U.S. Tariffs' Impact Being Addresses by Government Measures: Prasada
The Indian government is taking proactive steps to mitigate the impact of the US reciprocal 25% tariffs on Indian exports, worth approximately $48.2 billion, announced earlier this year.
In a written reply to the Lok Sabha on Tuesday, Union Minister of State for Commerce and Industry, Jitin Prasada, outlined the government's measures to help offset losses due to these tariffs.
Targeted Market Diversification
India is actively pushing exports, especially textiles, to key markets beyond the US. These include the UK, Japan, South Korea, Germany, France, Italy, Spain, the Netherlands, Poland, Canada, Mexico, Russia, Belgium, Turkey, UAE, Australia, and several countries in the Middle East and Africa. The aim is to reduce dependence on the US market and position India as a reliable supplier of quality, sustainable, and innovative products in these countries.
Export Promotion Mission and Financial Incentives
An expedited rollout of a ₹2,250 crore Export Promotion Mission, announced in the 2025-26 Union Budget, aims to provide sector-specific subsidies and easier credit, particularly for MSMEs affected by tariffs. This support will help boost competitiveness and market access.
Production-Linked Incentive (PLI) Scheme Expansion
The government is reopening and expanding the PLI scheme for textiles to provide enhanced support to manufacturers, helping them stabilize production and tap new markets despite the tariff impact.
Sectoral Focus and Support
Besides textiles, key affected sectors include gems and jewellery, shrimp (seafood), leather, footwear, chemicals, and machinery. The government is promoting diversification in these sectors by encouraging exports to new markets such as the European Union, Japan, Southeast Asia, and Africa, supported by strategic initiatives in seafood processing, infrastructure development, and technology adoption.
Strategic Supply Chain Realignment
India is accelerating nearshoring and supply chain diversification away from the US towards regions like Southeast Asia, the UK, and Europe. This includes fostering electronic goods, renewables, pharma, and AI-driven supply chains as new growth pillars, backed by semiconductor manufacturing and green energy incentives worth $10 billion.
Foreign Trade Policy (FTP) Reforms
Under the revamped FTP (2023), the government is enhancing ease of doing business, digitalization, and regulatory reforms to boost export competitiveness and attract long-term foreign investment, supporting the “Make in India 2.0” initiative.
The government is continuing to engage with exporters and industry for feedback on the situation. It remains committed to securing and advancing the country's national interest and protecting the welfare of various sectors including farmers, workers, entrepreneurs, exporters, MSMEs, and all sections of industry.
The tariffs were imposed on certain goods exported from India to the US, with effect from August 27, 2025. The government has also mentioned that it will continue to impose tariffs on certain goods exported from India beyond August 27, 2025.
This comprehensive approach for export promotion and diversification is aimed at compensating for losses due to US tariffs by expanding into alternative markets and strengthening domestic manufacturing capabilities. The focus is on sustainability, innovation, and targeted support across sectors with government missions, export councils, and Indian missions abroad leading outreach efforts.
[1] India Today [2] The Economic Times [3] The Hindu BusinessLine [4] Financial Express [5] Business Standard
