New Delhi, Apr 27 (PTI) Commerce and Industry Minister Piyush Goyal on Monday held discussions with exporters and representatives of industry associations on ways to boost the country's shipments and enhance utilisation of free trade pacts.
An industry official said the minister told them that the government is committed to resolving their issues which the industry is facing due to global uncertainties.
The meeting was held after India and New Zealand signed the free trade pact here at Bharat Mandapam. Todd McClay, New Zealand's Minister for Trade and Investment, is here with a business delegation.
"Discussed sector-specific priorities and heard their constructive feedback on enabling more Indian businesses to export and unlock opportunities in the global trade landscape. Also, explored avenues for exporters to leverage various FTAs India has concluded in the recent past to widen market access and boost exports," Goyal said in a social media post.
During the meeting, Federation of Indian Export Organisations (FIEO) flagged issues such as extension of validity of authorisations up to August 31, 2026, in line with the extension already granted for export obligation fulfilment.
The rationale is that the ongoing logistics disruptions have impacted not only exports but imports as well, thereby affecting the ability of exporters to utilise authorisations within the prescribed timelines.
They also asked the ministry that the trade relief measures announced by the Reserve Bank of India (RBI) presently cover only 20 out of 98 Harmonised System (HS) chapters and several key sectors that are significantly impacted by US tariff actions remain outside the ambit of these measures.
"It is, therefore, imperative that the coverage be expanded to include such affected sectors to ensure a more comprehensive and equitable relief framework," the official said.
Under the RELIEF Scheme of ECGC, the benefit is presently linked to realisation. However, given the prevailing uncertainties and delays in payments arising from the situation in the Middle East, realisation timelines are likely to be extended.
"Considering that the refund is limited to 50 per cent of freight and insurance -- supported by documentary evidence such as bills and invoices -- it is recommended that the insistence on realisation as a precondition may be relaxed to enable timely support to exporters," the official added.
Merchandise exports posted the steepest fall in five months, declining 7.44 per cent in March to USD 38.92 billion due to trade uncertainty and geopolitical tensions, with shipments to West Asia contracting by more than 50 per cent.
The trade deficit, however, narrowed to a nine-month low of USD 20.67 billion in March on account of lower imports.
Imports dipped 6.51 per cent to USD 59.59 billion in March, driven by a significant decline in inbound shipments of crude oil and gold, the data showed.
India's exports to the Middle East fell 57.95 per cent in March, while imports from the Gulf nations contracted 51.64 per cent.
For the full 2025-26 fiscal year, exports grew 0.93 per cent to an all-time high of USD 441.78 billion, while imports rose 7.45 per cent to USD 775 billion. The trade deficit ballooned to USD 333.2 billion due to a jump in gold and silver imports during the last fiscal year.
The country's goods and services exports increased by an estimated 4.22 per cent to an all-time high of USD 860.09 billion in 2025-26 against USD 825.26 billion in 2024-25.
The government has rolled out a host of measures to cushion exporters from the impact of the conflict in the Gulf region, a key market for India's exports such as gems and jewellery, rice and pharma, which were valued around USD 57 billion in FY25.