FX.co ★ India Mulls Export Relief Package Amid U.S. Tariff Fallout

India is considering implementing a comprehensive support package for exporters adversely affected by substantial U.S. tariffs, as reported by Bloomberg News. The Ministry of Commerce and Industry has suggested measures to enhance liquidity, which include offering loans without the need for collateral and providing subsidized interest rates. Sources who preferred to remain unnamed have indicated that the Cabinet might review this proposal within the week. The relief funds would be sourced from the USD 255 million allocated in the federal budget last February, initially meant to counter potential impacts of tariff threats issued by President Trump. Back then, India-U.S. relations were stable, but they have since deteriorated, leading to a significant 50% tariff increase in August. This increase targeted Indian trade barriers and the country’s purchases of Russian oil. Negotiations are ongoing to potentially increase budget allocations, although these discussions are still at an early stage.