Archive · 4 Aug 2025
India Mulls Support for Exporters Hit by US Tariffs
The US is putting new taxes (tariffs) on goods from India, making them more expensive.
India is thinking about helping its businesses that sell things to the US, like clothes and steel, because they will be hurt by these new taxes.
The government is looking at different ways to help, such as giving companies money back for the taxes they pay.
Experts believe India might export 30% less to the US because of these tariffs.
India is also in talks with the US for a trade deal that could potentially lower these tariffs.
India is considering supporting sectors affected by US tariffs.
The US is implementing 25% reciprocal tariffs on Indian exports.
The Commerce Department is identifying affected products via HS codes.
Support may include enhanced RoDTEP and RoSCTL rates.
Exports to the US could decline by 30% due to the tariffs.
- Who
- Indian government, exporters, and US President Donald Trump.
- What
- India considering support for exporters facing US tariffs.
- When
- Tariffs to be implemented August 7, 2025, as of reporting.
- Where
- India and the United States.
- Why
- To mitigate the negative impact of US tariffs on Indian exports.
Exporters Impact
Not applicable
Impact on Exporters
Exporters Impact
Exporters will face negative impacts from the tariffs. Specifically, it is expected exports may decline by nearly 30% to $60.6 billion in FY26 from $86.5 billion in the previous fiscal.
Not applicable
Not Applicable, this is a report of the impacts on exporters and not a matter of debate.
- Tariff Implemented By
- US President Donald Trump
- Tariff Rate
- 25%
- Affected Sectors
- Textiles, chemicals, engineering products, leather, agriculture, steel, food processing, marine products, electronic goods
- Potential Export Decline
- 30%
- Estimated FY26 Exports to US
- $60.6 billion
- Existing Support Schemes
- RoDTEP, RoSCTL, and interest equalization scheme
