Sitharaman lays the groundwork for tariff walls on exports

Finance Minister Nirmala Sitharaman, while addressing participants of FICCI’s Annual Convention and AGM, said that the Indian exporters may face a tariff wall while exporting to countries that are undergoing a green transition. She stressed on the steel exports and said that if we export steel to such places, it is likely to face this tariff wall or tax for green transition.

“Many nations want to fund their green transition and are imposing tariff walls on products from other nations. If we export steel to such places, it is likely to face this tariff wall or tax for green transition. Indian industry needs to reset itself accordingly,”

Nirmala Sitharaman, Union Minister of Finance

With the West struggling with recession and also looking at China plus one with nearshoring and reshoring, it is imperative that India creates for itself the image of an ideal manufacturing hub.

“The recession in Europe is going to impact exports and other investments. This is the best time for the industry to work out strategies for sourcing from India and produce from here,” she said 

This would mean for the manufacturing industry to change their game if they want to leverage India’s G20 presidency. The minister said that during the tenure of India’s G20 presidency, Government would showcase the country as a destination to go for, to investors from G20 nations, especially for manufacturing.

She also highlighted the role of Indian startups in the economy’s growth, asking the industry to keep a close watch on the innovations of startups to benefit in frontier sunrise sectors.

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