India is preparing a comprehensive policy response to counter the impact of the steep 50% tariff hike recently imposed by the U.S.—a move seen as particularly challenging for labour-intensive sectors such as gems and jewellery.
As reported by The Economic Times, the Union Cabinet is expected to review four new relief schemes designed to support exporters. These measures are likely to include financial assistance, export promotion incentives, and targeted support for MSMEs most affected by the tariff increase.
At the same time, Reuters notes that the Finance Ministry is working on credit guarantee programmes and fresh loan schemes, with 70–75% government backing. The initiative would allow exporters to access lower-interest loans with reduced collateral requirements, ensuring liquidity and continuity of operations despite the tariff shock.
Exporters, meanwhile, are actively seeking alternative markets and re-routing strategies to minimise losses, according to another Reuters report. The urgency reflects shrinking margins and uncertain global demand.
Banks in India are also stepping in, The Times of India reported, offering temporary interest rate concessions, extended repayment flexibility, and greater working capital support. Combined with the government’s planned measures, these steps aim to provide a vital financial buffer for exporters navigating the new U.S. trade barriers.