US President Donald Trump has called out India for alleged high tariffs and sought reductions. Is the lowering of customs duty in line with that demand?

We have always tried to address the issue of inverted duties. We have been responsive to industry’s requests on reduction of tariffs and duties. This is a continuation of that effort and will send a positive message to the business and industry. It will help manufacturing grow because raw materials and intermediate products will make our products more competitive in the international market.

What all does the Export Promotion Mission seek to achieve and how soon can the funds be put to use? 

It is an omnibus scheme which gives a lot of flexibility for promoting exports. The departments of MSME, Commerce and Finance will, as a team, see which are the sectors and the areas that require maximum support in terms of capital or funding, technology upgradation, marketing, brand building, access to newer markets and promotion of newer products. 

I am guiding my officials to start the work right away.  I am calling for a meeting of all the three departments. I have also given some ideas on how we could effectively utilise this money in a smart fashion so that we get the big bang for every department.

Under the new Export Promotion Mission, the Budget offers assistance in tackling non-tariff measures in foreign countries identified in the Economic Survey as big hurdles for Indian exports. How will it work?

The broad idea is that if any country has very difficult terms of reporting or quality approvals, the government should be in a position to support, particularly the MSMEs, in meeting those costs. If there is an additional cost, let’s say in meeting the EU’s CBAM (Carbon Border Adjustment Mechanism ) regulation, we would like to support our micro and small units to meet those reporting requirements of certification. Our team will work out appropriate measures to help our industry. Of course, we are also in continuous dialogue with our counterparts to reduce non-tariff barriers.

Why is there no allocation for the Market Access Initiative (MAI) scheme?

We have brought all of it into this bucket (Export Promotion Mission) because we would like to see targeted and focused interventions rather than just a regular intervention, where big and small, or all sectors get same treatment. The Finance Minister mentioned toys, leather and footwear. If I add furniture, these are sectors where sectorally we see a lot of potential and need to give market intervention.

Why is there no provision for interest equalisation scheme in the Budget?

That scheme was over on December 31. The Commerce and Finance Ministries can address if any sector needs to be supported through any scheme and draw the contours. I personally think we have better and smarter ways to have targeted benefits to those sectors which deserve and need it the most. We can combine the availability of credit and make it available at lower cost by designing a smart scheme.

Do announcements regarding manufacturing of toys, leather and footwear mean that there won’t be PLI schemes?

There is never a full-stop one way or the other. We will wait and see how various existing schemes are successful and then accordingly come up with appropriate measures in other areas.

How will the Manufacturing Mission be different from the PLI schemes?

The PLI schemes are already operational, the beneficiaries have been selected, they are investing and it has been a runaway success. The National Manufacturing Mission will look at the manufacturing ecosystem, identify focus areas which are futuristic, where there’s demand in domestic and foreign markets and come up with recommendations on what we should do. It is not about product but a holistic ecosystem.