New Delhi [India], November 25 (ANI): The Global Trade Research Initiative (GTRI) has argued in a new report that India must prioritize securing a rollback of the United States’ additional tariff on oil-related imports before entering into any broader trade agreement with Washington.
According to GTRI, removing the oil-related duty would reduce the effective U.S. tariff burden on Indian goods from 50 percent to 25 percent, offering significant relief to labor-intensive sectors such as textiles, leather, gems and jewellery, and pharmaceuticals.
GTRI urged members of the Board of Trade (BoT) to place two issues at the top of their meeting agenda: the swift rollout of the Export Promotion Mission (EPM) and pressing the United States to drop the oil tariff. The BoT meeting, scheduled for today and chaired by the Commerce and Industry Minister, will consider measures to boost export growth. GTRI emphasized that achieving this tariff reduction is critical for restoring India’s export competitiveness and ensuring future trade negotiations with the U.S. proceed on equal terms.
The think tank noted that President Donald Trump has publicly acknowledged India has “very substantially” stopped buying oil from sanctioned Russian firms—the original basis for imposing the additional 25 percent tariff. With this condition no longer applicable, GTRI said India should make the removal of the surcharge its immediate priority.
GTRI also highlighted delays in implementing the schemes under the Export Promotion Mission. The Mission, announced in the Union Budget and approved by the Cabinet on November 12, remains a framework without operational schemes nearly eight months into the 2025–26 fiscal year. Older programs, including the Market Access Initiative and the Interest Equalisation Scheme, have not issued payouts this year, leaving exporters without assistance amid global trade pressures.
With annual EPM funding capped at under Rs 4,200 crore—barely sufficient to cover last year’s interest-support bill—GTRI warned that the Mission may fall short of its goals unless the government releases scheme guidelines promptly, restores predictable disbursals, and provides exporters with clarity on eligibility and timelines. (ANI)
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