Govt Mulls Incentives For Indian Exporters As US Doubles Import Tariffs: Sources
Some of these incentives were provisioned in the Union Budget for financial year 2025-26, the sources said.
The Centre is mulling over new incentives for Indian exporters amid the doubling of import tariffs by the United States, sources told NDTV Profit on Thursday.
Some of these incentives were provisioned in the Union Budget for financial year 2025-26, the persons privy to the development said.
The pressure on Indian exporters is mounting due to Trump's latest move to slap an additional 25% tariffs on the country, for its continued purchase of crude oil from Russia. This takes the cumulative tariffs to 50%, which is at par with Brazil and higher than most of the US trading partners.
The revised tariffs are to come into effect from Aug. 27.
The government is considering measures such as renewed interest subsidies and diversified incentives, the sources said, while noting that it is also pushing for the rollout of Export Promotion Mission within a month.
The Rs 2,250-crore Export Promotion Mission was announced in the Budget for FY26. The Centre may increase the allocation of the scheme, given the changing dynamics of global trade, the persons said.
The scheme may help ease credit access and compliance for exporters, they added.
Notably, the US was one of the largest exporting destinations for India in financial year 2024-25.
According to India's Directorate General of Commercial Intelligence and Statistics, exports to the US stood at $86.5 billion in FY25, marking a strong 11.6% year-on-year growth.
The momentum continued in the first quarter of this fiscal as India exported goods worth $20.8 billion to the US, reflecting a 22.2% growth in comparison to the same quarter last year.
Among the top export commodities that drove India's trade with the US in the first quarter were telecom instruments, drug formulations and biologicals, petroleum products and ready-made garments.
