Centre Urges Exporters to Build Indian Brands Amid Tariff Blow
In response to the United States’ decision to impose a 25% tariff on Indian exports under President Donald Trump’s revised trade stance, the Indian government is now pushing exporters to focus on creating and promoting homegrown brands. The call was made during high-level consultations between top officials from the Ministry of Commerce and industry stakeholders, with an emphasis on long-term export sustainability and value addition.
Shift Towards Branding and Self-Reliance
Officials believe India’s dependence on bulk commodity exports makes it more vulnerable to tariff hikes and geopolitical shifts. By encouraging Indian companies to build brand equity globally, the government hopes to reduce this vulnerability and elevate Indian products to premium segments in foreign markets.
The strategy involves developing sector-specific branding policies for textiles, leather, handicrafts, electronics, and processed foods. According to sources familiar with the matter, the Department of Commerce will also incentivize branding efforts under the revised Foreign Trade Policy (FTP) and Market Access Initiative schemes. Export Promotion Councils have been asked to work with Indian embassies to identify high-potential markets for brand placement.
Tariff Impact Sparks Urgency
The recent tariff by the U.S., especially on goods such as automotive components, apparel, and consumer electronics, has put pressure on Indian exporters. India’s trade deficit with the U.S. has also been flagged in Washington, adding further uncertainty. While New Delhi has said it will not immediately review the bilateral trade agreements or retaliate with reciprocal tariffs, it is working behind the scenes to mitigate the impact through value-based positioning of Indian exports.
Private Sector Reaction
Several Indian exporters have welcomed the idea, citing the long-term benefits of brand-driven exports. However, small and medium enterprises have urged the government to provide support in international marketing, logistics, and intellectual property protection, warning that building brands from scratch in global markets is a high-cost, high-risk exercise.
With the global trade landscape becoming more volatile, Indian officials believe this shift towards promoting Indian brands is not just timely but essential for ensuring resilience in the face of future economic challenges.
