Commerce Ministry warns of long-term impact of U.S. tariffs on Indian marine exports
The Union Commerce Ministry informed the Public Accounts Committee (PAC) that higher tariffs imposed by the U.S. will have a significant long-term impact on Indian exports, particularly the marine sector. Shrimp exports are especially vulnerable, facing effective levies exceeding 58% when combined with existing duties. To mitigate this, the government is working on market diversification, pushing for the registration of more export units in the EU and engaging with other countries like Russia. The PAC also reviewed the 'Performance Audit' of the Export Promotion Capital Goods (EPCG) Scheme, questioning its effectiveness in boosting manufacturing growth.
Key Points
- U.S. tariffs on Indian shrimp exports have reached an effective levy of over 58%.
- The Commerce Ministry is seeking to diversify export markets to the EU and Russia to reduce dependence on the U.S.
- The Public Accounts Committee (PAC) is reviewing the Export Promotion Capital Goods (EPCG) Scheme.
- Duties worth ₹42,714 crore were foregone under the EPCG scheme between 2018-19 and 2020-21.
Exam Facts
- The effective levy on Indian shrimp in the U.S. exceeds 58%.
- The EPCG scheme saw ₹42,714 crore in foregone duties over a three-year period (2018-21).
- K.C. Venugopal is the Chairperson of the Public Accounts Committee (PAC).
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