Piyush Goyal to Meet Exporters Over US Tariffs Impact
NEW DELHI: In a crucial step to address the challenges facing Indian exporters, Commerce and Industry Minister Piyush Goyal is scheduled to convene a significant meeting on Wednesday. This gathering will focus on the implications of the substantial 26% additional reciprocal tariffs recently enacted by the United States during President Donald Trumpâs administration. According to an official from the industry, this meeting is of utmost importance as it seeks to mitigate the potential adverse effects of these tariffs on India's export economy.
High-ranking officials from the Ministry of Commerce, along with representatives from various Export Promotion Councils (EPCs) and the Federation of Indian Export Organisations (FIEO), are anticipated to participate in this vital discussion. The meeting aims to provide a platform for exporters to voice their concerns regarding the potential fallout from the U.S. tariffs, which many fear could significantly dampen demand in the U.S. market and ultimately impact Indiaâs outbound shipments.
As one exporter highlighted, âThe duty may impact demand in the U.S., which would hurt our exports.â This concern is echoed by many in the industry, especially since the U.S. represents India's largest export market, accounting for nearly 18% of the countryâs total goods exports, 6.22% of imports, and 10.73% of the overall bilateral trade.
The timing of this meeting is particularly critical, as India's merchandise exports have experienced a decline for four consecutive months, reflecting growing global economic uncertainties. For the fiscal year 2024-25, from April to February, Indiaâs merchandise exports were recorded at USD 395.63 billion, which is slightly higher than the USD 395.38 billion from the same period the previous year. However, the overall sentiment remains cautious.
In contrast, service exports during the same timeframe saw a remarkable increase, reaching an estimated USD 354.90 billion, up from USD 311.05 billion the previous year. This suggests a potential area of growth that could help offset some of the challenges faced in the goods export sector.
Export sectors that are expected to be directly impacted by the U.S. tariff hike include shrimp, carpets, medical devices, and gold jewellery. These industries, vital to Indiaâs export landscape, are now at a crossroads, facing new challenges that could reshape their future in the international market.
