India Allocates Billions to Shield Exporters from U.S. Tariff Blow

India's cabinet has earmarked 450.6 billion rupees to support exporters amid rising U.S. tariffs. The package includes credit guarantees and trade finance aimed at small exporters affected by tariffs of up to 50%. The move seeks to bolster India's competitiveness and mitigate export declines in sectors like textiles and seafood.

India's government has sanctioned a massive financial package totaling 450.6 billion rupees to protect its exporters from the detrimental effects of heightened U.S. tariffs. Announced by Information Minister Ashwini Vaishnaw, the measures include significant credit guarantees to enhance trade finance options for small businesses.

These efforts aim to counteract the impacts of recent U.S. policies, which imposed a 25% punitive tariff related to Russian oil purchases, resulting in duties as high as 50% on certain goods. Sectors reliant on exports, such as textiles and jewelry, are experiencing substantial setbacks, leading to job losses in key manufacturing regions.

The government has implemented a 200-billion-rupee credit guarantee initiative to extend collateral-free bank loans up to March 2026. With a focus on exporting markets, the program intends to fortify the competitive edge of Indian exporters, especially as they face challenges from countries like Vietnam and Bangladesh.

(With inputs from agencies.)