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New Delhi: The Parliamentary Standing Committee on Commerce Wednesday recommended the government that Indo-US trade relations be reviewed and appropriate measures be undertaken as the tariff increase is likely to have a significant impact on finance, commerce, trade and industry, both in the domestic and export sectors.In its 195th Report on Demands for Grants 2026-27, it also said that the current exchange rate of one US dollar is more than ninety two rupees, which is also an additional pressure on trade and commerce at both national and international levels.Highlighting the recent tensions in the Middle-East, it suggested preventive measures to address the challenges on availability of crude oil and natural gas, particularly LPG, which has become a “pressing concern for the citizens of the country”.Observing that internationally, the prices of crude oil and natural gas have declined over the past few years but the prices of petrol, diesel, and cooking gas have been increasing gradually in the country, it saidthis situation is adversely affecting trade and commerce in both the domestic and export markets.In separate report, it told the Department for Promotion of Industry and Internal Trade (DPIIT) to consider incentivising domestic manufacturing of shipping-grade containers through a targeted Production Linked Incentive (PLI) scheme to address the persistent shortage of such containers, which are essential for efficient and secure international trade.It also suggested the DPIIT to fast track the revision of the Wholesale Price Index (WPI) base year to 2022-23 from 2011-12 tabled on Wednesday, the committee stressed completing the update of WPI "at the earliest" amid economic structural changes.Noting the widening trade deficit and the stagnation in merchandise exports during 2025–26, the panel recommended the commerce department to undertake targeted and time-bound measures to enhance export competitiveness and provide focused support to high-potential sectors ito correct the trade imbalance.It also proposed a “strategic diversification of India’s merchandise export basket with a clear shift towards high-value sectors and emphasise the need to revitalising labour-intensive industries through targeted policy support and effective utilization of existing schemes”.The committee suggested a comprehensive review of the factors contributing to contraction in exports ofpetroleum products and gems and jewellery exports and adopting a focussed approach to reverse the declining trend in both these sectors.“For petroleum products, engagement with key importing markets through bilateral and regional trade frameworks and stabilisation of refinery-linked export incentives along with improve supply chain efficiencies is recommended for export stability,” it said.The Parliament committee emphasised “strengthening of domestic manufacturing capabilities to reduce dependence on imports particularly in crude petroleum, gold and electronic components and alsofocus on capacity building measures and strengthening supply chain”.“Value addition initiative should be at priority to enhance competitiveness and improve overall trade balance with focus on real ‘Make in India’ and ‘Aatmanirbhar Bharat’,” it said.The commerce department should have all the data relating to trade in Indian Rupee, according to the Standing Committee.It proposed the creation of an inter- ministerial monitoring mechanism to ensure coordinated policy action and to address emerging bottlenecks in a timely manner for the “sustainable internationalisation of the Indian Rupee”.In the Foreign Trade Policy, the emphasis should be on strengthening provision relating to electronic commerce, digital services, and green technology exports in order to enhance India’s competitiveness in emerging sectors.It also expresses concern over the decline in the number of functional Export Oriented Units (EOU) which have fallen to 1,327 in September 2025, from 1,530 in September 2024, reflecting a reduction of over 13% within a year.The committee recommended the commerce department to undertake an “urgent review” of the reasons for under-utilisation of allocated funds and institute expenditure monitoring framework with clear accountability and traceability mechanisms at the level of each scheme and head of expenditure.Flagging concerns on the low utilisation of funds under the PLI scheme for white goods, the committee recommended DPIIT to review the implementation framework to identify procedural bottlenecks and facilitate timely verification and disbursement of eligible claims.“Since 60 beneficiaries are expected to file incentive claims in FY27, the committee further recommends that the Department strengthen the claim-processing system to ensure smooth and timely disbursement, thereby avoiding sudden fluctuations in allocations,” it said.It advocated that the commerce and industry ministry along with NITI Aayog expedite the National Manufacturing Mission, announced in the Budget 2025-26 to avoid unnecessary parking of funds.Noting that more than 1.03 lakh entities have been recognised as startups in the last three years, generating over 12 lakh direct jobs, it said that they should be given suitable incentives for creatingadditional job opportunities and to create skill development centres.