Latest news with #FIEO
Time of India
an hour ago
- Business
- Time of India
FIEO worried over US tariff hikes on steel, aluminium
New Delhi: The Federation of Indian Export Organisations ( FIEO ) Saturday raised concerns about potential disruption to India's steel and aluminium exports to the US after President Donald Trump's announcement of a plan to double import tariffs on steel and aluminium to 50% from 25%. They particularly fear that the exports of value-added and finished steel products and auto-components, stainless steel pipes, and structural steel components could be hurt. This potential increase comes under Section 232 of the US Trade Expansion Act of 1962, a law that allows the president to impose tariffs or other trade restrictions if imports are deemed a threat to national security. "These products are part of India's growing engineering exports, and higher duties could erode our price competitiveness in the American market," said SC Ralhan, president, FIEO. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like A brain tumor threatens his life. Please save him. Donate For Health Donate Now Undo India exported approximately $6.2 billion worth of steel and finished steel products to the US in FY25 including a wide range of engineered and fabricated steel components and about $0.86 billion of aluminium and its products. The US is among the top destinations for Indian steel manufacturers, who have been gradually increasing market share through high-quality production and competitive pricing. Exporters said that though the decision stems from domestic policy considerations in the US, such sharp increases in tariffs send discouraging signals to global trade and manufacturing supply chains. Live Events India and the US are negotiating a Bilateral Trade Agreement and exporters said that the move will complicate the talks. "It's unfortunate that while BTA negotiations are going on, such unilateral tariff increases should be done. It only makes the work of the negotiators much more difficult and complicated. This will definitely impact the engineering exports, which are about $5 billion under this head," Pankaj Chadha, chairman EEPC India. Chadha added that since the UK has been given exemption from Section 232, the same exemption should also be given with TRQ restrictions to India. "We urge the government to take up the issue at the bilateral level to ensure that Indian exporters are not unfairly 25% additional duty will be a huge burden, which is difficult to be absorbed by the exporter/importer," Ralhan said. On March 8, 2018, the US promulgated safeguard measures on certain steel and aluminium articles by imposing 25% and 10% ad valorem tariffs respectively on such products with effect from March 23, 2018. On February 10, 2025, it revised the safeguard measures on imports of steel and aluminium articles, effective from March 12. New Delhi said that the US failed to notify the WTO Committee about a decision to apply safeguard measures and as an affected member with significant export interest, it has requested consultations with Washington and proposed retaliation against the measure.
United News of India
4 hours ago
- Business
- United News of India
Proposed 50 pc hike in US steel, aluminum import tariffs to be significant bearing on India's steel exports: FIEO Prez
Hyderabad, May 31 (UNI) Federation of Indian Export Organisations (FIEO) on Saturday expressed concern over the recent announcement by the US President to double import tariffs on steel and aluminium from 25 to 50 percent, citing potential disruption to India's steel and aluminium exports, particularly in value-added and finished steel products and auto components. While reacting over the development, FIEO President S C Ralhan stated in a statement that the proposed increase in US steel and aluminum import tariffs will have a significant bearing on India's steel exports, especially in semi-finished and finished categories like stainless steel pipes, structural steel components and automotive steel parts. These products are part of India's growing engineering exports, and higher duties could erode our price competitiveness in the American market. India exported around US 6.2 billion Dollar worth of steel and finished steel products to the US in FY2024-25 including a widerange of engineered and fabricated steel components and about USD 0.86 billion of aluminum and its products. The US is among the top destinations for Indian steel manufacturers, who have been gradually increasing marketshare through high-quality production and competitive pricing. The FIEO President said, "while we understand that the decision stems from domestic policy considerations in the US, such sharp increases in tariffs send discouraging signals to global trade and manufacturing supply chains. "We urge the government to take up the issue at the bilateral level to ensure that Indian exporters are not unfairly disadvantaged more so far the shipments, as 25 percent additional duty will be a huge burden, which is difficult to be absorbed by the exporter / importer," he said. The FIEO Chief also emphasized the need for Indian exporters to diversify their markets and invest in higher-grade value-added products to mitigate the impact of such protectionist measures. UNI KNR SS
