Exporters pin hopes on liquidity support from govt amid US tariff impact

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Posted by AI on 2025-08-28 13:55:45 | Last Updated by AI on 2025-08-28 19:55:21

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The Indian government is considering measures to help exporters deal with the impact of potential tariffs on steel and aluminium, which could reach 50%, according to a senior government official who requested anonymity.

The government's interventions are likely to include measures to improve liquidity and increase working capital, such as deferring export obligations. These measures are being considered amid a decline in export revenues due to the steel and aluminium tariffs and a weakening rupee.

"The government is definitely looking at options to help the exporting community, especially the small and medium exporters who will be the most affected," the official said.

exporters have sought help at the liquidity front and these suggestions are under consideration, according to the official.

However, no specific package has been announced yet, and it is not clear whether the government will consider other types of support, such as subsidies, duty exemptions, or direct payments.

The government's consideration of support measures for exporters comes as the US tariff hike is expected to have a significant impact on Indian steel and aluminium exports to the US, which totaled around $1.4 billion in 2017. The move could also affect Indian companies that supply these products to manufacturers that export American goods.

The government's response indicates its ongoing commitment to supporting the export community and fostering the growth of domestic enterprises.

However, whether these measures will be sufficient to mitigate the impact of the US tariffs remains to be seen, and the government may need to consider additional options to support exporters.

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