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India exports strategy: Focus shifts to 50 nations; plan aims to offset US tariff blow

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India exports strategy: Focus shifts to 50 nations; plan aims to offset US tariff blow

India is widening its export focus to 50 countries, including key markets in West Asia and Africa, in a bid to lessen dependence on any single buyer and cushion the blow from steep US import tariffs.According to ET, these markets together account for about 90% of India’s total exports.Officials from the commerce and industry ministry said a product-by-product review is under way to identify competitive advantages and rival offerings. “The idea is to tap top 50 countries and look at each product and the competitors. India must mitigate risks to improve manufacturing and export competitiveness,” an official cited by ET said. This effort is being coordinated with export promotion bodies.The urgency stems from Washington’s decision to raise duties on Indian imports from 25% to 50%, matching Brazil’s rate and marking the highest tariff level for any country. The first 25% hike took effect last week, while the additional 25% will apply from August 27. Sectors such as textiles, leather, marine products, gems and jewellery are expected to face the sharpest impact.Compounding the challenge, rival exporters such as Turkey, Vietnam and Thailand face significantly lower duties of 15%, 20% and 19% respectively, making Indian products less competitive in the US. “The US is our single largest market, accounting for over $10 billion in exports, nearly 30% of our industry’s total global trade. A blanket tariff of this magnitude is severely devastating for the sector,” said Kirit Bhansali, chairman of the Gem and Jewellery Export Promotion Council.The government’s strategy to counter the impact includes customised schemes under the proposed Export Promotion Mission, redirecting goods to alternative markets, and pushing under-exported products into the domestic market. The list of priority countries has also expanded from 20 to 50.Bhansali warned that trade diversion through low-tariff nations such as Mexico, Canada, Turkey, UAE or Oman could undermine transparency and the integrity of legitimate trade.





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