Global Headwinds Make Realization Of $2 Tn Trade Target Challenging: DGFT

ENA Sectors 2025-03-05 13:14:50 New Delhi, Mar 5 (KNN) Indian exports are confronting significant challenges amid increasingly aggressive trade policies from major international partners, according to senior trade ministry officials. In a candid assessment, Santosh Sarangi, head of the Directorate General of Foreign Trade (DGFT), emphasised the critical need for a comprehensive review of India's trade and industrial strategies in response to mounting external pressures. The United States has emerged as a primary source of concern, with proposed import tariff increases and legislative initiatives like the CHIPS Act potentially disrupting Indian export markets. Preliminary analysis by Citi Research suggests these measures could result in potential annual losses approaching USD 7 billion across multiple sectors, including automotive and agricultural exports. Trade Minister Piyush Goyal's current diplomatic mission to the United States underscores the urgency of addressing these challenges. Sarangi highlighted several structural impediments constraining India's export potential, including limited global value chain integration, high raw material import tariffs, and technological limitations in key manufacturing domains. The ambitious target of achieving USD 2 trillion in overall exports by 2030/31 demands an average annual growth of 14.4 percent, a goal Sarangi candidly described as daunting given the current trajectory of merely 5.2 percent average annual growth over the past decade. Current fiscal year data partially validates these concerns, with exports reaching USD 682.59 billion in the first ten months—a 7.2 percent year-on-year increase—while imports totaled USD 770 billion, resulting in a trade deficit of USD 87.47 billion. Additional complications arise from international regulatory environments, including the European Union's carbon tax and increasing implementation of protective non-tariff measures. These factors compound the challenges facing Indian exporters, necessitating a strategic reevaluation of export competitiveness and market diversification approaches. As global trade dynamics continue to evolve, India finds itself at a critical juncture, requiring innovative policy interventions and strategic realignments to maintain its competitive position in the international marketplace. (KNN Bureau) 41278 https://knnindia.co.in/news/newsdetails/sectors/global-headwinds-make-realization-of-2-tn-trade-target-challenging-dgft 2025-03-05 13:14:50 knnindia.co.in Global Headwinds Make Realization Of $2 Tn Trade Target Challenging: DGFT