The Indian government is drawing up a relief package to help exporters withstand the impact of the United States’ steep 50% tariffs and the additional 25% duty on Russian oil trade that took effect on August 27. The measures under discussion include subsidised interest rates, collateral-free loans, credit guarantees, and a possible revival of the earlier interest equalisation scheme.

Officials aim to protect labour-intensive industries such as textiles, apparel, leather, and seafood, which face mounting competition from countries like Vietnam, Bangladesh, Indonesia, and Cambodia. Despite a 12% rise in textile and apparel exports to the US in the first half of the year, India’s growth still lags behind these rivals.

Furthermore, exporters are also seeking government help in securing large domestic buyers—both public sector entities like Indian Railways and private firms such as Reliance Retail and the Aditya Birla Group—to offset the potential loss of overseas market share.