Centre planning support measures for exporters amid tariff shock: Official

The government is likely to include steps such as the rollout of an export promotion mission worth Rs 25,000 crore over six years, and a moratorium on export loans

The Union government is preparing a set of supportive measures to cushion the impact of the US’ 50 per cent tariff on Indian exports that came into effect earlier this week, an unnamed senior official told PTI on Thursday.

 

The response is expected to include the rollout of an export promotion mission and a moratorium on export-oriented loans. “The government is seized of issues being faced by exporters, and positive work is going on to help them,” the official said.

 

Sectors hit hard by US tariffs

Indian exporters have been hit with a 50 per cent tariff, half of which is a penalty on India’s purchases of Russian crude oil. The move has severely affected revenues for sectors where the US is a major market. Among the hardest-hit are gems and jewellery, textiles and apparel, shrimp and processed meats, and automobile and mobile phone components.

 

Exporters have raised concerns about liquidity. Proposals under consideration include an emergency credit line guarantee scheme for micro, small and medium enterprise (MSME) exporters in tariff-affected sectors, a moratorium on export loans to prevent asset downgrades, and an extension of the export realisation period to ease cash flow pressures, the report said.

 

Export promotion mission worth Rs 25,000 cr 

“The government is trying to speed up the rollout of the export promotion mission and expediting the e-commerce export hub scheme,” the official added. The mission envisages support worth about Rs 25,000 crore over six years from 2025 to 2031. It will be implemented through two sub-schemes — Niryat Protsahan, with an allocation of over Rs 10,000 crore, and Niryat Disha, with over Rs 14,500 crore.

 

‘Wake-up call’ for diversifying exports 

The official described the situation as both a challenge and an opportunity. “This is a wake-up call and opportunity to diversify the export basket,” the official said, pointing to diversification, new free trade agreements, and domestic market growth as possible buffers.

 

Finance minister assures support 

Earlier in the day, Finance Minister Nirmala Sitharaman assured a delegation of the Federation of Indian Export Organisations (FIEO) that the government stands firmly with them in this challenging time. She said the Centre remains committed to addressing their concerns and exploring every possible avenue to safeguard their interests.

  (With inputs from PTI.)