald Trump signed an executive order doubling the tariffs on US' imports from India to 50%, thereby escalating trade tensions between the two countries.
While the initial 25% duty came into effect Thursday, the additional 25% is effective August 27.
India's plan includes offering tailor-made schemes under the proposed Export Promotion Mission to help the affected sectors, diverting goods to other geographies and identifying products with fewer export orders that can be diverted to meet the domestic demand, the ET report stated.
The commerce and industry ministry has requested exporters to build and promote homegrown brands for coping with the steep tariffs.
The government is also working on a ₹20,000 crore long-term plan by September to shield exporters from global trade uncertainties and fluctuations, by bringing forth easy access to export credit and tackling non-tariff barriers in overseas markets, under the new Export Promotion Mission.
