US tariffs: FM Sitharaman holds inter-ministerial meet; explores measures to shield exporters
Finance Minister Nirmala Sitharaman on Thursday chaired an inter-ministerial meeting to explore possible support measures for exporters hit by steep US tariffs, PTI reported cited sources.The meeting was attended by senior officials from the ministries of finance, commerce, textiles, MSMEs, chemicals and fisheries.The discussions came in the wake of Trump administration’s decision to impose a 50% tariff on Indian goods entering the American market from August 27, with only a few exceptions.Exporters warned that labour-intensive industries, including shrimp, chemicals, textiles, leather and footwear, and gems and jewellery, could be hit hardest by the move. With their goods becoming more expensive in the US, they will lose competitiveness to rival exporters from Bangladesh, Vietnam and Thailand, which face lower duties.The finance minister sought feedback from officials and reviewed potential support measures that could be rolled out to shield exporters, sources told PTI.Earlier in the day, the Federation of Indian Export Organisations (FIEO) said that FM Sitharaman had assured them that the government stands firmly with them in this challenging time and is committed to addressing their concerns. Exporters also raised the difficulties they are facing following Washington’s tariff escalation.“The finance minister reassured the delegation that the government stands firmly behind Indian exporters in this hour. She 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 FIEO said, as cited by PTI.India’s exports to the US during the first four months of this fiscal year rose 21.64% to $33.53 billion, against $86.5 billion in 2024-25. About half of these shipments are outside the scope of the 50% tariffs.The US accounted for nearly 20% of India’s $437.42 billion worth of goods exports in 2024-25. America has been India’s largest trading partner since 2021-22, with bilateral trade in goods reaching $131.8 billion in 2024-25, comprising $86.5 billion exports and $45.3 billion imports.
