Exporters, govt in talks to tap opportunities in US
NEW DELHI: Amid rising expectations of higher tariffs on Chinese goods, exporters are in talks with govt to be ready to tap into possible opportunities across at least half-a-dozen sectors, ranging from textiles and leather to chemicals, electronics, auto parts and toys, by partnering American trade bodies and creating awareness about Indian products in the US.
“These are sectors where we have built capacity and where we are competitive. We should be ready to take advantage of the opportunity if it arises,” said Israr Ahmed, vice-president of industry lobby group Fieo. Toys alone offered a $1 billion opportunity in the US market in the coming few years.
Ahmed said that with president-elect Donald Trump mounting pressure to reduce the dependence on China, American businesses have started scouting for other possible sources and India is poised to take advantage. “India has strong relations with the US, we have political stability and we are a democracy. India is in a good position,” Ahmed said.
He underlined the need for aggressive promotion and visibility in the US market, arguing that increased financial support would enable Indian exporters to showcase their products effectively and tap into emerging opportunities created by the shifting trade dynamics. Besides, he advocated tapping into ties with American businesses and industry bodies to push Indian products.
“Capacities are being built as big factories are coming up in the country. We have to increase our presence in the US. We are asking for more funding under the Market Access Initiatives (MAI) scheme to seize the opportunities. The scheme should focus on the US for at least three years,” the shoe and leather exporter said.
He also argued for ensuring that Indian businesses have enough liquidity through export finance and sought restoration of interest equalisation schemes, moves that will help exporters compete favourably.
Fieo has also urged the govt to relax the requirement of making payments to MSMEs within 45 days of buying goods and services, besides a five-year extension of interest equalisation scheme.
