Indian Government Plans Relief Package For Exporters Hit By Trump Tariffs

The Indian government is preparing a relief package to support exporters hit by the 50% tariffs imposed by the Trump administration on Indian goods, targeting sectors like textiles, jewelry, seafood, leather, and engineering products. This relief aims to ease working capital pressures, safeguard jobs, and maintain production continuity, with special focus on MSMEs that face severe economic challenges due to delayed payments and reduced demand. The package is expected to resemble the stimulus provided during the COVID-19 pandemic and will be supplemented by efforts under the Export Promotion Mission announced in the Union Budget 2025 to strengthen India's global trade presence. Meanwhile, American manufacturers are experiencing a sector-wide recession attributed largely to these tariffs, with industry surveys revealing significant negative impacts and widespread calls for tariff relief. The conflicting economic effects highlight the complex consequences of the tariffs on both Indian exporters and U.S. manufacturing industries.