Facing challenges from US tariffs, India's government is taking action. This three-pronged plan includes immediate support, FTA utilization, and supply
chain improvements for long-term export growth.
Immediate Liquidity Boost
The Indian government is providing immediate financial support to help industries overcome challenges. This immediate relief aims to provide a cushion, enabling businesses to navigate the initial impact of US tariffs. This step focuses on ensuring financial stability during these critical times, keeping businesses afloat.
FTA Leverage Strategy
In the medium term, the government is focusing on leveraging Free Trade Agreements (FTAs). By utilizing existing FTAs, India seeks to diversify trade partners. This proactive approach aims to provide alternative market access, reducing dependence on specific regions and promoting balanced economic relations across the world.
Supply Chain Resilience
The long-term plan concentrates on building resilient supply chains. Initiatives will be undertaken to enhance supply chain efficiency and reduce vulnerabilities. This comprehensive strategy aims to create a robust infrastructure, which will secure India’s position in global trade over time.
