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US Tariffs Slash to 18% Brightens Export Outlook, Says DFS Secretary

DFS Secretary M Nagaraju stated that the reduction of US tariffs from 50% to 18% significantly improves the outlook for Indian exporters. He highlighted that key trade agreements with the United States and the European Union are nearing completion, which will further enhance market access. Nagaraju praised the Exim Bank for its support to MSMEs and artisans, noting reported improvements in sales and product quality. He also mentioned government support schemes and acknowledged that while AI can improve connectivity, product quality remains the ultimate deciding factor for global buyers.

Key Points: US Tariffs Cut to 18%, Boosting Indian Export Outlook

  • US tariffs cut from 50% to 18%
  • Trade deals with US & EU near completion
  • Exim Bank supports MSMEs & artisans
  • Government guarantee scheme cushions exporters
  • AI aids trade but quality remains key
2 min read

Export outlook bright as US tariffs cut to 18 pc: DFS Secretary M Nagaraju

DFS Secretary M Nagaraju says reduced US tariffs and pending trade deals with the US & EU promise better market access for Indian exporters, especially in handicrafts.

"Indian businesses now have stronger global opportunities. - M Nagaraju"

New Delhi, Feb 17

Indian exporters can look forward to better days ahead as trade conditions improve, Department of Financial Services Secretary M. Nagaraju said on Tuesday.

Speaking on the sidelines of the 10th edition of 'Exim Bazar' organised by Export-Import Bank of India here, he said that with the US tariffs reduced from 50 per cent to 18 per cent, and key trade agreements with the United States and the European Union nearing completion, the future of Indian exports, especially handicrafts, looks promising.

"Indian businesses now have stronger global opportunities," Nagaraju said.

"With trade deals with the US and the EU almost finalised and the rollback of steep tariffs by America, exporters can expect improved access to international markets," he added.

Nagaraju praised Exim Bank for its continued support to micro, small and medium enterprises (MSMEs), particularly artisans working in handicrafts and handlooms.

He congratulated the bank's staff and the artisans who have participated in the annual event over the past decade.

"Many artisans have reported better sales and improved product quality due to institutional backing and exposure to global buyers," he stated.

He noted that Exim Bank operates on two levels. On one side, it provides government-to-government Lines of Credit on behalf of the government. On the other hand, it runs commercial operations that directly support exporters by raising funds from overseas markets and extending financial assistance to businesses.

Nagaraju also referred to the government's recently launched export mission and a guarantee support framework introduced by DFS to help exporters deal with global trade challenges.

He said the guarantee scheme is working well and has helped cushion exporters from adverse international developments.

On the role of artificial intelligence in trade, Nagaraju said AI will improve connectivity and access to information.

However, he stressed that technology alone cannot replace product quality, especially in traditional sectors like handicrafts.

He said India's handicraft and handloom products are deeply linked to the country's culture and heritage, and they must continue to compete globally on quality and price.

"While AI can support marketing and outreach, the final decision of buyers will depend on the strength of the product itself," he added.

- IANS

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Reader Comments

P
Priya S
Finally some positive steps! The focus on handicrafts is crucial—it's not just an industry, it's our heritage. Hope the benefits actually reach the grassroots artisans and aren't just absorbed by middlemen. The guarantee scheme sounds promising.
R
Rohit P
Good move, but implementation is key. We've heard many announcements before. Will the banks actually provide easy credit to small exporters without endless paperwork? That's the real question. 🤔
S
Sarah B
As someone working in international trade, this tariff reduction is a significant development. It makes Indian goods much more competitive in the US market. The emphasis on AI for connectivity while maintaining product quality is the right balanced approach.
K
Karthik V
Our handloom sector deserves this boost! From Kanchipuram silks to Pashmina shawls, the world needs to see authentic Indian craftsmanship. Hope the trade deals with EU get finalized soon too. More power to our weavers!
M
Michael C
This is a positive step for global trade. Reducing trade barriers benefits consumers everywhere with more choices and better prices. The focus on supporting small enterprises is particularly commendable.

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