new delhi, Aug 28
In the wake of 50 per cent US tariffs imposed on Indian goods, the government has assured help to the stakeholders facing a liquidity crunch. It also said it is trying to expedite the rollout of the Export Promotion Mission (EPM) to give impetus and support to the industry.
The government has received feedback from stakeholders on the impact on their businesses due to US President Donald Trump’s 50 per cent tariffs on Indian exports, an official from the Ministry of Commerce said on Thursday.
He stated that the government will help them meet the liquidity crunch, and ‘positive work’ is underway to determine the best way to implement their suggestions.
“Due to the imposition of additional 25 per cent tariffs by the US, Indian exporters have approached the government and said that in the short run, their orders will face a slowdown, and they will face a liquidity crunch,” an official from the Commerce Ministry was quoted as saying to a news agency.
“The government is trying to expedite the rollout of the Export Promotion Mission (EPM) as soon as possible so that it will give some impetus and support to the industry.
This crisis is a wake-up call, and India understands the need to create resilient import as well as export supply chains,” he told ANI.
“The situation will not turn out as grim as it is being understood, as India has a growing domestic market, and with GST reforms, there is likely to be a robust local demand that will absorb some of the inventories.”
Speaking further on the bilateral trade negotiations with the US, the Commerce Ministry official said, “Engagement between the two countries is going on. We have been progressing well and hope to return to the table soon.”
“We may not be negotiating the (BTA) agreement right now, because negotiating the agreement will entail that the additional 25 per cent tariffs need to be addressed. Even if you do a trade deal and the additional tariffs are in place, it will not have a significant impact on exports.”
Notably, the Bilateral Trade Agreement (BTA) discussions between India and the US commenced in March, and after completing five rounds of negotiations, the scheduled sixth round, where the US delegation was due to visit India from August 25, has been postponed.
Prime Minister Narendra Modi has also expressed his firm commitment to safeguard the interests of farmers and fishermen and small-scale industries, emphasising that India will remain steadfast in protecting their welfare.
