The authorities on Tuesday acknowledged it is taking steps, such as announcing an export promotion mission, to mitigate the affect of the steep US tariffs on domestic items.
In a written acknowledge to the Lok Sabha, Minister of Order for Commerce and Swap Jitin Prasada acknowledged it is anticipated that these measures will give a lift to diversification and resilience in India’s alternate relationships.
“The government continues to work to mitigate the impact of the US tariff measures on Indian exports through a comprehensive multi-pronged strategy encompassing intensive engagement with the US government for a mutually beneficial India-US Bilateral Trade Agreement,” he acknowledged.
He added that instant relief has been given thru alternate relief measures of the RBI and announcement of the Credit Guarantee Design for Exporters, enhancement of domestic search recordsdata from thru GST reforms, and negotiating free alternate agreements (FTAs) with contemporary worldwide locations.
On July 31 this one year, the US issued an executive suppose with reciprocal tariff rates for its trading partners. The suppose notified country-specific additional ad-valorem responsibility rates for distinct American trading partners, alongside side these which obtain agreed to, or are in the strategy of concluding alternate agreements with them.
These tariffs are in the fluctuate of 15-41 per cent, with the tariff on India being 25 per cent. It came into dwell on August 7. The US, on August 6, imposed an additional tariff of 25 per cent on India, citing its personal of Russian oil. The tariffs took dwell on August 27.
These tariffs notice to products in sectors such as textiles, handicrafts, leather, distinct agricultural objects, marine products and engineering items, the minister told.
Regarding the export promotion mission, Prasada acknowledged the mission will provide a complete, versatile, and digitally driven framework for export promotion, with a total outlay of Rs 25,060 crore for 2025-26 to 2030-31.
The Reserve Bank of India (RBI) has also initiated alternate relief measures for eligible affected exporters, alongside side provision for debt repayment moratorium and extension of tenor for export credit ranking, he added.
With an aim for promotion of export diversification, India has signed 15 Free Swap Agreements (FTAs) and six Preferential Swap Agreements (PTAs) with its trading partners.
“Government is working with all stakeholders to enable our exporters to better utilize the benefits of India’s FTAs with major markets such as Japan, Korea, UAE and effectively utilize the opportunities that have been created with the recently concluded FTAs,” he acknowledged.
The authorities is also engaged in negotiations for early conclusion of mutually helpful FTAs with the EU, Peru, Chile, New Zealand, and Oman.
“The government remains engaged with all stakeholders, including exporters, Export Promotion Councils, industry associations, and state governments to assess the evolving impact of the US tariff measures,” he acknowledged.
In a separate acknowledge, the minister acknowledged the Department of Commerce is actively engaged with all stakeholders, alongside side alternate associations of the affected sectors such as textiles and apparel, gemstones and jewellery, leather, marine, chemical substances and engineering items, to assess the evolving affect of the US tariff measures.
Continuous consultations are being held to amass suggestions, overview sector-specific stress and name both instant and structural interventions required to safeguard India’s alternate interests, he added.
“However, given the dynamic nature of the situation, the relatively short period of less than three months since the imposition of these tariffs and the multiple factors affecting economic outcomes, it is difficult to exactly isolate the impact of the US tariffs, if any, on the variables,” Prasada acknowledged.
India’s exports to the US elevated to USD 52.12 billion in some unspecified time in the future of April-October this fiscal one year from USD 47.32 billion in the identical length closing one year.
