India plans US $ 2.27 billion Export Promotion Mission to cushion US tariff impact

NEW DELHI : By September, India hopes to present a long-term plan of Rs. 20,000 crore (US $ 2.27 billion) to protect its exporters against the uncertainties and volatility of international commerce, officials said.

The newly established Export Promotion Mission is planning a number of initiatives to address non-tariff barriers in foreign markets and make it easier to obtain export credit.

Given that the ministry of Commerce and Industry is advising exporters to develop and market domestic brands in order to deal with the 25% tariff imposed by the United States, the government’s program takes on significant importance.

The Ministries of Finance, Micro, Small and Medium-sized Businesses (MSME) and Commerce and Industry are working together to advance the mission.

The strategy also calls for establishing districts as export hubs, promoting the establishment of e-commerce hubs and promoting Brand India on the international scene in a manner similar to that of Korea, Japan and Switzerland.

The mission will be divided into five parts: trade finance, non-trade finance that deals with standards, regulations and market access; e-commerce hubs and warehousing; improved brand memory for Brand India; and trade facilitation. With a cap on individual exporters and based on their credit history, the objective is to provide entirely or partially collateral-free loans to MSME exporters.