NEW DELHI: India has announced a $5 billion plan to strengthen its exports as it struggles to cope with heavy US tariffs. The United States recently imposed 50 percent duties on Indian goods in response to New Delhi’s continued import of Russian oil.
Prime Minister Narendra Modi said on Thursday that the government has approved an “Export Promotion Mission (EPM)” to boost the country’s export competitiveness. The nearly $3 billion program will run until 2030–31, replacing several older export schemes with a unified framework to help small manufacturers get easier trade financing and meet global quality standards.
According to a statement from the Commerce Ministry, the new mission will give priority support to industries most affected by rising global tariffs and will directly tackle the key structural challenges limiting Indian exports.
Information Minister Ashwini Vaishnaw also announced an additional $2.3 billion credit guarantee scheme for exporters. He said the support was crucial in today’s global climate, where the trade policies of some countries are creating difficulties for others.
The plan aims to boost exports of labor-intensive products such as textiles, leather goods, gems and jewellery, engineering, and marine items.
India’s economy, the world’s fifth largest, grew at its fastest rate in five quarters during April to June, helped by government spending and improved consumer confidence. However, experts warn that the ongoing US tariffs could slow growth by up to 0.8 percentage points this fiscal year if talks fail to bring relief.
Despite tensions over agricultural trade and US criticism of India’s oil imports from Russia, both countries continue to negotiate in hopes of reaching a deal.
