US tariff: India working on export promotion mission for targeted sectors

  • Industry News
  • Aug 08,25
The mission will roll out tailor-made schemes for the worst-hit sectors — textiles and chemicals — featuring export incentives, easier access to credit, and faster operational clearances, says Krishan Arora, Partner, Grant Thornton Bharat.
US tariff: India working on export promotion mission for targeted sectors

In order to mitigate the challenge posed by the proposed 50 per cent US tariff, the Government of India is reported working on the Export Promotion Mission targeted at the most affected sectors. "Indian exporters, coming to grips with elevated US tariffs, are witnessing the government prepare a decisive response to safeguard key industries and sustain export momentum. A targeted Export Promotion Mission (EPM) is in the works, with tailor-made schemes for the worst-hit sectors—textiles and chemicals—featuring export incentives, easier access to credit, and faster operational clearances. It appears that authorities have started comprehensive consultations with industry stakeholders, including exporters and sector representatives. Not content with a purely reactive stance, India is doubling down on diplomatic outreach. High-level engagements are ongoing with the EU, with the goal of sealing a comprehensive Free Trade Agreement by end-2025. Meanwhile, the India–UAE CEPA continues to pay dividends—India’s exports to the UAE, particularly in labour-intensive goods, have surged under the pact," stated Krishan Arora, Partner, Grant Thornton Bharat.

He elaborated, "At the same time, India is coordinating with Brazil and Russia within the BRICS framework—Prime Minister Modi held talks with Brazil’s President Lula, and both leaders are exploring a united response to US tariffs and discussing India–Mercosur trade enhancements. Internally, authorities are consulting extensively with exporters and sector representatives to fine-tune immediate relief measures and shape a long-term, resilient trade strategy capable of withstanding global shocks."

According to Arora, India's message is clear: while protecting its national interests and vital sectors, it is also proactively forging global trade alliances—building resilience for today and tomorrow.

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