• Source:JND
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The government is making efforts to diffuse the fiscal pressure on exporters after the Trump administration announced an additional 25 per cent import tax on Indian imports. The government is mulling certain support measures for exporters in sectors like textiles and chemicals to insulate them from the impact of the Trump tariff, an official said on Monday.

The officials said that the Ministry of Commerce has held a meeting with stakeholders of the export sectors, including steel, food processing, engineering, marine, and agriculture, to understand the issues they may face due to high tariffs.

During the meeting, various sectors urged financial assistance to cope with the crippling import duty. Exporters have made a request to extend fiscal incentives such as interest subsidy and extension of RoDTEP scheme (Remission of Duties and Taxes on Exported Products), RoSCTL (Rebate of State and Central Taxes and Levies), timely payment of dues, and a direct shipping line to the US.

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The ministry is considering the demands and is planning to engage with states to support the exporters. Trump's hefty tariff announcements will impact textiles/ clothing, gems and jewellery, shrimp, leather and footwear, chemicals, and electrical and mechanical machinery sectors.

Sectors such as certain textiles, shrimps are likely to suffer more given the low tariffs on competitors like Bangladesh (20 per cent), Vietnam (20 per cent), and Thailand (19 per cent).

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Meanwhile, exporters are also assessing options of export diversification. "Now the exporters should explore new markets such as the UK, China, and Japan," an exporter said.

United States President Donald Trump has announced an additional 25 per cent import duty on Indian goods entering America from August 7.

(With PTI Inputs)