India is exploring newer markets to mitigate the affect on marine exports hit by U.S. tariffs

The increased tariffs imposed on Indian items by American President Donald Trump would have a long-term affect, particularly for India’s marine exports, officers of the Union Ministry of Commerce instructed the Public Accounts Committee (PAC) headed by senior Congress chief Okay.C. Venugopal.

The PAC met to deliberate the ‘Performance audit report on the Export Promotion Capital Goods Scheme.

There have been a number of questions on the affect of U.S. tariffs on Indian exports. Rajesh Agarwal, Special Secretary, Department of Commerce, maintained that anxiousness over the opposed affect on the Indian pharmaceutical sector was unfounded, since India’s key competitor on this sector was China, which was additionally reeling underneath related tariffs, sources stated. He acknowledged that the excessive tariffs could have a detrimental long-term impact on commerce.

There have been a number of questions on India’s marine exports from each side of the aisle, together with from the PAC Chairperson, Mr. Venugopal. Several members identified that lots of India’s coastal cities could be straight impacted if shrimp exports declined drastically.

The U.S. has imposed excessive tariffs, notably a 50% responsibility applied in August 2025, which considerably affect India’s marine exports, particularly of shrimp, with shrimp exports dealing with an efficient levy exceeding 58% when mixed with present duties. Mr. Agarwal, sources stated, conceded that the excessive tariff barrier had positioned India at an obstacle compared with its rivals.

Mr. Agarwal, sources stated, knowledgeable the panel that India was actively engaged on opening up new markets through Free Trade Agreements with different areas, together with the European Free Trade Association (EFTA) bloc (comprising Iceland, Liechtenstein, Norway, and Switzerland), and the U.Okay., which might “get rid of present duties”.

EU negotiators have been just lately in India to debate these agreements, Mr. Agarwal instructed the panel, in line with sources, and he went on so as to add that India was specializing in market diversification by efficiently pushing for the registration of extra marine export items within the EU, and interesting in discussions with different nations, together with Russia.

The committee expressed dissatisfaction over the shortage of clear outcomes from the Export Promotion Capital Goods Scheme, a coverage geared toward facilitating the import of capital items for producing high quality items and companies to boost India’s manufacturing competitiveness. Under the scheme, duties price ₹42,714 crore have been forgone between monetary years 2018-19 to 2020-21. The panel has directed the federal government to give you clear solutions on the way it has helped progress within the manufacturing sector.