The central government is planning a relief package to help exporters, which will turn out to 50 % of US President Donald Trump’s tariffs on Indian goods, according to the Minister of Finance, Nirmal Sitharaman.
“The government will come up with something that would hold those who were hit by 50 % of tariffs. India cannot leave our exporters high and dry,” Sitharaman said in an interview with CNBC-TV18 5. September.
“The industry speaks of tariffs and their impact. The government has suggested something and we will come up with the same for companies affected by 50 % of tariffs,” she added.
Meanwhile, according to the India Today report Citing Sources, there are discussions about the formulation of schemes to support the affected industries, such as garments and textiles, gems and jewelry that holds the lion’s share of the Indian export cake. Other sectors that could gain relief include agricultural exports, chemicals, engineering products, shoes, exports of sea and leather industries.
What kind of package can the industry expect?
Sources reported that temporary programs could help solve the liquidity crisis, especially for MSME, who require capital in the middle of longer payment time axes from foreign buyers. AND
- According to officials, the package can be modeled on the lines of the relief of the center during the Covid-19 pandemy, where the MSME sector got a £20 Lakh Crore package for continuation of operation and maintaining jobs, the report said.
- Furthermore, the government is expected to promote its plan to support export support, announced in the Union 2025 budget, with the aim of expanding Indian exports to other main markets and reducing dependence on traditional business partners.
American tariff: What is an Indian strategy for reach?
India plans to face American tariffs through specialized field programs in 40 countries, including Australia, Belgium, Canada, France, Germany, Italy, Japan, Mexico, Poland, Russia, Spain, South Korea, Turkiy, Netherlands, the United Arab Emirates and the UK, said PTI last month.
According to an official, India already has export ties with more than 220 countries. However, 40 importing countries listed for Outreach have a real key to diversification. The official added that the Indian Export Support Council (EPCS) will be the “backbone” in the diversification strategy.
Trump’s tariffs Impact: Which industry to be hit?
Donald Trump’s tariffs for Indian imports to the US have doubled from April from 25 percent to 50 percent from August 27 after imposing a “punishment” for oil purchases from Russia in the middle of the invasion of Ukraine.
The home industries to feel warm include, textiles and clothing, gems and jewelry, shrimp, leather and shoes, animal products, chemicals and electric and mechanical machines.
The US was approximately 20 percent of exports of goods of $ 437.42 billion in FY25. It is the largest Indian business partner from FY22. In FY25, bilateral trade was $ 131.8 billion (exports of $ 86.5 billion and importing $ 45.3 billion).
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