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India's average Customs tariff has reduced to 10.66% from 11.65%, aligning with ASEAN countries. This rationalisation aims to improve trade perceptions and support domestic manufacturing. The budget proposed to reduce the number of tariff rates and correct inverted duty structures, though agriculture items were excluded from this exercise.
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The government is planning to introduce alternate financing models, including export factoring services and trade credit insurance, to support MSME exporters. This initiative aims to provide collateral-free, pre-shipment loans and enhance credit access to revive India's declining goods exports.
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President Donald Trump has taken executive action to impose new tariffs, a move that fulfilled campaign promises but also sparked retaliatory moves that could signal an extended trade war with key trading partners.
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