FIEO plans strategy to boost US exports amid Trump's tariff threats
New Delhi, Dec 24, 2024
The apex exporters' body also has the support of the government regarding this
Federation of Indian Export Organisations (Fieo), the apex body for exporters, is formulating a strategy for five key sectors to boost exports to the United States (US), with President-elect Donald Trump threatening to impose high tariffs on Chinese goods.
“This time, we need to be proactive instead of reactive. We are trying to formulate a strategy for five sectors — electronics, toys, apparel, organic and inorganic chemicals and leather. This is to drive growth in exports to the US market,” Fieo vice-president Israr Ahmed said on Tuesday.
The apex exporters’ body also has the support of the government regarding this. The support, it urged, should be in the form of financial assistance for Indian exporters to participate in exhibitions across the US. Indian exporters can tap into emerging opportunities created by the shifting trade dynamics.
They have urged the government for more funds under the market access initiatives (MAI) scheme to aggressively promote Indian exports in the US.
“MAI fund needs to be US-specific. In today’s geopolitical situation, it is a great opportunity for us. There should be a three-year plan,” he said.
Ahmed’s comment has come at a time when Trump has announced that he will raise duties by 25 per cent on Canada and Mexico and by 10 per cent on China, upon assuming office in January 2025.
Till now, India has escaped the initial tariff hike.
The US is India’s largest trade partner and export destination. During the financial year 2023-24, the size of the bilateral merchandise trade between the two nations stood at nearly $120 billion. The trade balance has been in favour of India, with a surplus of $35.3 billion.
Ahmed also said that there are some challenges for exporters, in terms of ‘liquidity’. Besides, export finance has also come down.
The apex body for exporters has also urged the government to relax the requirement of making payments to micro, small and medium enterprises (MSMEs) within 45 days of buying goods and services, besides a five-year extension of the interest equalisation scheme.
[The Business Standard]
