**Executive Summary**
This document, an answer to Unstarred Question No.1752 in Lok Sabha, responded on February 10, 2026, addresses concerns regarding increased import duties on Indian goods by major trading partners. It outlines the Indian government's assessment, measures taken to mitigate the impact, and steps to diversify export markets. The document references tariff changes implemented by the USA and Mexico in 2025 and ongoing initiatives aimed at boosting exports, trade competitiveness, and economic resilience, with several initiatives having deadlines in March 2026 or extended benefits until 2031.
**Key Points / Main Content**
* **Import Duty Changes:**
* The USA imposed a reciprocal tariff of 25% on certain goods exported from India, effective August 7, 2025, followed by an additional 25% ad valorem duty from August 27, 2025.
* India and the USA announced a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade on February 7, 2026.
* Mexico approved increased MFN import tariffs applicable to countries without an FTA, amending approximately 1,455 tariff lines with revised tariffs ranging from 5% to 50% (most likely at 35%).
* **Government Measures to Mitigate Impact and Promote Exports:**
* Proactive measures to enhance domestic capacities, diversify supply chains, explore alternative import sources, and foster economic resilience.
* Initiatives and policy measures to boost exports, attract investments, and promote ease of doing business, including trade relief measures from the RBI, Credit Guarantee Scheme for Exporters, GST reforms, and the Export Promotion Mission (EPM).
* Continuous engagement with industry associations and stakeholders to mitigate the impact of trade wars.
* **Key Government Initiatives:**
* **Foreign Trade Policy (effective April 1, 2023):** To integrate India into the global market, improve competitiveness, and establish the country as a reliable trade partner.
* **RoSCTL Scheme (since March 7, 2019):** To promote labour-oriented textiles sector exports.
* **RoDTEP Scheme (since January 1, 2021):** Extended to sectors like steel, pharma, and chemicals from December 15, 2022, covering approximately 10,780 tariff lines with a budget allocation of Rs. 18,232 crores for FY 2025-26 and benefits extended to exports from Domestic Tariff Area (DTA)/ AA/ EoU/ SEZ units till March 31, 2026.
* **Common Digital Platform for Certificate of Origin:** To facilitate trade and increase FTA utilization.
* **Districts as Export Hubs:** To identify products/services with export potential, address bottlenecks, and support exporters/manufacturers.
* **Trade Connect ePlatform:** A unified digital interface for international trade information and services, including issuance of Certificates of Origin.
* **Export Promotion Mission (EPM):** Approved November 12, 2025, with an outlay of ₹25,060 crore for FY 2025-26 to FY 2030-31, consolidating interventions into NIRYAT PROTSAHAN and NIRYAT DISHA.
* **Other Efforts:**
* Enhanced role of Indian missions abroad to promote trade, tourism, technology, and investment.
* Regular monitoring of export performance with Commercial Missions abroad.
**Impact Analysis**
**Indian Exporters**
* **Impact:** Face increased import duties in the USA and Mexico, potentially impacting competitiveness and export volumes. Benefit from government initiatives to mitigate impact and boost exports.
* **Action Required:** Need to adapt to new tariff structures, leverage government support schemes, and explore diversified export markets.
**Indian MSMEs, First-Time Exporters, and Labour-Intensive Sectors**
* **Impact:** Particularly targeted by the Export Promotion Mission (EPM) to enhance competitiveness.
* **Action Required:** Utilize resources provided by the EPM, including trade finance support (NIRYAT PROTSAHAN) and non-financial assistance (NIRYAT DISHA).
**Indian Missions Abroad, Export Promotion Councils, Commodity Boards/Authorities, and Industry Associations**
* **Impact:** Involved in monitoring export performance, promoting trade, and implementing corrective measures.
* **Action Required:** Continue collaboration to enhance trade and address challenges faced by exporters.
Key Entities Referenced
Ministry of Commerce and Industry: The Indian government ministry responsible for international trade and commerce, playing a central role in policies discussed.
United States of America (USA): A major trading partner of India that increased import duties, affecting the export competitiveness of Indian goods.
Foreign Trade Policy: Effective from April 1, 2023, designed to integrate India more effectively into the global market.
Remission of Duties and Taxes on Exported Products (RoDTEP) scheme: A scheme implemented since January 01, 2021, provides remission of duties and taxes on exported products.
Export Promotion Mission (EPM): A flagship, outcome-based initiative with an outlay of ₹25,060 crore to enhance India's export competitiveness.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
LOK SABHA
UNSTARRED QUESTION NO.1752
ANSWERED ON 10/02/2026
IMPORT DUTIES ON INDIAN GOODS
1752. SHRI BRIJENDRA SINGH OLA
Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be
pleased to state:
(a) whether some major trading partner countries have increased import duties on
Indian goods, if so, the details thereof, country and product-wise;
(b) the policy and practical measures being taken by the Government at present to
mitigate the impact of the said increased duties and promote exports of both
goods and services;
(c) whether the Government has carried out any assessment of the impact of the
said increased duties on India's export competitiveness, if so, the main findings
thereof; and
(d) the concrete steps being taken by the Government in the short and medium
term to diversify export markets, develop new markets and encourage export
of more value-added products?
