India Plans A ₹20,000 Crore Initiative For Export Sector, Aims To Elevate 'Brand India' Amid Global Tariff Tensions

In a period where US tariffs have induced global uncertainty, India stands firm in its resolve to negotiate in equal terms while working on a Rs 20,000 crore plan to cushion the blow for sectors highly-dependent on exports.

The strategy in works is expected to be ready in the upcoming months and will protect exporter interests.

The centre's move is the need of the present scenario, especially with the Ministry of Commerce and Industry advising exporters to build

The government's strategy is particularly relevant as the commerce and industry ministry advises exporters to develop and market homegrown labels in response to the US-imposed first tranche of 25 per cent tariff.

What's India Mega Exporter-Centric Strategy?

The centre's plan reportedly will be ready for implementation by September, providing a safety net for exporters amidst global trade disruptions, and supply chain shifts.

Initiatives prioritising easy export credit access and working around non-tariff challenges in global markets are on the cards, as per media reports.

"For the mission to operationalise as a scheme, more than Rs 20,000 crore are required for the next five-six years. This is under consultation," said an official, citing media reports.

The programme would focus on-non-trade finance covering regulations, trade finance, standards and market access, improving brand India's recognition, ecommerce facilities with trade facilitation and warehousing 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, MSME, and Finance.

It also aims to enhance India's global reputation, similar to countries like Japan, and Korea.

Also Read: 'Collective Action is Key': Jefferies' Chris Wood To US Tariffs

Trump’s Tariff Tactics

The US had earlier announced a 25 per cent tariff on all goods originating from India, effective August 7, alongside an undefined penalty for purchasing Russian crude oil.

Meanwhile, the tariff bandwidth for countries such as Pakistan, Vietnam, Bangladesh and Turkey face lied within 15-20 per cent.

Further he increased the levy bringing the total tariff imposition to 50 per cent on Indian imports.

This substantial tariff could affect approximately half of India's annual exports to the US, which exceed USD 85 billion.

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.

“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,” as per the Ministry of External Affairs statement.

“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,” it said.