India-Amazon Pact to Boost E-Commerce Exports Amid Rising US Tariff Pressures

The Federation of Indian Export Organisations (FIEO) is set to sign a Memorandum of Understanding (MoU) with Amazon in New Delhi today. The main objective of the agreement is to support Indian exporters in tapping global markets through cross-border e-commerce platforms.

MoU to Help Exporters Go Global

As part of the MoU, Amazon will assist Indian exporters with on-spot registrations and conduct sessions to guide them on tools, compliance, and operations for selling globally. The goal is to help businesses, especially small and medium enterprises (SMEs), expand their international presence by leveraging Amazon's global network.

The event will also include a stakeholder consultation on e-commerce exports, to be held in hybrid mode. Government departments and regulators such as DGFT, RBI, CBIC, Department of Posts, and others are expected to join the discussion to address key challenges in India's cross-border e-commerce ecosystem.

Tariff Pressures from the US

The MoU comes at a time when Indian exporters are facing pressure from increased US tariffs, especially in labour-intensive sectors like textiles, agriculture, seafood, leather, and footwear. These hikes are expected to impact products ready for export, leading exporters to seek temporary relief and policy support.

Exporters have urged the Indian government to request the US administration to exempt leather and footwear from the tariff list. They are also pushing for 5% duty credit scrips and interest support to help cope with rising costs.

Limited Impact on Total Trade

Despite the tariff hike, sources indicate that over 50% of Indian exports to the US will remain unaffected. Products such as pharmaceuticals, electronics, and energy-related items will continue to enjoy exemptions under Section 232 of the US Trade Expansion Act.

India’s total trade with the US stood at US$131.8 billion in FY 2024–25, with a trade surplus of US$41 billion. Exports worth US$40 billion could be affected by the new tariffs, which the government says is unlikely to impact the broader Indian economy significantly.

Read more: India's Economy to Grow 6.4-6.7% in FY26, but Faces Global Headwinds, Says Deloitte.

Conclusion

As global trade dynamics shift, India is taking active steps to support its exporters. While the full impact of US tariffs is still unfolding, the focus remains on building resilience, diversifying markets, and promoting e-commerce exports. For individuals planning to benefit from India's expanding export economy, it’s advisable to keep their demat account ready for future investment opportunities in trade-oriented businesses.

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