Jitin Prasada, Union minister of state for commerce & industry, is taking proactive measures to protect Indian exporters from the impact of Trump tariffs, as global trade faces challenges. Speaking at an event organized by the Engineering Export Promotion Council (EEPC), Prasada emphasized the government’s commitment to anticipating and addressing potential hurdles arising from protectionist trade policies of other countries. The goal is to safeguard the interests of Indian exporters by formulating strategic plans to navigate the evolving global trade landscape.
Government’s Strategic Approach
Prasada highlighted the importance of India’s position in the global market, citing the country’s vast population of 1.4 billion and increasing spending power among its citizens. He reassured that the government is prepared to tackle free-trade agreements (FTAs) on an equal footing without succumbing to pressure. The focus remains on securing the best outcomes for India and its exporters amidst shifting trade dynamics.
The minister’s statements gain significance in light of US President Donald Trump’s recent announcement of a 25% tariff on steel and aluminum imports, along with threats of reciprocal measures that could impact global trade relations. India is seeking reciprocal tariff reduction in trade negotiations with the US to create a conducive environment for businesses and foster bilateral trade growth. This approach aims to address trade imbalances and promote expansion in a mutually beneficial manner.
Merchandise Trade Trends
According to data from the commerce ministry, India’s merchandise trade deficit reached a two-month high of $22.99 billion in January, driven by increased imports. Merchandise exports experienced a decline to $36.43 billion in January from $38.01 billion in the previous month and $37.32 billion year-on-year. On the other hand, goods imports saw a steady annual increase to $59.42 billion, up from $53.88 billion in the previous year, with December imports totaling $59.95 billion.
The cumulative value of merchandise exports for April 2024-January 2025 reached $358.91 billion, reflecting a 1.39% annual increase, while goods imports stood at $601.90 billion, marking a 7.43% annual rise. Pankaj Chadha, chairman of EEPC India, expressed optimism about meeting the government’s target of $118 billion in engineering exports for FY2024-25. However, he also highlighted challenges faced by the exporting community, including the impact of high steel prices and the proposed safeguard duty on steel imports. Chadha emphasized the need for measures to reduce export credit costs for small businesses and enhance support for small exporters.
In conclusion, Jitin Prasada’s proactive approach and strategic planning to protect Indian exporters from Trump tariffs reflect the government’s commitment to navigating global trade challenges effectively. By anticipating potential obstacles and formulating robust strategies, India aims to secure favorable outcomes for its exporters and strengthen its position in the international trade arena. As trade dynamics continue to evolve, the government’s focus remains on promoting growth, addressing imbalances, and fostering a conducive environment for businesses to thrive. Stay informed on the latest developments in business and politics with Live Mint for timely updates on market trends and policy shifts. Download The Mint News App to access daily market updates and stay abreast of breaking news and events shaping the economic landscape.
