Following the implementation of a 50% US tariff on Indian goods starting Wednesday, Finance Minister Nirmala Sitharaman assured exporters that the government stands with them during this challenging period. The tariff is expected to severely impact labor-intensive sectors such as shrimp, textiles, diamonds, leather, footwear, and gems and jewelry. The government will make every effort to address the concerns of exporters and ensure job security.
Trump tariff: During a meeting with a delegation of Indian exporters on Thursday, Finance Minister Nirmala Sitharaman stated that the government is fully with exporters in facing the problems arising from the US's 50% tariff. In the meeting led by FIEO President S.C. Ralhan, exporters voiced concerns about market access, competitiveness, and the impact of the tariff on employment. The Minister assured job security and comprehensive support for exporters.
Support for Growth and Exports
The Finance Minister met with a delegation from the Federation of Indian Export Organisations (FIEO) on Thursday. This delegation, led by FIEO President S.C. Ralhan, met with the Finance Minister. The delegation informed the Finance Minister about the challenges arising from the increase in US tariffs and sought government assistance.
During the meeting, exporters explained that the higher tariffs could weaken their market competitiveness. Additionally, it could adversely affect employment. Exporters desire the government to take swift and effective policy measures to alleviate the trade pressure.
Steps in the Interest of Exporters
The Finance Minister told the exporters that the government stands firmly with them during this difficult time. She stated that the government is making every possible effort to tackle the problems caused by the US tariff. The Minister also assured that the government is committed to addressing all concerns of the exporters.
The Minister also highlighted the importance of workers' livelihoods. She appealed to the industry to provide job stability to employees despite global challenges. She clarified that the government will provide comprehensive support to exporters to maintain the pace of growth and ensure India's stability in international trade.
Discussion on Affected Sectors
The delegation informed the Finance Minister that the imposition of higher tariffs by the US could severely impact exports from sectors like shrimp, textiles, diamonds, leather, footwear, and jewelry. These sectors are labor-intensive and play a crucial role in job creation. Exporters urged the government to take prompt measures to prevent their competitive position in the market from weakening.
S.C. Ralhan stated that exporters have been key drivers of the country's growth and job creation. Swift policy interventions are essential to reduce the pressure arising from the US tariff. He also emphasized the critical need for continuous policy support and market access for the export industry.
Finance Minister Reassures Exporters
The Finance Minister assured the delegation that the government stands fully behind Indian exporters during this period. She stated that the government is committed to addressing all concerns of the exporter community and will make every effort to protect their interests.
The Minister further clarified that the government will provide all possible support to exporters to maintain growth momentum, strengthen India's position in the global market, and ensure worker protection. Necessary financial and policy measures will be taken for this purpose.
Situation Post US Tariff Implementation
The 50 percent tariff imposed by the US on Indian products came into effect on Wednesday. This tariff is likely to impact exports, primarily in labor-intensive sectors. Consequently, traders may face challenges such as difficulties in market competition and increased production costs.
FIEO stated that the Finance Minister reassured the exporter community that the government stands with them during this challenging time. She mentioned that the government understands the concerns of exporters and will provide all possible assistance to protect their interests.
