India eyes 40 nations for exports amid tariffs

The Ministry of Commerce is set to hold a series of consultations with exporters from various sectors to strategise diversification of shipments to new markets to protect industries from the 50 per cent US tariff, a senior official said.

The government is also planning dedicated outreach programmes in 40 countries, including the UK, Japan, Turkey and South Korea, to boost exports of textile and apparel, which face an estimated $10.3-billion exposure to the US market, the official said.

The 50 per cent US duties, which came into effect on Wednesday, will impact US-bound shipments worth more than $48 billion. Key export sectors such as textiles, leather and footwear, gems and jewellery, and chemicals will bear the brunt.

The official emphasised the need for a long-term strategy, stating, “Diversifying markets and export baskets is critical to maintaining competitiveness, especially given the uncertainties caused by the US tariff.”

“The ministry will meet stakeholders from various sectors such as chemicals, electrical components, marine, leather and footwear, and gems and jewellery in the next two-three days to push for diversification of exports,” the official said.

On textile and apparel export, the official said the shortlisted 40 countries, including those in the EU, Africa, Latin America and West Asia, represented over $590 billion in textile and apparel imports, offering vast opportunities for Indian exporters to increase market share.

It is proposed to pursue a targeted approach, positioning the country as a reliable supplier of quality, sustainable and innovative textile products, the official said. Export promotion councils will be the backbone of the diversification strategy by conducting market mapping, identifying high-demand products and linking specialised production clusters such as Surat, Panipat, Tiruppur and Bhadohi to opportunities in the top 40 countries.

To support exporters affected by the US tariffs, the government is also working to roll out financial assistance schemes under the Export Promotion Mission, announced in the Budget for 2025-26. This initiative focuses on providing collateral-free loans, affordable trade finance and alternative financial instruments to small exporters in labour-intensive sectors such as textiles, gems and jewellery, and marine products.

The government is also prioritising the utilisation of the recently signed free trade agreements to enhance export potential. Negotiations with other countries, including Oman, the EU, and Latin American nations like Chile and Peru, are also being fast-tracked to diversify export destinations.

The US is the largest trading partner of India with the bilateral trade in goods at $131.8 billion in 2024-25. India exported goods worth $86.5 billion to the US last year, which accounts for about 20 per cent of the country’s $437.42 billion.