New Delhi, Sep 15 (NationPress) India’s merchandise trade deficit decreased to $26.49 billion in August, down from $27.35 billion in July, as reported by the Commerce Ministry on Monday.

Exports for August fell to $35.1 billion from $37.24 billion in July amidst the US tariff turmoil, which has cast doubts in global markets. Imports also saw a reduction, dropping to $61.59 billion from $64.59 billion in the preceding month.

"Despite the global uncertainties and changes in trade policies, Indian exporters have performed admirably. This reflects the effectiveness of government policies," stated Commerce Secretary Sunil Barthwal.

Meanwhile, Commerce and Industry Minister Piyush Goyal has reassured Indian exporters that the government is actively working to foster a supportive environment to assist them in overcoming the challenges posed by escalating trade tariffs.

The minister convened a meeting with Export Promotion Councils and Industry Associations to devise a strategic response to the evolving trade landscape earlier this month.

In a significant relief for exporters, the government has lengthened the export obligation period under "advance authorisation" for items governed by mandatory Quality Control Orders from 6 months to 18 months.

This directive, issued by the Directorate General of Foreign Trade (DGFT) at the request of the Department of Chemicals and Petrochemicals, mirrors a similar extension for Quality Control Orders (QCOs) from other ministries, such as Textiles, which also extended the duration to 18 months.

This initiative provides crucial support and flexibility to exporters in the chemicals and petrochemicals sector nationwide. The move is expected to simplify trade procedures and enhance the global competitiveness of Indian products, as noted in the official statement.

This action comes at a time when the administration under Donald Trump has raised tariffs on all imports entering the US, leading to economic uncertainty globally. India faces some of the highest tariffs at a punitive rate of 50 percent, primarily due to its purchases of Russian oil.

Through the Advance Authorisation Scheme, importers can obtain duty-free raw materials for export production without being bound by QCOs for those inputs, ensuring uninterrupted export operations. A substantial number of these authorisations are directed towards the chemical sector, highlighting the significance of this policy change.

The government remains dedicated to enhancing the chemicals and petrochemicals landscape via targeted strategies, recognizing its essential role in economic development. By 2024-25, the sector’s export contributions reached an impressive $46.4 billion, accounting for 10.6 percent of the total export value of the country, according to an official report.