In response to rising tariff pressures and geopolitical tensions, India has directed its overseas missions to intensify efforts to promote exports in key sectors. This directive comes as India's merchandise exports face increasing challenges, including a recent 50% punitive tariff hike imposed by the United States.
The strategy involves targeted outreach initiatives in 40 countries, with a focus on priority markets in Europe, such as the UK, Spain, France, Germany, and Italy. These initiatives will include trade fairs, buyer-seller meets, and sector-specific promotional campaigns. Other nations included in this export drive are the Netherlands, Poland, Canada, Mexico, Russia, Belgium, Turkiye, the United Arab Emirates, and Australia.
The Commerce Ministry is holding consultations with exporters from key sectors like textiles, chemicals, and gems and jewellery to diversify India's export basket and strengthen its presence in global markets. Discussions will center around reducing dependence on a limited range of products and markets, and creating a roadmap for entering new regions.
The government is also fast-tracking free trade agreements and reviewing existing pacts with the EU, UK, Oman, ASEAN, New Zealand, Peru, and Chile. Commerce Secretary Sunil Barthwal stated earlier this month that the government is working to diversify the country's exports to other countries, following the steep tariff increase announced by the US. Greater focus is being placed on the top 50 importing nations through the mobilization of missions abroad for export promotion.
This export push is coupled with the acceleration of the proposed Export Promotion Mission, which aims to provide targeted support and market intelligence to exporters. The government's proactive measures also include identifying market opportunities in six key product categories, including engineering goods and electronics, across 20 focus countries, including the US, Australia, France, China, Russia, the UK, Japan, South Korea, Singapore and Indonesia.
Amidst concerns that US President Donald Trump is considering a 500% tariff on countries that continue to buy Russian oil, industry leaders are urging the Indian government and trade bodies to cultivate alternative export destinations. Diversification is seen as essential for survival, with the European Union and the UK being prioritized.
Despite the challenges, Prime Minister Modi has advocated for self-reliance and promoting "Make in India" products to counter the steep tariffs. Defense Minister Radna Singh has stated that India must use this crisis to emerge as a reliable exporter to the world. Approximately 30% of India's exports to the United States, worth $27.6 billion, including products like medicines, electronics, and petroleum, will not face any duties. Exemptions also cover refined petroleum fuel and products worth $4.1 billion, as well as books, plastics, cellulose ethers, and metals.
Logistics operator DP World recently signed an agreement with Madhya Pradesh to develop the Powarkheda Logistics Composite Hub, designed to strengthen India's export competitiveness and accelerate economic growth in Central India.
