The Federation of Indian Export Organisations (FIEO), the apex body for exporters, is formulating a strategy for five key sectors to boost exports to the United States (US), as President-elect Donald Trump has threatened to impose high tariffs on Chinese goods.
"This time, we need to be proactive instead of reactive.
"We are trying to formulate a strategy for five sectors — electronics, toys, apparel, organic and inorganic chemicals, and leather,” FIEO vice-president Israr Ahmed said on Tuesday.
Ahmed’s comment has come at a time when Trump has announced he would raise duties by 25 per cent on Canada and Mexico and by 10 per cent on China, upon assuming office in January. So far, India has escaped the initial tariff hikes.
The apex exporters’ body claims to have government support, which it believes should be in the form of financial assistance for Indian exporters to participate in exhibitions across the US.
Indian exporters can tap into emerging opportunities created by shifting trade dynamics.
The exporters have urged the government to allocate more funds under the Market Access Initiative (MAI) scheme to aggressively promote Indian exports in the US.
“MAI funding needs to be US-specific. In today’s geopolitical situation, this is a great opportunity for us. There should be a three-year plan,” Ahmed said.
The US is India’s largest trade partner and export destination.
During the financial year 2023-24, the size of the bilateral merchandise trade between the two nations stood at nearly $120 billion.
The trade balance has been in favour of India, with a surplus of $35.3 billion.
Ahmed also said there were some challenges for exporters, in terms of ‘liquidity’.
Besides, export finance has come down.
The apex body for exporters has urged the Centre to relax the requirement of making payments to micro, small, and medium enterprises within 45 days of buying goods and services, besides a five-year extension of the interest equalisation scheme.
