New Delhi: After completing the rationalisation of Goods and Services Tax (GST), the Narendra Modi-led government is now preparing to roll out a relief package for Indian exporters impacted by steep tariffs imposed by US President Donald Trump. According to official sources, the package is expected to provide targeted support to sectors struggling under the 50 per cent tariff barrier.

Textiles, apparel, and gems and jewellery are among the most affected industries, with exporters facing difficulties in maintaining global competitiveness. In addition, exporters in leather and footwear, chemicals, engineering products, agriculture, and marine sectors are encountering significant challenges due to these tariffs.

The proposed relief measures are likely to focus on easing liquidity constraints for small and medium exporters, reducing working capital pressure, securing jobs in export-linked industries, and ensuring uninterrupted production until alternative global markets are tapped.

Government officials indicated that the package could be structured on the lines of the COVID-19 MSME stimulus, which played a crucial role in sustaining businesses during the pandemic. Meanwhile, work is also underway to operationalise the Export Promotion Mission announced in the Union Budget, designed to strengthen India’s global trade presence.

India’s exports to the US in the first four months of the current fiscal year surged 21.64 per cent to USD 33.53 billion, compared to USD 86.5 billion in 2024-25. Nearly half of these exports remain outside the ambit of the 50 per cent tariffs. The US accounted for about 20 per cent of India’s USD 437.42 billion worth of total exports in 2024-25.

Last month, President Trump imposed a 50 per cent tariff on Indian goods, including a 25 per cent penalty linked to India’s purchase of Russian oil. India has strongly criticised the move, calling the tariffs “unfair, unjustified and unreasonable.”