Exporters Call for Government Support Amid Tariff Challenges

Indian exporters are facing significant challenges following the imposition of steep tariffs by the Trump administration. They are urging the government to restore several benefits that have been discontinued, including the interest equalisation scheme and the Remission of Duties and Taxes on Exported Products (RODTEP) for SEZ and export-oriented units.

Sectors Hardest Hit by Tariffs

Labor-intensive sectors such as marine products, dairy, medical equipment, machinery, and carpets are among the most adversely affected by the 26% levy on Indian exports to the US. The government is being asked to prioritize these sectors in the first tranche of the trade agreement with the US.

Government's Response and Industry Appeals

While the government assesses the impact of the tariff hike, exporters are seeking measures to mitigate the damage. Some have proposed deferring reciprocal tariffs with the US, given the ongoing negotiations for a bilateral trade deal. However, officials are skeptical about the Trump administration's willingness to agree.

The commerce department is considering other steps to support exporters, including the possibility of reintroducing interest subsidies for sectors like textiles, leather, and handicrafts.

Diversification of Markets

Exporters are also looking for government assistance in diversifying their markets to reduce reliance on the US. This strategy aims to maintain competitiveness against countries like Turkey, which may gain an edge in certain sectors due to the tariff changes.