India Eyes Incentives to Boost Export Growth Amid Decline

The Indian government is considering additional incentives for exporters to combat the decline in the country's exports and address tariff threats from the U.S. The new incentives are expected to build on the Rs 2,250 crore Export Promotion Mission, as discussions with export councils are set to take place.

The Indian government is actively seeking additional incentives to provide a much-needed boost to its declining export sector, according to sources. This comes in response to the potential impact of reciprocal tariffs threatened by the Donald Trump administration.

While the specifics of these new incentives are still under deliberation, the Rs 2,250 crore Export Promotion Mission announced in the national budget offers a flexible framework within which more incentives could be introduced. This flexibility comes as many of the mission's schemes have yet to be officially notified.

In recent months, India's merchandise exports have seen a notable decline. January's exports fell to USD 36.43 billion from USD 37.32 billion a year prior, and Commerce and Industry Minister Piyush Goyal is set to engage in crucial discussions with export promotion councils later this week following his trade meetings in Washington.

(With inputs from agencies.)