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Informist, Tuesday, Jun. 24, 2025

 

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--Sitharaman: Need creative support system, innovations to boost exports
--Sitharaman: Trade pact talks with US, EU should see conclusion soon
--Sitharaman: Doesn't seem world is in mood to go with exports
--CONTEXT: Finance Minister Sitharaman speaking at Exim Bank Trade Conclave
--Sitharaman: Need to encourage MSMEs in times of growing global challenges

 

NEW DELHI – Exports do not seem to be picking up after facing back-to-back challenges like the COVID-19 pandemic, Russia-Ukraine war, Israel-Palestine war and then the tariff war in early 2025, Finance Minister Nirmala Sitharaman said Tuesday. However, even amidst this, India's exports are looking up, doing well, Sitharaman said while speaking at Exim Bank Trade Conclave 2025 in New Delhi. "Global growth and trade have suffered," she said, adding that challenges are only going up. 

 

The finance minister said that amidst these challenges, the government needs to continue to encourage micro, small and medium enterprises since 45% of India's total exports come from them. In Apr-May, India's goods trade deficit was $48.33 billion compared to $41.27 billion a year ago. Merchandise exports rose 3.1% on year to $77.19 billion in the first two months of 2025-26 (Apr-Mar), while imports were up 8.1% at $125.52 billion.

 

She said that India's exporters have two distinct benefits that are shielding against adverse effects –technology-infused high-end products instead of bulk productions and, second, re-routing to new markets, especially against recession-like situation in Europe. "Our exporters' survival instincts have shone through," Sitharaman said. 

 

Irrespective of the strength of Indian exporters, the finance minister said that the government needs to give creative support system, innovations to boost exports. "We should give hedging support, risk solutions," she said. 

 

Sitharaman also said that the government needs to sign and leverage free trade agreements to boost exports. Presently, India is negotiating trade agreements with the US and European Union – which she expects to conclude soon – and should boost exports, she said. 

 

The government is looking forward to signing an interim deal with the US, which would later be part of the first tranche, by Jul. 9. Washington is expected to put the reciprocal tariffs into effect from Jul. 9, which would make India's exports to the US 26% more expensive. India and the US held a round of negotiations this month in New Delhi. The next round, whose timeline is yet to be decided, will be held in Washington, DC. Meanwhile, officials from the two countries will continue to have conversations in online mode.

 

India and the European Union will hold the next round of negotiations for a free trade agreement from Jul. 7. The two sides had held the last round of discussions in May. Both regions have set a deadline of December to conclude the trade deal. India is looking to expedite the conclusion of negotiations with the EU by signing the trade deal in tranches. The two sides had resumed discussions in 2023 after a gap of nine years. The trade talks, initially started in 2007, were later suspended due to differences over market access.   End

 

US$1 = INR 86.10

 

Reported by Priyasmita Dutta and Sagar Sen

Edited by Deepshikha Bhardwaj

 

 

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