Exporters seek Rs 750cr to tap $25B US market amid China tariff threats

Exporters on Thursday sought a fund of Rs 750 crore for three years to tap USD 25 billion export potential in the US, aiming to seize potential opportunities that may arise as the US President-elect, Donald Trump, has threatened to impose high tariffs on Chinese goods.

In its pre-Budget meeting with the finance ministry, Federation of Indian Export Organisations (FIEO) President Ashwani Kumar has also demanded extension of the five per cent Interest Equalisation Scheme (IES).

"A marketing scheme to focus on the US with a corpus of Rs 250 crore per year (Rs 750 crore overall) for three years may be launched to generate additional exports of USD 25 billion," Kumar said.

He said that higher tariffs on China can create a significant opportunity for Indian exports, particularly in sectors where China has previously been a dominant supplier.

Based on a study undertaken by FIEO, India can replace China in sectors like electronics and electrical equipment (USD 10 billion additional export potential), textiles and garments, toys, chemicals, auto components, footwear, furniture and home decor.

He added that India's marketing strategy for exporting products to the US should focus on several key areas, particularly on marketing and forming strategic partnership.