14 August 2025: The Hindu Editorial
1. Govt. tweaks export plan as U.S. ups the trade ante
Source -Page 1, The Hindu, Delhi Edition
| Topic: GS-3 – Indian Economy, External Trade |
| Context |
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Background:
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The U.S. has imposed higher tariffs on several Indian goods.
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Sectors most impacted: textiles, shrimp exports, organic chemicals, machinery.
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Key changes in Mission:
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Credit guarantees for MSME exporters.
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Faster clearances.
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Export incentives under consideration.
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Inter-ministerial coordination (Commerce, Finance, MSME, Fisheries, Textiles).
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Budgetary provision:
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₹2,250 crore allocation in Union Budget 2025–26.
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Aim: Facilitate easy export credit, cross-border factoring, and address non-tariff barriers.
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Analysis:
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Positive: Can help offset tariff impact, sustain export competitiveness.
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Challenges:
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WTO compliance for incentives.
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Need to diversify export markets.
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Way forward:
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Leverage FTAs to reduce tariff burden.
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Enhance quality compliance for global markets.
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Practice Question: “How can India’s Export Promotion Mission be leveraged to counter protectionist trade measures by developed countries like the U.S.? Discuss with examples.” |
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