India has launched a $5 billion plan to boost its export competitiveness in response to U.S. tariffs. Washington has imposed 50 % duties on Indian goods, reportedly as retaliation for India’s continued purchase of Russian oil amid the Ukraine conflict. Prime Minister Narendra Modi announced the approval of an “Export Promotion Mission” (EPM) to improve export performance. The nearly $3 billion program, running until 2030‑31, will replace several existing schemes with a single framework that helps small manufacturers obtain affordable trade finance and meet global quality standards.
The Ministry of Commerce said priority support will go to sectors hit by recent global tariff hikes, aiming to address structural challenges that hinder Indian exports. In parallel, Minister of Information Ashwini Vaishnaw unveiled a $2.3 billion credit‑guarantee scheme for exporters, citing the need for such measures in a global environment where some countries’ policies cause hardship for others.
The initiatives target labor‑intensive goods such as textiles, leather, gems and jewellery, as well as engineering and marine products. India’s economy, the world’s fifth‑largest, recorded its fastest growth in five quarters ending 30 June, driven by higher government spending and improved consumer sentiment. Yet U.S. tariffs remain a major obstacle; experts warn they could shave 60‑80 basis points off India’s GDP growth this fiscal year if relief is not granted.
Despite ongoing trade negotiations, India and the United States remain at odds over agricultural trade and India’s purchases of Russian oil, which U.S. officials claim fuel the war in Ukraine. The $5 billion plan is a strategic move to mitigate the impact of U.S. tariffs and strengthen India’s export competitiveness. As the country navigates these challenges, the success of the Export Promotion Mission will be crucial for supporting Indian exporters and sustaining economic growth.
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