India’s cabinet is set to consider a relief package for exporters hurt by steep US tariffs, people familiar with the matter said, as New Delhi navigates strained trade ties with Washington.
The Commerce Ministry has proposed measures such as collateral-free loans and subsidized interest rates to ease liquidity pressures. The package may be taken up at the cabinet meeting this week, with funding expected from the ₹2,250 crore ($255 million) earmarked in the February budget for export promotion.
The support is aimed at cushioning the blow from the 50% tariffs imposed by the US in August—among the highest in Asia—which have eroded India’s competitiveness against rivals like Vietnam and Bangladesh. Labor-intensive sectors such as textiles and jewelry are seen as most vulnerable.
Officials said New Delhi is also considering additional long-term support of up to ₹2.5 lakh crore over six years, along with assistance for exporters seeking new markets in Africa and Latin America through branding, packaging, warehousing, and compliance support.
Despite the tension, both nations have recently signaled willingness to resume trade talks, raising hopes of a possible thaw.
