The Indian government is preparing a relief package aimed at assisting exporters in coping with the significant 50% tariffs imposed by the United States, along with the additional 25% duty on Russian oil trade that commenced on August 27. The proposed measures include subsidized interest rates, collateral-free loans, credit guarantees, and a potential revival of the previous interest equalization scheme. Officials intend to safeguard labor-intensive sectors such as textiles, apparel, leather, and seafood, which are increasingly challenged by competition from countries like Vietnam, Bangladesh, Indonesia, and Cambodia. Although textile and apparel exports to the US increased by 12% in the first half of the year, India’s growth trail remains behind these competitors.
Additionally, exporters are requesting government assistance in attracting large domestic buyers, including public sector organizations like Indian Railways and private companies such as Reliance Retail and the Aditya Birla Group, to help mitigate the potential loss of overseas market share.