Govt Kicks Off Hunt for New Markets to Shield Key Exports

The central government has stepped in to work with export bodies to identify new markets and limit disruptions to outbound shipments for sectors vulnerable to US tariffs such as gems and jewellery and marine products, according to two people familiar with the matter.

- Dhirendra Kumar

The 26% additional tariff on Indian exports announced by the US took effect on Wednesday. Gems and jewellery and marine products are heavily reliant on the US market due to better price realisations and high volumes, even though exports from India in both categories have been falling over the past three years.

"We are working on a diversification strategy to expand trade ties in Europe, the Middle East, and East Asia," said the first person cited above on condition of anonymity. "This is being done in close consultation with industry stakeholders."

The second person said that Indian missions overseas are being engaged to explore export opportunities. "They have been asked to hold roundtables with industry leaders in different countries to build connections and identify potential markets," the second person said.

Queries emailed to the ministries of commerce and external affairs remained unanswered till press time.