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The Central Government has established a committee to tackle tax and export clearance issues affecting manufacturing units, following high US tariffs on Indian goods. The panel includes representatives from key ministries, RBI, and industry bodies, and will review existing customs duties, export incentives, and clearance procedures. It will identify challenges in key export sectors such as engineering, pharmaceuticals, electronics, chemicals, textiles, and gems and jewellery, study global best practices, and suggest reforms to improve efficiency and competitiveness. With the US accounting for a significant portion of exports, these measures aim to help Indian manufacturers sustain their performance in global markets.
The Central Government has set up a committee to examine the tax and export clearance issues that manufacturing units are facing, aiming to suggest measures to streamline processes amid high tariffs imposed by the United States. Officials explained that the committee includes representatives from the finance ministry, the Department for Promotion of Industry and Internal Trade (DPIIT), the Department of Commerce, the Directorate General of Foreign Trade (DGFT), and the RBI. Advertisement
The panel also includes special invitees from industry chambers, the Federation of Indian Export Organisations, export promotion councils, and consultancy firms. According to officials, the committee will review the current export-related tax structures, including customs duties and export incentives, as well as export clearance procedures. The goal is to identify their impact on the competitiveness and performance of manufacturing sectors and propose refinements or alternatives wherever necessary.
The committee will also focus on sector-specific challenges in high-potential export areas such as engineering, pharmaceuticals, electronics, chemicals, agro and processed foods, textiles, leather, and gems and jewellery. It will study global best practices in export taxation and customs facilitation, and recommend actionable policy reforms to simplify processes. The committee is expected to submit its report within the next two months.
Manufacturers have been facing difficulties following the imposition of a 50 per cent tariff on Indian goods entering the US from late August. This high duty is likely to make India's labour-intensive goods less competitive compared to products from Vietnam, Bangladesh, and Thailand, which face lower tariffs. In 2024-25, the United States accounted for about 20 per cent of India's total goods exports, with USD 86.5 billion out of USD 437 billion. The committee's recommendations are expected to help exporters navigate these challenges and improve the efficiency of export procedures.
Source PTI
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