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Finance Minister Nirmala Sitharaman on Friday assured exporters that relief was on the way for those struggling after the Trump tariffs came into effect.
“Government will come out with something to handhold those who have been hit by 50% tariffs,” she told a news channel, adding that a package was being prepared for industries most affected.
'Won't Leave Exporters High And Dry': Nirmala Sitharaman
Stating that New Delhi will not leave its exporters “high and dry,” Sitharaman added, “Industries have been speaking about tariffs and their impact. The government has designed something, and we will come up with the same for companies hit by 50% tariffs.”
Speaking to CNBC TV18, she also made it clear that the proposal would require Cabinet approval before rollout.
The announcement follows last month’s decision by US President Donald Trump to impose additional duties on Indian goods, including a 25% punitive levy tied to Russian crude imports. With this, tariffs on products such as garments, jewellery, footwear and chemicals have risen to as much as 50%.
Officials said the Centre is already working on a wider export support strategy. According to one cited in a Hindustan Times report, “It is anticipated that exporters may face delayed payments, stretched receivable cycles, and cancelled orders due to the tariff shock."
“To prevent working capital stress and protect employment, the government is considering several steps to ease liquidity, prevent insolvencies, and allow exporters to sustain operations until new markets are tapped,” the official added. Covid-style liquidity relief is also being explored alongside longer-term plans for supply chain integration and market diversification.
The tariff escalation has also strained India-US trade ties. Industry estimates suggest nearly 55% of Indian exports to the US—worth about $48 billion—now face a cost disadvantage compared to suppliers from Vietnam, China and Bangladesh.
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