US tariff threats hit Indian exports in February
NEW DELHI : Indian exports in February were impacted by US tariff threats, a government source said. India is considering offering incentives to exporters amid global uncertainty, with a decision expected within a month, according to Reuters.
India is considering new incentives for its exporters amid global trade uncertainty and the potential impact of tariffs threatened by the Donald Trump administration on shipments to the United States, a government official said on Tuesday.
Pressure on Indian exporters is mounting due to aggressive policies being pursued by trade partners like the US and the European Union.
The government is expected to make a decision on providing incentives to exporters within a month and funding has already been allocated in the budget for the year beginning April 1, the official, speaking on the sidelines of an event, said.
The government did not immediately reply to an email seeking comment.
India’s exports in February were affected by the threat of US tariffs, the official said. India will release trade data for February on March 17.
After a meeting between Trump and Indian Prime Minister Shri Narendra Modi last month, the two countries had agreed to resolve traffic rows and work on the first segment of a deal by the fall of 2025, aiming for bilateral trade worth $500 billion by 2030.
Union Finance Minister Smt. Nirmala Sitharaman on Thursday said that the impact of the US tariffs will be felt on India.
For context, On February 18, US President Donald Trump outlined a new trade policy focused on fairness and reciprocity and said that the US would implement reciprocal tariffs, charging other countries the same tariffs they impose on American goods.
Trump emphasised that this approach would address unfair trade practices, including non-monetary barriers, subsidies, and VAT systems to encourage foreign countries to either reduce or eliminate tariffs against the US or set up their manufacturing base in the US which will add to its growth in the long term.