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Despite increasing tariffs by America, India’s exports have registered an increase rather than a decline. The Commerce Ministry told the parliamentary committee that exports during April-October were more than last year. In the meeting, there was also an in-depth discussion on the challenges faced by the industries, dollar-rupee fluctuations and the impact on the domestic market.
New Delhi. India has maintained strength on its export front despite the American tariff increase. The Commerce Ministry told the parliamentary committee that India’s outbound shipments between April and October have increased compared to last year. After this report, there have been positive signals regarding the government’s strategies and industrial capacity.
Increase in exports despite US tariffs
In the meeting of the Parliamentary Standing Committee, Commerce Secretary Rajesh Aggarwal said that the increased tariffs by America have not had any major negative impact on India’s exports. India-US trade relations were thoroughly reviewed in this meeting led by committee chairperson and TMC MP Dola Sen. Many members raised questions as to why a partner country like America is imposing such tariffs on a developing economy. Despite this, the ministry assured that due to strong domestic production and supply chain, the country is able to maintain export growth.
Concerns of coffee, tea and silk industries
Complaints of several industry boards – coffee, tea and silk – also came up in the meeting. Members said that these sectors are not getting equal opportunities in the global market and the pressure on exporters is increasing amid rising costs. Along with this, strengthening US dollar and weakening rupee are also spoiling the import-export equation. Many MPs also said that despite the fall in crude oil prices, domestic consumers are not getting relief, due to which the benefits of reduced production costs are not reaching the industries.
Government preparations and next meeting
The ministry assured the committee that detailed answers to all questions and complaints would be submitted in writing within two weeks. The next meeting of the committee will be held on December 16, in which the Foreign Secretary and senior officials of the Ministry of External Affairs will also be present. Apart from this, it is also being considered to convene industry organizations like FICCI and CII, so that the challenges of the industry can be better understood amid the trade tension with America. Many members of the committee were present in the meeting. The committee also appreciated the strength that India has shown in exports despite tariff pressure, global uncertainties and currency fluctuations. According to the government, this pace can continue further if the export sector continues to get stable support.
