India sets up high-level panel to fix export bottlenecks as US tariff war heats up

External Affairs Ministry set to fix export bottlenecks as US tariff war heats up. The Indian government has constituted a high-level committee to examine the impact of customs duties, GST, export incentives and clearance procedures on the country’s outbound shipments. The move comes as India faces declining exports and escalating global trade pressures including a steep tariff hike from the United States. The panel comprising senior officials from the commerce, finance and industry ministries along with representatives from key export bodies will recommend measures to streamline customs processes reduce documentation burdens and improve port logistics, sources told. 

The formation of the panel comes amid a troubling trade performance. In June 2025, India’s merchandise exports fell 0.05% year on year to $35.14 billion, the lowest in seven months. Imports dropped 3.71% to $53.92 billion bringing the trade deficit to $18.78 billion compared to $20.84 billion in the same period last year. Official said the committee will not only address domestic bottlenecks but also evaluate global best practices to enhance India’s export competitiveness. 

The move comes against the backdrop of escalating trade tensions with the United States which recently imposed a 50% tariff on Indian imports, the steepest rate imposed on any country, equaling that on Brazil. Former President Donald Trump who signed the executive order has cited market access issues and India’s energy ties with Russia. 
The Ministry of Commerce and Industry has also urged exporters to promote homegrown brands in international markets as a buffer against rising US duties.