New Delhi: Finance Minister Nirmala Sitharaman has assured a delegation from the Federation of Indian Export Organisations (FIEO) that the government stands firmly with Indian exporters and is committed to addressing their concerns amid steep new 50% tariffs imposed by the United States.

Government stands by exporters during challenging times

During a meeting with FIEO representatives, the Finance Minister emphasised that the government will explore every possible avenue to safeguard exporters’ interests. She highlighted the importance of protecting workers’ livelihoods and urged industry leaders to reassure employees about job continuity despite escalating global headwinds. She affirmed that the government will provide comprehensive support to sustain export growth and uphold India’s resilience in international trade.

Export sector under pressure

The US tariff increase—bringing duties up to 50%—poses a significant threat to India’s labour-intensive export sectors, including textiles, gems and jewellery, leather, footwear, shrimp, and handicrafts. This development could potentially undermine market access, competitiveness, and job creation across these critical segments.

Measures underway to cushion impact

An official source indicates that the government is actively working on support measures to protect exporters. Proposed initiatives include:

  • Launching an export promotion mission

  • Implementing a loan moratorium and emergency credit measures to ease liquidity strain

  • Extending export realisation periods and providing affordable credit through schemes such as Niryat Protsahan and Niryat Disha, with a total budget of around ₹25,000 crore for the 2025–31 period

  • Exploring direct income support options for MSME workers affected by the tariff shock
    These steps are aimed at enabling exporters to navigate the immediate hit while diversifying their markets for long-term resilience.

    • Conclusion

    By offering reassurance and initiating tangible support measures, the government is signalling its commitment to preserving India’s export competitiveness amid external pressures. The challenge now lies in efficiently executing these initiatives to mitigate losses and sustain export-led growth.