The government is actively engaging with exporters, export promotion councils, industry associations and state governments to address the evolving impact of higher US tariffs on Indian exports, Minister of State for Commerce and Industry Jitin Prasada told the Lok Sabha on Tuesday.
Replying to a question by Congress leader Rahul Gandhi on the impact of US tariffs on labour-intensive sectors, Prasada said the Centre is pursuing a comprehensive, multi-pronged strategy to mitigate the fallout. This includes intensive engagement with the US administration for a mutually beneficial India–US bilateral trade agreement, immediate trade relief measures by the Reserve Bank of India, credit guarantee schemes for exporters, and efforts to boost domestic demand through next-generation GST reforms.
The minister said relief is also being extended through export promotion initiatives such as the newly launched Export Promotion Mission (EPM), which aims to provide targeted support to affected exporters. In parallel, the government is working to conclude free trade agreements with new partners and improve utilisation of existing FTAs.
Prasada noted that an Inter-Ministerial Committee was constituted earlier this year to closely monitor import and export trends and recommend corrective measures where required. The committee includes representatives from the Department of Commerce, Department of Revenue, Department for Promotion of Industry and Internal Trade, the Directorate General of Foreign Trade, and the Directorate General of Commercial Intelligence and Statistics.
The US imposed additional tariffs of up to 50 per cent on Indian goods in August, including a 25 per cent penalty linked to India’s purchase of Russian oil. While Indian exports to the US recovered in November after declining in September and October, labour-intensive sectors such as textiles and marine products continue to face pressure.
India remains hopeful of finalising the first tranche of a bilateral trade deal with the US, which could lead to a significant rollback of the elevated tariffs. Under the Export Promotion Mission, priority support will be extended to sectors hit by global tariff escalations, including textiles, leather, gems and jewellery, engineering goods and marine products.
“These interventions are aimed at sustaining export orders, protecting jobs and supporting diversification into new markets,” Prasada said, adding that the government remains in continuous dialogue with all stakeholders to resolve concerns arising from the US tariff measures.