China Commerce Ministry: Will strengthen policy support to stabilize corporate confidence and expectations.

China Commerce Ministry: Will strengthen policy support to stabilize corporate confidence and expectations.

The Chinese Commerce Ministry has announced a series of meetings with exporters from various sectors, including chemicals and gems and jewelry, to discuss strategies for boosting exports to new markets and mitigating the impact of the 50% US tariffs on Indian goods [1]. The meetings are part of a broader effort to diversify export destinations and shield industries from the steep import duties imposed by the Trump administration.

The US accounts for approximately 20% of India's $437.42 billion worth of goods exports in 2024-25, making it a significant trading partner. The Commerce Ministry's initiative aims to reduce the reliance on the US market by exploring new opportunities in other regions. The official stated that work is progressing rapidly on the formulation of the Export Promotion Mission, announced in the Budget for 2025-26, and that the ministry will meet stakeholders on the diversification of exports in the next 2-3 days [1].

The steep 50% tariff on Indian goods entering the United States, which came into effect from August 27, 2024, would impact exports worth more than $48 billion. Sectors such as textiles/clothing, gems and jewelry, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical machinery are expected to bear the brunt of these high import duties. However, sectors such as pharma, energy products, and electronic goods are out of the ambit of these sweeping duties [1].

The Commerce Ministry's focus on policy support and market diversification underscores its commitment to stabilizing corporate confidence and expectations amidst global trade tensions. By strengthening policy measures and exploring new export markets, the ministry aims to provide a robust framework for Indian industries to navigate the challenges posed by US tariffs.

References:
[1] https://www.business-standard.com/industry/news/commerce-ministry-holds-talks-with-exporters-to-counter-steep-us-tariffs-125082700440_1.html