Trump Tariffs: Exporters Urge RBI For Relief Measures To Cushion Blow

Exporters across key sectors met Reserve Bank of India Governor Sanjay Malhotra on Thursday, pressing for urgent relief from banks as higher US tariffs begin to bite, according to sources.

In a two-hour interaction, exporters flagged the need for interest subvention to reduce loan burden, one-time exemptions from disclosing US exposure to ratings agencies, and penalty waivers in cases where tariff impact leads to payment delays.

Moratoriums on existing loans, along with concessions in NPA classifications, were also part of the demand list. Exporters stressed this was about “urgent damage containment, not subsidies", the sources said.

The Federation of Indian Export Organisations, represented by Vice President and Mumbai-based woollens exporter Ravikant Kapur, proposed a 2.5% carve-out for MSME exporters under the 40% priority sector lending norm, they added.

Some industry representatives also pitched for sharing part of the tariff burden with government support, warning that without immediate measures, production cuts and job losses could accelerate.

India’s merchandise exports worth about $48 billion to the US are now facing duties of up to 50%, severely eroding competitiveness in labour-intensive sectors like textiles, seafood, gems and jewellery, handicrafts, and leather.

While the RBI heard all concerns, it has not committed to any relief yet. Eyes are also on the Export Promotion Mission, which is expected to be a Rs 2,250-crore package, aimed at enhancing market access for exporters and supporting them via diversification rather than subsidies.

The package was announced in the Budget this year but hasn't been implemented yet, with the ball being in between the Finance Ministry's Expenditure Panel and Cabinet for approval.