Finance Minister Nirmala Sitharaman announced that the government is formulating a comprehensive support package for Indian exporters grappling with a 50% US tariff, effective since August 27, 2025.

The tariffs, including a 25% punitive levy tied to India’s Russian oil imports, have hit labour-intensive sectors like textiles, gems and jewellery, shrimp, leather, footwear, chemicals, and machinery.

In an interview with PTI, Sitharaman emphasized that multiple ministries are engaging with stakeholders to assess the impact and design targeted measures to support affected exporters. “We are collecting inputs from industries to understand the extent of the impact,” Sitharaman said, noting that the government is committed to “hand-holding” exporters facing these unprecedented duties. The US, absorbing 20% of India’s $437.42 billion goods exports in 2024-25, remains India’s largest trading partner, with bilateral trade reaching $131.8 billion last fiscal year. The tariffs threaten the competitiveness of Indian goods against rivals like Vietnam and Bangladesh.

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Sitharaman also hailed the recent GST overhaul as a “people’s reform,” slashing rates on nearly 400 products, from soaps to cars, effective September 22. The new GST structure introduces a 5% slab for daily essentials, an 18% standard rate, and a 40% slab for luxury and sin goods, while exempting essentials like milk and bread. She pledged to monitor price reductions to ensure benefits reach consumers, noting that carmakers, insurers, and apparel brands have already announced cuts. This reform, the most significant since GST’s 2017 rollout, aims to boost consumption and support economic growth.

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