Indian Exporters Eye US Market Amid Looming Tariffs

Exporters are seeking Rs 750 crore over three years to tap USD 25 billion in export potential to the US, in light of possible high tariffs on Chinese goods under President-elect Donald Trump’s policies. The aim is to strengthen India's market presence in sectors currently dominated by China.

Indian exporters are lobbying for a fund of Rs 750 crore spread over three years to target the USD 25 billion export potential in the United States. The move, initiated by the Federation of Indian Export Organisations (FIEO), gains urgency as the incoming US administration under Donald Trump threatens to levy steep tariffs on Chinese products.

At a pre-Budget meeting with India's finance ministry, FIEO President Ashwani Kumar pressed for the continuation of the five percent Interest Equalisation Scheme (IES). Kumar suggested a targeted marketing initiative in the US, with Rs 250 crore allocated annually, to capitalize on emerging opportunities stemming from potential higher tariffs on Chinese goods.

A study by FIEO indicates that India could challenge China's dominance in various sectors, including electronics, textiles, and auto components. The organization is building partnerships with key US trade associations and planning to participate in multiple exhibitions. On interest rates, Kumar noted that domestic exporters face higher borrowing costs compared to international peers, calling for an extension of the IES to bolster competitiveness.

(With inputs from agencies.)