Daily News - Monday, 4 August 2025
New EU rule may stir up trouble for Araku coffee exports (The Economic Times)
India’s Araku coffee exports to Europe are under threat due to the EU Deforestation Regulation (EUDR), which requires full traceability of origin by the end of 2024—a challenge for small tribal farmers lacking smartphones or awareness. While larger estates in Karnataka have already mapped their farms to meet the new standards, geotagging in Araku Valley has only just begun, raising fears of missed deadlines and lost export opportunities, especially as Europe remains India’s top coffee market. Though EUDR penalties apply to EU importers, Indian exporters risk being cut off if shipments aren’t compliant, prompting urgent calls for a nationwide, mission-mode geolocation effort.
PM Modi defiant as Trump steps up pressure on India’s Russia oil purchases (The Economic Times)
Facing a 25% tariff threat from the US, Prime Minister Modi doubled down on India’s commitment to buying Russian oil and urged citizens to support local manufacturing, saying the country must protect its economic interests amid global instability. Despite US pressure and warnings of further action, India has not directed refiners to halt Russian crude imports, which now account for nearly one-third of India’s total oil purchases. While the US accuses India of enabling Russia and demands change, New Delhi remains firm on its sovereign trade policies and is preparing for continued bilateral talks without conceding access to sensitive sectors like dairy and agriculture.
Indian shrimp exporters brace for unprecedented challenge in US; volumes to drop 7-9% (The Economic Times)
Indian shrimp exporters are facing a major blow in the US market—accounting for nearly 48% of their exports—after the latest reciprocal tariffs, on top of existing 5.77% countervailing duties and anti-dumping measures, are expected to shrink export volumes by 7–9% this fiscal. In contrast, Ecuador, a key competitor, enjoys far lower US tariffs, making India one of the most heavily taxed shrimp exporters and putting downward pressure on operating margins by 50–100 basis points. Although the government has invested over ₹3,490 crore under PMMSY to modernise seafood infrastructure and boost exports, the near-term outlook for exporters remains strained due to rising costs and competitive headwinds.
Exporters urged to build brands as a way around Trump tariffs (The Economic Times)
With a steep 25% US tariff now affecting nearly half of India’s $85 billion exports to America, the government is urging exporters to build strong domestic brands as a buffer, especially in vulnerable sectors like textiles and marine goods. Officials are exploring measures like reduced testing charges, employment-linked export incentives, and reintroducing interest subsidies for MSMEs to ease the blow and stay competitive against rivals like Ecuador and Vietnam, which face lower tariffs. While hopes of a near-term India-US trade deal have dimmed, policymakers are betting that India’s established capacity and client ties will prevent an immediate shift in demand.
Exporters seek assistance, credit at affordable rates to deal with Trump tariff (The Economic Times)
Facing a steep 25% US tariff effective August 7, Indian exporters across key sectors—textiles, shrimp, plastics, and footwear—are urging the government for urgent support, including low-interest credit and PLI-style incentives, to stay afloat amid rising cancellations and stalled orders. Competing nations like Thailand (19%), Vietnam (20%), and South Korea (15%) now enjoy significantly lower US tariffs, raising fears of a $26 billion drop in India’s exports to $60.6 billion in FY26, according to GTRI estimates. Exporters warn of potential mass layoffs and factory closures, stressing that without immediate intervention, India’s competitive edge, especially in US-bound goods, could be swiftly eroded.
