Summary: India’s cabinet has approved a ₹450.6 billion ($5.1 billion) support package to help exporters weather steep U.S. tariff hikes, offering credit guarantees, affordable trade finance, and logistics support. The move aims to protect jobs and stabilize key sectors such as textiles, gems, leather, and chemicals, which have been hardest hit by duties of up to 50%.
⚖️ Cabinet Decision
Information Minister Ashwini Vaishnaw announced the package on November 12, 2025, confirming that the government will provide ₹200 billion in credit guarantees on bank loans and ₹250.6 billion over six years for affordable trade finance, logistics, and market support Yahoo Finance US News.
📉 Impact of U.S. Tariffs
The U.S. recently imposed punitive tariffs of up to 50% on Indian exports, citing concerns over New Delhi’s continued purchases of Russian oil. The levies have hit labour-intensive sectors including textiles, jewellery, leather goods, marine products, and chemicals, leading to a 12% drop in exports to the U.S. in September alone NewsBytes.
👷 Protecting Jobs and Industry
Officials stressed that the package is designed to shield small and medium exporters, safeguard employment, and maintain competitiveness in global markets. States such as Tamil Nadu and Gujarat, where textiles and leather industries dominate, are expected to benefit most.
🌍 Strategic Context
The relief package comes as India and the U.S. remain locked in trade negotiations, with New Delhi simultaneously pursuing a free trade agreement with the EU to diversify export markets Prabhudas Lilladher. Analysts say the move underscores India’s determination to balance geopolitical pressures with domestic economic stability.
India’s $5.1 billion support package represents a decisive intervention to cushion exporters against U.S. tariff shocks, protect jobs, and sustain growth in critical sectors while trade talks continue.
Sources: Yahoo Finance US News NewsBytes Prabhudas Lilladher The Straits Times
