Minister Piyush Goyal ask exporters to move away from a "protectionist mindset" amid buzz on reciprocating tariffs

Commerce Minister Piyush Goyal, during a meeting with key trade promotion organizations, emphasised India's efforts to establish bilateral trade agreements with various economies in order to enhance opportunities for Indian exporters. He reassured exporters of the government's support in navigating global challenges.

The minister's statement follows a backdrop of ongoing tariff disputes between various countries, including pressure from the US for India to reduce tariffs on American goods. Despite this, India and the US have committed to finalizing a bilateral trade agreement by 2025.

Goyal urged domestic exporters to move away from a "protectionist mindset" amid buzz on reciprocating tariffs.

"Reflecting on the reciprocal tariffs, he (Goyal) has cautioned the EPCs (export promotion councils) to come out of their protectionist mindset and encouraged them to be bold and ready to deal with the world from a position of strength and self-confidence," the ministry of commerce and industry said in a statement on March 13.

In light of the budget announcement for the Export Promotion Mission, which emphasizes new products, markets, and exporters, Goyal encouraged the industry to provide suggestions for shaping the schemes effectively to reach the desired objectives.

Acknowledging the evolving global landscape, the minister assured that the government is working tirelessly to secure a prosperous future for Indian exporters, both in merchandise and services, and to safeguard the interests of the nation.

“Indicating that the government has reached final stages in FTAs with few in particular, the minister was positive that it will lead to much better opportunities for Indian exporters and will also bring in higher investment,” the ministry said.

India is presently in discussions for Free Trade Agreements (FTAs) with various nations and regions, such as the United Kingdom, European Union, and Oman.

India-US trade deal 

The Centre recently informed Parliament of plans for India and the US to engage in trade negotiations. The focus of these discussions will be on enhancing market access, reducing import duties and non-tariff barriers, and improving supply chain integration.

In a written response to the Lok Sabha, Minister of State for Commerce and Industry Jitin Prasada stated that as of now, the US has not imposed reciprocal tariffs on India.

On February 13, the United States released a memo regarding reciprocal trade and tariffs. In this memo, the US Commerce Secretary and the United States Trade Representative (USTR) have been tasked with investigating any harm to America resulting from non-reciprocal trade agreements with trading partners. They are required to submit a detailed report with proposed solutions for each partner.

Tariffs refer to import duties levied by the government and paid by companies to facilitate the entry of foreign goods into the country.

India is currently negotiating FTAs with a slew of countries and blocs, including United Kingdom, European Union and Oman.