US tariff: Exporters turn to govt to stay competitive

TO REMAIN COMPETITIVE in the US market, exporters from several sectors have sought the government's support in the form of higher budget outlays for export promotion schemes and a revival of a scheme to reduce the interest outgo on working capital loans.

- Mukesh Jagota

The latest demand comes in the wake of a tariff difference of 5-10% with the key countries competing with India in the US market, after the latest set of announcements by President Donald Trump.

According to sources, at a meeting held in Mumbai on Saturday with exporters from the apparel, engineering, agriculture, food-processing and seafood sectors, Commerce and Industry Minister Piyush Goyal sought inputs on how to address the emerging challenges.

While India will be facing 25% additional duties in the US, Vietnam, Bangladesh, Indonesia, Malaysia, Cambodia have got 19% to 20% reciprocal tariffs.

"If India wants to retain its presence in the US market, immediate steps will be needed to blunt the impact of 5% to 10% tariff difference. The support can come in the form of increased allocation to export promotion schemes and reintroduction of Interest Equalisation Scheme (IES)," said S.C. Ralhan, president of the Federation of Indian Export Organisations (FIEO).