With the rationalisation of the Goods and Services Tax (GST) completed, the Indian government is preparing a targeted relief package for exporters impacted by steep US tariffs. According to official sources, the Centre is working on a set of schemes designed to help sectors that have been hit hardest by the 50 per cent import duties imposed by President Donald Trump, which included a 25 per cent penalty linked to India’s Russian oil purchases.
Industries at the forefront of the crisis include textiles and apparel, gems and jewellery, leather and footwear, chemicals, engineering goods, agriculture, and marine products. Exporters in these sectors are facing liquidity challenges, reduced competitiveness, and difficulties in sustaining production amid higher global trade barriers. The government’s planned package is expected to prioritise easing working capital constraints, safeguarding jobs in export-linked industries, and facilitating uninterrupted operations while alternative markets are identified.
Sources suggest that the relief framework may resemble the stimulus extended to MSMEs during the COVID-19 pandemic, offering direct financial support and policy flexibility to keep vulnerable businesses afloat. At the same time, the government is advancing the Export Promotion Mission announced in the Union Budget, aimed at strengthening India’s position in global trade and diversifying market reach.
India’s exports to the United States grew by 21.64 per cent in the first four months of the current fiscal year, reaching USD 33.53 billion, compared to USD 86.5 billion in 2024–25. While nearly half of these exports fall outside the scope of the newly imposed tariffs, the impact on labour-intensive industries remains severe. The US accounted for roughly 20 per cent of India’s total goods exports of USD 437.42 billion in 2024–25, making the American market critical to India’s trade balance.
India has strongly opposed the tariffs, calling them unfair, unjustified and unreasonable. The Modi government’s relief package is expected to provide immediate support while long-term strategies are explored to reduce reliance on vulnerable sectors and ensure resilience against external trade shocks. For exporters struggling under the combined weight of global competition and punitive duties, the upcoming package could prove crucial in stabilising operations and preserving India’s export momentum.
