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Informist, Tuesday, Mar. 11, 2025

--Source: Some export orders held back due to uncertainty over US tariffs
--Source: India's exports growth fairly good considering global dynamics
--Source: Trade min to announce schemes under Export Mission within a month

NEW DELHI – Some Indian exporters have been holding back their orders to the US due to uncertainty over Washington's upcoming tariff policy, a government official said. This has hampered India's export growth, the official added.

"But exports are not bad if you leave aside petroleum and gem and jewellery," the official said. "Our exports are still holding up despite all the uncertainty. Had these uncertainties not been there, they would have done better than last year."

India's overall exports were up only 1.4% at $358.91 billion in Apr-Jan. Petroleum exports fell 24.7% during the period, and gem & jewellery exports fell 9.3%.

According to the official, some Indian exporters have been holding back their orders as they are scared that Washington's reciprocal tariffs would be effective by the time consignment reaches American shores. US President Donald Trump has said that his administration would impose reciprocal tariffs an all countries, including India, from Apr. 2.

"Had these uncertainties not been there, they would have done better than last year," the official said. India's good exports had fallen 3.1% to $437.07 billion in 2023-24 (Apr-Mar).  

The Indian government is also working on incentives under the Export Promotion Mission to support the exporters. The government is likely to announce the incentives within a month, the official said. "We will have to keep flexibilities under the scheme to accommodate the evolving situations."

In the Budget for FY26, the government has allocated INR 22.50 billion under Export Promotion Mission. "We will set up an Export Promotion Mission, with sectoral and ministerial targets, driven jointly by the Ministries of Commerce, MSME, and Finance," Minister of Finance Sitharaman had said on Feb. 1. "It will facilitate easy access to export credit, cross-border factoring support, and support to MSMEs to tackle non-tariff measures in overseas markets."

Ministry of Micro Small Medium Enterprises, commerce ministry, and finance ministry are currently discussing over the incentives, the official said. "We are ready with some draft. We will have to share with our export promotion councils."   End

US$1 = INR 87.31

Reported by Krity Ambey

Edited by Akul Nishant Akhoury

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