India's Bold Move: Government Unveils Mega Support for Exporters Facing US Tariffs
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- September 09, 2025
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In a significant move to safeguard the interests of its burgeoning export sector, the Indian government, led by Finance Minister Nirmala Sitharaman, has announced its proactive efforts in developing a comprehensive support package for exporters grappling with the impact of US tariffs and other trade measures.
The assurance comes amidst a period of evolving global trade dynamics, with India's exporters facing headwinds from decisions like the US revocation of duty-free import benefits under the Generalized System of Preferences (GSP) for certain Indian products.
Addressing the concerns of the export community, Minister Sitharaman unequivocally stated that the government is "completely engaged" in meticulously crafting solutions to bolster their resilience.
While the immediate trigger for discussions often points to earlier US tariffs on steel and aluminum under Section 232, the broader context includes the ongoing Section 301 investigations and other trade policies that have put pressure on Indian businesses.
This strategic intervention is not merely a reactive measure but part of a larger vision to enhance the competitiveness of Indian exports on the global stage.
The proposed package aims to empower exporters to diversify their markets and product offerings, ensuring they can navigate complex international trade landscapes more effectively. The government's commitment underscores its dedication to supporting key pillars of the Indian economy, especially those contributing significantly to job creation and foreign exchange earnings.
Further emphasizing the collaborative approach, Minister of State for Commerce and Industry Anupriya Patel confirmed that extensive consultations with various stakeholders, including industry associations and export promotion councils, are underway.
This inclusive process ensures that the support measures are well-tailored to the specific needs and challenges faced by different sectors within the export industry.
Despite these global trade challenges, India's export performance has shown commendable growth. For the financial year 2023-24, goods exports increased by 3.4% to reach $437.06 billion, while services exports surged by 11.43% to $339.62 billion.
Combined, India's overall exports (goods and services) posted a robust growth of 4.9%, totaling $776.68 billion. The nation remains ambitious, targeting a staggering $1 trillion in goods exports by 2030.
Crucially, the Finance Minister highlighted that the forthcoming support package will be "carefully crafted" to ensure full compliance with World Trade Organization (WTO) norms.
This commitment reflects India's dedication to fair and rule-based global trade practices, ensuring that any assistance provided is both effective for exporters and aligned with international trade regulations, thereby avoiding potential disputes and fostering sustainable growth.
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