By: Krishika Dinesh Rathod
The Prime Minister’s Office (PMO) has foregathered a high-level meeting on 26th August to review the impact of higher tariffs imposed by the United States on Indian export goods, according to people aware of the matter. The meeting was moderated by the Principal Secretary to the Prime Minister.
Starting from Wednesday, Indian products entering the US market will face a 50 per cent tariff, after Washington doubled the existing duties. The decision has raised concerns among Indian exporters, who say that the earlier 25 per cent levy had already tightened margins and made it difficult to remain competitive in one of India’s key markets.
In recent weeks, the commerce and industry ministry has been consulting with exporters and export promotion councils to calculate the extent of the damage. Industry representatives have conveyed that many firms are struggling to absorb the additional costs, with some warning of reduced shipments if support is not extended.
According to officials, the government is considering targeted relief measures rather than broad, economy-wide interventions. Sectors that have significant exposure to the US market, such as textiles, pharmaceuticals, and engineering goods, are likely to be closely examined.
Exporters have also suggested an expansion of the Emergency Credit Line Guarantee Scheme (ECLGS) to help them access collateral-free working capital backed by government guarantees. However, officials believe that sector-specific solutions may be more effective than extending the scheme universally.
The meeting at the PMO will aim to evaluate these proposals and identify measures that can cushion exporters from immediate pressures while maintaining long-term competitiveness. The final approach, as far as the officials are concerned, will balance industry demands with fiscal considerations.
The tariff hike comes at a time when global trade remains volatile, with exporters already navigating higher logistics costs and uncertain demand conditions. The outcome of the PMO’s review will be closely watched by industry stakeholders, who see timely policy support as critical to sustaining India’s export momentum in the face of new trade barriers.