Indian exporters are making a strong case for a Rs. 750-crore marketing fund to be set aside for a three-year period, aimed at capturing a $25 billion export potential in the United States. This proposal, made ahead of the Union Budget 2025-26, comes at a critical time when global trade dynamics are shifting, particularly in the wake of the US’s plan to impose higher tariffs on Chinese imports. The Federation of Indian Export Organisations (FIEO) has emphasized that this shift in global trade provides a significant opportunity for Indian businesses to expand their exports to the US, particularly in sectors where China has been the dominant supplier for years.

The essence of the proposal is to establish a focused, government-backed marketing scheme for Indian exporters, specifically targeting the US market. FIEO President Ashwani Kumar has called for an allocation of Rs. 250 crore per year for three years, amounting to Rs. 750 crore overall. This fund would be used to strengthen India’s export presence in the US by organizing trade exhibitions, holding buyer-seller meetings, and forming partnerships with large local retailer associations. The goal is to generate an additional $25 billion in exports to the US by the end of the three-year period, significantly boosting India’s share in the US import market.

Several sectors, including electronics, footwear, textiles, and chemicals, stand to benefit from this marketing push. Notably, the electronics sector, particularly mobile phones, televisions, and electrical components, could see significant demand, with FIEO estimating an additional $10 billion in electronics exports to the US.

The FIEO’s request comes as India’s export sector faces significant headwinds. Goods exports in November contracted by 4.9% on a year-on-year basis, marking the lowest growth in two years. Despite this, exporters remain optimistic about the future, especially with the changing dynamics in global supply chains. The increasing US tariffs on Chinese goods are seen as a major opportunity for India to fill the gaps left by China’s declining export capacity to the US.

To complement the marketing fund, FIEO is urging the government to raise the cap on interest subvention under a key export promotion scheme. This would allow exporters to access more affordable funds, helping them expand operations and enhance competitiveness in the global market.

FIEO has called for increasing tax deductions for R&D under Section 35(2AB) of the Income-Tax Act to 200-250%. This would encourage investment in innovation and product development, making Indian exporters more competitive, particularly in sectors like electronics and engineering.

The proposed marketing fund and policy changes come at an ideal time for Indian exporters. With global trade patterns shifting and the US seeking to diversify its imports away from China, India stands to benefit. FIEO’s proposal aims to capitalize on these opportunities by enhancing India’s export presence in the US, helping businesses diversify markets, and driving growth in expanding sectors.

In conclusion, India is at a pivotal moment in its export journey, with the potential to tap into a $25 billion opportunity in the US market. By approving a Rs. 750-crore marketing fund and supporting critical policy changes, such as raising interest subvention caps and enhancing R&D tax incentives, the Indian government can provide the necessary boost for exporters to thrive. This support would help exporters navigate global uncertainties and position India as a dominant player in key export sectors. These initiatives could ensure India takes full advantage of the shifting global trade landscape, securing long-term growth and prosperity for its export sector.