US Tariffs Bite, Exporters Absorb Pain As India Pins Hope On Trade Deal
The Commerce Secretary noted that exporters continue to have a fair expectation that India and the US will be able to reach a trade deal, which would ease tariff pressures.
Indian exporters are facing sustained pressure from US tariffs that have made their products nearly 30% more expensive than those from competing countries, Commerce Secretary Rajesh Agrawal said on Tuesday, acknowledging the strain on labour-intensive sectors even as exporters work to retain long-standing buyer relationships.
Responding to NDTV Profit at the monthly trade data briefing, Agrawal said exporters have so far shown resilience by absorbing losses to hold on to US customers, despite a clear erosion in price competitiveness. "They are doing well to maintain ties with buyers in the US, even under difficult conditions," he said.
The Commerce Secretary noted that exporters continue to have a fair expectation that India and the US will be able to reach a trade deal, which would ease tariff pressures. Until then, the government is working to manage the stress through targeted support measures rather than short-term fixes.
Agrawal said the government is addressing liquidity concerns through a moratorium and enhanced export credit under the Finance Ministry's package. In parallel, exporters will receive further support through the Export Promotion Mission (EPM), which aims to improve market access and competitiveness.
"These steps will help lessen the pain, though they will not completely remove it," he cautioned, underlining that tariff-related challenges remain structural as long as higher duties persist.
Despite the headwinds, Agrawal stressed that engagement with the US remains positive, with India continuing dialogue to find a mutually acceptable solution. For now, exporters are holding the line, betting that diplomatic momentum will eventually translate into tariff relief.
