On Thursday, exporters called for the implementation of a US-focused marketing plan to capitalize on the higher tariffs on Chinese goods that President-elect Donald Trump has mentioned in order to increase exports by an additional $25 billion over the next three years.
According to Ashwani Kumar, president of the Federation of Indian Export Organizations (FIEO), 750 crore rupees should be allocated for three years’ worth of marketing initiatives in the United States. This money will be used to finance numerous exhibitions and partnerships with major local distributors and retailers to promote Indian goods.
FIEO also requested an extension of the Interest Equalization Scheme (IES) for the following five years during its pre-Budget meeting with the finance ministry. The program, which was supposed to terminate on June 30, has been extended until December 31 exclusively for exporters who fall under the Micro, Small, and Medium Enterprises category.
India can take the position of China in a number of industries, including electronics and electricals, textiles and clothing, toys and games, chemicals, footwear, furniture and home décor, and automotive components and parts, according to a study conducted by FIEO.
Electronics and electrical products have the greatest potential for further exports of $10 billion. China accounted for 27.3% of US electronics exports totaling $463 billion in 2023, compared to India’s 2.6% share.
According to the FIEO analysis, there is an extra $2.5 billion in export potential for clothing and makeup, $1.5 billion for toys, $1 billion for footwear, $1 billion for furniture and home décor, and an additional $1.5 billion for vehicle and auto components. In the US, the FIEO has also chosen associations to reach out to for cooperation.
Regarding financing rates, the President stated that the IES is only available to manufacturers in MSME (micro, small, and medium-sized enterprises) until December 31, 2024, and that the annual maximum of Rs 50 lakh per IEC (import-export code) holder is insufficient for many MSMEs.
