India plans to diversify non-US trade
New Delhi has expanded its strategy to now focus on the 50 nations that account for around 90% of its total exports, the Times of India said.
The strategy entails boosting engagement with new markets in the Middle East and Africa in particular, a CNBC TV18 report said. The approach will be tailored to specific products and will be guided by three main objectives: diversifying exports, substituting imports with domestic products, and improving export competitiveness, the report added.
The new policy is aimed at reducing dependence on any one market and minimizing the risks associated with trade disruptions.
India Expands Exports Horizons from Africa to Middle East - #TrumpTariffsReducing the reliance on a single market, India is broadening its horizons with 50 trade partners - while striving to improve every product and make it competitive. (ET)The 50 account for 90% of India's… pic.twitter.com/Z0rnBrKBRz
The move comes as India faces concerns about a slowdown in global demand and potential challenges from US tariff measures. Last week, the White House announced an additional 25% tariff on Indian imports, thus bringing the overall tariff level facing the South Asian nation to 50%. US President Donald Trump said the latest measures were imposed due to India's continued purchases of Russian oil.
The Middle East is being targeted as a growth region for Indian engineering goods and gems and jewelry, while Africa presents opportunities for exports of pharmaceuticals, auto components, and agricultural products, according to reports.
Indian exports of merchandise remained largely steady year-on-year in June, coming in at $35 billion, as global economic uncertainties had a dampening effect.
Indian Prime Minister Narendra Modi is likely to visit the US in September for the 80th session of the UN General Assembly. Trump is also expected to address the session.
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