Two developments since last few days give some hope to salvage the heat of the current global tariff war. The first is our government’s decision to roll out new export promotion schemes at this critical time when the exporters are under mounting pressure from global trade uncertainties and the second is Commerce and Industry Minister Piyush Goyal upcoming visit to the US to negotiate with US Trade Representative Jamieson Greer and US Commerce Secretary Howard Lutnick.
We are already seeing signs of the looming threat of tariffs from the Donald Trump administration which has begun to severely impact our export sector, and we hope the government’s proactive approach will provide the much-needed cushion for exporters. In February itself our exporters have already taken a hit due to the threat of tariffs, and the situation could worsen once the US starts imposing reciprocal tariffs from April 2.
The new schemes will be finalized within a month and will include adequate flexibilities to help exporters navigate potential trade barriers imposed by the US. The schemes will be part of the ₹2,250 crore Export Promotion Mission announced in this year’s budget.
It is a well-thought-out move that reflects the government’s commitment to safeguarding India’s trade interests. An inter-ministerial panel comprising officials from the Ministry of Commerce, Finance, and Micro, Small and Medium Enterprises (MSMEs) is already working on structuring these support schemes.
Additionally, this comprehensive approach will give our exporters a strategic edge in the global market. The pressure on our exporters is undeniable, especially with the US and the European Union adopting aggressive trade policies.
The government’s swift may play a key role in preventing further disruption and Piyush Goyal’s US visit could not have come at a better time. Considering this is Goyal’s second visit within a month, it underscores the urgency of resolving trade tensions. We may be optimistic that the schemes which the government is mulling will provide Indian exporters with the financial and logistical support needed to navigate an increasingly complex global trade environment. All the while, my hopes are pinned on the Commerce and Industry Minister’s US visit to bring back some good news.
