Tariff Reaction
Govt committed to support exporters to sustain growth, Sitharaman tells FIEO
This story was originally published at 16:00 IST on 28 August 2025
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NEW DELHI – Finance Minister Nirmala Sitharaman Thursday "affirmed" to a delegation of exporters that the government will extend comprehensive support to exporters to sustain growth momentum and uphold India's resilience in international trade in the wake of challenges from the US tariffs. "She (Sitharaman) emphasised that the government is committed to addressing all concerns of the exporting community and will explore every possible avenue to safeguard their interests," the Federation of Indian Export Organisations said in a press release.
The meeting with exporters comes a day after the additional US tariffs of 25% on Indian goods took effect. As part of the support package for exporters amid rising trade-related uncertainties, the export body has urged the government to introduce interest subvention schemes and export credit support to sustain working capital and liquidity. It has also sought low-cost credit and easy access to credit, especially for micro, small, and medium enterprises.
The US imposed an additional 25% levy on Indian goods on Wednesday, bringing the total tariff on Indian goods to 50%. The US tariff will affect nearly 55% of exports to the US, worth almost $50 billion. In 2024-25 (Apr-Mar), India exported $86.51 billion worth of goods to the US and had a trade surplus of $40.82 billion. The higher tariffs will mean that Indian exports will face a pricing disadvantage of 30–35%, rendering them less competitive compared to competitors from China, Vietnam, Cambodia, the Philippines, and other Southeast and South Asian countries.
In the meeting, FIEO President S.C. Ralhan highlighted the immediate concerns of exporters, particularly the adverse impact of higher tariffs on market access, competitiveness, and employment generation. He emphasised the need for swift and calibrated policy measures to mitigate the strain on India's exporters, who have been key drivers of growth and job creation.
Sitharaman "reassured the delegation that the government stands firmly behind Indian exporters in this hour," the release said. Underscoring the importance of protecting livelihoods, she also called upon industry leaders to reassure employees of job continuity, even amid global headwinds. End
US$1 = INR 87.62
Reported by Priyasmita Dutta
Edited by Saji George Titus
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