EEPC India has urged the government to include sector-specific tariffs on steel, aluminium and auto components in the proposed bilateral trade agreement (BTA) with the United States, citing their critical role in engineering exports, which account for nearly one-fourth of India’s total merchandise exports.
Speaking at the EEPC India event in Mumbai, EEPC India Chairman Pankaj Chadha said, “It would be unfair on engineering exporters if there is a BTA done without looking at sectoral tariffs… We hope the sectoral and auto component tariff is part of the first tranche.”
Chadha also expressed optimism about signing a free trade agreement (FTA) with the European Union later this year, after the finalisation of the India-UK FTA. While the UK deal has been concluded, he said its implementation may take up to a year due to legislative and procedural timelines.
He proposed a three-year moratorium for Indian MSMEs on the European Union’s carbon tax under the Carbon Border Adjustment Mechanism (CBAM), effective January 2026, and flagged the EU’s extension of safeguard duty on certain steel products. He urged the government to address these issues while finalising the EU trade deal.
Chadha also raised concerns over the export classification of mica, stating that its designation as a rare earth mineral has adversely affected trade. “India holds 85 per cent of global mica deposits and the mineral is widely available. It should be reconsidered,” he said.
Maharashtra’s Development Commissioner (Industries) Deependra Singh Kushwah, attending as special guest, said the state government is implementing an export policy with subsidies of up to Rs 100 crore per project to support 30 export-oriented initiatives over five years. He said Maharashtra remains India’s second-largest exporting state, with engineering playing a vital role.
Regional Chairman (Western Region) Anoop Marwaha said India’s engineering exports surpassed USD 100 billion for the first time in FY22, reaching USD 112.16 billion. “This achievement reflects the resilience, adaptability, and innovation of the exporting community,” he said, recalling the global disruptions faced during the Covid-19 pandemic.
