NEW DELHI– India is hopeful that the United States will reconsider the additional 25 per cent tariff imposed on Indian goods over New Delhi’s Russian oil purchases, even as the government moves to shield exporters from its impact.
Officials said the Commerce Ministry is engaging closely with exporters of textiles, leather, gems and jewellery, and other sectors to boost shipments to alternative markets. Financial assistance is also being considered for businesses hit hardest by the tariff hike.
The ministry has scheduled meetings this week with exporters from chemicals, gems, and jewellery to identify strategies for diversifying destinations. The discussions will also advance the Export Promotion Mission announced in the 2025-26 Budget.
“In the next two to three days, the ministry will meet stakeholders on the diversification of exports,” an official said.
The steep tariff threatens more than $48 billion worth of Indian exports, with textiles, clothing, gems and jewellery, shrimp, leather, animal products, chemicals, and machinery among the sectors likely to be affected. Pharmaceuticals, energy products, and electronic goods have been spared.
The U.S. is one of India’s largest trade partners. In 2024-25, India exported goods worth $86.5 billion to the U.S., while imports totaled $45.3 billion. The American market accounted for about 20 per cent of India’s total exports of $437.42 billion that year.
Through a mix of financial support and market diversification, the Indian government aims to soften the blow from the U.S. duties while reinforcing trade ties globally. (Source: IANS)
