Indian exporters, reeling under the impact of steep U.S. tariffs, have urged the Reserve Bank of India (RBI) for relief measures including a moratorium on loan repayments and access to a more favorable exchange rate, according to people familiar with the matter.
The appeal was made during a closed-door meeting with top RBI officials after U.S. President Donald Trump last month imposed punitive tariffs of up to 50% on Indian exports. The move has hit a wide swathe of industries and is prompting the government to craft a rescue package to soften the blow.
Textiles, chemicals, gems and jewelry, and fisheries are among the worst affected sectors, with exporters warning of potential job losses as they struggle with shrinking order flows and the urgent need to diversify into alternative markets across Europe, Africa, and Asia.
The Federation of Indian Export Organisations (FIEO), in a written request reviewed by Reuters, sought a 12-month moratorium on principal and interest payments on loans. The industry body also pushed for a collateral-free credit guarantee scheme, similar to the one offered to small businesses during the COVID-19 pandemic, to ensure the continued flow of bank credit to exporters.
“This breathing space will allow exporters to recalibrate operations,” the FIEO note said, stressing that the relief would prevent defaults and safeguard the long-term financial health of export-driven businesses.
Exporters have additionally sought access to dollars at the rupee’s real effective exchange rate (REER) instead of the prevailing spot rate. The REER—an inflation-adjusted rate against a basket of trading currencies—is currently around 15% higher than the spot rupee/dollar exchange rate, which exporters argue would give them greater value for their overseas earnings.
While the RBI has yet to respond, banking industry insiders signaled resistance to some of the demands. “Banks are prepared to support exporters with lending, but are likely to push back on any moratorium plan,” said one banking source.
New Delhi is weighing a fiscal support package, though no concrete measures or tariff-reducing agreements with Washington have been announced so far.
