New Delhi, Aug 27 (IANS) As part of the stepped up drive to push exports amid the US tariff turmoil, India will launch outreach initiatives in 40 countries, with priority markets in Europe such as the UK, Spain, France, Germany, and Italy. These efforts will include trade fairs, buyer-seller meets, and sector-specific promotional campaigns, according to a senior official.
Other nations include the Netherlands, Poland, Canada, Mexico, Russia, Belgium, Turkiye, the United Arab Emirates and Australia.
India’s merchandise exports are facing pressure amid geopolitical tensions and the 50 per cent punitive hike in US tariffs that kicked in on Wednesday.
The Commerce Ministry is set to hold a series of consultations with exporters this week as part of this renewed push to diversify India’s export basket and strengthen its presence in global markets, a senior official confirmed.
The meetings will bring together industry representatives from key sectors including textiles, chemicals and gems and jewellery, sources said.
The discussions are expected to centre around strategies to reduce dependence on a narrow set of products and markets, and to chart out a road map for entering new geographies.
The move comes as the government accelerates work on the proposed Export Promotion Mission, which seeks to provide targeted support and market intelligence to exporters.
Commerce Secretary Sunil Barthwal said earlier this month that the government is making efforts to diversify the country’s exports to other countries, following the steep hike in tariffs announced by the US.
The government is seeking to fast-track free trade pacts and carry out a review of existing pacts such as those with the EU, UK, Oman, ASEAN, New Zealand, Peru and Chile.
He said steps were being taken to concentrate greater focus to top 50 importing nations via mobilisation of missions abroad for export promotion efforts. Efforts are also being intensified on various export promotion schemes, he added.
The Ministry of Commerce and Industry has also drawn up a Rs 25,000 crore proposal for WTO-compliant support schemes mainly to help finance small exporters in labour-intensive sectors such as textiles, gems, jewellery and marine products under the Export Promotion Mission for a six-year period.
A senior official confirmed that the proposal has been sent to the Finance Ministry for approval, after which it will be forwarded for Cabinet approval before it is finally rolled out.
These schemes have been designed to be compliant with World Trade Organisation (WTO) regulations and will focus on trade finance and improving market access for exporters.
The launch has gained further urgency given the uncertainties in the international market due to the hike in US tariffs.
There is a need to diversify markets and the schemes will also focus on developing the logistics chain and marketing to diversify markets for Indian exports.
The government views this mission as a long-term strategy that addresses challenges beyond just tariffs and trade wars.
The strategy includes promoting exports, diversifying both markets and the export baskets to make them more competitive. The high interest rates in the Indian banking sector tend to put the country’s exporters at a disadvantage vis-a-vis their competitors and finance on more affordable terms would help to bridge this gap.
The schemes aim to help exporters by offering collateral-free loans, supporting alternative financial instruments, and providing assistance for new markets.
–IANS
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