US tariffs: Piyush Goyal likely to meet exporters this week

IANS April 7, 2025 123 views

Union Commerce Minister Piyush Goyal is set to meet with exporters this week to discuss the implications of new US reciprocal tariffs. The meeting comes as Indian businesses, especially MSMEs and pharmaceutical companies, are concerned about potential trade disruptions. Despite challenges, initial analysis suggests the economic impact might be marginal, with India maintaining competitive advantages compared to other Asian countries. The government is proactively engaging with industry stakeholders to mitigate potential negative effects on exports.

"We are actively monitoring the potential impact of reciprocal tariffs" - Piyush Goyal, Commerce Minister
New Delhi, April 6: Keeping the US reciprocal tariffs and its future impact on Indian businesses in mind, Union Commerce and Industry Minister, Piyush Goyal, is likely to meet exporters this week.

Key Points

1

Exporters seek fiscal incentives amid new US trade restrictions

2

Pharmaceutical sector potentially most vulnerable to tariff changes

3

India's exports to US declining since fiscal year 2023

4

Tariffs comparatively lower than other Asian countries

According to industry sources, the meeting is likely to take place on Wednesday -- to be attended by ministry officials and representatives of the Federation of Indian Export Organisations (FIEO) and export promotion councils (EPCs), among other industry stakeholders.

Exporters, especially MSMEs, are seeking some fiscal incentives to navigate the upcoming impact on their trade after the US administration announced 27 per cent reciprocal tariffs on the Indian products.

The Commerce Ministry is also in active talks with Indian pharmaceutical exporters amid growing concerns over possible US tariffs on the sector, which was exempted in the first tranche of reciprocal tariffs by US President Donald Trump. While marginal tariffs may not cause much disruption, steep duties could hurt the profit margins of Indian drugmakers.

India exported $8 billion of pharma products to the US in fiscal 2024, its largest export destination, and supplies 40 per cent of generics consumed in the US.

India's exports to the US are on a declining trend since FY23 with the share in total exports around 17-18 per cent. The top 15 items exported to the US accounted for 63 per cent of total exports, according to an SBI Research report. The impact on the Indian economy will be more from overall slowdown in global growth and heightened global financial volatility due to the worldwide hike in tariffs, it added.

At the same time, the tariffs levied on India are the lowest among its Asian peers, compared to 34 per cent on China, 36 per cent on Thailand, 32 per cent on Indonesia, and 46 per cent on Vietnam.

This is expected to give India a comparative advantage over these countries and result in an increase in exports in some sectors over the long term, the SBI report stated.

The PHD Chamber of Commerce and Industry (PHDCCI) has said that owing to India's price competitiveness and supportive government policies, it expects GDP to see only a marginal 0.1 per cent impact amid the recently announced US reciprocal tariffs.

Reader Comments

R
Rajesh K.
This is a crucial meeting for our exporters. Glad to see the government being proactive about the tariff situation. The pharma sector especially needs protection - 40% of US generics coming from India is no small thing! 🇮🇳
P
Priya M.
Interesting that India's tariffs are lower than other Asian countries. Maybe this could actually help our exports in the long run? The SBI report seems optimistic about it.
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Amit S.
While I appreciate the government's efforts, I wish they had acted sooner. Our exports to US have been declining since FY23 - this meeting should have happened months ago. Better late than never though.
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Sunita R.
The MSME sector really needs support right now. My brother runs a small export business and these tariffs could be devastating. Hope the fiscal incentives materialize quickly!
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Vikram J.
$8 billion pharma exports at risk is serious business. The government needs to negotiate hard with the US on this one. Our generic drugs are literally saving American lives at affordable prices.
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Neha P.
The 0.1% GDP impact projection seems too optimistic to me. With global slowdown and financial volatility, the ripple effects could be much larger. Hope the government has contingency plans.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Tags:
US Tariffs Piyush Goyal Indian Exports Trade Policy Commerce Ministry MSME Sector Pharmaceutical Exports
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