Govt Considers Incentives for Exporters Amid Global Trade Uncertainty

The Indian government is expected to introduce another set of incentives for the exporters for certain restoration in the country's exports and to counter the reciprocal tariff threats from the Donald Trump administration, sources confirmed.

These incentives have not yet been finalised, but the Export Promotion Mission of Rs 2,250 crore, announced in the recent budget, has plenty of room to manoeuvre since relevant schemes have not yet been fully notified. This gives the government an opportunity to go ahead with further measures to help exporters out.

India's merchandise export value has been falling for several months now. Merchandise exports in January valued $36.43 billion, down from $37.32 billion in January 2024, with December exports dropping even further to $38.01 billion, compared to $38.39 billion in December 2023. Exports in November 2024 stood at $32.11 billion, lower than about $33.75 billion in the same month in the previous year.

Commerce and Industry Minister Piyush Goyal will discuss with export promotion councils on Thursday to find solutions to the pressing issues in trade. This is a very important meeting because the minister has just returned from Washington, where he had a discussion on trade with the U.S. team. The government is, very probably, going to explore the means to boost exports and answer any global challenges that currently pose as crises for India.