India's Strategic Support Plan for Exporters Faces Global Tariff Challenges

India is considering interest subsidies and incentives to support exporters impacted by U.S. tariff hikes. Measures to assist the vulnerable sectors, along with potential interest rate cuts, are being discussed. Government officials and industry leaders are exploring ways to mitigate losses and diversify export markets.

India is exploring strategies to assist its exporters facing challenges from the recent U.S. tariff hikes. Measures under consideration include extending interest subsidies on bank loans and providing various incentives, according to two government sources familiar with the matter.

A meeting led by Commerce and Industry Minister Piyush Goyal, set for Wednesday, will delve into potential support strategies. It will involve discussions with nearly 30 export promotion councils, representing industries such as textiles, gems, jewellery, and engineering goods. The focus will be on identifying financially viable methods to bolster vulnerable sectors.

The Reserve Bank of India has already reduced interest rates, signaling further cuts, offering a potential reprieve for exporters. Additionally, plans are underway to provide government-backed insurance and marketing incentives aimed at targeting new markets in Latin America and Africa.

(With inputs from agencies.)