Finance Minister Nirmala Sitharaman says that the central government is looking at a package for exporters to help them tide over the impact of steeper tariffs imposed by the United States.
“We cannot leave our exporters high and dry saying the situation will change sooner, we will work with them,” Sitharaman said in in an interview to Network 18 Group Editor-In-Chief Rahul Joshi on September 5.
Sitharaman added that this package will help those industries that are hit by the 50 percent tariffs imposed by the US from August 27.
“There is a package which consists of very, many things that is coming to help them, I will wait for the Cabinet to clear it, but there is something coming to help them so they can face this tirade of tariffs. Suddenly looking for newer markets is a challenge, so we will have to help them,” she said.
Around $48.2 billion worth of India’s merchandise exports to the US are estimated to face tariffs of 50 percent, out of which an additional 25 percent duty kicked in from August 27, commerce ministry said in a written response to the Lok Sabha on August 19.
Key exports such as electronics, pharmaceuticals and petroleum products are currently exempt from steeper duties.
India exported goods worth $86.51 billion to the US in FY25.
Moneycontrol had reported earlier that any fresh incentive will potentially focus on labour-intensive exports and the requirement for the same depend on if and how quickly Washington and New Delhi secure a trade deal potentially lowering the tariffs rates.
To be sure, in the Budget for 2025-26, the finance ministry had allocated Rs 2,250 crore towards the Export Promotion Mission, with an aim to boost India's MSME sector. However, this scheme is yet to be rolled out.
India and the US are negotiating a bilateral trade agreement (BTA), aiming to conclude talks by fall of this year. However, negotiations have been in a deadlock over agriculture and dairy, sectors that New Delhi rarely opens up through deals with other nations.
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