To create an export shield, India sees Africa, Latina

The government is hitting foot to reduce the effect of tariffs, which is now a total of 50% on some Indian goods entering America. The plan discussed in a series of meetings with export councils and business organizations is to develop a strategy that does not include vengeance, three people apprised of the matter.

As part of the initiative, India is considering sending business representatives in “friendly nations” to study its markets and generate demand for Indian goods, one of the people said, speaking on the condition of anonymity. The government is also looking into setting up trade desks in disqualified areas like Africa, Latin America and Eastern Europe, which can unlock more than $ 60 billion in without any export capacity.

New markets

“These (new) markets are actively looking for reliable and cost-effective suppliers in areas where India, especially its MSMEs, have a competitive lead-they have pharmaceuticals, textiles, engineering goods, agriculture, and non-AGRI machinery, processed foods or IT services,” also said, “said the other person,”

On 2 August, Mint It was reported that the Center is scrambling to rebuild its export strategy as the new American tariff hit Indian goods and favored ASEAN rivals. India now shares 50% tariff slabs with Brazil, while most other countries face less tariffs between 10% to 20%.

US President Donald Trump took this step after announcing a new 25% duty on Indian goods for continuous purchase of Russian oil, which adds the current 25% tariffs. The duties are determined to be effective on 27 August, leaving a window for both sides to reach an agreement.

no compromise

In his first public comments since the announcement of the tariff, Modi said that he would not compromise on the interests of the farmers of India, even on “personal political costs”. Modi said at a conference in New Delhi, “Today, India is ready for farmers, fishermen and dairy farmers.”

The Prime Minister’s comments indicate the situation in New Delhi that the decisions on agricultural stability and energy security will not increase with external pressure.

Damu Ravi, a top official of the Ministry of External Affairs of India, said that talks are going on and believe that a mutually beneficial solution will be found.

Ravi told reporters on the occasion of the Lid Brazil India Forum event in Mumbai on Thursday, “At this time high tariffs do not discourage our industries; instead, they inspire us to find out new markets.”

Danger for business

Tariff threatened to disrupt trade flow between the two countries, which was a total of $ 86.5 billion in Indian goods exported to the US in the last financial year. According to examiners, areas such as textile, engineering goods, sea products, and gems and jewelery and jewelery are particularly weak and can see exports falling up to 40%.

In addition to looking for new markets, the government is considering giving financial relief to exporters, the above people said. An option under discussion is to increase the duty comeback rate from 1% to 5% to high level to help exporters absorb additional tax burden. Another interest equation plan (IES) is to re -introduce, which provides subsidy to exporters at interest rates for low lending costs. These initiatives will be funded by a new 20,000 crore export promotion mission.

This remedy is an attempt to protect India’s economic growth, which some economists are afraid that if new tariffs are applied, 20 to 30 basis points can slip by about 6.2% in the current financial year.

Growth effect

“The effect on GDP may not be dramatic, but we can see an increase of close to 6.2–6.3% in FY 26,” said Madan Sabnavis, the chief economist of the Bank of Baroda.

“With such excessive tariff rates, trade between the two countries will be almost dead,” said Madhavi Arora, an economist of MK Global Financial Services. “The dust will take time to settle. The trade saga is over. There is a geopolitical angle for it as an economic one. India is currently being made a sacrifice of a sacrifice.”

“We believe that a business deal will eventually be interacted between India and the US, we note that even the US has faced adverse advanced tariffs despite giving wide concessions to the US to the nations that cracked the deal so far,” Arora said.

Diplomatic channel

Despite the increasing tension, Ravi suggested that diplomatic channels remain open.

Ravi said, “I do not see any logical arguments behind the way I have been implemented – especially considering a strong strategic partnership between the US and India,” Ravi said. “Perhaps this is just a stage that we need to overcome.”

“By diverse in our export sites, we can reduce dependence on traditional partners like the US and create long -term business flexibility,” the other person said.

The questions sent to the Union Commerce Ministry remained unanswered.

Deadlock

The deadlock with the US emerged during the second round of face-to-face talks that began on 4 June. The main point of dispute between India and America was dairy and agriculture, as stated earlier Mint On 11 June.

Major areas- such as textiles ($ 10.91 billion), engineering goods ($ 19.16 billion), agriculture ($ 2.53 billion), gems and jewelery ($ 9.94 billion), leather ($ 948.47 million), sea products ($ 2. 2.68 billion), and plastic ($ 1.92 billion). 50% tariff remains for an extended period.

India exported goods worth $ 86.5 billion to the US in FY 25, which was an accounting for 20% export of total trading goods of $ 433.56 billion during the year. India’s total agricultural exports in the US were $ 2.53 billion in FY25, which was from $ 2.12 billion to $ 19.3% in FY 25.

BRIC

On the issue of de-deletion by BRICS, of which India is also a member, Ravi said, “Pushing for business in national currencies is not necessarily governed by the decision of BRICS-level leadership, but more than the practical need to be felt in countries, more especially in the global south-post-coup, where many people are facing hard work.”

He said that this discussion is taking place bilaterally as well as within the BRICS framework. “In fact, some countries have already started such transactions, and we can see this expansion further,” he said.

“The revised India-US tariff governance presents a cost barrier for areas such as toys, stationery, homeware and sports. It is actually an opportunity to become self-sufficient, tap in India’s vast domestic consumption, and strengthens relationships with fellow countries-which is a quality-operated, a quality-related, export-reading-red-red-red-red-red-read-reading hub. Stationery manufacturer.

There is no allegation of tariff by the US government in the interest of Indian farmers. We urge the Center not to bow down to the US government’s pressure strategy, “Joginder Singh Ugrahan, the state president of the Bharatiya Kisan Sangh (Ekta Ugrahan) said.

Ugrahan said that a joint platform of Samukt Kisan Morch (SKM) and 10 Central Trade Unions would protest against the proposed American tariff on August 13.

As India investigated a new trade participation in response to the US tariff hike on its exports, Prime Minister Modi on Thursday received a telephone call from Brazilian President Luiz Eneasio Lula Da Silva, the two leaders confirmed their commitment to strengthen cooperation in major areas.

According to an official statement by the PMO, the two leaders recalled their meeting in Brazil last month and agreed to consider discussions to promote business, technology, energy, defense, agriculture, health, health and people’s exchange in the exchange of people. This call comes at a time when India is demanding diversification in export markets and reducing over -existence on traditional partners.

Both sides also exchanged ideas on regional and global issues of mutual interest. Construction on these discussions, according to the statement, reiterated his commitment to take India-Brazil strategic partnership to new heights. Leaders agreed to stay in regular contact.

In response to additional US tariffs, New Delhi said on Wednesday that it would take “all necessary tasks” to protect its national interests, when the US imposed an additional 25% tariff on India to import Russian oil. The step came after a failed American attempt to end the war of Russia in Ukraine.

The Ministry of External Affairs called Washington’s action very unfortunate. “We have already clarified our position on these issues, including the fact that our imports are based on market factors and have been done with the overall objective of ensuring the energy security of 1.4 billion people in India,” said this.

“Therefore it is very unfortunate that America should opt for additional tariffs on India for those tasks that many other countries are also taking in their national interest.” We repeat that these tasks are inappropriate, inappropriate and unfair. ,

Vijay C Roy contributed to this story.