Trump, Tariffs and Tantrum

The Export Promotion Mission, announced in the Union Budget 2025-26, is driven jointly by the Ministries of Commerce and Industry, Ministry of Micro, Small and Medium Enterprises, and Ministry of Finance to enhance export competitiveness by facilitating improved access to export credit, enabling cross-border factoring, and assisting MSMEs in addressing non-tariff barriers in global markets. Department of Commerce is the lead department for the Mission.

According to WTO, (WTO)-compliant interventions in global trade by a signatory nation, can be focusing on trade finance and to make market access easier for exporters. There cannot be any other incentives other then these.

Accordingly, the Ministry's primary role is that the Mission's key objectives, i.e. improving access to export credit, enabling cross-border factoring, and assisting with non-tariff barriers, are effectively targeted and implemented to benefit Micro, Small, and Medium Enterprises across the country.

The US is India’s biggest trade partner and export destination. During FY24, India exported goods worth $86.5 billion, up 11.6 per cent year-on-year. Imports stood at $45.7 billion, taking the surplus at $40.8 billion.

Our government has said that negotiations for a bilateral trade agreement will continue and that national interests, especially those of the farmers and small businesses, will be protected.The government cannot yield to pressure tactics of Trump but it should review its protectionist policies that hurt our less influential segments. The government’s focus should be on enhancing the competitiveness of our producers. It is our competitiveness that can give us better leverage in trade negotiations with other countries as well.

The author can be reached at https://dhandasikho.online/

CA Rohit Tendulkar