(MENAFN- KNN India) New Delhi, Aug 8 (KNN) The government convened a meeting on Thursday with representatives fr0m the textiles and chemicals industries to address the anticipated impact of 50 per cent additional tariffs imposed by the United States.

The discussion focused on developing strategies to mitigate the adverse effects through targeted incentives and market diversification initiatives for these sectors, which are expected to face the most significant challenges fr0m the new tariff structure, as per a report by FE.

During the commerce ministry-led meeting, officials explored proposals to prioritise support for affected sectors through the Export Promotion Mission (EPM).

Government sources indicated that support measures under this mission would be extended to industries experiencing substantial reductions in exports to the United States due to the tariff implementation.

The EPM, announced in the current year's budget, encompasses 12 sub-schemes designed to address exporters' credit requirements, provide marketing support, and assist in navigating regulatory challenges, with additional provisions for supporting e-commerce exports.

Industry representatives presented several requests during the session, including the reinstatement of the Interest Equalisation Scheme (IES), which concluded on December 31, 2024. The scheme previously provided a 3 per cent subsidy on pre- and post-shipment credit facilities.

Additional demands included extending the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme and the Rebate of State and Central Taxes and Levies (RoSCTL) for an additional five-year period, along with ensuring timely payment of outstanding dues.

The EPM has been allocated Rs 2,250 crore for the current fiscal year, with Rs 200 crore designated for the Market Access Initiative (MAI) and Rs 50 crore specifically for lab-grown diamonds.

The remaining funds are earmarked for designing and implementing selected schemes fr0m the comprehensive list of 12 proposed initiatives.

Six sub-schemes under consideration focus on credit support, including a dedicated credit facilitation program for new exporters and Micro, Small and Medium Enterprises (MSMEs), along with financing mechanisms for emerging export opportunities in new markets and products.

Exporters also requested the establishment of direct shipping lines to the United States, Europe, and Japan, citing current inefficiencies where Indian export cargo must transfer through major transshipment hubs such as Singapore and Dubai.

Additional requests included measures to reduce compliance burdens, simplify advance authorisation procedures, and decrease port charges. The Advance Authorisation scheme facilitates duty-free imports of raw materials for manufacturing export products.

Industry sources reported that exporters have begun investigating opportunities in alternative geographic markets for their products. Officials noted that the current disruption in global trade patterns presents potential opportunities for export diversification.

Export promotion councils are actively working on identifying these new market opportunities, while the Commerce Ministry conducts parallel analysis of emerging possibilities in the changed trade environment.

(KNN Bureau)

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