India plans ₹20,000-crore Export Promotion Mission to cushion Trump tariff shock: Report

India is preparing a ₹20,000 crore export promotion initiative to shield its exporters from rising global trade uncertainties, especially in light of newly imposed US tariffs, the Economic Times reported on Tuesday, citing senior government officials.

The long-term plan, expected to be rolled out by September, includes measures to improve access to export credit, tackle non-tariff barriers, and elevate India’s global brand positioning, the paper said.

Dubbed the Export Promotion Mission, the scheme will be jointly led by the commerce, MSME, and finance ministries.

The programme aims to help exporters absorb the shock of a recently announced 25% tariff by the United States on Indian-origin goods, effective August 7, according to the report.

“For the mission to operationalise as a scheme, more than ₹20,000 crore are required for the next five-six years. This is under consultation,” an unnamed official was quoted as saying.

The proposed plan includes five core components: trade finance, non-trade finance dealing with regulation, standards and market access, better brand recall for Brand India, ecommerce hubs and warehousing, and trade facilitation, ET reported.

Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO), told the newspaper: “It will be positive if such a large fund can support our exports in these challenging times.”

Indi faces a 25% country-specific tariff and an extra unspecified penalty on its exports to the United States, one of the highest among Asian exporters, second only to China at 30%.

On the other hand, competitors such as Vietnam (20%), Bangladesh (18%), Indonesia, Malaysia, and the Philippines (19%), and Japan and South Korea (15%) enjoy lower rates.

Think tank GTRI said that India could see a 30% decline in exports to America this fiscal year due to the tariffs announced by Trump.

"But outside these, Indian goods are under pressure. As a result, India's exports to the US -- currently its largest export market -- are projected to decline by nearly 30 per cent, falling from USD 86.5 billion in FY2025 to around USD 60.6 billion in FY2026," it said.

GTRI Founder Ajay Srivastava said India's garment exports are among the worst hit.

Indian exporters from various sectors, including food, marine, and textiles, have sought financial assistance and affordable credit from the government to cope with the 25% tariff.

Exporters are requesting the government to extend fiscal incentives such as interest subsidy and extension of RoDTEP scheme (Remission of Duties and Taxes on Exported Products), RoSCTL (Rebate of State and Central Taxes and Levies), timely payment of dues, and a direct shipping line to the US.