The Indian government is likely to announce up to four schemes to help exporters affected by the 50% punitive tariffs imposed by the US. These measures, which may include credit-related support, are expected to be similar to the credit guarantee schemes announced during the Covid-19 pandemic for micro, small, and medium enterprises (MSMEs).
The schemes are designed to address the liquidity challenges faced by small exporters in labor-intensive sectors, ease pressure on their working capital, protect jobs, and enable them to continue operations until new markets can be found. Sectors most at risk from the tariffs include textiles and apparel, gems and jewelry, leather and footwear, chemicals, engineering goods, and agriculture and marine exports.
Prime Minister Narendra Modi noted that India’s GDP grew by 7.8% in the first quarter of FY26 despite global uncertainties. Meanwhile, Commerce and Industry Minister Piyush Goyal expressed hope that a bilateral trade agreement (BTA) with the US would be finalized by November of this year.