Indian exporters are advocating for substantial budgetary support and strategic measures to capitalize on evolving global trade dynamics, particularly with the US market. Below is a detailed analysis of their requests, challenges, and recommendations.

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Key Requests and Concerns

1. ₹750 Crore Funding Proposal
   Exporters have requested ₹750 crore in budgetary support over three years (₹250 crore annually). This funding aims to penetrate the USD 25 billion export market in the US, where higher tariffs on Chinese goods present an opportunity for Indian exporters to expand their share.
2. Extension of the Interest Equalisation Scheme (IES)
   The Federation of Indian Export Organisations (FIEO) emphasizes the need to extend the five percent IES beyond its current deadline of December 31, 2024. This scheme is pivotal in reducing financing costs, particularly for MSMEs, enhancing their global competitiveness.
3. Marketing and Strategic Partnerships
   Exporters recommend a focused marketing scheme, including participation in international exhibitions and forging strategic partnerships in key sectors such as electronics, textiles, and auto components. This initiative is expected to drive additional exports.
4. Decline in Export Credit
   Export credit dropped from ₹2,27,452 crore in March 2022 to ₹2,17,406 crore in March 2024, despite a 15% rise in exports. This decline highlights financing challenges, which could hinder growth in export activities.
5. Sector-Specific Support for Gems and Jewellery
   • Budgetary support for consumer education.
   • Infrastructure status for jewellery parks.
   • Duty drawback benefits for platinum.
6. R&D and Shipping Sector Recommendations
   Exporters call for tax benefits on R&D activities and enhanced equity in private shipping lines to reduce dependence on international shipping services. These measures aim to strengthen logistics and innovation capabilities.
7. Trade with the US
   Exports to the US, India’s largest trading partner, grew by 6.31% from April to October 2023. Exporters are concerned about potential new tariffs on key goods, including textiles, automobiles, and pharmaceuticals, which could impact trade volumes.
8. Impact of Domestic Interest Rates
   Indian exporters face higher domestic interest rates compared to competitors like China and South Korea. This disparity increases financing costs, further affecting global competitiveness.

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Data Table Summary

Key Area	Details
Funding Request	₹750 crore over three years for US market penetration.
IES Extension	Extension of 5% scheme beyond December 2024, critical for MSME competitiveness.
Export Credit Decline	From ₹2,27,452 crore in March 2022 to ₹2,17,406 crore in March 2024.
Gems & Jewellery Sector Support	Consumer education, infrastructure status for jewellery parks, duty drawbacks.
Marketing Initiatives	Focused schemes on exhibitions and strategic partnerships in electronics, textiles, and auto components.
Trade with the US	Exports grew by 6.31% (April-October 2023); concerns over new tariffs.
Domestic vs Global Interest Rates	Higher rates in India increase financing costs compared to China and South Korea.
R&D and Shipping Recommendations	Tax benefits for R&D and equity support for private shipping lines.

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Conclusion

The proposed measures, if implemented, could significantly boost India’s trade competitiveness, especially in the US market. Exporters underscore the urgency of addressing financing, marketing, and policy challenges to achieve sustainable growth and capitalize on global opportunities.