Government Announces Crucial Support for Exporters Facing US Tariffs
Union Commerce Minister Piyush Goyal has revealed that the Indian government will roll out significant support measures as early as next week to assist small businesses struggling with the impact of 50% US tariffs. The announcement came following the fourth meeting of the reconstituted Board of Trade in New Delhi on Tuesday.
The interest subvention and Market Access Initiative schemes will be activated to provide immediate relief to micro, small, and medium enterprises (MSMEs) facing order cancellations and cash-flow stress after US President Donald Trump imposed the highest-ever 50% tariff on India, including a 25% penalty for purchasing Russian crude.
Immediate Relief for Struggling Exporters
The government's intervention comes at a critical time for Indian exporters. Through the interest subvention scheme, the government will cover part of the interest on export credit, enabling MSMEs to access cheaper loans. Simultaneously, the Market Access Initiative will fund marketing, branding, and overseas promotion activities to help exporters reach new markets and reduce dependency on the US market.
Several industry bodies at the BoT meeting emphasized that restarting these support programs quickly is crucial for labor-intensive sectors including textiles, leather, handicrafts, and pharmaceuticals, where smaller firms have suffered the most severe impact from the US tariffs.
Pankaj Chadda, Chairman of the Engineering Export Promotion Council, welcomed the move, stating: "The rollout of both schemes will be very helpful for the MSME sector. We hope to get further clarity in the days to come. Clarity on eligibility, timelines, and disbursal mechanisms will be crucial for exporters, especially in the last quarter of the year."
Export Promotion Mission: Broader Strategic Framework
Minister Goyal detailed that the Export Promotion Mission will introduce targeted schemes specifically designed to support landlocked and smaller states. He stressed that the Centre and states must collaborate closely to expand India's export capacity and navigate the current global trade challenges.
Vinod Kumar, President of the India SME Forum, highlighted the severe pressure MSMEs are experiencing: "The quick rollout of interest subvention and MAI programmes will give much-needed breathing space, but exporters also need clarity on eligibility and timelines." He added that smaller firms require easier access to credit, faster documentation support, and reduced logistics costs to maintain competitiveness in international markets.
The government's comprehensive approach includes multiple measures approved by the Union cabinet on November 12, worth a combined ₹45,060 crore to strengthen India's export ecosystem and ease liquidity pressures.
Broader Export Ecosystem Strengthening
The cabinet cleared the launch of the Credit Guarantee Scheme for Exporters (CGSE) and the Export Promotion Mission (EPM), representing a significant policy boost for Indian exporters, particularly MSMEs. Under the credit guarantee scheme, the National Credit Guarantee Trustee Co. Ltd will provide 100% credit guarantee coverage to banks and financial institutions for extending additional collateral-free loans of up to ₹20,000 crore to eligible exporters.
The Export Promotion Mission, with a total outlay of ₹25,060 crore for FY26 to FY31, will consolidate fragmented export support schemes into a unified, outcome-driven framework. This initiative aims to make export promotion more inclusive, technology-enabled, and responsive to shifting global trade dynamics.
Commerce Secretary Rajesh Agarwal noted that MSME exporters have suggested exploring whether the Directorate General of Foreign Trade could provide legal, compliance, and documentation support to smaller firms, as regulatory requirements across international markets become increasingly complex.
Goyal emphasized that India's export strategy now heavily relies on maintaining the highest quality standards, stressing that the country's reputation as a reliable supplier depends on consistency. He urged states to share best practices, noting that stronger single-window systems, faster clearances, and improved ease-of-doing-business processes could benefit exporters nationwide.
India's total goods exports in FY25 stood at $433.56 billion, slightly higher than the $433.09 billion recorded in FY24, demonstrating the resilience of the export sector despite global headwinds.
