India’s cabinet is preparing to discuss a relief package for exporters affected by hefty US tariffs, as trade relations with Washington remain tense. The Commerce Ministry has proposed measures, including collateral-free loans and subsidized interest rates, to address liquidity challenges faced by exporters. This package is anticipated to be considered in an upcoming cabinet meeting, drawing from the ₹2,250 crore ($255 million) set aside in the February budget for export promotion.
The initiative seeks to mitigate the impact of the 50% tariffs imposed by the US in August, which are among the highest in Asia. These tariffs have diminished India’s competitiveness, particularly in labor-intensive sectors like textiles and jewelry, which are particularly at risk.
Officials also indicated that the Indian government is contemplating additional long-term support amounting to ₹2.5 lakh crore over six years. This would provide assistance to exporters looking to penetrate new markets in Africa and Latin America, offering support in areas such as branding and compliance.
Despite ongoing tensions, both India and the US have recently expressed a willingness to resume trade discussions, sparking optimism for improved relations.
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