Close to finalising trade deal with US, govt signals

PATNA: Government has indicated that it is close to finalising a bilateral trade deal with the US and also hinted that the much-delayed Export Promotion Mission is expected to be announced in the next fortnight or so. During a meeting with Export Promotion Councils in Delhi late on Wednesday, commerce and industry minister Piyush Goyal told representatives of trade bodies that the required clearances for the Export Promotion Mission are nearly in place. The Mission, announced in the budget in Feb, seeks to address credit problems, help in promoting products overseas and assist companies in dealing with trade barriers. But, with the govt hoping to clinch a trade deal in next few weeks, a relief package has not been given immediately and is unlikely to be provided anytime soon, especially with positive signals coming from the US, with President Donald Trump himself indicating his intent to move ahead.

Exporters had a long list of concerns over the impact of the US tariffs on Indian exports and sought govt assistance in addressing liquidity and loan repayment problems. Goyal has asked his officials to facilitate discussions with RBI, finance ministry and banks over the next few days to address the problem, especially in sectors, such as textiles, which have been hit hard by Trump’s 50% tariffs.Some of the textiles exporters pointed to the 30 percentage point differential between Indian and other country exports to the US and said that buyers were demanding a steep discount, something that the commerce department has sought to discourage. As a result, they demanded loan repayment moratorium, liquidity support, such as the one that was given to MSMEs during Covid and revival of the interest equalisation scheme, considering the cost of capital in India was high. Some of the businesses also suggested that the Centre should provide fiscal support through scrips.At the meeting, some of the exporters also flagged concerns around the way the Quality Control Orders (QCOs) have been implemented, impacting their supplies and inputs. Some of them suggested that only the finished products should face QCOs. Goyal, however, defended the move, arguing that there are positives, which have not been adequately highlighted.