Budget 2025 Expectations: FM Nirmala Sitharaman's Meeting With Traders - These 3 Demands Topped Agenda - Inside Details

In a crucial pre-budget meeting with Finance Minister Nirmala Sitharaman , Ajay Sahai, the Director General and CEO of the Federation of Indian Export Organisations (FIEO), outlined several key concerns and proposals aimed at strengthening India’s export sector. These discussions come at a time when global trade dynamics are shifting, and India stands at the cusp of significant opportunities. The meeting with over 12 trade and export bodies on Thursday went on for two-hours. 

Impending China Tariff
One of the primary concerns raised by trade and industry bodies was the potential impact of new tariffs on China. "With the United States imposing tariffs on China, the US will undoubtedly look for alternative supply sources, creating an opportunity for India to fill that gap," he stated. Sahai emphasised that sectors such as electronics, organic chemicals, toys, home furnishings, furniture, automotive parts, and apparel could potentially capture a share of the $25 billion trade market shifting from China to the US. "This is a golden opportunity for India, but it requires proactive marketing efforts and strategic partnerships with major US retail associations," he added. “ One of the ideas mooted was to have additional support for marketing in the US with retail bodies and associations.”

Interest Equalisation Scheme
Sahai also urged the government to focus on the issue of interest equalization, particularly for small traders and MSMEs. "The scheme to provide interest subsidies for MSME exporters will help them access competitive credit rates in rupee export financing, at a time when the global economy faces headwinds," Sahai explained. He emphasised that such support would be essential in boosting the competitiveness of Indian exporters.

Another critical issue discussed was the lack of incentivization for research and development (R&D). "R&D is a long-term investment, but it is essential for enhancing competitiveness in global markets. Unfortunately, we are not providing adequate incentives for this crucial sector," Sahai remarked. He called for a 200 per cent tax deduction on R&D expenditures to encourage innovation in export-oriented industries. "If we want to compete globally, incentivizing R&D is not just an option—it is a necessity," he added.

Own Shipping Line
On the matter of self-reliance, Sahai made a strong case for India developing its shipping infrastructure. "Currently, the Shipping Corporation of India handles just 10 per cent of our total international trade, with foreign shipping lines handling the rest. By establishing our national shipping line, we will reduce our dependence on foreign players, save foreign exchange, and gain greater control over our trade routes," he explained. Finally, Sahai spoke about expanding the global capability centres and other schemes to cover tier 2 cities. "We need to focus on expanding the scope of export support to tier 2 cities, where a significant amount of untapped potential lies. This will not only boost regional growth but also contribute significantly to the country's overall export potential," he said.