- The US has increased tariffs by 50% on goods from India, hitting exporters hard, especially small businesses in labour-heavy sectors.
- The government is planning four new schemes, including the Export Promotion Mission, to provide credit, cash flow, and other support to exporters.
- These schemes aim to save jobs, ease cash flow problems, and help exporters find new markets despite the tariff issues.
With the recent 50% US tariff hike, the Export Promotion Mission and Related Exporter Support Schemes have been started by the Indian government to back exporters. These schemes focus on credit, cash flow, and other support to help exporters, especially small businesses, keep their operations going despite rising global trade barriers. Keywords related to this topic include export support, US tariffs, MSME help, and export promotion.
The sharp tariff increase by the US government has caused big problems for Indian exporters. Since the US is the largest market for Indian goods, the 50% extra duty has raised costs and made many exporters less competitive. This sudden rise threatens the survival of small and medium businesses, especially those in labour-heavy sectors.
Main Sectors Hit by US Tariffs
Labour-heavy industries and small businesses are the most affected by these new tariffs. Sectors like textiles, gems and jewellery, apparel, leather and footwear, engineering goods, and agri-marine exports are facing the biggest impact. For example, 60% of carpets, 50% of finished or semi-finished textiles, 30% of gems and jewellery, and 40% of apparel exports go to the US, making these sectors very vulnerable.
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Government’s Support Plans for Exporters
To fight the negative effects of the US tariff hike, the government is preparing a package of four new schemes to provide credit, cash flow, and other support to exporters. These steps are meant to ease cash flow problems, save jobs, and help exporters find new markets.
Export Promotion Mission (EPM) and Its Role
The Export Promotion Mission (EPM) is a key scheme announced in the FY26 Budget and is waiting for final approval. It focuses on help with compliance, branding and packaging, logistics, and warehousing. The EPM aims to help exporters meet international standards and improve their global competitiveness.
Financial Support Schemes: Credit and Cash Flow Help
Financial support being considered includes interest discounts for trade finance, factoring facilities, and help with collateral. These schemes mainly target small businesses to help them get working capital without heavy collateral needs. The government plans to follow successful past schemes like the Emergency Credit Line Guarantee Scheme (ECLGS) used during the Covid period.
How These Schemes Will Save Jobs and Boost Competitiveness
By giving timely financial and other support, these schemes aim to stabilize export orders and help companies use idle capacity. This will help save jobs in labour-heavy sectors and keep India’s place in global trade despite the tariff problems. Exporters will also get chances to diversify and enter new markets, reducing their dependence on the US market.
| Scheme | Focus Area | Target Beneficiaries | Status |
|---|---|---|---|
| Export Promotion Mission (EPM) | Compliance, branding, logistics, warehousing | Exporters, especially MSMEs | Waiting for Cabinet approval |
| Interest Subvention Scheme | Trade finance support | MSMEs and exporters | Under consideration |
| Factoring Facilities | Cash flow support | Small exporters | Under consideration |
| Collateral Support | Loan security help | MSMEs | Under consideration |
These steps show the government’s commitment to protect smaller exporters and labour-heavy industries from sudden shocks, save jobs, and keep India competitive in global trade.
For more details and updates, exporters can visit the official Ministry of Commerce and Industry website: https://commerce.gov.in.