The Ministry of Commerce has designed a four-pillar strategy to help exporters withstand the impact of US President Donald Trump’s new tariffs on Indian goods and broader geopolitical disruptions, according to senior government officials. The plan aims to enhance exports to 50 countries that together account for more than 90% of India’s export basket, with the aim of sustaining growth even if global trade turbulence persists.
The four-pillars strategy focuses on improving export competitiveness, bolstering promotion, and diversifying both export and import markets. Between April-July FY25 and FY26, India logged export growth in 26 destinations, including Canada, Spain, China, Hong Kong and South Korea, while shipments to 14 markets like Turkey, Indonesia, Malaysia, and the Netherlands fell.
Of the 50 countries under review, 20 have been deemed of particular significance, with 30 more under consideration — with a special focus in Asian economies, as the World Trade Organization (WTO) projects stronger trade expansion in Asia.
“We are looking at these 50 countries which constitute more than 90% of our export basket. So, out of more than 193 countries, we are focusing now on these 50 select countries where export potential is very high, where they import a lot from the rest of the world but not from India and how we can diversify our exports in these countries,” said an official from the Ministry.
The Agricultural and Processed Food Products Export Development Authority (APEDA) has already dispatched 15 new products to 28 new markets. The government is also upgrading testing and certification systems to meet destination-market standards.
The official said that fast-tracking free trade agreement (FTA) negotiations have become a key element of the four-pillar strategy. The India-EFTA pact will come into force on 1 October, and a deal with Oman is ready for signature.
Talks are being expedited with ASEAN economies, Peru, Chile and New Zealand, while India has urged the EU to fast-track the ongoing negotiations. The UK agreement will phase out tariffs on labour-intensive sectors to zero within six months, partially offsetting potential US losses, said the official.
“After six months, as the UK market opens up, the tariffs will be coming down to zero. The focus of the UK FTA has particularly been labour-intensive sectors. So, that tariff differential, which these sectors might have lost here in the US, would gain in the UK,” assured the government official.
The government is also preparing direct support for sectors most exposed to the US market. While bilateral trade agreement (BTA) talks with Washington continue to be on track for completion by late 2025, India is simultaneously working to reduce import dependence and boost domestic production.
Minister of State for Finance Pankaj Chaudhary recently said in a written reply to Lok Sabha that approximately 55% of India's total merchandise exports to the US will come under a 25% reciprocal tariff from August 7. On August 6, Donald Trump announced an additional 25% tariffs on India, penalising Delhi for purchasing Russian oil.