Parliament Question: Initiatives to safeguard India’s economic interests

GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE RAJYA SABHA UNSTARRED QUESTION NO.1648 ANSWERED ON 13/02/2026 INITIATIVES TO SAFEGUARD INDIA’S ECONOMIC INTERESTS 1648. SHRI JOSE K. MANI Will the Minister of COMMERCE AND INDUSTRY be pleased to state: (a) the initiatives being taken by Government to safeguard India’s economic interests amid the current global economic uncertainties and trade disruptions; (b) the measures that are being implemented to counteract the impact of global protectionist policies on India’s export sector; and (c) the strategies that are in place to ensure robust engagement with India’s major trading partners for long-term economic stability? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA) (a) to (c) Global growth remains uncertain amid geopolitical tensions and trade disruptions. Despite this, India’s economy has maintained strong momentum in FY26, with real GDP growth estimated at 7.4%, driven by consumption and investment. Services lead on the supply side, supported by manufacturing and stable agriculture. Inflation has eased, the financial sector is sound, fiscal policy balances growth with consolidation, and the external sector is supported by services exports and reserves. Looking ahead, domestic drivers and reforms are expected to sustain activity, with high medium-term growth potential, positioning India for steady expansion despite global risks. The WTO’s annual review (December 2025) highlights rising global protectionism, with imports hit by new tariffs and restrictions surging fourfold, the highest in 15 years. At the same time, trade‑facilitating measures expanded, covering 1.5 times more trade, reflecting a preference for dialogue over retaliation. In this environment, India has adopted proactive measures to safeguard exporters and ensure fair competition in global market. The Government closely monitors export performance and the impact of global economic developments on India's international trade. The Government has adopted a multi-pronged strategy to ensure continuous export competitiveness and growth of India’s export sector. The Foreign Trade Policy (FTP) 2023 is applicable uniformly across the country, including for exporters in the State of Uttar Pradesh. The policy is dynamic and responsive to emerging trade scenarios. Exporters from the State can avail benefits under various schemes as mentioned below: i. Export Promotion Mission (EPM): The Government has approved the EPM with a budgetary outlay of Rs. 25,060 crores (FY 2025–26 to FY 2030–31). It operates through Niryat Protsahan (focusing on trade finance and credit enhancement) and Niryat Disha 1(focusing on export logistics, warehousing, and market access), specifically targeting MSME competitiveness. ii. Credit Support: To ensure adequate and affordable credit, the Export Credit Guarantee Corporation (ECGC) has increased its insurance cover for banks to 90% (up from 70%) under the Whole Turnover-Export Credit Insurance for Banks (WT-ECIB) for loans up to ₹80 crore. A Collateral-Free Cover has also been introduced for Micro and Small Enterprises (MSEs) for working capital limits up to ₹10 crore. iii. Districts as Export Hubs (DEH): This initiative identifies products with export potential in every district to address bottlenecks and link local MSMEs with global value chains. iv. Trade Connect e-Platform: The Government has launched the Trade Connect e- Platform to provide trade-related information to Indian exporters. It serves as a single- window portal connecting Indian Missions Abroad, Export Promotion Councils, and the Department of Commerce to facilitate market access for new and existing exporters. To stabilise and strengthen India's export performance in 2026, the Government has undertaken comprehensive measures as highlighted above with a major focus on market diversification and enhancing competitiveness. A key pillar of this strategy is leveraging Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs). Key efforts include expanding market access though FTAs, diversifying destinations and products, addressing tariff and non‑tariff barriers, offering export incentives, and streamlining procedures through digital transformation. Over the past five years, India has concluded eight FTAs with Mauritius, UAE, Australia, EFTA TEPA, Oman, UK, New Zealand, and the EU. India and US announced a trade deal on 02nd February 2026. A joint statement for the same was released on 07th February 2026. The detailed agreement is undergoing technical and legal processes in both governments and is expected to be signed once these processes are completed. The landmark India-EU FTA was concluded on 27th January 2026. Over 99% of Indian exports gain preferential entry, unlocking INR 6.41 lakh crore (USD 75 billion) potential, including USD 33 billion in labour intensive sectors like textiles, leather, marine products, gems and jewellery. The FTA creates opportunities for MSMEs, women, artisans, youth and professionals, with calibrated auto liberalisation supporting Make in India, favourable access for agricultural and processed food exports while safeguarding sensitive products and dairy. Ambitious services access, a future ready mobility framework, and forward looking CBAM provisions together lay the foundation for inclusive, resilient, and future ready growth. ***** 2