New Delhi: India is widening its export outreach to 50 countries, including key markets in West Asia and Africa, in a bid to cut dependence on any single destination and cushion against trade disruptions following the steep tariff hike by the US on Indian goods.
The move comes as Washington doubled import duties on Indian products to 50 per cent, the highest for any country, aligning rates with Brazil.
These 50 countries collectively account for nearly 90 per cent of India’s total exports. The commerce and industry ministry, working closely with export promotion bodies, is reviewing each product and its global competitors to strengthen India’s manufacturing and export competitiveness.
The exercise, officials said, is critical as merchandise exports in June remained flat at $35.14 billion. Initially focusing on 20 markets, the government has now added 30 more to its priority list.
The tariff escalation, with the first 25 per cent levy already in effect and the additional 25 per cent set to begin on 27 August, is expected to hit sectors such as marine products, textiles, leather, and gems and jewellery.
The challenge is compounded by the fact that rival exporters like Turkey, Vietnam and Thailand face much lower duties of 15 per cent, 20 per cent and 19 per cent, respectively, in the US.
To counter the impact, the government is preparing a strategy that includes customised support under the proposed Export Promotion Mission, diverting shipments to other regions and redirecting underutilised export goods for domestic consumption.
Concerns have also been raised over possible trade rerouting via low-tariff nations like Mexico, Canada, Turkey, UAE and Oman, which could undermine trade transparency.
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