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50% US Tariffs Impact: Govt Unveils Rs 25,000 Crore Export Support Mission, Assures Strong Backing for Exporters

Indian Masterminds Stories

New Delhi: In response to the recent imposition of a 50 percent tariff by the United States on Indian goods, the Government of India is actively working on a series of support measures to help exporters cushion the impact. These measures include a moratorium on export loans, rollout of export promotion missions, and liquidity support, a senior government official said on Thursday.

Exporters Seek Liquidity Support and Diversification of Export Basket

The official described the tariffs as a “wake-up call” and an opportunity to diversify India’s export basket. Exporters have approached the government seeking help to manage liquidity issues arising from tariff-related order cancellations and slowdowns.

Among the support measures under consideration are:

  • Emergency Credit Line Guarantee Scheme (ECLGS) for MSME exporters in tariff-hit sectors
  • Moratorium on export loans to ease operational pressures without asset downgrades
  • Extension of export realization periods to improve cash flow

The government is also expediting the launch of the export promotion mission and e-commerce export hub scheme to boost exports.

Read also: India Ramps Up Lobbying in Washington Following US Dual Charge for Ambassador in India – Details Inside

Significant Financial Support Planned Under Export Promotion Mission

The government plans to provide about Rs 25,000 crore in support to exporters over six financial years (2025-31) through two sub-schemes:

  • Niryat Protsahan (over Rs 10,000 crore)
  • Niryat Disha (over Rs 14,500 crore)

Impact of 50% US Tariffs on Labour-Intensive Sectors

The tariffs, which include a 25 percent additional duty and a 25 percent penalty linked to India’s purchase of Russian crude oil and military equipment, will primarily affect labour-intensive export sectors such as machinery, shrimp, textiles, leather and footwear, and gems and jewellery.

These duties are expected to reduce the competitiveness of Indian goods in the US market compared to countries like Vietnam, Bangladesh, and Thailand, which face lower tariffs.

Industry Seeks Government Intervention to Mitigate Liquidity Crunch

Exporters have requested:

  • Resumption of interest subsidies for five years
  • Export credit support to maintain working capital
  • Low-cost credit and easier loan access

Moratorium on principal and interest repayments for up to one year

The official acknowledged the concerns and emphasized that the government is working on “tangible measures with long-term benefits.”

Commerce Ministry Engages Exporters to Explore New Markets

The commerce ministry is holding discussions with exporters to promote export diversification and explore new markets to reduce dependence on the US.

India’s exports to the US rose by 21.64 percent in the first four months of the current fiscal, reaching USD 33.53 billion. The US accounted for about 20 percent of India’s total USD 437.42 billion worth of goods exports in 2024-25, making it India’s largest trading partner in recent years.

Read also: President Trump Announces 25% Tariff on Indian Imports, Penalty Over Russian Oil and Defence Deals

Finance Minister Assures Exporters of Government Support

The Federation of Indian Export Organisations (FIEO) delegation met Finance Minister Nirmala Sitharaman, who assured exporters that the government stands firmly behind them. The minister emphasized the government’s commitment to safeguarding exporters’ interests and exploring every possible avenue to address their challenges amid the high tariffs.


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