The Indian government is encouraging exporters to focus on building and promoting domestic brands in response to the United States imposing a steep 25 per cent uniform tariff on all Indian exports, effective from August 7.
This move, implemented under former US President Donald Trump’s policy approach, significantly raises costs for Indian goods in the American market, while competitors like Pakistan, Vietnam, and Bangladesh face lower tariffs ranging from 15–20 per cent.
Officials believe brand development is essential to help Indian exporters break free from subsidy dependence and improve resilience in global markets.
Export Promotion Councils have been urged to collaborate with the India Brand Equity Foundation to enhance branding efforts.
In addition, the government is considering relief measures, including a reduction in testing fees by the Export Inspection Council for small exporters.
This step aims to support sectors like marine products, which now face stiff competition from countries like Ecuador that enjoy lower US tariffs.
The commerce ministry is also exploring an employment-linked export support programme. It has asked sectors such as seafood to suggest schemes that could link export incentives with job creation.
Meanwhile, the textile industry, with over $4 billion in US exports, is expected to be hit hard, particularly in categories like t-shirts and home furnishings.
Officials estimate that nearly half of India’s exports to the US—worth over $85 billion—could be affected. The government is also evaluating proposals to restore interest subsidies for MSME exporters and allow access to fixed-price intermediate goods, such as wheat or rice, through the Food Corporation of India.
Despite the tariff pressure, exporters remain hopeful, noting that global buyers may not immediately shift their supply chains to alternate nations. However, the new duties could delay progress in finalizing an India-US trade agreement.