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): On 07th August, 2025, the United States of America (USA), one of the major
trading partner countries of India, imposed reciprocal tariff of 25% on certain goods
exported from India to the USA. Further, additional ad valorem rate of duty of 25% with
effect from 27th August, 2025 was imposed on certain goods exported from India.
India and the USA have announced on February 7, 2026 that the United States of
America (United States) and India have reached a framework for an Interim
Agreement regarding reciprocal and mutually beneficial trade (Interim Agreement).
Mexico has approved an increase in its MFN import tariffs within the WTO framework
applicable on countries without an FTA with Mexico. The measure amends around
1,455 tariff lines under the General Import and Export Tax Law, primarily affecting
China, South Korea, Thailand, Indonesia, and India. Revised tariffs will range from 5%
to 50%, with most products likely facing around 35%.
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2224783®=3&lang=2
1(b) to (d): The Government has taken various proactive measures aimed at
enhancing domestic capacities, boosting exports, diversifying supply chains, exploring
alternate sources of imports and fostering economic resilience including mitigating
adverse impact on trade, if any, due to global factors. Several key initiatives and policy
measures undertaken by the Government to boost exports, attract investments and to
promote ease of doing business from time to time. Trade relief measures of the
Reserve Bank of India (RBI), Credit Guarantee Scheme for Exporters, enhancement
of domestic demand through next generation Goods and Services Tax (GST) reforms,
Export Promotion measures such as the new Export Promotion Mission (EPM), all of
which provide support and assistance to our exporters.
Assessment of the impact of the trade agreement is an ongoing exercise. The
Government is continuously engaged with industry associations, concerned
stakeholders, including the Indian Missions abroad, the Export Promotion Councils,
the trade associations, the concerned ministries/departments to advance trade and
mitigate the impact of trade wars. Government aims to promote trade and economic
growth through trade promotion, FTAs, trade facilitation and remedial measures
related to import and export. Government has taken several initiative and measures
from time to time towards enhancing domestic capacities, boosting exports from the
country:
(i) The Foreign Trade Policy effective from April 01, 2023 is designed to
integrate India more effectively into the global market, improve trade
competitiveness, and establish the country as a reliable and trusted trade
partner.
(ii) The Rebate of State and Central Levies and Taxes (RoSCTL) Scheme to
promote labour- oriented certain items of textiles sector export has been
implemented since March 07, 2019.
(iii) Remission of Duties and Taxes on Exported Products (RoDTEP) scheme
has been implemented since January 01, 2021. The benefit of RoDTEP
scheme had also been extended to sectors like steel, pharma and chemicals
with effect from December 15, 2022 to enhance export competitiveness of
these sectors. Currently, approx 10,780 tariff lines (8-digit ITC(HS) Codes)
are covered under this Scheme. The budget allocation for RoDTEP Scheme
for the current financial year 2025-26 is Rs. 18,232 crores. The benefits of
the RoDTEP scheme have been extended to exports from Domestic Tariff
Area (DTA)/ AA/ EoU/ SEZ units till March 31, 2026.
(iv) A Common Digital Platform for Certificate of extension Origin has been
launched to facilitate trade and increase Free Trade Agreement (FTA)
utilization by exporters.
(v) Districts as Export Hubs initiative has been launched by identifying products
& services with export potential in each district, addressing bottlenecks for
exporting these products and supporting local exporters/manufacturers to
generate employment in the district.
(vi) The Government has launched Trade Connect ePlatform as a unified digital
interface to provide international trade information and services to all Indian
exporters including MSMEs. The platform serves as a single platform for
issuance of Certificates of Origin for all Indian products. It also provides
various information including tariffs for Indian products in international
markets, trade events happening worldwide, product and country specific
trade data and compliances, international buyer data and learning resources
2on international trade. Officials from Indian Missions, Export Promotion
Councils, Exim Bank and Department of Commerce are present on the
platform with over 19 lakh registered public users (as of January 2026).
(vii) The Export Promotion Mission (EPM), approved by the Cabinet on
12.11.2025 and announced in the Union Budget 2025–26, is a flagship,
outcome-based initiative with an outlay of ₹25,060 crore for FY 2025–26 to
FY 2030–31 to enhance India’s export competitiveness, particularly for
MSMEs, first-time exporters, and labour-intensive sectors; implemented
through a collaborative, EDI-driven framework, it consolidates various
interventions into two sub-schemes - NIRYAT PROTSAHAN, providing
affordable trade finance support, and NIRYAT DISHA, offering non-financial
assistance such as quality compliance, branding, logistics, market access,
and capacity building.
(viii) Active role of Indian missions abroad towards promoting India’s trade,
tourism, technology and investment goals has been enhanced. Regular
monitoring of export performance with Commercial Missions abroad, Export
Promotion Councils, Commodity Boards/Authorities and Industry
Associations is being done and corrective measures are being taken from
time to time.
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