New Delhi– Facing mounting pressure from punitive US tariffs, Indian exporters are set to meet RBI Governor Sanjay Malhotra next week to request a series of relief measures, including easier loan repayment norms, waivers on penal interest, and credit reclassification, according to an NDTV Profit report.
The meeting, expected to take place on Thursday, comes in the wake of the 50% tariff—including a 25% base duty and an additional 25% punitive levy imposed by the United States, reportedly in response to India’s continued imports of Russian oil.
Exporters’ Demands
In the upcoming meeting, exporters are expected to press for the following key demands:
A 12-month moratorium on repayment of export credit.
Relaxation in NPA (Non-Performing Asset) classification for export loans up to 180 days.
Introduction of a sovereign guarantee scheme to help exporters diversify into new international markets.
Industry leaders argue that the sudden tariff hike has rendered Indian goods less competitive in global markets, especially when compared to countries such as Vietnam and Bangladesh, which compete with India in key labour-intensive sectors like textiles, leather, and footwear. With these sectors employing millions, stakeholders fear potential job losses if export volumes drop significantly.
RBI Governor Signals Support
RBI Governor Sanjay Malhotra has earlier acknowledged the global headwinds affecting trade and exports. At an annual banking conference last month, he assured that the central bank is prepared to take necessary steps to support the economy.
“Whatever is required to support economic growth, including those of sectors that are impacted more, we will not be found wanting in our job,” Malhotra stated.
He emphasized the need for resilience and opportunity-seeking amid ongoing geopolitical and trade disruptions.
“We are now at a critical juncture as we navigate a choppy global environment characterised by heightened trade uncertainty and persisting geopolitical tensions. We must step up our efforts to address the emerging challenges and seize the opportunities that are coming our way,” he said.
Trade Impact Under Watch
While the RBI remains hopeful that diplomatic negotiations with the United States may ease the impact, Malhotra noted that the central bank is closely monitoring the situation.
“We are hopeful that negotiations on tariffs will play out and there will be minimal impact on India’s economic growth,” he added.
As India navigates these shifting trade dynamics, the outcome of next week’s meeting could shape policy responses for the country’s embattled exporters—and potentially provide relief to sectors critical for employment and foreign exchange. (Source: IANS)
