Government’s Strategy to Mitigate Tariff Impact

In response to the 25% tariff imposed by the United States, the Indian government is actively encouraging exporters to focus on developing and promoting homegrown brands. This strategic move aims to counterbalance the competitive disadvantage faced by Indian products in the US market. By fostering strong domestic brands, the government hopes to enhance the global competitiveness of Indian exports.

Support for Small Exporters

To further assist exporters, particularly smaller enterprises, the government is considering implementing measures such as reduced testing fees. This initiative is designed to alleviate some of the financial burdens that smaller exporters face, enabling them to maintain their market presence despite increased costs due to tariffs.

Focus on Key Sectors

The government’s efforts are particularly concentrated on sectors like marine products, which have been significantly impacted by the new tariffs. These sectors are now facing heightened competition in international markets, necessitating innovative strategies to maintain their competitive edge. By promoting local brands within these sectors, the government aims to secure a stable market position for Indian products abroad.

Exploring Employment-Linked Programs

In addition to brand promotion, the government is exploring employment-linked programs as a means of supporting exporters. These programs are intended to create job opportunities while simultaneously boosting export activities. By linking employment initiatives with export growth, the government seeks to achieve a dual objective of economic development and job creation.

Fixed-Price Intermediate Products

Another aspect of the government’s strategy involves considering fixed-price intermediate products. This approach is aimed at providing exporters with more predictable pricing structures, thereby reducing uncertainties and enhancing their ability to compete in international markets. Overall, these measures reflect a comprehensive approach by the Indian government to support its exporters in navigating the challenges posed by US tariffs, ensuring sustained growth and competitiveness in global trade.