Govt working to fast-track Export Promotion Mission to cushion US tariff blow: Official

The government is trying to expedite the rollout of its proposed Export Promotion Mission to help exporters hit by steep US tariffs, PTI reported on Thursday, citing a senior official.

The official said exporters have flagged liquidity concerns, which are under active consideration.

“Export diversification, new free trade agreements, rollout of the export promotion mission and growing domestic market will help provide cushion to Indian exporters from the impact of US tariffs,” the official added.

The Centre, the official said, is “seized of the issues” and working on measures to address them.

The official said diversification of exports "will help exporters sustain trade trajectory in the long run".

On the proposed India-US bilateral trade agreement, the official said they were “ hopeful to get back on the table soon”, but new dates for the next round of negotiations have not yet been finalised.

The Export Promotion Mission, first announced in the Union Budget 2025-26 with an outlay of ₹2,250 crore, is aimed at improving access to export credit, supporting MSMEs in tackling non-tariff measures, and facilitating cross-border factoring.

In August, the Economic Times reported that the government was working on a ₹20,000 crore export promotion initiative to mitigate global trade uncertainties, including the newly imposed US tariffs.

The plan is likely to focus on trade finance, regulatory and standards support, strengthening “Brand India,” e-commerce hubs and warehousing, and trade facilitation.

The scheme will be jointly led by the commerce, MSME, and finance ministries. India currently faces a 25% country-specific tariff on its shipments to the US, along with an additional 25% penalty for crude imports from Russia, making it one of the hardest-hit Asian exporters.

The tariffs, among the steepest globally, are expected to hit India’s exports and job creation in labour-intensive sectors such as shrimp, apparel, leather, footwear, gems and jewellery, and diamonds.