{"id":63349,"date":"2026-01-03T18:51:27","date_gmt":"2026-01-03T13:21:27","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=63349"},"modified":"2026-01-05T12:41:44","modified_gmt":"2026-01-05T07:11:44","slug":"states-export-challenges","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/03-01-2026\/states-export-challenges","title":{"rendered":"States Challenges in Exports at the Board of Trade meeting"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Many challenges were flagged by exporters<\/strong> in a meeting of the <strong>Board of Trade (BoT) <\/strong>chaired by the Union Commerce and Industry Minister.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The BoT meeting happened in the <strong>backdrop of slowing exports<\/strong> due to the steep <strong>US tariffs of 50% <\/strong>as both countries failed to conclude a trade deal.\n<ul class=\"wp-block-list\">\n<li><strong>In the Board of Trade meeting, <\/strong>representatives from states and the industry, as well as key Central minis\u00adtries, provide the Commerce Ministry with specific inputs to boost exports and trade.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Concerns Raised by Exporters:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Costlier raw materials, shortage of testing facilities to ensure products meet global quality standards, and lack of adequate shipping containers are all leading to loss of competitiveness of goods exports.<\/li>\n\n\n\n<li>The steep US tariffs have dampened exports, and have triggered cancellations in orders and delayed payment.&nbsp;<\/li>\n\n\n\n<li>There are also worries that these could result in orders moving to its competitors such as Bangladesh, Vietnam and China.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background has-fixed-layout\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>Board of Trade<\/strong><br><br>&#8211; <strong>Board of Trade (BOT)<\/strong> has been constituted by merging Council for Trade Development and Promotion with Board of Trade in <strong>2019.<\/strong><br>&#8211; It <strong>provides a platform <\/strong>to state governments and UTs for articulating state-oriented perspectives on Trade Policy.\u00a0<br>&#8211; <strong>Functions: <\/strong>It advises the Government on policy measures connected with the Foreign Trade Policy in order to achieve the objectives of boosting India\u2019s trade.<br>a. It is an important mechanism for deliberations on trade related issues with industry bodies, associations, export promotion councils, and state and UT governments.<br>&#8211; <strong>It is chaired <\/strong>by the Union Minister for Commerce and Industry.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Exports by India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Exports account for nearly<strong> 21% of GDP<\/strong> and robust&nbsp; foreign exchange inflows for India.&nbsp;<\/li>\n\n\n\n<li><strong>Over 45 million<\/strong> people being directly and indirectly employed under the export oriented industries, the MSMEs contribute nearly 45% of total exports.&nbsp;<\/li>\n\n\n\n<li><strong>Key export drivers during April-September 2025<\/strong> include Electronic Goods (41.94%), Engineering Goods (5.35%), Drugs and Pharmaceuticals (6.46%), Marine products (17.40%) and Rice (10.02%).<\/li>\n\n\n\n<li><strong>Major export destinations<\/strong> include the USA (13.34%), United Arab Emirates (9.34%), China (21.85%), Spain (40.30%), and Hong Kong (23.53%).<\/li>\n\n\n\n<li>Such sustained export growth has been instrumental in supporting India\u2019s current account balance and macroeconomic stability.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Government Initiatives to Curb these Challenges<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Export Promotion Mission: <\/strong>In the Union Budget for 2025-26, the Finance Minister announced an Export Promotion Mission.\n<ul class=\"wp-block-list\">\n<li>It would facilitate easy access to export credit, cross-border factoring support, and support to MSMEs to tackle non-tariff measures in overseas markets.<\/li>\n\n\n\n<li>EPM will span<strong> six years <\/strong>covering FY 2025-26 to FY 2030-31.<\/li>\n\n\n\n<li><strong>Under EPM<\/strong>, <strong>priority support<\/strong> will be extended to sectors impacted by recent global tariff escalations, such as textiles, leather, gems &amp; jewellery, engineering goods, and marine products.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Export Support Package:<\/strong> The government announced a Rs 7,295-crore export support package, comprising a Rs 5,181-crore interest subvention scheme along with a Rs 2,114-crore collateral support, to improve exporters&#8217; access to credit.<\/li>\n\n\n\n<li><strong>Free Trade Agreements (FTA) Negotiations: India is aggressively pushing for newer markets<\/strong> and has signed as many as three free trade agreements, with Oman, New Zealand and the UK, in 2025.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img data-dominant-color=\"c8dbe2\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"525\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/01\/image-12-1024x525.png\" alt=\"\" class=\"not-transparent wp-image-63350\" style=\"--dominant-color: #c8dbe2; aspect-ratio:1.9505115739061025;width:371px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/01\/image-12-1024x525.png 1024w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/01\/image-12-300x154.png 300w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/01\/image-12-768x394.png 768w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/01\/image-12.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Digital Transformation: <\/strong>The Department of Commerce has advanced its Digital Transformation agenda to strengthen trade facilitation and intelligence through data-driven solutions.\n<ul class=\"wp-block-list\">\n<li>Initiatives such as Trade eConnect and Trade Intelligence &amp; Analytics (TIA) portal lay a strong foundation for evidence-based decision-making.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Indian government\u2019s comprehensive strategy aims to reinforce the resilience of its exporters amid challenging global trade dynamics.&nbsp;<\/li>\n\n\n\n<li>Sustained efforts will be essential to protect traditional export sectors and ensure long-term competitiveness against both US tariffs and Chinese market strategies.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/business\/exports-hurt-states-flag-facility-and-testing-gaps-at-board-of-trade-meeting-10452544\/\" target=\"_blank\" rel=\"noopener\"><strong>IE<\/strong><\/a><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Context<\/strong><\/p>\n<li class=\"ms-5\">Many challenges were flagged by exporters in a meeting of the Board of Trade (BoT) chaired by the Union Commerce and Industry Minister.<\/li>\n<p><\/p>\n<p><strong> About <\/strong><\/p>\n<li class=\"ms-5\">The BoT meeting happened in the backdrop of slowing exports due to the steep US tariffs of 50% as both countries failed to conclude a trade deal. <\/li>\n<li class=\"ms-5\">In the Board of Trade meeting, representatives from states and the industry, as well as key Central minis\u00adtries, provide the Commerce Ministry with specific inputs to boost exports and trade. <\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/03-01-2026\/states-export-challenges\" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-63349","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/63349","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=63349"}],"version-history":[{"count":5,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/63349\/revisions"}],"predecessor-version":[{"id":63383,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/63349\/revisions\/63383"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=63349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=63349"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=63349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}