NEW DELHI : The Prime Minister’s Office (PMO) will hold a high-level meeting on August 26 to assess the impact of the United States’ decision to impose 50% tariffs on Indian goods, sources confirmed. The meeting, likely to be chaired by the Principal Secretary to the Prime Minister, will focus on protective measures for exporters grappling with rising cost pressures and shrinking competitiveness.
Indian Exporters Brace for Higher Tariffs
Starting Wednesday, Indian shipments to the US will face doubled import duties, up from the existing 25%. Exporters have already raised concerns that the earlier levy reduced margins significantly, with many firms struggling to maintain competitiveness in the global market.
Officials from the commerce and industry ministry have been consulting exporters and export promotion councils to better understand the immediate and long-term challenges. According to sources, discussions suggest that sector-specific support may deliver more effective relief compared to broad economic interventions.
Targeted Measures Under Review
Exporters had requested the rollout of an Emergency Credit Line Guarantee Scheme (ECLGS) with collateral-free working capital and government-backed risk cover. However, officials believe that tailor-made interventions for vulnerable sectors could yield stronger results.
An official close to the discussions said, “Micro and small enterprises have indicated that sector-specific credit lines, supported with collateral cover, help them sustain liquidity. Cluster-based working capital funds are also being actively considered.”
This approach reflects the government’s intention to shield export-oriented units and SMEs—industries most vulnerable to external shocks.
Export Sectors at Risk
Trade experts warn that the 50% tariff could severely impact textiles, leather, engineering goods, and specialty chemicals, all major Indian export categories to the US. These industries are already battling high input costs, weak demand in certain markets, and intense global competition.
Moreover, supply chain disruptions may worsen as exporters pass on higher costs to buyers, potentially reducing India’s market share in critical segments.
PMO Meeting to Finalise Strategy
Tuesday’s meeting is expected to determine the government’s official response and support package for affected industries. While exporters continue to push for broader credit relief, officials maintain that focused, industry-specific solutions may balance fiscal discipline with targeted relief.
The move comes amid growing fears of a wider trade conflict, as India considers raising its concerns with Washington through diplomatic and trade channels. Policy watchers believe the PMO’s response will be crucial in stabilising sentiment among exporters and ensuring India remains competitive in global trade.