Key Points

Sitharaman underlined the importance of protecting workers' livelihoods, calling upon industry leaders to reassure employees of job continuity even amidst global headwinds. She affirmed that the government will extend comprehensive support to exporters to sustain growth momentum and uphold India's resilience in international trade.

She emphasised that the government is committed to addressing all concerns of the exporting community and will explore every possible avenue to safeguard their interests.

The FIEO delegation, led by its President S.C. Ralhan, apprised the Finance Minister of the challenges faced by Indian exporters due to the hike in tariffs imposed by the US.

During the interaction, Ralhan highlighted the immediate concerns of the exporting community, particularly the adverse impact of higher tariffs on market access, competitiveness, and employment generation. He underscored the need for quick and calibrated policy measures to mitigate the strain on India's exporters, who have been key drivers of growth and job creation.

Ralhan said: "The Finance Minister's reassurance has come as a great source of confidence for the exporting fraternity. Her commitment that the government will stand shoulder-to-shoulder with exporters demonstrates the priority being accorded to safeguarding India's trade interests and employment."

The FIEO reaffirmed its resolve to work closely with the government to overcome current challenges, diversify export markets, and further strengthen India's position in global trade, he added.

Earlier, the FIEO has expressed grave concern over the US government's imposition of an additional 25 per cent tariff on Indian-origin goods, raising total duties on many export categories up to 50 per cent, which comes into effect from Friday.

FIEO President Ralhan described the development "as a setback". He said that the duty hike can severely impact India's exports to the US, with approximately 55 per cent of India's US-bound shipments (worth $47-48 billion) are now exposed to pricing disadvantages of 30-35 per cent, rendering them uncompetitive in comparison to competitors from China, Vietnam, Cambodia, Philippines and other Southeast and South Asian countries.

Labour-intensive sectors such as textiles, seafood, leather, ceramics and handicrafts are reported to be facing a challenge due to the US duty hike.

- IANS