Commerce Ministry Plans Measures to Protect Exporters from US Tariffs

Fast Summary

• The US has imposed steep 50% tariffs on Indian goods, impacting approximately USD 49 billion worth of exports, which accounts for over 55% of India’s shipments too the US.
• Sectors like carpets (60%),made-ups (50%),gems adn jewelry (30%),and apparel exports (40%) are highly dependent on the US market.
• India’s Commerce Ministry is developing short-term,medium-term,and long-term plans to mitigate this impact,focusing on liquidity relief for exporters,SEZ policy flexibility norms,targeted import substitution strategies,and enhanced utilisation of free trade agreements (FTAs).
• Short-term measures aim to prevent insolvencies and ease liquidity stress while maintaining order levels in vulnerable sectors.
• Medium-term priorities include intensified buyer-seller outreach under FTAs with markets such as Australia (apparel), UAE (gems), UK (leather) and scaling GST reforms.
• Long-term strategies target building a resilient export base via export promotion missions, diversifying markets into regions like Latin America and Africa while strengthening supply chain capacity.
• Simplified logistics for e-commerce hubs through inventory models designed specifically for MSMEs are also being planned to aid compliance management.

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Indian Opinion Analysis
India’s proactive response to the substantial tariff imposition reflects an effort not only to protect immediate exporter interests but also position itself strongly in global trade dynamics over the long term. By addressing immediate liquidity issues through SEZ flexibility policies while promoting structural reforms aimed at bolstering supply chains under FTAs available with regions such-as eastern Europe alongside unexplored lines-Latin American economies-driven parts rationalization ensure possible cycles buffered push-backs multilayered orchestration suggesting resilience-driven stage allotted flexibilities productivity-chain-loop influencing seamless integration presented