The United States has announced an additional 25% tariff on India's purchase of cheaper oil from Russia, posing a threat to Indian exporters. The Indian government has prepared a six-year assistance plan of ₹25,000 crore, which includes collateral-free loans for small exporters and special assistance in high-risk markets.
US Tariffs: US President Donald Trump announced an additional 25% tariff on India's purchase of cheaper oil from Russia, which could pose a serious challenge to Indian exporters. In response, the Indian government has prepared a support plan of ₹25,000 crore, which will be implemented over six years. This plan includes facilitating collateral-free loans for small exporters, assistance in high-risk markets, and financial instruments like cross-border factoring to mitigate the impact of US tariffs.
What preparations has India made?
In view of these challenges, the Indian government has become active. The Ministry of Commerce and Industry has prepared a support plan of ₹25,000 crore, which will be implemented over the next six years. This proposal has been sent to the Finance Ministry and, after approval, will be placed before the Cabinet for its approval.
The objective of the new plan is to reduce the negative impact of US tariffs and ensure the strength of Indian exporters. Under the plan, small and medium exporters will be provided with collateral-free loan facilities. Along with this, special assistance will also be given to traders exporting to high-risk markets.
Alternative financial instruments will get a boost
The government is planning to promote alternative financial instruments like cross-border factoring in the new plan. The aim is to enable exporters to manage their cash flow more effectively and continue exporting even under the pressure of US tariffs. Exporters are welcoming this step, as it will ensure their economic security.
Impact on the economy
Experts say that if these tariffs continue, they could adversely affect India's exports and economic growth. Due to US tariffs, the Indian manufacturing and export sector may face a serious challenge. The Indian government's new plan is being considered an important step to mitigate this impact and assist exporters.
Operation of the plan
The government has prepared the outline of the plan and now, after getting approval from the Finance Ministry, it will be sent to the Cabinet for approval. Under the plan, exporters will get financial assistance as well as guidance for doing business in risky markets. The aim is to ensure that there is no major decline in India's exports due to US tariffs.
Impact on global trade
Experts say that this move by the US may also affect global trade and economic balance. It is necessary for a large economy like India to prepare for this. The government's new plan is considered the first concrete step in this direction.
India has completed its preparations under the pressure of US tariffs. This plan can prove helpful for exporters in ensuring financial security and continuity of business. With the government's activism and support, Indian exporters hope that they will be able to face this challenge and maintain their position in global trade.
