Targeted support for key sectors underway as India counters impact of Trump’s 50% tariff hike
With the rationalisation of the Goods and Services Tax (GST) now complete, the Indian government is shifting its focus to crafting a comprehensive relief package for exporters impacted by the recent US tariff hikes, sources told the leading news channel on Friday.
Background: US Tariffs on Indian Goods
In August, former US President Donald Trump imposed a 50% tariff on Indian exports, including a 25% penalty specifically targeting India’s continued purchase of Russian oil. The move has significantly affected various Indian export sectors, prompting urgent policy responses from New Delhi.
Key Sectors Affected by US Tariffs
Several high-performing export sectors are now facing steep competition and operational hurdles due to the sudden tariff hike:
- Textiles and Apparel
- Gems and Jewellery
- Leather and Footwear
- Chemicals
- Engineering Goods
- Agricultural and Marine Products
Proposed Relief Measures: What to Expect
According to government sources, the upcoming relief package will likely mirror the COVID-era MSME stimulus and may include the following initiatives:
- Liquidity support for small and medium exporters
- Easing of working capital constraints
- Job security measures in vulnerable export sectors
- Support for uninterrupted production while exploring alternative export markets
Export Promotion Mission in Focus
In parallel, the government is fast-tracking the Export Promotion Mission announced in the Union Budget, aiming to strengthen India’s global trade presence and offset the adverse effects of the US tariffs.
India-US Trade Snapshot (FY 2024-25)
- India’s exports to the US (Apr–Jul 2025): $33.53 billion (↑21.64%)
- Total US share in India’s exports: 20% of $437.42 billion
- Tariff Impact Range: Nearly half of Indian exports to the US remain unaffected by the new tariffs
India’s Stand on US Tariffs
India has officially denounced the US decision, calling the new tariffs “unfair, unjustified, and unreasonable.” The Centre remains committed to protecting domestic exporters and maintaining its global trade commitments despite the geopolitical tensions.
What’s Next?
With GST reforms now stabilised, all eyes are on the Prime Minister Narendra Modi-led government’s next move as exporters await a relief package that could define the trajectory of India’s international trade in the coming quarters.
Also Read : GST Rate Overhaul 2025: What’s Cheaper and What’s Costlier? [Full List]
