The USA’s steep 50 per cent tariffs on Indian goods entering America will severely impact exports and job creation in labour-intensive export sectors such as shrimp, apparel, leather and gems and jewellery.
To extend support to exporters amid additional tariffs by the United States, the government is trying to speed up the rollout of the export promotion mission, a government official said on Thursday. The remarks come a day after the US imposed a total of 50 per cent tariffs on Indian shipments. The official said that exporters have sought help on the liquidity front and all issues are under consideration of the government.
“Export diversification, new free trade agreements, rollout of export promotion mission and growing domestic market will help provide cushion to Indian exporters from the impact of US tariffs,” the official said.
“The government is seized of issues being faced by exporters, and positive work is going on to help them,” the official said.
The official said diversification of exports “will help exporters sustain trade trajectory in the long run”.
India-US Bilateral Trade
When asked to comment on the proposed India-US bilateral trade agreement, the official said that things are expected to get back on the table soon.
However, the official added that the new dates for the next round of negotiations for the trade agreement have not yet been finalised.
Nirmala Sitharaman Assures Full Govt Support
Meanwhile, Finance Minister Nirmala Sitharaman on Thursday assured an exporters’ delegation that the government will do everything to safeguard their interests amidst high US tariffs.
The assurance was given to a delegation of the Federation of Indian Export Organisations (FIEO) led by its President SC Ralhan.
Steep 50% Tariffs To Impact These Sectorsย
The USA’s steep 50 per cent tariffs on Indian goods entering America will severely impact exports and job creation in labour-intensive export sectors such as shrimp, apparel, leather and gems and jewellery.
Exporters said that the imposition of a 25 per cent penalty on India over and above the 25 per cent tariffs move will disrupt the flow of Indian goods to its largest export market.
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With PTI Inputs