FIEO identifies five key sectors to boost US exports amid Trump policies

NEW DELHI : The Federation of Indian Export Organisations (FIEO), the apex body for exporters, is crafting a strategy to boost exports to the United States in five key sectors. This comes in response to President-elect Donald Trump’s stated intention to impose steep tariffs on Chinese goods.

“We need to be proactive rather than reactive this time. Our focus is on developing a strategy for five sectors: electronics, toys, apparel, organic and inorganic chemicals, and leather,” FIEO Vice-President Israr Ahmed said on Tuesday.

Ahmed’s remarks come as Trump has pledged to raise tariffs by 25% on goods from Canada and Mexico, and by 10% on Chinese imports, starting in January. So far, India has remained unaffected by the initial tariff hikes.

The apex exporters’ body, FIEO, has emphasized the need for government support, particularly in the form of financial assistance to enable Indian exporters to participate in trade exhibitions across the United States.

FIEO highlighted that Indian exporters are well-positioned to capitalize on emerging opportunities arising from shifting global trade dynamics. To bolster this effort, exporters have urged the government to increase funding under the Market Access Initiative (MAI) scheme, enabling a more aggressive promotion of Indian goods in the US market.

“MAI funding needs to be US-specific. In today’s geopolitical situation, this is a great opportunity for us. There should be a three-year plan,” Ahmed said. 

The US is India’s largest trade partner and export destination. During the financial year 2023-24, the size of the bilateral merchandise trade between the two nations stood at nearly $120 billion. The trade balance has been in favour of India, with a surplus of $35.3 billion. 

Ahmed also said there were some challenges for exporters, in terms of ‘liquidity’. Besides, export finance has come down. The apex body for exporters has urged the Centre to relax the requirement of making payments to micro, small, and medium enterprises within 45 days of buying goods and services, besides a five-year extension of the interest equalisation scheme.