Navigating Turbulence: India's Strategy to Combat US Tariffs

The Commerce Ministry is formulating both immediate and long-term strategies to support exporters affected by the significant US tariffs. Plans include relaxing regulations for SEZ units and enabling an inventory model for e-commerce exports, sources conveyed.

To shield domestic producers impacted by export disruptions, the ministry is evaluating domestic demand opportunities for SEZ and Domestic Tariff Area manufacturers. Currently, sales from SEZ to the domestic market are permitted following duty payments, though there's advocacy for duty-free sales.

Additionally, the government is considering short-term initiatives to boost liquidity and avert insolvencies. Medium-term efforts will leverage free trade agreements and intensify buyer-seller connections. A long-term focus on export diversification and resilience aims to offset the tariff-induced challenges faced by Indian exporters.

(With inputs from agencies.)