In a decisive move to protect its exporters from mounting global trade tensions, the Indian government has established a high-level committee to tackle long-standing export bottlenecks — just as a fresh tariff war with the United States heats up.
According to The Economic Times, the panel comprises senior officials from the ministries of commerce and industry, finance, and key trade bodies. Its mission: to review the impact of customs duties, GST, export incentives, and clearance procedures on India’s outbound shipments, and to recommend swift, actionable reforms.
Focus on Easing Processes
Officials say the committee will work to simplify export documentation, speed up customs and port clearances, and improve logistics. “The committee will look at export-related tax structure and customs clearances for all geographies and see where easing can be done,” an official told The Economic Times.
The urgency is underscored by the latest trade data: India’s goods exports in June slipped 0.05% year-on-year to $35.14 billion — the lowest in seven months — while imports fell 3.71% to $53.92 billion, pushing the trade deficit to $18.78 billion.
Backdrop: US Turns Up the Heat
This domestic effort comes against a backdrop of escalating trade tensions. The US has slapped a 50% tariff on imports from India — the steepest on any country, matching only Brazil. President Donald Trump signed the executive order on Wednesday, doubling the existing 25% duty to 50%. The first phase took effect Thursday, with the additional 25% set to apply from August 27.
Talks between New Delhi and Washington have stalled, with the US pushing for greater market access and voicing concerns over India’s Russian oil purchases.
India’s Three-Pronged Counterplan
New Delhi is reportedly crafting a three-part response to cushion the blow:
- Tailor-made support schemes under the proposed Export Promotion Mission for affected sectors
- Diversion of goods to alternative markets to offset the loss of US orders
- Redirecting low-order products to serve domestic demand
The commerce and industry ministry is also urging exporters to promote homegrown brands as a shield against steep US duties.
A Rs 20,000 Crore Long-Term Strategy
By September, the government plans to launch a Rs 20,000 crore long-term package under the Export Promotion Mission. The plan will aim to improve access to export credit, address non-tariff barriers, and safeguard India’s trade from future global shocks.
As the tariff battle intensifies, India’s latest policy push signals that it’s not just bracing for impact — it’s gearing up to fight back with reforms, market diversification, and a stronger domestic brand presence.