The BRICS TimesFinance Minister Nirmala Sitharaman assured that a relief package will soon be announced to assist sectors impacted by the 50% tariffs imposed by the United States from August 27.
Finance Minister Nirmala Sitharaman on Friday confirmed that the government is preparing a set of relief measures aimed at helping Indian exporters who are struggling under the weight of the steep import duties recently enforced by the United States.
The announcement follows the decision by US President Donald Trump last month to impose fresh punitive tariffs on Indian goods, including a 25% duty tied to India’s imports of Russian crude. As a result, several product categories such as jewellery, apparel, footwear, and chemicals have seen tariff rates soar up to 50%, significantly hurting Indian exporters’ competitiveness in the American market.
Sitharaman emphasised that the government is working to shield industries most affected by the new trade barriers. “Government will come out with something to handhold those who have been hit by 50% tariffs,” she told CNBC TV18, while refraining from giving specific details.
Underscoring that exporters cannot be left without support, the finance minister 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,” according to the report. However, she clarified that any such initiative will still require Cabinet approval before being rolled out.
A recent Hindustan Times article, citing two senior officials, revealed that the Centre is in the final stages of preparing a detailed export support programme designed to tackle the liquidity crisis triggered by the tariff hike. One of the officials noted, “It is anticipated that exporters may face delayed payments, stretched receivable cycles, and cancelled orders due to the tariff shock.”
The official further explained, “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 report added that the administration is examining Covid-era liquidity schemes as a possible model, while also formulating medium- and long-term strategies focused on market diversification and strengthening global supply chains.
Trade tensions between New Delhi and Washington have escalated sharply in recent weeks, with the latest US tariffs—considered some of the most severe under Trump’s leadership—putting a noticeable strain on bilateral relations once seen as strategically aligned. Industry data quoted by Reuters indicates that about 55% of India’s exports to the US, valued at nearly $48 billion, are now at a competitive disadvantage compared to suppliers from countries like Vietnam, China, and Bangladesh.
Akshay Didwaniya
Mayur Mohta
Pratik Agrawal
