Modi government launching an export promotion mission worth ₹2,250cr
What's the story
The Indian government is all set to unveil a ₹2,250 crore export promotion mission. The initiative is aimed at protecting domestic industries from global trade uncertainties, especially those stemming from US tariffs. It will focus on boosting domestic consumption, exploring new markets and supply chains, and providing support to MSMEs through easy credit schemes and overseas warehousing facilities.
Initiative
Efforts aimed at capitalizing on emerging export opportunities
The export promotion mission will have several components. These efforts are aimed at capitalizing on emerging export opportunities. The Directorate General of Foreign Trade (DGFT) has already presented the mission to representatives of export promotion councils and other key stakeholders.
Strategic approach
GST Council likely to meet soon
As per industry officials, the export promotion mission has two main components. They are Providing Trade Finance Support (NIRYAT PROTSAHAN) and Driving International Holistic Market Access (NIRYAT DISHA) Initiative. The GST Council is also likely to meet soon to discuss rate simplification and rationalization, as well as the future of the compensation cess. This is expected to further boost domestic consumption amid global trade uncertainties.
Trade challenges
India's exports remained flat in June
The Commerce Ministry has held several stakeholder meetings recently to understand the challenges posed by high US tariffs on Indian goods. These duties, announced by US President Donald Trump, are expected to hit sectors such as textiles, chemicals, leather and footwear hard. India's exports remained flat at $35.14 billion in June due to global economic uncertainties, while the trade deficit narrowed to a four-month low of $18.78 billion during this period.