Tariff Counter: Export Promotion Mission In Pipeline, Cabinet Nod Expected Soon, Say Sources
Subsidies alone may not be enough to help Indian exporters tackle tariffs as high as 50%, the sources said.
The government's proposed Export Promotion Mission is expected to move to the Union Cabinet for approval soon, people in the know told NDTV Profit. This comes amid pressure weighing on Indian exporters due to the 50% tariffs levied by the United States.
Subsidies alone may not be enough to help Indian exporters tackle tariffs as high as 50%, the persons privy to the development said. While such support can temporarily reset price points for businesses, sustaining them once the situation normalises will be difficult, they added.
On the Export Promotion Mission, the sources said that relief measures under it are likely to mirror the kind of assistance that exporters received during the Covid-19 pandemic period.
The mission, first announced in the Union Budget for 2025-26 by Finance Minister Nirmala Sitharaman with a Rs 2,250 crore allocation, is expected to focus on strengthening market access, diversifying India’s export destinations, and boosting the competitiveness of Indian goods in global markets.
Washington's 50% levy on products from India is now applicable. The government stands firmly behind Indian exporters, Sitharaman recently said, adding that a comprehensive support to sustain the economic growth will be extended. Liquidity-related demands will be met through the mission, she stated.
On FTAs With Australia And The Middle East
Talks are underway to fast-track the second tranche of India's free trade agreement with Australia, the sources added. New Delhi is open to making concessions for certain sectors in exchange for market access.
Officials see a significant opportunity of around $500 billion in the Australian housing market that Indian industry could tap into, particularly benefiting steel, cement, and infrastructure companies, alongside demand for skilled Indian labour.
India is also in talks with Middle East nations, stated sources, with Qatar and Bahrain expressing willingness to sign trade agreements.
Negotiations are also underway with several countries including the European Union, the US, Chile, and Peru, Commerce and Industry Minister Piyush Goyal said last week. He said the world is looking at India, and several developed economies are negotiating FTAs with us. The commerce ministry is engaged in these negotiations day in and day out, Goyal had said.
