Government unveils 4-pronged plan to support exports

NEW DELHI: Commerce secretary Sunil Barthwal said on Thursday that government was engaged in talks for a bilateral trade deal with the US, with deliberations taking place at multiple levels, but added that the status of an American delegation visiting India for the next round of bilateral trade talks will be known closer to the scheduled date of August 25.

There has been uncertainty around the next round of talks after US President Donald Trump announced a 25% tariff on Indian exports from August 7, which will double from August 27 as penalty for government purchasing oil and arms from Russia.

While officials said imposition of an additional 25% levy from August 27 will depend on "geo-political developments" over next few days, Barthwal unveiled a four-pronged strategy focused on market diversification for exports and imports, making exports more competitive and strengthening export promotion.

A key element of the plan is signing more trade agreements, which will help improve market access, and also seek higher utilisation of concessions available under existing FTAs. Under the India-Australia ECTA, for instance, utilisation of concession is to the tune of 85% at present and Barthwal said the idea is to seek 100% utilisation.

He also said the proposed export promotion mission, announced in the budget, will be in place soon and even states were chipping in to improve competitiveness and remove disabilities.

The secretary also said government is working on targeting 50 countries, which account for 90% of exports, with focused strategies to diversify the destinations. A similar strategy for imports is also in the works, with agencies, such as Apeda, targeting shipments of farm products to more destinations.

The moves, in the works for a few months, were released as a package on Thursday, days after the US slapped India with 25% tariffs. While officials acknowledged that there will be some sectors that will be adversely hit, they sought to play down the overall impact. "Exporters may face some challenges, but they are also looking at possibilities of diversification," an official said.

Stay informed with the latest business news, updates on bank holidays, public holidays, current gold rate and silver price.