The Government of India is finalising a multi-Ministry export promotion scheme aimed at countering the impact of U.S. President Donald Trump’s tariff measures on Indian exports. According to senior officials, the initiative, which builds on the export-linked provisions in the last Union Budget, will provide targeted support to tariff-hit sectors such as textiles, chemicals, and micro, small, and medium enterprises (MSMEs).

Scheme highlights

The scheme is designed to be cross-sectoral and will involve coordination between the Ministry of Commerce and Industry, Finance, and Textiles, among others. Officials confirmed that the plan includes a mix of credit guarantees, speedy customs clearances, and new export incentives. These measures are expected to cushion exporters from the adverse effects of higher duties imposed by the U.S., while also expanding India’s competitiveness in other global markets.

Focus on key sectors

Sectors such as textiles and chemicals, which have been directly hit by the tariffs, will receive priority support. India is among the world’s leading textile and chemical exporters, and higher U.S. tariffs have threatened to erode the price advantage of domestic producers.

For MSME exporters, the government is proposing to expand the availability of low-interest credit guarantees and reduce bureaucratic delays through fast-track clearance mechanisms. This is expected to help smaller exporters sustain their global contracts without disruptions.

Budget-linked continuity

The export promotion plan is an extension of the scheme that was announced in the last Budget, but the government is now reworking its framework in response to the evolving trade environment. “A detailed notification will be issued soon,” a senior official said, adding that the scheme is being calibrated to reflect the Trump administration’s protectionist stance.

Strategic response to tariffs

The move signals India’s intent to strengthen its export ecosystem and safeguard domestic industries from external shocks. While the U.S. continues to be one of India’s top trading partners, the imposition of higher tariffs on sectors such as textiles, leather, chemicals, and machinery has placed pressure on exporters, especially in the MSME segment.

Analysts believe that India’s multi-pronged approach — combining financial support, regulatory reforms, and export-linked incentives — will not only mitigate the tariff shock but also make Indian exporters more resilient in the long run.

Industry reaction

Exporters’ associations have welcomed the news, saying that the move comes at a critical juncture when Indian firms are looking to maintain their foothold in global markets. They have also urged the government to fast-track notifications and ensure transparency in the disbursement of incentives.

Conclusion

India’s upcoming multi-Ministry export promotion scheme represents a proactive response to the changing dynamics of international trade. By offering credit guarantees, faster clearances, and targeted incentives, the scheme aims to soften the blow of U.S. tariffs while simultaneously positioning Indian exporters for sustained global growth.

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