- India should finalize a trade deal with the US promptly to ease tariff impacts
- US tariffs on Indian goods have risen from 3% to 18%, affecting exports
- Tariff parity is urged for gems and jewellery with Mexico, Canada, and Switzerland
A parliamentary panel has recommended that India conclude a trade deal with the US at the earliest, while calling for measures to cushion Indian exporters from higher tariffs and improve their competitiveness in the American market.
The panel said elevated tariffs on India are affecting the Indian economy and recommended a series of steps covering gems and jewellery, chemicals, aquaculture, textiles, auto components, pharmaceuticals and services. It also called for closer monitoring of US tariffs and measures to support debt-stressed exporters.
Panel seeks early India-US trade deal
The panel has recommended that India conclude a trade deal with the US at the earliest. It said tariffs on India have risen to 18% from 3%, affecting the Indian economy.
The panel also recommended tariff parity with Mexico, Canada and Switzerland for India's gems and jewellery sector.
It urged the government to launch a state-backed export invoice discounting window for debt-stressed MSME jewellers.
For chemicals, the panel recommended using India's Rs 7,580-crore trade surplus to negotiate duty cuts on petrochemicals and agrochemicals affected by tariffs.
Measures proposed for exporters
The panel recommended the swift rollout of Turtle Excluder Devices, or TEDs, on trawlers to overturn the US ban on wild shrimp.
It also called for an end to India's dependence on the US for aquaculture inputs through a Self-Reliance Scheme.
The panel recommended an emergency compensation mechanism to cover price cuts forced on MSMEs by aggressive US buyers.
For the textiles sector, it urged the Ministry of Textiles to operate subsidised warehousing hubs inside major US ports to reduce delivery times.
The panel also proposed a matching-grant fund to cover the high capital costs involved in testing auto parts.
Panel flags shrinking services surplus
The panel called for FDA-aligned joint testing facilities at Indian ports.
It also noted that India's imports of services from the US are growing much faster than its exports, resulting in a shrinking trade surplus.
The panel recommended that the Directorate General of Foreign Trade, or DGFT, set up a watch desk to track US tariffs in real time.
Key recommendations
- Conclude an India-US trade deal at the earliest.
- Address the impact of tariffs on India, which have risen to 18% from 3%.
- Seek tariff parity with Mexico, Canada and Switzerland for gems and jewellery.
- Launch a state-backed export invoice discounting window for debt-stressed MSME jewellers.
- Use India's Rs 7,580-crore surplus in chemicals to negotiate duty cuts on petrochemicals and agrochemicals.
- Roll out Turtle Excluder Devices on trawlers to overturn the US ban on wild shrimp.
- Reduce India's dependence on the US for aquaculture inputs through a Self-Reliance Scheme.
- Set up an emergency compensation mechanism for MSMEs facing price cuts from US buyers.
- Operate subsidised warehousing hubs inside major US ports to reduce delivery times for textiles exporters.
- Create a matching-grant fund to cover the high capital costs of auto-part testing.
- Set up FDA-aligned joint testing facilities at Indian ports.
- Address the faster growth in India's services imports from the US compared with exports.
- Track US tariffs in real time through a DGFT watch desk.
- Use trade negotiations to seek duty relief in sectors affected by US tariffs.
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