Lok Sabha Question No. 4101 (UNSTARRED), answered on 2026-03-17
Subject: Impact of US Tariffs
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Vamsi Krishna Gaddam

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

## LOK SABHA UNSTARRED QUESTION NO. 4101 ANSWERED ON 17/03/2026

## IMPACT OF US TARIFFS

## 4101.  SHRI VAMSI KRISHNA GADDAM:

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

- (a) whether the Government has undertaken/commissioned any assessment on the potential impact of recent tariff measures imposed by the United States on Indian  exports  on  employment  in  labour-intensive  sectors  such  as  textiles, gems and jewellery, chemicals, leather and engineering goods;
- (b) if so, the details of such assessment including estimate of possible employment disruptions, temporary layoffs or reduction in working hours in export-oriented clusters sector and region-wise;
- (c) whether any targeted reskilling, upskilling or workforce redeployment initiatives under Skill India are being planned or implemented by the Government to assist workers affected by export volatility arising from such tariff measures; and
- (d) if  so,  the  details  of  coordination,  if  any,  undertaken  with  the  Ministry  of Commerce  and  Industry and Export Promotion Councils to anticipate employment-related risks and facilitate labour market adjustment in the event of sustained export contraction in affected sectors?

## 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) (i) The Government continues to work with all stakeholders including exporters and industry to mitigate the impact of the tariff measures of the United States  (U.S.)  on  Indian  exports  through  a  comprehensive  multi-pronged strategy encompassing  intensive  engagement  with  the  U.S.  Government  for  a mutually beneficial  India-U.S.  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 Free Trade Agreements (FTAs) with new countries  and  better  utilization  of  existing  FTAs.  It  is  expected  that  these measures will also enhance diversification and resilience in India's trade relationships.

(ii)  India and the United States announced a trade deal on 2nd February 2026. A Joint Statement for the same was released on February 07 2026. On February 07 2026, 25% additional ad valorem tariffs imposed by the U.S. on certain India's exports citing

India's imports of Russian oil were removed. Subject to the conclusion of the Interim Agreement, the U.S. will provide preferential market access to Indian goods, including textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home décor,  artisanal  products,  certain  machinery, etc.  Further,  the  U.S.  will  reduce additional  tariff  on  India  to  0%  on  a  wide  range  of products,  such  as  gems  and diamonds,  aircraft  parts,  generic  pharmaceuticals,certain  machinery  and  parts, vegetable saps, certain instruments and apparatus, certain plastic and rubber, certain auto  parts,  etc.  The  agreement  will  boost  MSME exports  in  marine  products, processed  food,  textiles,  leather,  and  handicrafts  by providing  preferential  market access, while protecting sensitive sectors. The interests of all sensitive sectors such as dairy and agriculture have been protected.

(iii) Pursuant to the U.S. Supreme Court judgement dated 20th February 2026 invalidating reciprocal tariffs, the reciprocal tariffs are no longer in force. The U.S. Government  has  issued  Executive  Orders  imposing  10%  tariffs  on  certain products from all countries.  The Government is studying all the developments and remains engaged with the U.S. Government.

(c) & (d) The agreement will boost India's exports in marine products, processed food, textiles,  leather,  and  handicrafts  by  improving  preferential  market  access  while protecting sensitive sectors. The agreement will lead to opening of new opportunities for farmers, entrepreneurs, MSMEs,  start-up  innovators  and  fishermen,  while generating large-scale employment across sectors. Further, India's Skill India Mission (SIM), is equipping work-force with essential industry-relevant skills through initiatives focussing  on  skill  development,  re-skilling  and  up-skilling.  Additional information regarding the interim trade deal is also available at the following web link:

https://www.commerce.gov.in/wp-content/uploads/2026/03/FTAs-achievement.pdf

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