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1h ago

India Details Multi-Tier Plan to Shield Exporters From New U.S. Tariffs

Officials say a phased rescue plan aims to keep orders flowing to protect jobs after tariffs hit key sectors.

The government of India is planning for Covid-style liquidity relief measures along with medium and long-term strategies for market diversification and global supply chain integration.
High ankle boots for women for export are kept for packing at a leather footwear manufacturing unit in Agra,
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Overview

  • The Commerce Ministry is preparing short-, medium- and long-term measures, including immediate liquidity relief, SEZ policy flexibility and steps to avert insolvencies for vulnerable exporters.
  • Authorities are rolling out e-commerce export hubs with easier returns and faster GST refunds, alongside an inventory model that lets third-party facilitators handle compliance and logistics for MSMEs; pilots include DHL, Go Glocal and Lexship.
  • The medium-term track focuses on leveraging FTAs and intensified buyer outreach with sector-specific delegations to markets such as Australia, the UAE and the UK, while GST reforms are under consideration to improve competitiveness.
  • Longer-range efforts target export diversification and supply-chain resilience, using HS-code mapping to scale sales in the EU, UK, UAE, Japan, Canada and Australia and to enter Latin America, Africa, Eastern Europe and East Asia.
  • Officials estimate up to $49 billion in shipments are exposed to the U.S. tariffs of up to 50%, with heavy reliance on the U.S. in carpets (60%), made-ups (50%), apparel (40%) and gems and jewellery (30%), risking payment delays and job losses.