In response to the steep 50% US tariffs, the Indian commerce ministry is developing short, medium, and long-term action plans to help exporters. The short-term measures focus on providing flexibility for Special Economic Zone (SEZ) units and easing liquidity to prevent insolvencies. One proposal is to allow SEZ units to sell products to the Domestic Tariff Area (DTA) on a “duty foregone” basis. Another short-term plan is to introduce an inventory-based model for e-commerce exports, which would allow third-party facilitators to manage logistics and compliance for small and medium enterprises (MSMEs).
In the medium term, the ministry plans to leverage India’s existing Free Trade Agreements (FTAs) by raising awareness among MSMEs about the benefits of these pacts. The government also intends to intensify buyer-seller outreach, including sending exporter delegations to key markets to establish direct relationships with buyers. Long-term goals include building a resilient and globally competitive export base through SEZ reforms and supply chain diversification initiatives. The overall strategy is to not only protect Indian exporters but also to strengthen long-term competitiveness in global markets.