India engaged with all stakeholders for strategy to mitigate impact of US tariffs
The government remains engaged with all stakeholders—including exporters, export promotion councils, industry associations, and state governments—on the evolving impact of the US tariff measures, Minister of State for Commerce Jitin Prasada said in Lok Sabha on Tuesday.
“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…,” Prasada said in reply to a question by Congress leader Rahul Gandhi on the impact of US tariffs on labour-intensive sectors.
The government also sought to provide relief through export promotion measures, such as the new Export Promotion Mission (EPM) which provide support and assistance to exporters, as well as by pursuing FTAs with new countries and better utilisation of existing free trade agreements (FTAs), he said.
Earlier this year, an Inter-Ministerial Committee had been constituted to consider the trends with respect to imports and exports and recommend corrective action wherever required. It includes representatives from the Department of Commerce, Department of Revenue, Department for Promotion of Industry and Internal Trade, Directorate General of Foreign Trade and Directorate General of Commercial Intelligence and Statistics.
The US imposed additional tariffs of 50 per cent, which includes a 25 per cent penalty for India’s purchase of Russian oil, which got implemented in August-end. Although after a decline in Indian exports to the US in September and October, there was an increase in November, labour-intensive sectors such as textiles and marine, are continuing to struggle.
India is hopeful that it can soon work out the first tranche of a trade deal with the US which will lead to a considerable roll-back of the stiff 50 per cent tariffs.
“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,” Prasada said.
The Minister said that the government was continuously engaged with all stakeholders on the impact of the US tariffs so that concerns could be resolved.
Published on December 16, 2025
