With the completion of the rationalisation of Goods and Services Tax (GST), the Centre is now gearing up for support measures for exporters hit by US tariffs, official sources told NDTV on Friday.
A set of targeted schemes may soon be announced to support sectors adversely affected by the 50 per cent tariff imposed by President Donald Trump, sources said.
Key industries facing headwinds include textiles and apparel, as well as gems and jewellery, where exporters are struggling to stay competitive.
Beyond these, exporters in leather and footwear, chemicals, engineering goods, agriculture, and marine products are also encountering fresh challenges in global markets.
The proposed relief package is expected to focus on the following points:
- Addressing liquidity constraints faced by small exporters
- Easing pressure on working capital
- Ensuring job security across vulnerable export-linked sectors
- Facilitating uninterrupted production while new markets are explored
Sources indicate that the Prime Minister Narendra Modi-led government is working on a stimulus model akin to the one extended to MSMEs during the COVID-19 pandemic.
In parallel, efforts are underway to operationalise the Export Promotion Mission announced in the Union Budget, aimed at boosting India's global trade footprint.
India's exports to the US during the first four months of this fiscal year have reportedly risen 21.64 per cent to USD 33.53 billion. It was USD 86.5 billion in 2024-25. About half of this is out of the ambit of 50 per cent tariffs.
The US accounted for about 20 per cent of India's USD 437.42 billion worth of goods exports in 2024-25.
Donald Trump last month imposed a 50 per cent tariff on Indian goods, including 25 per cent as a penalty for buying Russian oil.
India has said the US tariffs were "unfair, unjustified and unreasonable".
