Lok Sabha Question No. 561 (UNSTARRED), answered on 2026-02-03
Subject: Tariffs by United States
Ministry: COMMERCE AND INDUSTRY
Asked by: Dr. Amar Singh

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

## LOK SABHA UNSTARRED QUESTION NO. 561 ANSWERED ON 03/02/2026

## TARIFFS BY UNITED STATES

## 561.   DR. AMAR SINGH:

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

- (a) whether the Government has taken cognizance of exporter concerns that existing United States tariffs are already hurting India's exports and further duty  escalation  may  severely disrupt order volumes;
- (b) if so, the details of the sector-wise export impact assessment conducted by the Government, including  vulnerable  product  categories  such  as  leather,  textiles  and  labour-intensive manufacturing; and
- (c) the  action  proposed  to  be  taken  by  the  Government  to  ensure  exporters  receive  market diversification support, trade facilitation assistance and timely policy relief?

## 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) & (b) The Department of Commerce is actively engaged with all stakeholders- including State Governments, Exporters, Export Promotion Councils (EPCs), Industry to assess the evolving trade situation.

The  Government  of  India  continues  to  monitor  and  promote  India's  exports.  Details  of  India's merchandise export performance in the year 2025 for the period April to December compared to the same period in 2024 is as given below:

## India's Export (Values in USD Billion)

| India's Exports to   |   Apr-Dec-2024 |   April-Dec-2025 |
|----------------------|----------------|------------------|
| U S A                |          60.03 |            65.88 |
| World                |         322.41 |           330.24 |

Source:DGCIS

(ii)        Sectoral performance of India's global merchandise exports may be seen at the following link:

https://tradestat.commerce.gov.in/ftspcc/export\_commodity\_wise

(c) 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 (EPM)

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.
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  Free  Trade  Agreements  (FTAs)  and  Preferential  Trade Agreements  (PTAs)  with  several  key  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, Australia etc. and effectively utilize the opportunities that have been created with the recent concluded FTAs such as with the EFTA countries, UK, Oman and New Zealand. The Government has also recently concluded negotiations on an FTA with the European Union.

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