With the rationalisation of Goods and Services Tax (GST) now complete, the Centre is reportedly shifting its focus to exporters grappling with the impact of steep US tariffs.
Citing Official sources, NDTV reported on Friday that a relief package is in the works, aimed at cushioning sectors most affected by the 50 per cent levy announced by President Donald Trump.
Targeted Support for Key Sectors
The upcoming package is likely to provide a series of targeted schemes to assist exporters under pressure. Industries such as textiles, apparel, and gems and jewellery are among the hardest hit, with rising costs threatening competitiveness in global markets. Other sectors facing difficulties include leather and footwear, chemicals, engineering goods, agriculture, and marine products.
According to the report, the relief measures will seek to address liquidity shortages among smaller exporters, reduce stress on working capital, safeguard jobs across vulnerable industries, and maintain production continuity while new markets are explored. The approach is expected to mirror the stimulus framework adopted during the COVID-19 pandemic to support micro, small and medium enterprises (MSMEs).
Boosting India’s Global Trade Footprint
In parallel, the government is moving to operationalise the Export Promotion Mission announced in the Union Budget, designed to enhance India’s presence in international trade. This dual strategy—immediate relief paired with long-term trade expansion—underscores the government’s intent to safeguard employment while bolstering resilience against external shocks.
India’s exports to the US rose 21.64 per cent in the first four months of the current fiscal year, reaching $33.53 billion. For 2024-25, the total stood at $86.5 billion, with around half of these shipments falling outside the scope of the 50 per cent tariff.
India Pushes Back Against Tariffs
The US accounts for nearly 20 per cent of India’s overall exports, valued at $437.42 billion in 2024-25. The imposition of a 50 per cent tariff—of which 25 per cent was levied as a penalty for India’s continued purchases of Russian oil—has raised concerns across industries. New Delhi has responded by terming the tariffs “unfair, unjustified and unreasonable,” signalling that diplomatic engagement will remain active alongside domestic relief efforts.
With the Modi-led government working on swift intervention, exporters across multiple sectors are watching closely for the announcement of the relief package, which could determine the pace of recovery and competitiveness in the months ahead.
