Government Plans Relief Package for Exporters

The Modi government is reportedly preparing a comprehensive relief package to support Indian exporters who are grappling with the severe impact of the Trump administration’s new 50% tariff on imports. Following recent GST reforms that provided relief to domestic consumers, the government is now turning its attention to protecting the country’s export sector from escalating trade pressures.

Government sources indicate that discussions are currently underway, with officials working to finalize schemes that could be announced soon. The relief measures aim to help exporters manage the unprecedented burden of the steep import duties imposed by the US administration, which threaten to make Indian products significantly less competitive in the American market.

Textile and Gems Sectors Bear the Brunt

The sectors facing the most severe challenges include textiles and apparel, along with gems and jewellery, which together represent a substantial portion of India’s total export earnings. These industries are particularly vulnerable to the tariff increases, as they rely heavily on price competitiveness in international markets.

Multiple Industries Under Pressure

Beyond the primary affected sectors, exporters across various industries are experiencing mounting pressure. Leather and footwear manufacturers, chemical producers, engineering product companies, and agricultural and marine exporters are all reporting concerns about their market position in the United States.

Industry leaders have expressed fears that the higher tariffs could result in reduced orders and weakened demand in the coming months. Companies are warning that without government intervention, India’s export competitiveness could suffer long-term damage, potentially affecting the country’s broader economic growth trajectory and employment in export-dependent sectors.