Lok Sabha Question No. 334 (UNSTARRED), answered on 2025-12-02
Subject: Impact of Tariffs on Uttar Pradesh
Ministry: COMMERCE AND INDUSTRY
Asked by: Ms Iqra Choudhary, Shri Devesh Shakya, Shri Pushpendra Saroj

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE

## LOK SABHA UNSTARRED QUESTION NO. 334

## ANSWERED ON 02/12/2025

## IMPACT OF TARIFFS ON UTTAR PRADESH

## 334.    MS IQRA CHOUDHARY:

SHRI PUSHPENDRA SAROJ: SHRI DEVESH SHAKYA:

Will the Minister of COMMERCE AND INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) the total value of India's exports from Uttar Pradesh to the United States, classified by major product categories such as textiles, carpets, leather, handicrafts and engineering goods;
- (b) the total value of India's carpet exports globally and specifically to the United States, State-wise particularly for Uttar Pradesh;
- (c) The total number of artisans, weavers and support workers currently employed in the carpet industry State and district-wise particularly for Uttar Pradesh;
- (d) whether the Government has assessed the impact of the US-imposed tariffs on export volumes and employment loss and if so, the details thereof; and
- (e) the measures taken by the Government to prevent market share loss to competing countries such as Pakistan, Turkey and Bangladesh?

## ANSWER

वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री ( श्री णिणिन प्रसाद

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY

) (SHRI JITIN PRASADA)

## (a) to (b) Export to USA from Uttar Pradesh (Values in USD Million)

| Commodity Description         |   FY 2024-25 |
|-------------------------------|--------------|
| Engineering Goods             |       212.97 |
| Textiles                      |       850.59 |
| Leather                       |       159.28 |
| Carpet(Excl. Silk) Handmade   |       401.87 |
| Handcrfs(Excl.Handmade Crpts) |       151.23 |

Source: DGCIS

India's Export of Carpet (USD Million) in FY 2024-25

| Commodity Description             | World    |    USA |
|-----------------------------------|----------|--------|
| India's Carpet Export (Exc. Silk) | 1,496.53 | 901.55 |

Source: DGCIS

(c) In the Uttar Pradesh state, in the carpet industry-dominant districts number of artisans, weavers, and support workers who are currently directly and indirectly employed are:

| District                     | Workforce   |
|------------------------------|-------------|
| Sant Ravidas Nagar (Bhadohi) | 4 Lakh      |
| Sonbhadra                    | 5200        |
| Sitapur                      | 30500       |
| Varanasi                     | 2500        |
| Mirzapur                     | 40000       |

Source: Government of Uttar Pradesh

(d)  and  (e) The  Department  of  Commerce  is  actively  engaged  with  all  stakeholdersincluding  State  Governments,  Exporters,  Export  Promotion  Councils  (EPCs),  Industry associations  of  the  affected  sectors  such  as  Textiles  and  Apparel,  Gems  and  Jewellery, Leather, Marine, Chemicals and engineering goods -to assess the evolving impact of the U.S. tariff measures. Continuous consultations are being held to gather feedback, evaluate sector-specific  stress  and  identify  both  immediate  and  structural  interventions  required  to safeguard India's trade interests.

However, given the dynamic nature of the situation, the relatively short period of less than three months since the imposition of these tariffs and the multiple factors affecting economic outcomes, it is difficult to exactly isolate the impact of the U.S. tariffs, if any, on the variables mentioned.

In terms of merchandise exports to the US, India's export performance in the April-October 2025 period compared to the same period last year is as given below:

|        |   April-October 2025 (US$ Billion) |   April-October 2024 (US$ Billion) |
|--------|------------------------------------|------------------------------------|
| Export |                              52.12 |                              47.32 |

Source: DGCIS

The Government continues to work to mitigate the impact of the US tariff measures on Indian exports through a comprehensive multi-pronged strategy encompassing intensive engagement  with  the  US  Government  for  a  mutually  beneficial  India-US  Bilateral  Trade Agreement, immediate relief through Trade relief measures of RBI, Credit Guarantee Scheme for  Exporters,  enhancement  of  domestic  demand  through  next  generation  GST  reforms, Export  Promotion  measures  such  as  the  new  Export  Promotion  Mission  which  provide support  and  assistance  to  our  exporters,  pursuing  FTAs  with  new  countries  and  better utilization of existing FTA. It is expected that these measures will also enhance diversification and resilience in India's trade relationships.

Details of some of the aforementioned measures are as follows:

## 1. Export Promotion Mission

The Mission will provide a comprehensive, flexible, and digitally driven framework for export promotion, with a total outlay of Rs.25,060 crore for FY 2025-26 to FY 2030-31. EPM marks a strategic shift from multiple fragmented schemes to a single, outcome-based, and adaptive mechanism that can respond swiftly to global trade challenges and evolving exporter needs.

The Mission will operate through two integrated sub-schemes:

(i)  NIRYAT  PROTSAHAN  - focuses on  improving  access  to  affordable  trade  finance  for MSMEs  through  a  range  of  instruments  such  as  interest  subvention,  export  factoring, collateral  guarantees,  credit  cards  for  e-commerce  exporters,  and  credit  enhancement support for diversification into new markets.

(ii) NIRYAT DISHA - focuses on non-financial enablers that enhance market readiness and competitiveness, including export quality and compliance support, assistance for international branding, packaging, and participation in trade fairs, export warehousing and logistics, inland transport reimbursements, and trade intelligence and capacity-building initiatives.

The  Mission  is  designed  to  directly  address  structural  challenges  that  constrain  Indian exports, including:

- limited and expensive trade finance access,
- high cost of compliance with international export standards,
- inadequate export branding and fragmented market access, and
- logistical disadvantages for exporters in interior and low-export-intensity regions.

Under  EPM,  priority  support  will  be  extended  to  sectors  impacted  by  recent  global  tariff escalations,  such  as  textiles,  leather,  gems  &  jewellery,  engineering  goods,  and  marine products.  The  interventions  will  help  sustain  export  orders,  protect  jobs,  and  support diversification into new geographies.

2. Credit Guarantee Scheme for Exporters has also been approved to provide 100% credit guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs) for extending additional collateral free credit facilities up to  Rs.20,000  crore  to  eligible  exporters,  including  MSMEs.  The  Scheme  is  expected  to enhance the global competitiveness of Indian exporters and support diversification into new and emerging markets. Enabling collateral-free credit access will strengthen liquidity, ensure smooth business operations, and reinforce India's progress towards achieving the USD 1 trillion export target.

3. Trade Relief Measures:The Reserve Bank of India (RBI) has also initiated trade relief measures for eligible affected exporters including provision for debt repayment moratorium and extension of tenor for export credit.

4. Leveraging Free Trade Agreements :  -  The Government aims for promotion of Export Diversification and has signed 15 Free Trade Agreements (FTAs) and 6 Preferential Trade

Agreements (PTAs) with its trading partners. Government is working with all stakeholders to enable our exporters to better utilize the benefits of India's FTAs with major markets such as Japan, Korea, UAE etc. and effectively utilize the opportunities that have been created with the recent concluded FTAs such as with the EFTA countries and the UK. The Government is also engaged in negotiations for early conclusion of mutually beneficial FTAs with the EU, Peru, Chile, New Zealand, Oman etc.

The  Government  remains  engaged  with  all  stakeholders-including  exporters,  Export Promotion Councils (EPCs), industry associations, and state governments-to assess the evolving impact of the U.S. tariff measures.

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