A new committee has been set up by the government to look into issues faced by the manufacturing sector concerning tax payment and export clearance in the backdrop of steep tariffs imposed by the US on Indian goods.
The committee, which includes representatives from the Ministry of Finance, the Department for Promotion of Industry and Internal Trade (DPIIT), the Reserve Bank of India (RBI), the Department of Commerce, and the Directorate General of Foreign Trade (DGFT) besides special invitees from the export promotion councils, industry chambers, consultancy firms and the Federation of Indian Export Organisations will submit its report in two months.
A government official said the committee will examine the existing export-related tax structures (both customs duties and export incentives) and export clearance procedures to identify their impact on the manufacturing sectors' competitiveness and export performance, and suggest refinements or alternatives, if needed.
The focus will remain sector-specific challenges in high-potential export sectors such as engineering, pharmaceuticals, electronics, chemicals, agro and processed food, textiles, leather, gems and jewellery.
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The panel would also study and recommend the best practices in export taxation and customs facilitation globally, and propose actionable policy reforms to streamline processes.
Indian manufacturing sectors are facing issues because of the imposition of a steep 50 per cent tariff on Indian goods entering America from August 27.
The high duty will make India's labour-intensive goods less competitive in the US market compared to those from Vietnam, Bangladesh, and Thailand, which face lower tariffs.
The US accounted for about 20 per cent (USD 86.5 billion) of the country's total goods exports of USD 437 billion in 2024-25.
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