Government Prioritizes Support for Affected Sectors

The Indian government is considering targeted support for sectors like textiles and chemicals, which are expected to be severely impacted by the new 50% US tariffs. This initiative is part of an export promotion mission aimed at aiding MSMEs and exploring new markets.

Export Promotion Mission Details

The Rs 2,250 crore export promotion mission, announced in the Union Budget, includes easy credit schemes for MSMEs, facilitation of warehousing overseas, e-commerce promotion, and global branding initiatives to help Indian exporters access new markets.

Impact of US Tariffs

US President Donald Trump's executive order imposes an additional 25% tariff on Indian goods, effectively doubling the total duty to 50% from August 27. This move is in response to India's continued purchases of discounted Russian oil.

Exporters' Demands

Exporters have urged the commerce ministry for fiscal incentives, including interest subvention and an extension of schemes like RoDTEP and RoSCTL. They also seek timely release of dues, simplified advance authorisation norms, and lower port charges.

Looking Ahead

With the world trade disrupted, exporters are exploring alternative markets and the possibility of export diversification. The new tariffs may also encourage Indian manufacturers to focus more on domestic demand, potentially improving the country's trade balance.