India has announced a $5 billion strategy to boost export competitiveness amid rising concerns over US tariff impact. The move comes after Washington imposed 50 percent duties on Indian goods in response to New Delhi’s ongoing purchases of Russian oil.
Prime Minister Narendra Modi said the government approved an “Export Promotion Mission (EPM)” to enhance export competitiveness. The nearly $3 billion initiative, running until 2030–31, will consolidate older export schemes into a single framework. It aims to help small and medium manufacturers access affordable trade finance and meet international quality standards.
“The mission prioritizes sectors affected by recent global tariff escalations,” the Ministry of Commerce said in a statement. It added that the program seeks to tackle structural challenges limiting Indian exports.
In addition, Minister of Information Ashwini Vaishnaw announced a $2.3 billion “credit guarantee scheme for exporters” to mitigate the US tariff impact and other global trade pressures. The scheme will support labor-intensive sectors such as textiles, leather, gems and jewelry, engineering, and marine products.
India’s economy, the world’s fifth-largest, grew at its fastest pace in five quarters in the three months ending June 30, driven by higher government spending and stronger consumer demand. However, economists warn that US tariff impact could reduce GDP growth by 60 to 80 basis points this fiscal year if the duties are not eased.
Negotiations between India and the United States continue, despite disagreements over agricultural trade and accusations from US officials that India’s Russian oil imports indirectly support the war in Ukraine.
The government emphasized that the Export Promotion Mission and credit guarantee scheme are designed to strengthen India’s export resilience, ensure stable revenue streams for domestic manufacturers, and reduce vulnerability to international trade shocks.
India’s proactive approach highlights its determination to maintain trade growth and shield businesses from the adverse effects of foreign tariffs, positioning exporters for long-term competitiveness in the global market.
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