Years
Indian goods entering the US market will impose 50% tariffs, as Washington has doubled the current charges, increasing cost pressure on exporters. The Ministry of Commerce and Industry is consulting exporters and export promotion councils to understand the impact of existing 25% fee, about which companies say that the margin has already come down and competitiveness has decreased.
The Prime Minister’s Office will hold a high-level meeting on 26 August in which measures will be reviewed for Indian exporters facing the impact of increased tariffs in the US. This meeting will be chaired by the Principal Secretary to the Prime Minister. Indian goods entering the US market will impose 50% tariffs, as Washington has doubled the current charges, increasing cost pressure on exporters. The Ministry of Commerce and Industry is consulting exporters and export promotion councils to understand the impact of existing 25% fee, about which companies say that the margin has already come down and competitiveness has decreased.
Also read this: America confronted India, Modi’s Vance threatens Jai of Modi
Policy options under consideration include the wide, economies-wide measures targeted for specific industries rather than measures. Exporters requested an emergency loan guarantee scheme (ECLGS), which provides collateral-free working capital with government-backed risk cover, but officials believe that field-specific intervention may be more effective. An official said that micro-sub-signs have indicated that field-specific debt lines with collateral support could prove helpful. Cluster-based working capital funds are also being actively considered to reduce liquidity pressure.
Also read this: India wants it to become a period of peace, not war
Officials said the security of export-oriented units and small and medium enterprises (SMEs), given their sensitivity to external shocks, remains the center point of government strategy. The outline of India’s response to Tuesday’s meeting is expected to be finalized as exporters are preparing for tariff growth. This move of the government has come amid growing concerns that 50% of American tariffs can affect the margin of Indian exporters more, disrupt supply chains, and can affect competitiveness in major areas ranging from textile and leather to engineering goods and special chemicals.
Other news