Time of India
5 hours ago
- Business
- Time of India
Doubling tariff on steel, aluminium by US to disrupt India's metal exports: Experts
New Delhi: US President Donald Trump 's announcement to double tariffs on imported steel and aluminium will impact Indian exporters, particularly those engaged in value-added and finished steel products and auto-components, experts say. Expressing concern over the Trump-administration's move, they said the Indian government should take up the matter bilaterally with the US authorities. On May 30, Trump announced that he would double the existing 25 per cent tariffs on steel and aluminium imports from June 4. This hike comes under Section 232 of the US Trade Expansion Act of 1962, a law that allows the president to impose tariffs or other trade restrictions, if imports are deemed a threat to national security. Trump originally invoked this provision in 2018 to set the 25 per cent tariff on steel and 10 per cent on aluminium. He raised tariffs on aluminium to 25 per cent in February 2025. Live Events For India, the consequences are direct, the Global Trade Research Initiative (GTRI) said. In 2024-25, India exported USD 4.56 billion worth of iron, steel, and aluminium products to the US, with key categories, including USD 587.5 million in iron and steel, USD 3.1 billion in articles of iron or steel, and USD 860 million in aluminium and related articles. "These exports are now exposed to sharply higher US tariffs, threatening the profitability of Indian producers and exporters," GTRI founder Ajay Srivastava said. India has already issued a formal notice at the World Trade Organization (WTO) signalling its intention to impose retaliatory tariffs on US goods in response to the earlier steel tariffs. "With Trump now doubling the tariffs, it remains to be seen whether India will carry out the retaliation by increasing tariffs on certain US exports within a month," he said. The Federation of Indian Export Organisations (FIEO) President S C Ralhan said the proposed increase in import duty will have a significant bearing on India's steel exports, especially in semi-finished and finished categories like stainless steel pipes, structural steel components, and automotive steel parts. "These products are part of India's growing engineering exports, and higher duties could erode our price competitiveness in the American market," he said. The US is among the top destinations for Indian steel manufacturers, who have been gradually increasing market share through high-quality production and competitive pricing. "Such sharp increases in tariffs send discouraging signals to global trade and manufacturing supply chains. We urge the government to take up the issue at the bilateral level to ensure that Indian exporters are not unfairly disadvantaged... as 25 per cent additional duty will be a huge burden, which is difficult to be absorbed by the exporter/importer," Ralhan said. The FIEO chief also emphasized on the need for Indian exporters to diversify their markets and invest in higher-grade value-added products to mitigate the impact of such protectionist measures.
Time of India
3 days ago
- Business
- Time of India
India's exports set to cross $1 trillion in FY26 on robust global demand, says FIEO
India's total goods and services exports are projected to surge over 21% year-on-year to touch $1 trillion in the fiscal year 2025-26, according to the Federation of Indian Export Organisations ( FIEO ). In 2024-25, the country's exports stood at $824.9 billion. FIEO President S C Ralhan attributed the projected growth to global buyers looking to diversify their sourcing strategies amid ongoing geopolitical and economic uncertainties. 'The free trade agreements, which India is finalising, would also help in pushing the country's outbound shipments,' he noted. For FY26, merchandise exports are expected to rise by 12% to $525-535 billion, up from $437 billion in FY25. Services exports are projected to grow about 20% year-on-year to $465-475 billion, compared to $387 billion last fiscal, PTI reported. Ralhan said that all major sectors are likely to witness robust growth, including electronics, engineering, chemicals, textiles and clothing, pharmaceuticals, and agriculture. Petroleum and gems and jewellery exports are also expected to rebound into positive territory. Export estimates for 2025-26 include $60 billion from electronics and electricals, $40 billion from machinery, $40 billion from chemicals, $30 billion from pharmaceuticals, $70 billion from petroleum products, $23–25 billion from apparel and made-ups, $30–35 billion from gems and jewellery, and $55 billion from agriculture. A key growth driver for the electronics segment will be the Production Linked Incentive (PLI) scheme. Ralhan also pointed to rising trade diversification as a catalyst, especially with U.S. buyers increasingly looking beyond China. As evidence of the shift, Apple supplier Foxconn invested $1.48 billion (around Rs 12,800 crore) in its India unit during May 14–19, according to regulatory filings. 