“The government is thinking ahead to identify the challenges and speed bumps that may arise, and we are formulating strategies to ensure the protection of our exporters and their interests,” he said, underlining the importance of India’s growing global position.
The minister asserted that India’s market, with its 1.4 billion people and rising aspirational spending power, is well-positioned to take on global trade challenges. “We are navigating free-trade agreements (FTAs) on an equal footing, and we will not buckle under pressure. We will ensure the best outcomes for India and its exporters,” he said.
Prasada’s remarks gain significance after US president Donald Trump announced a 25% tariff on imports of steel and aluminium. Trump has also threatened reciprocal measures, potentially impacting global trade dynamics.
New Delhi wants any tariff reduction in trade negotiations with the US to be reciprocal, which would create a more favourable environment for businesses and drive bilateral trade growth. Such a reduction would be the right step to address trade imbalances and promote expansion, Mint reported on Tuesday.
Merchandise trade
As per the commerce ministry data, India’s merchandise trade deficit rose to a two-month high of $22.99 billion in January due to higher imports.
Merchandise exports declined to $36.43 billion in January by value from $38.01 billion in the previous month and from $37.32 billion a year earlier, according to data released by the commerce ministry on Monday.
Meanwhile, goods imports rose steadily annually to $59.42 billion, up from $53.88 billion a year earlier. Merchandise imports in December stood at $59.95 billion.
The cumulative value of merchandise exports for April 2024-January 2025 stood at $358.91 billion, marking a 1.39% increase annually, while goods imports stood at $601.90 billion, up 7.43% annually.
“We are looking forward to meeting the government’s target of $118 billion in engineering exports for FY2024-25,” Pankaj Chadha, chairman of EEPC India, said at the council’s event.
Chadha also flagged challenges faced by the exporting community, particularly the impact of high steel prices and the potential safeguard duty of 20-25% on steel imports. He called for measures to reduce the cost of export credit for small businesses and better support for small exporters.
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