India Targets Higher Exports Despite Tariff Pressures, Backed By GST Reforms: Piyush Goyal

(MENAFN- KNN India) New Delhi, Sep 5 (KNN) Commerce and Industry Minister Piyush Goyal on Thursday said India's exports in the current financial year will exceed those of 2024–25, despite challenges posed by high US tariffs, as the government pushes for faster diversification of markets and products.

Speaking to reporters, Goyal underlined that the industry has assured the government it will pass on the benefits of recent Goods and Services Tax (GST) rate reductions to consumers.

“This has been a very special year for consumers,” he said, referring to the Income Tax benefits announced in the Union Budget and the GST reforms introduced on Wednesday.

"Industry has committed that they will pass on the benefits of GST rate reduction to consumers," Goyal said, adding he has spoken to industry associations and large corporations.

India's goods and services exports reached USD 820 billion in 2024–25, a 6 percent increase over the USD 778 billion recorded in the previous fiscal. Goyal expressed confidence that the current year's export performance would surpass that figure.

He acknowledged that the 50 percent tariff imposed by the United States on Indian goods has created difficulties but added that efforts are underway to expand into alternative destinations.

Highlighting diversification measures, the minister said India is exploring seafood exports to the UAE and has received assurances from Singapore for purchases of eggs and poultry.“They have also shown interest in Indian fish, which opens another avenue for our exporters,” he noted.

On the domestic front, Goyal stressed that GST rationalisation would have a 'multiplier impact' on the economy by reducing costs, easing inflationary pressures, and supporting exporters affected by global trade disruptions.

He said lower prices benefit both consumers and producers by spurring demand and strengthening manufacturing activity.

According to the commerce ministry, industry bodies have welcomed the reforms, citing provisions such as faster tax refunds, provisional relief under the inverted duty structure, and rationalised rates across key sectors.

These are expected to ease liquidity constraints, support MSMEs, and improve supply chain efficiency.

(KNN Bureau)

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