Winning Bizness Desk
Mumbai.The Indian government is preparing a special assistance package for exporters who are facing losses after the United States imposed higher tariffs. According to government sources quoted by NDTV, the announcement of certain schemes may happen soon. The support will mainly focus on sectors where a 50 percent tariff has been imposed, hurting both demand and production.
Key sectors under pressure
Textiles and gems and Jewellery are among the largest industries impacted by the 50 percent US tariff. Demand for these products in the American market has already reduced. Apart from these, leather and footwear, chemicals, engineering equipment, agricultural products and marine products are also under stress. Exporters in these segments are finding it difficult to maintain their share in the global market.
Likely features of the relief package
The planned relief package is expected to include specific measures to support vulnerable exporters. These may involve:
- Addressing the cash crunch faced by small exporters
- Reducing pressure on working capital requirements
- Providing job security in weak export sectors
- Ensuring uninterrupted production while exploring new markets
Model similar to Covid-19 support
Government sources suggest that the proposed model of assistance may follow the example of the Covid-19 stimulus that was given to Micro, Small and Medium Enterprises (MSMEs). Alongside, efforts are also being made to launch the Export Promotion Mission announced in the Union Budget. The mission is aimed at boosting India’s position in global trade and opening up new opportunities for Indian businesses.
Export data shows mixed trend
Despite tariff challenges, India’s exports to the United States rose by 21.64 percent in the first four months of the current financial year, reaching 33.53 billion dollars (about 2.96 lakh crore rupees). In the last financial year 2024-25, India exported goods worth 86.5 billion dollars (around 7.6 lakh crore rupees) to the US. Almost half of this trade was outside the scope of the 50 percent tariff.
America’s share in India’s overall exports
In 2024-25, India’s total exports of goods stood at 437.42 billion dollars (about 38.60 lakh crore rupees). The United States accounted for nearly 20 percent of this total. This makes America one of the most crucial markets for Indian exporters.
Impact of new tariff
The United States imposed the 50 percent tariff on Indian goods starting 27 August. According to a report by the Global Trade Research Initiative (GTRI), this move could affect Indian exports worth about 5.4 lakh crore rupees. The scale of the impact will depend on how quickly Indian exporters can find alternative markets and how effective the government’s relief package turns out to be.
Story in a nutshell
- Government preparing relief package for exporters hurt by US tariffs
- Package expected to focus on small exporters and cash flow support
- Textiles, gems and Jewellery, leather, chemicals, agriculture and marine sectors worst affected
- Measures may include job security, working capital relief, uninterrupted production support
- Package likely to be modelled on Covid-19 stimulus for MSMEs
- India’s exports to US rose 21.64 percent to 33.53 billion dollars in April–July 2025
- New tariff may impact Indian exports worth 5.4 lakh crore rupees
