New Delhi: In response to mounting concerns from exporters, a senior official from the Ministry of Commerce has acknowledged that the newly imposed 50% tariffs by the United States are likely to affect Indiaโs trade in the near term, particularly in key sectors such as textiles, chemicals, and machinery.
Speaking on the sidelines of a trade policy review meeting, the official remarked that the government is fully aware of the potential impact. “It’s clear that such high tariffs will have a trade impact. The immediate fallout is being felt by sectors like textiles, chemicals, and machinery. However, we donโt expect these challenges to persist in the long term,” the official said.
Exporters across the affected sectors have reportedly raised red flags, citing order cancellations, delays, and tightening liquidity. Many have reached out to the government, seeking assistance to navigate the financial strain.
“Thereโs concern in the industry. Weโve received several representations. Companies are worried about a slowdown in orders and the cash flow issues that follow. They’re under stress to keep operations running smoothly,” the official added.
In response, the Commerce Ministry has assured that steps are being taken to evaluate the industry’s suggestions and roll out immediate measures. One such initiative under active consideration is the expedited launch of the Export Promotion Mission (EPM)โa program aimed at boosting competitiveness and providing structured support to Indian exporters.
“Work is progressing positively to implement the recommendations coming from industry. EPM is being fast-tracked to offer some relief and support during this period,” the official confirmed.
The ministry also emphasized the importance of building strong and diversified supply chains both for imports and exports as a long-term solution to such external trade shocks.
“Every crisis presents a new opportunity. This is a wake-up callโnot just for exporters, but also for policymakersโto reimagine and reinforce our export ecosystem. Diversification and resilience are key,” the official concluded.
