**Policy Summary: Mitigation of Merchandise Export Decline and Trade Negotiations**
This document summarizes the Indian government's response to concerns regarding a potential decline in merchandise exports, particularly to the European Union (EU) and the United States (USA), as well as the status of Free Trade Agreement (FTA) negotiations and import duties on Chinese goods.
Regarding merchandise exports, data indicates an upward trend in exports to both the EU and the USA over the past five fiscal years (FY). Exports to the EU increased from USD 41.36 billion in FY 2020-21 to USD 75.76 billion in FY 2024-25. Similarly, exports to the USA rose from USD 51.6 billion in FY 2020-21 to USD 86.5 billion in FY 2024-25.
On the subject of trade agreements, India signed a Comprehensive Economic and Trade Agreement (CEPA) with the United Kingdom (UK) on July 24, 2025, following the successful conclusion of negotiations. Negotiations for a Free Trade Agreement (FTA) between India and the European Union have been ongoing since June 2022, with twelve rounds of negotiations completed as of July 2025.
Concerning import duties on Chinese goods, the Directorate General of Trade Remedies (DGTR) is responsible for investigating potential dumping and injury to domestic industries. If dumping is determined, the DGTR submits findings and recommendations to the Ministry of Finance regarding the imposition of antidumping duties. General import duties are applied on a Most Favored Nation (MFN) basis, adhering to World Trade Organization (WTO) norms.
Key Entities Referenced
SHRI BALWANT BASWANT WANKHADE: Member of Parliament who raised the question about decline in merchandise exports.
European Union: A major trade partner with India, subject to discussions regarding exports and Free Trade Agreements.
United States: A major trade partner with India, subject to discussions regarding exports.
Free Trade Agreement: A trade agreement that India is negotiating with the United Kingdom and the European Union.
United Kingdom: A country with which India has signed a Comprehensive Economic and Trade Agreement.
SHRI JITIN PRASADA: Minister of State in the Ministry of Commerce and Industry, who provided the answer to the parliamentary question.
Comprehensive Economic and Trade Agreement CEPA: Trade agreement signed between India and the UK.
Directorate General of Trade Remedies DGTR: Agency that investigates dumping and injury to the domestic industry and recommends anti-dumping duties.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
LOK SABHA
UNSTARRED QUESTION NO. 2582
ANSWERED ON 05/08/2025
DECLINE IN MERCHANDISE EXPORTS
2582. SHRI BALWANT BASWANT WANKHADE:
Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be pleased to
state:
(a) the steps being taken to mitigate the impact of decline in merchandise exports to the
European Union and the United States on exporters;
(b) the status of negotiations on Free Trade Agreement (FTA) with the United Kingdom
and the European Union;
(c) whether the Government proposes to revise import duty on Chinese goods to prevent
dumping; and
(d) if so, the details thereof and if not, the reasons therefor?
ANSWER
वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI JITIN PRASADA)
(a) The merchandise exports to the European Union have shown an upward trend over the
last five years increasing from USD 41.36 billion in FY 2020-21 to USD 75.76 billion in FY
2024-25. Similarly, the merchandise export to the USA have also shown an upward trend
over the last five years increasing from USD 51.6 billion in FY 2020-21 to USD 86.5 billion
in FY 2024-25.
(b) India has signed Comprehensive Economic and Trade Agreement (CEPA) with UK on
24th July 2025, after successful conclusion of negotiations. India and the European Union
have been negotiating a Free Trade Agreement (FTA) since June 2022, and twelve rounds
of the negotiations have been completed, last being in July 2025.
(c) & (d) The Directorate General of Trade Remedies (DGTR) conducts investigation to
determine whether there is dumping and injury to the domestic industry. Based on their
investigation, DGTR submits their final findings and recommendation to Ministry of Finance
regarding imposition of anti-dumping duty. In compliance with WTO norms, general import
duties are applied on MFN basis.
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