Import monitoring group to check for dumping of goods in India

India is setting up an import monitoring group for certain products including consumer goods to check diversion from countries which face US reciprocal tariffs that are higher than on India, such as China and Vietnam.

"There are some products where circumvention is easy," a government official said, adding that the group will have officials from several ministries.

The US has imposed a 26% reciprocal tariff on India, compared with 35% on China, 37% on Bangladesh, 29% on Pakistan, 46% on Vietnam and 36% on Thailand, among other countries. These Asian countries are India's competitors in sectors such as textiles, consumer goods and electronics.

Separately, the government has asked exporters for detailed impact assessment reports to finalise support measures, the official said. It may have to work on new schemes to address their challenges as the Export Promotion Mission announced in the budget aims to tackle non-tariff measures Indian exporters face in overseas markets.

The mission seeks to facilitate easy access to export credit, cross-border factoring support and assistance to MSMEs to tackle non-tariff measures in overseas markets.

The commerce and industry ministry has deliberated offering 3.0-3.5% interest subvention for MSME exporters and startups.

The issues will be discussed at a meeting that commerce and industry minister Piyush Goyal plans to have with exporters and industry Wednesday.

Modest Export Gains

"A decision will be taken after that," the official added.

The support assumes significance as India could see a decline of $5.76 billion, or 6.41%, in exports to the US in 2025 compared with last year because of the tariffs, according to the think tank Global Trade Research Initiative.

While India could see modest export gains of 4.2% in textile made-ups, 3.2% in apparel, 3% in inorganic chemicals and 2.1% in pharmaceuticals, the exports of iron or steel articles may fall by 18%, diamonds, gold and related products by 15.3%, and vehicle and parts by 12.1%. Electrical, telecom and electronic products are also expected to see a 12% decline in outbound shipments.

Around $67.2 billion, or 74.8%, of India's exports to the US are subject to 26% tariffs after the exemption of petroleum, solar panels, pharmaceuticals and copper. Steel, aluminium, automobiles and auto parts face 25% tariffs.