India monitors import upgrade, helps exporters

New Delhi, Apr 7 The government has set up an inter-ministerial group to monitor a possible surge in imports from countries such as China, Vietnam and Thailand, sources said, anticipating a rise in inbound shipments after the US imposed high reciprocal duties on these countries.
Product categories that may see a rise in imports from the US to India include consumer goods, electronics, chemicals and steel.
Clear signs of this surge in imports are likely to be visible from June to July, he said, adding that the “import monitoring group” will comprise officials from the departments of commerce, revenue and the Department for Promotion of Industry and Internal Trade (DPIIT).
The concerned ministries and industry associations have also been asked to provide information on the surge in imports and its impact on the domestic industry.
“The aim is to keep a track of these imports and see if any measures need to be taken. It will closely monitor all data points including shipments coming by air and sea routes. Though intense monitoring is required, fluctuations in imports are normal,” sources said.
Since India’s competitors, including China, Thailand, Vietnam and Malaysia, have been imposed with wide-ranging tariffs, their goods have become expensive in the US market and this will lead to a shift in goods to countries like India after a few months.
While the US has imposed an additional 26 percent import duty on India, its competitors Vietnam has a 46 percent tariff, China 34 per cent, Indonesia 32 percent and Thailand 36 percent.
However, they said the situation also provides an opportunity to domestic industry to buy intermediate goods at cheaper rates.
The government is also stepping up efforts to help exporters find new markets, a source said.
The commerce ministry is expediting the creation of an export promotion mission to help exporters in areas such as providing credit at affordable rates; and negotiating proposed free trade agreements with the European Union, Oman, New Zealand and the U.K.
Additionally, the relevant officials have been directed to hold a series of bilateral meetings with the identified 20 countries such as Australia, Brazil, China and France to boost India’s exports.
These developments come at a time when exporters and industries have raised concerns that the additional 26 percent import duty imposed by the US on India could hurt them.
The identified 20 countries are Australia, Brazil, Bangladesh, China, France, Germany, Indonesia, Italy, Japan, Netherlands, Russia, Singapore, South Africa, Saudi Arabia, South Korea, Turkey, UAE, the U.K., the U.S. and Vietnam. There are immense opportunities in these countries for Indian exporters.
The government is formulating schemes to make credit available to MSME exporters on easier terms, promote alternative financing instruments by strengthening factoring services for them and provide support to deal with non-tariff measures imposed by other countries. The ministries of commerce, MSME and finance are working on these schemes, which are being formulated under the Export Promotion Mission announced in the Union Budget 2025-26.
The government on February 1 announced the setting up of an Export Promotion Mission with an outlay of Rs 2,250 crore to boost the country’s outbound shipments.
Further concerns have been raised by the industry that countries like China may divert their surplus exports to India as Beijing faces a 54 per cent tariff in the US.
The Directorate General of Trade Remedies (DGTR), an arm of the commerce ministry, is the main body to deal with dumping of goods and sudden surge in imports. It investigates cases and suggests imposition of anti-dumping or safeguard or countervailing duties.
In 2023-24, the US was India’s largest trading partner with bilateral trade in goods of US$ 119.71 billion (exports of US$ 77.51 billion, imports of US$ 42.19 billion and a trade surplus of US$ 35.31 billion). China was the second largest trading partner with two-way commerce of US$ 118.39 billion (exports of US$ 16.65 billion and imports of US$ 101.73 billion and a trade deficit of US$ 85 billion).
The US accounts for about 18 percent of India’s total merchandise exports and 6.22 percent in imports and 10.73 percent in bilateral trade. On the other hand, China’s share is about 4 percent in exports and 15 percent in imports.