'It is not just Apple—many other companies are also looking at India. Trade diversion from China will bring at least an additional $5 billion worth of opportunity,' said Ajay Sahai, Director General and CEO of FIEO. India's ongoing negotiations for free trade agreements with the UK, the European Free Trade Association (EFTA), and the European Union (EU) are expected to further support export growth. Additionally, an interim trade deal with the U.S., which may exempt India from reciprocal tariffs, could give Indian exporters a competitive edge, Sahai said. In FY25, the gems and jewellery sector saw exports of $29.8 billion, but the sector has experienced a decline over the past two years due to weakening demand and challenges in sourcing natural diamonds. While the outlook remains strong, Sahai cautioned about emerging headwinds, particularly from non-tariff and technical barriers. A major upcoming challenge is the EU's implementation of the Digital Product Passport (DPP) from January 1, 2026. Initially covering electronics, batteries, textiles, and construction materials, the regulation is set for broader rollout by 2030. The DPP will require detailed digital documentation of a product's life cycle—from raw material sourcing to recycling and disposal—which could significantly increase compliance costs, especially for Micro, Small, and Medium Enterprises (MSMEs). 'These are clearly protectionist measures,' Sahai said, warning that failure to comply could lead to shipment rejections or competitiveness loss in the EU market, which is increasingly focused on sustainability. The DPP follows a series of EU regulations including the Carbon Border Adjustment Mechanism, anti-deforestation rules, and the Eco Design Sustainable Product Regulation, all coming into effect from January 1, 2026. On a positive note, Sahai mentioned that geopolitical disruptions in key trade routes like the Red Sea have subsided, with shipping operations gradually resuming despite recent conflicts in the Russia-Ukraine and Israel-Hamas regions.
Hans India
4 days ago
- Business
- Hans India
Exports likely to touch $1 trn mark in FY26
New Delhi The Federation of Indian Export Organisations (FIEO) on Tuesday said the country is projected to reach the export figure of $1 trillion by the end of this fiscal (FY26). This will constitute merchandise exports at $525-535 billion -- a growth of about 12 per cent from last fiscal -- and services exports at $465-475 billion, a growth of nearly 20 per cent. India's export sector achieved a significant milestone in the fiscal year 2024–25, with total exports reaching a record $824.9 billion, marking a 6.01 per cent increase from the previous year's $778.1 exports surged 13.6 per cent to $387.5 billion in FY25, driven by strong performances in IT, business, financial and travel-related exports reached $437.4 billion, with non-petroleum goods exports hitting a record $374.1 billion, up 6 per cent from the previous year. SC Ralhan, President, FIEO, said that to build upon this momentum and achieve sustained growth in both goods and services exports, certain strategies are recommended. 'Expanding into emerging markets and strengthening trade relations with existing partners can mitigate risks associated with over-reliance on specific regions. Also, shifting focus from raw materials to value-added products can increase export earnings and reduce vulnerability to price fluctuations in global commodity markets,' the FIEO recommended. Negotiating and implementing Free Trade Agreements (FTAs) with key partners can facilitate easier market access and reduce trade barriers, while investing in quality infrastructure, reducing logistics costs, and ensuring compliance with international standards will improve the competitiveness of Indian exports. According to FIEO, providing SMEs with access to finance, and market information will enable them to participate more effectively in international global trade landscape in 2025 is increasingly characterised by a resurgence of protectionist policies, marking a significant shift from the liberalisation trends of previous decades. This protectionism manifests through heightened tariffs, non-tariff barriers (NTBs), and strategic trade measures, impacting global commerce and economic exporters will have to ensure full supply chain traceability—something currently lacking in many traditional sectors like textiles, leather and electronics. 'We request the government to create sector-specific task forces to study DPP requirements and build compliance roadmaps and develop a national framework or digital infrastructure that can help exporters generate DPPs efficiently. The government may also provide assistance or grants to MSMEs to adopt traceability and product lifecycle management systems,' said FIEO.
