Amidst Donald Trump's tariff threats, India plans big! Rs 20,000 crore project being readied for exporters; ‘Brand India' to be promoted

Time of India

2 days ago

Amidst US President
's tariff war and increasing global trade uncertainties, India is preparing a big Rs 20,000 crore plan to protect exporters. The new comprehensive strategy is expected to be ready in the coming months to shield exporters from the current environment.
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The government's strategy is particularly relevant as the commerce and industry ministry advises exporters to develop and market indigenous brands to address the US-imposed 25% tariff.
India's Big Plan For Exporters
India plans to introduce the plan by September to protect its exporters from international trade volatility and market uncertainties, officials told ET.
The new Export Promotion Mission will include various initiatives focused on simplifying export credit access and addressing non-tariff obstacles in international markets, officials confirmed.
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"For the mission to operationalise as a scheme, more than ₹20,000 crore are required for the next five-six years. This is under consultation," said an official.
The programme includes five key areas - trade finance, non-trade finance covering regulations, standards and market access, strengthening Brand India's recognition, ecommerce facilities with warehousing, and trade facilitation measures.
The strategy for MSME exporters includes offering loans with minimal or no collateral requirements, subject to individual export limits and creditworthiness assessment.
The initiative is a collaborative effort between the ministries of commerce and industry, micro, small and medium enterprises (MSME), and finance.
"The mission will implicitly help exports bound for the US, and wherever our exports go. We will have to close it by August so that it is operational by September," said the official cited above.
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The initiative aims to enhance India's global reputation, similar to countries like Japan, Korea, and Switzerland, while facilitating the establishment of ecommerce centres and transforming districts into export hubs.
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"
It will be positive if such a large fund can support our exports in these challenging times," said Ajay Sahai, director general, Federation of Indian Export Organisations (FIEO).
Trump's Tariff Tantrums
The US has announced a 25% tariff on all goods originating from India, effective August 7, alongside an undefined penalty. Competing nations such as Pakistan, Vietnam, Bangladesh and Turkey face duties between 15-20%. This substantial tariff could affect approximately half of India's annual exports to the US, which exceed $85 billion.
On Monday, Trump warned India of higher tariffs for its continued trade with Russia on oil.
'India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don't care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA. Thank you for your attention to this matter!!!,' Trump posted on Truth Social.
In a sharp rebuttal, India said it would take the necessary steps to protect its interests, while calling out the US and EU for continuing to import from Russia.
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'The targeting of India is unjustified and unreasonable. Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,' the ministry of external affairs statement read.
'Europe-Russia trade includes not just energy, but also fertilizers, mining products, chemicals, iron and steel and machinery and transport equipment. Where the United States is concerned, it continues to import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilizers as well as chemicals,' the statement said.