New Delhi – The Union Cabinet is expected to approve a financial-support package to shield micro, small and medium enterprises (MSMEs) from the blow of steep US tariffs.
According to sources, the Cabinet, which meets on Wednesday, may also clear a credit facility featuring a loan guarantee scheme backed by the Centre. The move comes amid mounting concerns over the impact of 50 per cent tariffs imposed by the US on key Indian exports.
Sectors facing the sharpest hit include textiles, apparel, gems and jewellery, leather and footwear, and chemicals. These industries are dominated by MSMEs, many of which are struggling to absorb the losses from reduced competitiveness in the US market.
Last week, exporters led by the Federation of Indian Export Organisations (FIEO) met Finance Minister Nirmala Sitharaman and raised alarms about the severe implications of the tariff hike. Industry representatives urged the government to extend immediate relief to safeguard jobs and ensure export stability.
The proposed package is expected to provide working capital support and enhance access to affordable credit, helping exporters tide over the crisis while maintaining overseas supply chains.
