India Announces $5 Billion Relief Package to Cushion US Tariff Impact
New Delhi (Faiz.tv International Desk) — The Government of India has announced a $5 billion relief package to help local industries and exporters cope with the economic impact of new US tariffs. The move comes as Washington increases import duties on select Indian goods, affecting sectors such as textiles, steel, and pharmaceuticals.
Finance Minister Nirmala Sitharaman unveiled the plan during a press briefing, saying the package is designed to support businesses, stabilize exports, and protect jobs amid growing global trade tensions.
“India will safeguard its economic interests and ensure that our exporters remain competitive despite external trade challenges,”
said Sitharaman.
Details of the $5 Billion Support Plan
According to the Finance Ministry, the relief package includes:
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Export subsidies and tax rebates for affected industries.
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Soft loans and credit guarantees for small and medium exporters.
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Expanded market diversification programs to reduce reliance on the US market.
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Incentives for domestic manufacturing under the “Make in India” initiative.
Officials noted that the funds will be distributed through the Export-Import Bank of India (EXIM) and state-backed trade agencies over the next fiscal year.
Background: US Tariffs and Trade Tensions
The United States recently imposed additional tariffs on a range of Indian products, citing trade imbalances and market access concerns. These duties are expected to impact billions of dollars in exports, particularly in the metal and chemical sectors.
Analysts believe India’s financial cushion aims to minimize short-term losses while exploring alternative trade partnerships in Southeast Asia, Africa, and Europe.
Expert Opinions and Market Reaction
Economists have described India’s move as “timely and strategic.”
“This package shows India’s commitment to maintaining export competitiveness amid shifting global trade policies,”
said Dr. Arvind Menon, a senior trade analyst in Mumbai.
The Indian stock market reacted positively, with major export-oriented firms recording modest gains following the announcement.
Conclusion
India’s $5 billion relief plan highlights its proactive approach to mitigating the impact of US tariffs and ensuring continued growth in exports. As trade tensions evolve, policymakers are expected to explore further bilateral negotiations with Washington to ease restrictions.
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