FKCCI charts 'Trump Effect' plan to shield exporters, urges diversification beyond US markets

Bengaluru, Sep 2 (PTI) The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) on Tuesday unveiled a roadmap to diversify export markets, calling it a response to the 'Trump Effect', the steep and 'unreasonable tariffs' imposed by US President Donald Trump.

During the FKCCI Export Excellence Awards in Bengaluru, federation president M G Balakrishna outlined steps to counter emerging challenges, a statement issued by the FKCCI said.

"The imposition of tariffs by the US poses a real threat to the competitiveness of our exporters. This is not just an issue for large companies but particularly for smaller exporters who work on thin margins," Balakrishna said.

According to him, the FKCCI has listed out what its members need to do to take on the 'tariffs challenge'. He also urged the Government of India "to step in with a stimulus package or relief measures to ensure that the momentum of exports is not derailed".

Balakrishna noted that Karnataka aims to further boost its contribution to India’s exports. "Karnataka has been consistently ranked among the top three exporting states, accounting for nearly one-fourth of India’s total software exports, while sectors like aerospace, machine tools, biotech, coffee, silk and engineering goods continue to flourish," he said.

He explained that the state has also emerged as a hub for startups who are now entering export markets in innovative ways. The state represents both tradition and modernity in global trade.

Urging members to diversify export destinations, Balakrishna advised: "The export focus has to shift to high growth economies such as Vietnam, Indonesia, South Korea etc. The export community must align with European Union standards by obtaining CE certification, sustainability labels and quality benchmarks." "It is time to position India as a stable alternative for global supply chains by using China+1 strategy," he said, while stressing the need to leverage Karnataka’s capabilities in the IT-BT sector, aerospace, and precision manufacturing. PTI GMS GMS KH