Parliamentary Panel Flags Trade Deficit And Export Slowdown

ENA Economy 2026-03-20 17:07:40 New Delhi, Mar 20 (KNN) The Department-Related Parliamentary Standing Committee (DRPSC) on Commerce, chaired by TMC MP Dola Sen, in its 195th report on the Demands for Grants (2026 27) of the Commerce Department has flagged gaps in budget allocations, warning that inadequate funding could affect programme implementation. It recommended seeking additional funds through supplementary grants and strengthening monitoring to address under-utilisation. Trade Deficit and Export Weakness The House panel expressed concern over a widening trade deficit and stagnating merchandise exports in 2025 26. It called for targeted steps to boost competitiveness, diversify exports towards high-value sectors, and strengthen domestic manufacturing to reduce import dependence, with focus on petroleum products and gems and jewellery. Sectoral Focus Areas The report noted strong performance in pharmaceuticals and recommended promoting high-value segments such as biologics and complex generics while reducing reliance on imported inputs. It also highlighted continued growth in services exports, particularly IT and financial services, and stressed the need for skilling to address emerging challenges from new technologies. Policy and Trade Framework The Committee supported efforts to promote trade settlement in Indian Rupees but called for better coordination and a dedicated inter-ministerial monitoring mechanism. While describing the Foreign Trade Policy 2023 as forward-looking, it recommended periodic updates and faster conclusion of free trade agreements, along with post-implementation review systems. Scheme-Level Issues Concerns were raised over several schemes, including the need for industry consultation in Remission of Duties and Taxes on Exported Products (RoDTEP) revisions, declining export performance under Export Promotion Capital Goods (EPCG), and inadequate funding for the Trade Infrastructure for Export Scheme (TIES). It also flagged funding constraints in export promotion bodies such as APEDA, MPEDA and the Spices Board. SEZs and Institutional Strengthening The panel pointed to regional imbalances in Special Economic Zones and recommended targeted policies for under-served regions, along with measures to revive Export Oriented Units and promote plug-and-play infrastructure. It also emphasised strengthening institutions like the Directorate General of Foreign Trade and ensuring stricter labour law compliance on the Government e-Marketplace. The Committee concluded that while policy initiatives are in place, improved funding, stronger coordination and better implementation are essential to enhance Indias global trade competitiveness. (KNN Bureau) 45534 https://knnindia.co.in/news/newsdetails/economy/parliamentary-panel-flags-trade-deficit-and-export-slowdown 2026-03-20 17:07:40 knnindia.co.in Parliamentary Panel Flags Trade Deficit And Export Slowdown