The Indian government recently unveiled a $5 billion relief package aimed at supporting exporters impacted by hefty tariffs from the United States. This step is crucial as trade negotiations continue while India seeks new markets.
The aid includes $2.3 billion in collateral-free loans, alongside an additional $2.82 billion that will be distributed over six years through the new Export Promotion Mission (EPM). This initiative aims to enhance India’s competitiveness in exports, particularly focusing on micro, small, and medium enterprises (MSMEs), first-time exporters, and labor-intensive industries.
According to the Indian information and broadcasting minister, Ashwini Vaishnaw, the EPM will consolidate various fragmented programs into one cohesive, outcome-driven strategy. This means that as global trade conditions change, the program can adapt quickly to meet exporters’ needs.
Prime Minister Narendra Modi emphasized the mission’s goal is to make “Made in India” a strong presence in international markets. By providing easy credit access, the program aims to enhance business operations and help India reach its ambitious $1 trillion export target.
Indian exporters have felt the sting of a 50 percent tariff imposed by the U.S., especially in sectors like textiles, leather, and jewelry. The move has sparked concerns in the industry. In fact, between May and September 2025, Indian exports to the U.S. dropped by 37.5%, according to a report from the Global Trade Research Initiative.
Trade experts are welcoming the EPM. SC Ralhan, president of the Federation of Indian Export Organizations, called it a “pragmatic” approach that combines different types of support into one flexible framework. Similarly, Ashwin Chandran, chairman of the Confederation of Indian Textile Industry, noted that this could help the textile sector become more competitive on a global scale.
Statistics from the Ministry of Commerce indicate that India’s textile exports to the U.S. reached nearly $11 billion in 2024-25, but a recent decline of over 10% in textile and apparel exports highlights the pressing need for government intervention.
The seafood industry, another area greatly affected by tariffs, also stands to benefit. Pawan Kumar G, president of the Seafood Exporters’ Association of India, noted that the EPM could help find alternative markets for seafood, which is crucial as the U.S. remains the largest destination for Indian seafood exports, valued at $2.71 billion last fiscal year.
In the broader economic landscape, experts like Bank of Baroda chief economist Madan Sabnavis and Ajay Srivastava from the Global Trade Research Initiative believe that the success of EPM depends on quick implementation and efficient funding.
This recent initiative shows how governments can respond to global challenges, paving the way for a more resilient export sector. With trade dynamics shifting rapidly due to various geopolitical factors, steps like these are essential for sustaining economic growth and ensuring competitiveness in the global marketplace.
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