Finance Minister Nirmala Sitharaman on Monday said the government is preparing a support package for exporters hit by the 50 per cent US tariff. She explained that multiple ministries are in talks with industry bodies to assess losses and design targeted measures. “Something is being worked out to do some hand-holding for those exporters who have been affected,” Sitharaman told PTI.
The United States, India’s largest trading partner, imposed the tariffs in two stages last month, citing Russian crude imports and trade barriers. The steep duties have hit sectors like textiles, gems and jewellery, shrimp, leather, and footwear. Pharmaceuticals, energy, and electronics remain unaffected. With the US accounting for 20 per cent of India’s $437 billion exports, experts warn of serious risks to jobs and earnings. Chief Economic Adviser Anantha Nageswaran has warned that the tariffs could shave 0.5 per cent off GDP if not offset.
Alongside export relief, Sitharaman announced India’s biggest Goods and Services Tax reform since 2017. Effective September 22, essentials like bread, milk, and toiletries will attract a reduced 5 per cent GST, while most goods will face 18 per cent. Luxury and sin goods will move to a new 40 per cent slab.
The Finance Minister said the GST overhaul would ease household expenses and encourage consumption. Analysts believe that a mix of tariff relief for exporters and domestic tax reforms will help India withstand external shocks while boosting internal demand.
