8 months ago
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The higher tariffs imposed connected Indian goods by American President Donald Trump would person a semipermanent impact, particularly for India’s marine exports, officials of the Union Ministry of Commerce told the Public Accounts Committee (PAC) headed by elder Congress person K.C. Venugopal.
The PAC met to deliberate the ‘Performance audit study connected the Export Promotion Capital Goods Scheme.
There were respective questions connected the interaction of U.S. tariffs connected Indian exports. Rajesh Agarwal, Special Secretary, Department of Commerce, maintained that anxiousness implicit the adverse interaction connected the Indian pharmaceutical assemblage was unfounded, since India’s cardinal rival successful this assemblage was China, which was besides reeling nether akin tariffs, sources said. He acknowledged that the precocious tariffs volition person a antagonistic semipermanent effect connected trade.
There were respective questions connected India’s marine exports from some sides of the aisle, including from the PAC Chairperson, Mr. Venugopal. Several members pointed retired that galore of India’s coastal towns would beryllium straight impacted if shrimp exports declined drastically.
The U.S. has imposed precocious tariffs, notably a 50% work implemented successful August 2025, which importantly interaction India’s marine exports, particularly of shrimp, with shrimp exports facing an effectual levy exceeding 58% erstwhile combined with existing duties. Mr. Agarwal, sources said, conceded that the precocious tariff obstruction had placed India astatine a disadvantage erstwhile compared with its competitors.
Mr. Agarwal, sources said, informed the sheet that India was actively moving connected opening up caller markets via Free Trade Agreements with different regions, including the European Free Trade Association (EFTA) bloc (comprising Iceland, Liechtenstein, Norway, and Switzerland), and the U.K., which would “eliminate existing duties”.
EU negotiators were precocious successful India to sermon these agreements, Mr. Agarwal told the panel, according to sources, and helium went connected to adhd that India was focusing connected marketplace diversification by successfully pushing for the registration of much marine export units successful the EU, and engaging successful discussions with different countries, including Russia.
The committee expressed dissatisfaction implicit the deficiency of wide outcomes from the Export Promotion Capital Goods Scheme, a argumentation aimed astatine facilitating the import of superior goods for producing prime goods and services to heighten India’s manufacturing competitiveness. Under the scheme, duties worthy ₹42,714 crore were forgone betwixt fiscal years 2018-19 to 2020-21. The sheet has directed the authorities to travel up with wide answers connected however it has helped maturation successful the manufacturing sector.
