The Federation of Indian Export Organisations (FIEO) is focusing on developing a strategic plan targeting five sectors to enhance exports to the United States, as the incoming US administration under Donald Trump signals the possibility of increased tariffs on Chinese goods.
FIEO is prioritizing a proactive approach, with emphasis placed on electronics, toys, apparel, organic and inorganic chemicals, and leather. The organization is working on formulating strategies aimed at capitalizing on potential trade shifts arising from Trump’s proposed tariff policies.
Trump’s administration has indicated intentions to implement tariff hikes of 25 percent on imports from Canada and Mexico and 10 percent on Chinese goods. India, however, has not been included in the initial list of countries facing these increases.
FIEO has highlighted the importance of governmental support, advocating for financial assistance to enable Indian exporters to participate in trade exhibitions across the US. This is viewed as essential for expanding market presence and leveraging emerging opportunities created by changing global trade dynamics.
The exporters’ body has recommended increased allocation under the Market Access Initiative (MAI) scheme to facilitate a more aggressive promotion of Indian goods in the US market. The proposal calls for US-specific MAI funding and the development of a comprehensive three-year plan to maximize export potential.
The US continues to be India’s largest trade partner and primary export destination. Bilateral merchandise trade between the two countries reached approximately $120 billion during the financial year 2023-24. India recorded a trade surplus of $35.3 billion during this period.
FIEO has also acknowledged challenges faced by exporters, particularly concerning liquidity and reduced export finance availability. The organization has urged the government to relax the mandatory 45-day payment period for transactions with micro, small, and medium enterprises (MSMEs). Additionally, an extension of the interest equalization scheme by five years has been requested to provide further support to exporters.
