The government is preparing a four-pronged strategy to strengthen India’s export performance, focusing on fast-tracking trade negotiations, improving ease of doing business, enhancing export competitiveness, and diversifying both exports and imports. The move comes as steep new US tariffs on Indian goods raise concerns across labour-intensive sectors.
Commerce Secretary Sunil Barthwal said the ministry is prioritizing:
- Improving export competitiveness
- Strengthening export promotion
- Diversifying products and markets
- Diversifying imports
Barthwal highlighted progress on trade agreements, noting that India has urged the UK to expedite approval of the Comprehensive Economic and Trade Agreement (CETA), signed on July 24. Talks with the European Union are also being accelerated, with both sides aiming to conclude negotiations by year-end. Discussions with Oman are nearly complete, while talks are advancing with New Zealand, Peru, and Chile. Review talks on the ASEAN free trade agreement in goods are also underway.
The renewed push follows the imposition of a 25% additional import duty by the US on Indian goods from August 7, with another 25% set to take effect on August 27, effectively doubling tariffs to 50%. Sectors such as chemicals, leather, footwear, textiles, and gems and jewellery are expected to be most affected.
Under export promotion, Barthwal said existing schemes will be strengthened, while efforts are on to reduce over-dependence on a handful of countries for imports. Currently, 50 countries account for more than 90% of India’s export basket, including Malaysia, Indonesia, Mexico, Italy, Belgium, Nigeria, Oman, and Poland.
On the tariff impact, officials said the ministry is in close discussions with export promotion councils and state governments to assess sector-specific exposure to the US and explore measures to support exporters.
