Non-tariff measures like the European Union’s carbon tax and deforestation regulations, along with aggressive industrial policies from countries like the USA and UK, are limiting market access for Indian goods. The Indian government is working on schemes to support MSME exporters, with an emphasis on credit facilities and handling non-tariff measures.
Non-tariff measures limit market access for Indian exports, says DGFT
The imposition of high tariffs by the US on imports from China, Mexico, and Canada opens up opportunities for Indian exporters to increase their presence in the American market. Sectors likely to benefit include agriculture, engineering, machine tools, garments, textiles, chemicals, and leather, making Indian goods more competitive against their counterparts.
Indian exports are under pressure due to aggressive trade policies from the US and EU. Factors such as high import tariffs and technological disadvantages are challenging India’s export growth, which needs a 14.4% annual increase to meet targets. The trade deficit persists despite rising exports.
The wheat processing industry in India has urged the government to reduce the import duty on wheat because of climate uncertainties and price volatility. They seek to import 2-3 million tonnes to stabilize prices. The government, however, claims sufficient stock and urges mills to pass on benefits to consumers.
European Commission chief Ursula von der Leyen and her team visited India to strengthen EU-India relations, announcing plans for a free trade agreement and a defense partnership. This visit highlights a shift in European strategy to broaden alliances amid global tensions.
India’s exports to the US include products like iPhones and solar panels with low local value addition, leading to minimal economic gains for India. Think tank GTRI urges the government to ensure the US understands India’s WTO-compliant import duties. With upcoming trade talks, India must strategize to avoid escalated trade tensions while explaining its tariff […]
Commerce and Industry Minister Piyush Goyal will visit Washington to discuss a bilateral trade agreement with the US. India and the US aim to double commerce to USD 500 billion by 2030 and finalize an agreement by 2025. Amid rising tariffs, both nations plan to make concessions as their economies complement each other.
India’s import duties align with global trade rules, and the government should communicate this to the US. However, negotiating a free trade agreement with the US poses challenges, including pressure to open government procurement, reduce agricultural subsidies, and alter data flow restrictions, which India continues to resist.
India and the EU are aiming to finalize a free trade agreement by the end of the year. Commerce Minister Piyush Goyal and EU Trade Commissioner Maros Sefcovic held talks in Mumbai to push for a balanced and mutually beneficial deal. The next round of negotiations is set for March 10-14 in Brussels.
Arvind Panagariya, Chairman of the 16th Finance Commission, suggests India leverage the US threat of reciprocal tariffs to secure mutual tariff reductions, fostering a win-win situation. He warns of the negative consequences of a tariff war. The US-India bilateral trade reached USD 190.08 billion in 2023, with a significant trade surplus for India.