Trump tariffs: PMO calls high-level meet on relief for Indian exporters
The meeting comes ahead of US tariff on Indian goods doubling to 50 per cent this Wednesday, August 27.
- Aug 25, 2025,
- Updated Aug 25, 2025 12:45 PM IST
The Prime Minister’s Office has convened a high-level meeting on August 26 to review relief measures for Indian exporters facing higher tariffs in the United States, people familiar with the matter said. The session is likely to be chaired by the Principal Secretary to the Prime Minister, they added.
Beginning this Wednesday, Indian goods entering the US market will face a 50 per cent tariff after Washington doubled duties, intensifying cost pressures on exporters. The commerce and industry ministry has been consulting exporters and export promotion councils to gauge the impact of the existing 25 per cent levy, which firms say has already squeezed margins and eroded competitiveness.
Policy options under discussion include targeted support for select industries rather than a broad, economy-wide loan guarantee. Exporters had sought an Emergency Credit Line Guarantee Scheme (ECLGS) offering collateral-free working capital with government-backed risk cover, but officials believe sector-specific interventions may be more effective.
“Micro firms have shared that sector-specific credit lines with collateral support are helpful,” an official told Business Today TV. Cluster-based working capital funds are also under active consideration to ease liquidity strains.
Officials said shielding export-oriented units and small and medium enterprises (SMEs) remains central to the government’s approach, given their vulnerability to external shocks. Tuesday’s meeting is expected to firm up the contours of India’s response as exporters brace for the hike.
The Prime Minister’s Office has convened a high-level meeting on August 26 to review relief measures for Indian exporters facing higher tariffs in the United States, people familiar with the matter said. The session is likely to be chaired by the Principal Secretary to the Prime Minister, they added.
Beginning this Wednesday, Indian goods entering the US market will face a 50 per cent tariff after Washington doubled duties, intensifying cost pressures on exporters. The commerce and industry ministry has been consulting exporters and export promotion councils to gauge the impact of the existing 25 per cent levy, which firms say has already squeezed margins and eroded competitiveness.
Policy options under discussion include targeted support for select industries rather than a broad, economy-wide loan guarantee. Exporters had sought an Emergency Credit Line Guarantee Scheme (ECLGS) offering collateral-free working capital with government-backed risk cover, but officials believe sector-specific interventions may be more effective.
“Micro firms have shared that sector-specific credit lines with collateral support are helpful,” an official told Business Today TV. Cluster-based working capital funds are also under active consideration to ease liquidity strains.
Officials said shielding export-oriented units and small and medium enterprises (SMEs) remains central to the government’s approach, given their vulnerability to external shocks. Tuesday’s meeting is expected to firm up the contours of India’s response as exporters brace for the hike.