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2w ago

India Drafts Multi-Tier Exporter Relief as US 50% Tariffs Take Hold and Markets Slip

Officials signal cushioning from domestic demand, GST reforms, diversification.

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Options traderMatthew Hefner works on the floor of the New York Stock Exchange, Monday, Aug. 18, 2025. (AP Photo/Richard Drew)
A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Monday, Sept. 1, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)
People walk in front of an electronic stock board showing Japan's Nikkei index at a securities firm Monday, Sept. 1, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)

Overview

  • The US raised duties on many Indian-origin goods to a combined 50% effective August 27, exposing roughly $48–49 billion of shipments concentrated in textiles, apparel, carpets, gems and jewellery, and seafood.
  • The Commerce Ministry and finance officials are preparing short-, medium- and long-term measures, including liquidity support, flexibility for SEZ units, e‑commerce export hubs with faster GST refunds, and an inventory model to ease MSME compliance and logistics.
  • Plans also target market diversification via FTAs and intensified buyer–seller outreach, with officials emphasizing non-financial support such as branding initiatives and lower logistics and compliance costs.
  • CEA V. Anantha Nageswaran expects tariff effects to be short-lived with talks under way, projects limited job losses, and points to a robust 7.8% Q1 GDP print as a buffer within a 6.3–6.8% full-year growth range.
  • Equities fell for the week as FIIs turned net sellers and mid- and small-caps lagged, while investors now eye the September 3–4 GST Council meeting, August auto sales and GST collections, and global data for near-term direction.