Govt units up committee to look at tax, export clearance points of producing sector

The Government has arrange a committee to look at the tax and export clearance points being confronted by manufacturing models and recommend measures to additional streamline the system amid excessive tariffs imposed by the U.S., an official has stated.

The Committee contains representatives from the Finance Ministry, Department for Promotion of Industry and Internal Trade (DPIIT), Department of Commerce, Directorate General of Foreign Trade (DGFT), and the RBI.

It additionally has particular invitees from trade chambers, Federation of Indian Export Organisations, export promotion councils, and consultancy companies.

The official stated the Committee will look at the present export-related tax constructions (each customs duties and export incentives) and export clearance procedures to determine their influence on the manufacturing sectors’ competitiveness and export efficiency, and recommend refinements or options, if wanted.

Besides, it could determine sector-specific challenges in high-potential export sectors, reminiscent of engineering, prescription drugs, electronics, chemical compounds, agro and processed meals, textiles, leather-based, gems and jewelry.

It would additionally examine and advocate international finest practices in export taxation and customs facilitation, and suggest actionable coverage reforms to streamline processes.

The Committee is anticipated to submit its report in two months.

Indian manufacturing sectors are dealing with points due to the imposition of a steep 50% tariff on Indian items getting into America from August 27.

The excessive obligation will make India’s labour-intensive items much less aggressive within the US market in comparison with these from Vietnam, Bangladesh, and Thailand, which face decrease tariffs.

The U.S. accounted for about 20% ($86.5 billion) of the nation’s whole items exports of $437 billion in 2024-25.