Commerce Ministry To Meet Export Promotion Councils Today; Tariff Talks, Trade Issues On Agenda

The Commerce Ministry is set to meet with export promotion councils today at 4:30 p.m., as exporters are seen holding back due to prevailing tariff and trade uncertainties.

The meeting, which will happen virtually, will have Minister Piyush Goyal in attendance. The Commerce Ministry sponsors 14 such councils, including the Gem and Jewellery Export Promotion Council, Engineering Exports Promotion Council and Council for Leather Exports. All are expected to be in attendance on Thursday.

While the agenda of the meeting is not published, the talks will likely revolve around persisting issues, such as reciprocal tariffs, proposed India-US BTA, high compliance burdens around rules of origin in overseas markets and supply chain issues due to the ongoing trade war, according to people in the know, who spoke on the condition of anonymity.

Early trade indicators suggest that exporters, wary of potential tariff shifts, may have held back shipments, raising the likelihood of further contraction in February trade data.

Earlier this week, sources told us that the government is also working on implementing incentives worth Rs 2,250 crore for exporters to address declining outbound shipments. It is expediting the rollout of budget incentives aimed at bolstering export sectors.

Goyal is also likely to head to the US again soon, in a bid to resolve any concerns of threats of imposition of reciprocal tariffs by the US.