Come out of protectionist mindset: Goyal to exporters
NEW DELHI: Commerce and industry minister Piyush Goyal on Thursday suggested to industry that it was imperative to shed some protectionism as the world was looking at reciprocity, while assuring exporters that govt was working overtime to protect their interests.
“Reflecting on reciprocal tariffs, he has cautioned the EPCs (export promotion councils) to come out of their protectionist mindset and encouraged them to be bold and ready to deal with the world from a position of strength and self-confidence,” an official statement said.
Some industries, such as pharma and engineering goods, especially auto parts, appeared nervous in the wake of US president Donald Trump’s reciprocal tariff threat. The UK and EU too are seeking sharp cuts in duties, arguing that levies in India are high.
“MSME Exporters are a worried lot. Total exports of $5 billion dollars are hit by recent tariff imposed by Donald Trump… Since voyage time to the US is approximately 60 days, about $1 billion is in the high seas and will be affected by this duty,” said EEPC India chairman Pankaj Chadha, referring to the decision to increase duties on iron and steel products to 25%.
Commerce secretary Sunil Barthwal, however, sought to comfort industry, suggesting that labour intensive sectors will be shielded. While outlining the focus of the proposed agreement, Barthwal told exporters that the idea was to lower duties and reduce non-tariff barriers and asked industry representatives to share their aggressive interests, sources told TOI. Besides, businesses have been asked to identify inputs and products where sourcing can be diversified, in what is seen as a message to buy from the US to reduce the trade surplus and address Trump’s top concern.
The comments came amid repeated attacks by American president Donald Trump over India’s “high tariffs” and the threat to impose reciprocal tariffs against countries that levy higher duties than those charged in the US, starting April 2.
Goyal said that govt is working on several tracks, negotiating with multiple trading partners to ensure the best interests of Indian exporters. “Indicating that govt has reached final stages in FTAs with few in particular, the minister was positive that it will lead to much better opportunities for Indian exporters and will also bring in higher investment,” the statement said.
‘Push shipments to reach last year’s level’
Staring at a second consecutive year of decline in goods exports, commerce department on Thursday asked exporters to push shipments during the remaining fortnight of March to reach as close to last year’s level of $437 billion. While overall exports — including goods and services — are expected to cross $800 billion during the current fiscal year, minister Piyush Goyal asked exporters to target $900 billion during 2025-26.
