India can provide relief for the exporters of the tariff, and the deal with us by Nov

Copyright © HT Digital Streams Limit all rights reserved. India’s relations with the US recently nose, after President Donald Trump imposed a sharp 50% duty on Indian exports, effectively on August 27. (PTI) Summary The move comes as exporters, especially in sectors such as textiles, leather, pharmaceutical products, engineering goods and gemstones and jewelry, the US rates have uncertain. New -Delhi: The Government has asked the exporters of the ominous exporters of India to wait a few months because it wants to finalize a bilateral trade agreement with the US by November and prepare an aid package to support the industry in the meantime. India’s relations with the US recently nose, after President Donald Trump imposed a sharp 50% duty on Indian exports, effectively on August 27. In a meeting with exporters or export promotion boards Wednesday, Trade Minister Piyush Goyal promised a limited scale relief package, even if the government was with the US to reach a trade agreement through the fall of 2025, a timeline announced on February 13 by Trump and Premier Narendra Modi in a joint statement, according to three executives, a government official. Inquiries sent by e -mail to the Ministry of Trade by e -mail remained unanswered until purple time. Exporters face tariff pressure that the move comes as exporters, especially in sectors such as textiles, leather, pharmaceutical products, engineering goods and jewelery and jewelry, he faced uncertainty for US rates. The US initially imposed a reciprocal rate of 25%, which came into effect on August 7, followed by another 25% for India’s purchases of Russian oil, taking total duties on Indian goods up to 50%. India exported to the US in FY25 goods worth $ 87 billion, accounting for 2.3% of GDP. Of these, five sectors – engineering ($ 19.16 billion), electronics ($ 14.64 billion), drugs and pharmaceutical products ($ 10.52 billion), gemstones and jewelry ($ 9.94 billion) and textiles ($ 10.91 billion) – Emethder $ 65.17 billion. India’s total trade export, excluding Petroleum, reached a record of $ 374.1 billion in FY25, with 6% of $ 352.9 billion a year earlier. The concern about the industry “The exporters were told to wait a few months until the agreement was signed. The minister assured the export promotion boards that the talks were on track and would probably resume soon,” the first executive said. “The minister has ensured all possible help to reduce the losses through different incentives for exporters, including those for MSMEs,” said the second executive. The US is currently accounting for about 20% of the export of merchandise in India and the sectors that are most vulnerable to the rates are, among other things, diamond polish, shrimp, home textiles, carpets, ready -made garments, chemicals, agricultural chemicals, capital goods and solar panel manufacturing, according to a crisis assessment report. About 25% of the income of Indian diamond polishes in 2024-25 came from export to the US. But rates, together with poor demand for natural diamonds in the US, are threatening to significantly win revenue and press the already thin operating margins for the sector, it states. “On the issue of the quantum of the auxiliary package, exporters were told that discussions with different line ministries, including finances, constitute a special relief package under the national export mission,” the third executive said. Sector -specific benchmarks of export promotion boards (EPCs) and industry associations from sectors, including textiles, clothing, engineering, jewelery and jewelry, leather, medical devices, pharmaceutical products, agriculture and services, raised sector -specific problems at the meeting. The EPC members expressed concern about the impact of rates and the hardships the industry faces if these duties continue for a long time. “We have asked for support through the expansion of interest equation, solving issues related to the Trade Export of the Indian Scheme (MEIS) for MSMEs, and RODTEP (remission of duties and taxes on exported products) Benefits for steel exports according to the rates set by the Pillai Committee,” says Pankaj Chadha, Chairman, Engineer Council (EEPC). The Rodtep scheme refunds to exporters the embedded central, state and local duties/taxes. In a press release, the Ministry of Trade said that the discussions were mainly centered on recent developments on tariff increases on certain Indian products. Executives and industry representatives have highlighted the challenges of these tariff barriers to its impact on the competitiveness of Indian goods in important international markets, and emphasize the need for targeted, sector -specific interventions. Goyal confirmed the government’s commitment to protect the interests of Indian exporters amid the developing global trade scenario. He has assured industry representatives that the government is actively engaged in creating an enabling environment to help exporters navigate the recent challenges, according to the statement. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #Trade Deal #Trade #Trade War #Tariff Hike #india US Talks Read Next Story