Multi-Pronged Strategy to Mitigate Impact of US Tariffs: Govt

New Delhi: The government on Tuesday said it is taking steps, such as announcing an export promotion mission, to mitigate the impact of the steep US tariffs on domestic goods. It is, however, expected that these measures will enhance diversification and resilience in India's trade relationships, minister of state for commerce and industry Jitin Prasada said in a written reply to the Lok Sabha.

“The government continues to work to mitigate the impact of the US tariff measures on Indian exports through a comprehensive multi-pronged strategy encompassing intensive engagement with the US government for a mutually beneficial India-US bilateral trade agreement,” the minister said.

He further said that immediate relief has been given through trade relief measures of the RBI and announcement of the credit guarantee scheme for exporters, enhancement of domestic demand through GST reforms, and negotiating free trade agreements (FTAs) with new countries.

“The government is working with all stakeholders to enable our exporters to better utilize the benefits of India’s FTAs with major markets such as Japan, Korea, UAE and effectively utilize the opportunities that have been created with the recently concluded FTAs,” the minister said, adding that the government is also engaged in negotiations for early conclusion of mutually beneficial FTAs with the EU, Peru, Chile, New Zealand, and Oman.

On July 31 this year, the US issued an executive order with reciprocal tariff rates for its trading partners. The order notified country-specific additional ad-valorem duty rates for certain American trading partners, including those which have agreed to, or are in the process of concluding trade agreements with them. “The government remains engaged with all stakeholders, including exporters, export promotion councils, industry associations, and state governments to assess the evolving impact of the US tariff measures,” he added.