In view of the expected impact of the 50% tariffs on 55% of India’s merchandise exports to the United States, industry sources have told CNBC-TV18 that India is mulling credit guarantees for small businesses and exporters for loans overdue for 90 days.India is expected to allocate around ₹4000 crores to provide guarantees to banks, which will entail 10-15% credit guarantees to banks to advance loans to exporters with a turnover below ₹500 crores.Commerce Ministry has informed the Parliament that India is involved in discussions on the India-USA Bilateral Trade Agreement (BTA) with the aim of expanding trade and investment through tariff stability and long-term trade predictability.
The Ministry added that a combination of factors, like product differentiation, demand, quality, and contractual arrangements, will determine the impact of reciprocal tariffs on India’s exports, including in the textiles sector.Last week, India’s Commerce and Industry Minister Piyush held a meeting with exporters from the leather and footwear sector in New Delhi. Since the announcement of tariffs by the United States, the Minister has met several exporters from labour-intensive sectors which are expected to be impacted by the tariffs, which include sectors like agriculture, seafood, food processing, textiles as well as exporters of high-end products like engineering goods, metallurgical coke and steel.Sources had indicated that the government is mulling support for exporters across sectors to cushion them against the impact of US tariffs.Sources had told CNBC-TV18 that leather and footwear exporters sought a 5% duty credit scrip or incentives to partially offset US import duties, along with interest subvention for support amidst global trade volatilities.While the industry is seeking interim relief for shipment-ready products as geopolitical headwinds are impacting demand, exporters have requested Indian officials to urge the US government to include leather and footwear under the list of exempted items. India’s footwear and leather exports to US between April-June FY26 were almost 50% of full FY25.Also Read: Gold, silver rally to continue, oil prices to fall in last quarter of 2025, says Peter McGuireFirst Published: Aug 12, 2025 4:18 PM IST
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