Seeking Government Aid for Affected Workers

Amid rising concerns over potential job losses due to increased tariffs, Indian exporters are calling on the government to provide support for workers who may be adversely affected by the recent actions of US President Donald Trump.

Proposals for Worker Support

During a meeting with export promotion councils, businesses proposed seeking a comprehensive package from the government, similar to the Covid-19 relief measures, to cover social security benefits and other forms of assistance to alleviate the burden on employers.

Another suggestion was to utilize this period to upskill workers, with a proposed government support of Rs 15,000 per month to facilitate this initiative.

Challenges and Government Response

Exporters are exploring ways to navigate through the crisis with their clients, but there is a prevailing concern that orders from American buyers may cease if additional tariffs are imposed. While some have suggested the government cover part of the tariff burden, the feasibility of such measures remains uncertain.

The government, however, is cautious about immediate action, preferring to wait for the actual imposition of tariffs, considering the dynamic global developments, including diplomatic talks between Russia and the US regarding the Ukraine conflict.

Export Growth Amid Tariff Concerns

Despite the looming threat of higher tariffs, Indian exports to the US have seen a significant 21% growth during April-July, attributed to the frontloading of orders by exporters aiming to avoid the anticipated additional duties.