Top-Level Meeting Called as US Tariffs Take Effect
The Prime Minister’s Office (PMO) will hold a high-level meeting on August 26 to finalize a support package for Indian exporters who are set to be hit by a steep increase in US tariffs. The crucial session comes as the new 50% duty on Indian goods entering the US market is scheduled to come into force on Wednesday.
Urgent Need to Support Exporters
The meeting, which is expected to be chaired by the Principal Secretary to the Prime Minister, will review the various policy options to cushion the blow of the higher tariffs. The US has doubled the existing duties on Indian goods, a move that is expected to severely squeeze the profit margins of exporters and reduce their competitiveness in a key market. The commerce ministry has already been in consultation with export promotion councils to assess the impact.
Targeted Relief Measures in Focus
Instead of broad, economy-wide relief, the government is considering more targeted, sector-specific interventions. While exporters had requested a general emergency credit line, officials believe that specific support for the most affected industries could be more effective. The focus is particularly on protecting small and medium enterprises (SMEs) and export-oriented units, which are most vulnerable to such external shocks.
The discussions are expected to finalise the details of India’s response, with options like cluster-based working capital funds and sector-specific credit lines under active consideration. The meeting underscores the urgency with which the government is treating the issue as it prepares to navigate the significant economic challenge posed by the new US trade barriers.
