PM Modi meets exporters; discusses 50% US tariffs, urges them to diversify to other countries
Prime Minister Narendra Modi engaged in a meeting on Monday evening with exporters from labour-intensive industries, focusing on enhancing India’s global trade competitiveness amid significant challenges. The session brought together representatives from apparel, leather, gems and jewellery, handicrafts, engineering, and seafood sectors.
The discussions in the meeting were driven by the recent imposition of a 50 per cent tariff by the United States on most Indian goods, which has affected these sectors. Exporters highlighted sector-specific challenges and explored support strategies with government officials.
The meeting was also attended by Finance Minister Nirmala Sitharaman, Commerce and Industry Minister Piyush Goyal, Cabinet Secretary TV Somanathan, and several secretaries.
According to industry sources, the US remains the largest export destination for Indian sectors such as gems and jewellery, seafood, textiles, and engineering goods, with the US accounting for nearly one-third of total sectoral exports from India.
During the meeting, the government encouraged Indian exporters to diversify and expand their business into emerging markets such as the European Union and Russia. Exporters also sought financial measures from the government to help mitigate the effects of the tariffs.
As per two industry executives present, the session was an opportunity for exporters to provide first-hand suggestions to the Prime Minister and other senior officials. The dinner meeting continued late into the night, reflecting the urgency of the situation.
A senior exporter present at the discussion stated that the prime minister wanted to understand the impact on Indian exports and the way forward.
Presently, India accounts for about 2 per cent of global trade, with 1.6 per cent in goods exports and 3.3 per cent in services. Despite global headwinds, exports rose by 6.74 per cent to USD 36.38 billion in September, while imports surged by 16.6 per cent, expanding the trade deficit to USD 31.15 billion. From April to September this year, exports grew 3.02 per cent to USD 220.12 billion, and imports climbed 4.53 per cent to USD 375.11 billion, resulting in a trade deficit of USD 154.99 billion.
