The government is considering additional incentives for exporters to arrest the decline in India’s exports and mitigate the potential impact of reciprocal tariff threats by the Donald Trump administration, sources said.
Though the government is yet to formulate the exact form of incentives to be given, the Rs 2,250 crore Export Promotion Mission announced in the Budget has room for flexibility in providing more incentives as the schemes are yet to be notified, they added.
India’s merchandise shipments witnessed a decline in value terms in the three months between November and January.
Merchandise exports were $36.43 billion in January compared to $37.32 billion a year ago. In December, it stood at $38.01 billion against $38.39 billion in December 2023, while its outward shipments declined to $32.11 billion in November 2024 from $33.75 billion in the year-ago month.
Commerce and Industry Minister Piyush Goyal is expected to hold discussions with export promotion councils on Thursday on trade issues.
The meeting assumes significance as the minister has recently returned from Washington after holding trade talks with his US counterparts.