Last Updated:
Commerce Minister Piyush Goyal says India is taking steps to diversify its exports and boost domestic demand to support exporters hit by “unilateral action” taken by a country.
Union Minister Piyush Goyal. (File Photo: PTI)
The government is taking steps to diversify the country’s exports and boost domestic demand to support exporters hit by “unilateral action” taken by a country, said Commerce & Industry Minister Piyush Goyal on Friday, according to Reuters. The public comment comes after the US doubled tariffs on Indian goods to up to 50%.
The government is working on a set of support measures, including a proposed export promotion mission and moratorium on export loans, to help Indian exporters cope with the impact of steep US tariffs, according to a PTI report citing an official.
Exporters have sought help at the liquidity front, and these suggestions are under consideration, according to the report.
Measures that are under consideration include emergency credit line guarantee scheme for MSME exporters in tariff-hit sectors, moratorium on export loans to allow exporters operational space without asset downgrades, and extension of export realisation period to ease cash flow challenges caused by longer payment cycles, PTI has reported.
“The government is trying to speed up the rollout of the export promotion mission and expediting the e-commerce export hub scheme,” the official told PTI.
The government is considering support measures worth about Rs 25,000 crore for exporters under this mission, announced in the Budget, for six financial years (2025-2031). It is proposed to be implemented through two sub-schemes – Niryat Protsahan (over Rs 10,000 crore) and Niryat Disha (over Rs 14,500 crore).
These steps are important as imposition of 50 per cent tariffs (25 per cent additional duty and 25 per cent penalty on India for buying Russian crude oil and military equipment) on Indian goods from August 27 will hit shipments of labour-intensive sectors such as machinery, shrimp, textiles, leather and footwear, gems and jewellery.
India’s exports to the US during the first four months of this fiscal year have risen 21.64 per cent to $33.53 billion. It was $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 $437.42 billion worth of goods exports in 2024-25. America has been the largest trading partner of India from 2021-22. In 2024-25, the bilateral trade in goods stood at $131.8 billion ($86.5 billion exports and $45.3 billion imports).
The new US tariffs — comprising a 25 per cent additional duty and 25 per cent penalty for India’s imports of Russian crude oil and defence equipment — came into effect on August 27. They are expected to hit labour-intensive sectors such as machinery, shrimp, textiles, leather and footwear, gems and jewellery.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
Read More
