India Urged to Boost Export Competitiveness Amid US Tariff Pressure

Speedy Summary:

• The Global Trade Research Initiative (GTRI) suggested a 10-point plan to mitigate the impact of US tariffs on Indian goods, which increased from 3% a year ago to 50% as of August 27.
• Key recommendations include reviving export promotion schemes (Market Access Initiative – MAI adn Interest Equalisation Scheme – IES),enhancing customs reforms,creating e-commerce hubs for MSME-led exports,and restructuring overseas trade missions with skilled professionals.
• GTRI noted gaps in India’s export ecosystem,including underfunded trade missions and halted funding for MAI in FY 2024-25.
• It highlighted Brazil’s swift response to similar tariffs: credit support, tax exemptions, WTO complaints, retaliatory measures under its reciprocity Law. In comparison, India has yet to announce relief measures for exporters.
• GTRI argued that by implementing cost-cutting efforts thru streamlined processes and revived schemes (reducing costs by up to 10%), India can maintain export competitiveness while diversifying market reliance over time.

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Indian Opinion Analysis:
The abrupt increase in US tariffs reveals notable vulnerabilities within India’s export framework amid growing global protectionism-a challenge that demands both immediate relief measures and long-term strategic reforms. GTRI’s focus on institutional changes like revamping customs systems and expanding funding highlights critical areas where administrative agility could safeguard economic stability at home while enhancing market competitiveness abroad.

Comparing Brazil’s decisive response emphasizes India’s lag in policy action-an issue that may place jobs at risk if timely interventions aren’t prioritized. However, the proposed roadmap suggests attainable steps that balance short-term sustainability with long-term trade resilience focused on lowering costs for exporters without compromising product standards or global positioning.

The allocation of resources towards professionalizing overseas trade missions is especially noteworthy since it targets recurring inefficiencies limiting access to international buyer linkages or tackling non-tariff barriers proactively-all vital aspects as India charts out paths toward diversified exports amid evolving geopolitical landscapes.