FKCCI Launches Strategy to Diversify Export Markets in Response to Trump Tariffs

The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has introduced a strategy to broaden export markets. This move is seen as a reaction to the tariffs imposed by US President Donald Trump. During the FKCCI Export Excellence Awards in Bengaluru, federation president M G Balakrishna detailed measures to tackle these new challenges, according to an FKCCI statement.

Balakrishna highlighted that US tariffs threaten the competitiveness of Indian exporters. This issue affects not only large firms but also smaller exporters who operate on narrow profit margins. He stated that FKCCI has outlined necessary actions for its members to address the tariff challenge. Additionally, he urged the Indian government to provide a stimulus package or relief measures to maintain export momentum.

Focus on High Growth Economies

Balakrishna encouraged members to diversify their export destinations. He suggested shifting focus to high-growth economies like Vietnam, Indonesia, and South Korea. "The export community must align with European Union standards by obtaining CE certification, sustainability labels and quality benchmarks," he advised.

Karnataka aims to enhance its contribution to India's exports further. The state consistently ranks among the top three exporting states, contributing nearly 25% of India's total software exports. Sectors such as aerospace, machine tools, biotech, coffee, silk, and engineering goods continue to thrive in Karnataka.

Leveraging Karnataka’s Strengths

Balakrishna emphasised the need for India to position itself as a stable alternative in global supply chains using the China+1 strategy. He stressed leveraging Karnataka's strengths in IT-BT, aerospace, and precision manufacturing sectors. The state has become a hub for startups entering export markets innovatively.

Karnataka represents both tradition and modernity in global trade. Balakrishna noted that the state has emerged as a centre for startups exploring new export avenues. This dual representation strengthens its position in international commerce.

The roadmap unveiled by FKCCI aims to counteract the impact of US tariffs on Indian exports. By diversifying markets and aligning with international standards, Karnataka seeks to sustain its export growth amidst global challenges.

With inputs from PTI