Home India COMMERCE AND INDUSTRY Parliament Question: Impact of US Tarrif...
Date: 2025-12-16 Category: Not Applicable State: Union Government Country: India

Parliament Question: Impact of US Tarrif

Issued by COMMERCE AND INDUSTRY · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document is a response to an unstarred question in the Lok Sabha regarding the impact of US tariffs on Indian industries, businesses, farmers, and marine product exporters. It details the Indian government's ongoing efforts to monitor, mitigate, and address the effects of these tariffs. These include export promotion measures, financial assistance, and diversification strategies. The question was answered on December 16, 2025. **Key Points / Main Content** * **Monitoring & Promotion:** * The government is monitoring India's exports and taking steps to promote them. * Details are provided on India's export performance for the periods April-November 2023, 2024, and 2025, both overall and for marine products (in USD Billion). * Export data from Andhra Pradesh to the world is included for 2023-24 and 2024-25 (in USD Million). * **Mitigation Strategies:** * The government is engaged with stakeholders to assess the impact of US tariffs and raise awareness of mitigation efforts. * A multi-pronged strategy is in place, including engagement with the US government for a trade agreement. * Trade relief measures through the RBI and a Credit Guarantee Scheme for Exporters are being utilized. * Emphasis on enhancing domestic demand via GST reforms. * **Export Promotion Mission (EPM):** * The EPM is a digitally-driven framework with an outlay of Rs. 25,060 crore for FY 2025-26 to FY 2030-31 to promote exports. * The EPM has two sub-schemes: * NIRYAT PROTSAHAN: Improves access to affordable trade finance for MSMEs. * NIRYAT DISHA: Enhances market readiness and competitiveness. * EPM addresses challenges like limited trade finance access and high compliance costs. * Priority support is extended to sectors affected by global tariff escalations (e.g., textiles, leather, gems & jewellery, engineering goods, marine products). * **Credit Guarantee Scheme:** * The Credit Guarantee Scheme for Exporters provides 100% credit guarantee coverage to lending institutions for extending additional collateral-free credit facilities to eligible exporters, including MSMEs. * **Trade Relief Measures:** * The Reserve Bank of India (RBI) has initiated trade relief measures, including debt repayment moratorium and extension of tenor for export credit. * **Free Trade Agreements (FTAs):** * The government aims for promotion of export diversification. * The government has signed 15 FTAs and 6 PTAs with its trading partners. * The government is working with stakeholders to better utilize FTAs and is negotiating new FTAs. * **Diversification Measures:** * The number of listed fishery establishments for export to the EU and Russia has increased. * Projects with an outlay of Rs. 21274.13 crore have been approved for the development of fisheries and aquaculture. **Impact Analysis** **Stakeholders:** Indian Industries, Businesses, Farmers, and Local Marine Product Exporters **Impact:** * Affected by US tariffs and heavy tariffs. * May experience losses due to these tariffs. **Action Required:** * Engage with the government to understand and utilize available support, assistance, and awareness programs. * Leverage the Export Promotion Mission and Credit Guarantee Scheme. * Utilize trade relief measures provided by the RBI. * Explore opportunities through FTAs. **Stakeholders:** Exporters, Export Promotion Councils (EPCs), Industry Associations, and State Governments. **Impact:** * Involved in assessing the impact of US tariffs. **Action Required:** * Continue to engage with the government to assess the evolving impact of the US tariff measures.

Key Entities Referenced

United States: Country imposing tariffs that affect Indian businesses, industries, and farmers. Ministry of Commerce & Industry: Indian ministry responsible for addressing the impact of US tariffs and promoting exports. Export Promotion Mission (EPM): A new government mission to provide support and assistance to affected Indian industries, businesses and farmers. Andhra Pradesh: Specific Indian state impacted by US tariffs, with losses detailed in the response. Credit Guarantee Scheme for Exporters: Government scheme providing credit guarantee coverage to facilitate lending to exporters.
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GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF COMMERCE LOK SABHA UNSTARRED QUESTION NO. 2545 ANSWERED ON 16/12/2025 IMPACT OF US TARIFF 2545. SHRI PUTTA MAHESH KUMAR: SHRI PRABHAKAR REDDY VEMIREDDY: SHRI MAGUNTA SREENIVASULU REDDY Will the Minister of COMMERCE & INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be pleased to state: (a) whether the Government has conducted any study/survey regarding the impact of US tariffs/heavy tariffs on Indian industries, businesses and farmers and local marine product exporters during the last two years; (b) if so, the details regarding the total estimated losses suffered by Indian industries, businesses and farmers due to the US tariffs in the country month-wise and State-wise during the last two years especially from Andhra Pradesh; (c) the details regarding the steps undertaken by the Government to provide support and assistance to affected Indian industries, businesses and farmers and local marine product exporters since the tariffs came into effect; and (d) whether the Government has undertaken any steps to raise awareness regarding above steps for helping country's businesses impacted by the tariffs to regain losses and grow new potential market, if so the details thereof? ANSWER वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री (श्री णिणिन प्रसाद) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA) (a) & (b) The Government of India continues to monitor India’s exports and take steps to promote them. (i) Details of India’s export performance in the current fiscal for the period April to November compared to the same period last fiscal years 2023-24 and 2024-25 is as given below: (Values in USD Billion) April-November April- November April- November 2023 2024 2025 Export 278.80 284.60 292.07 Source: DGCIS (ii) Details of India’s export performance in the current fiscal for the period April to November compared to the same period in the fiscal years 2023-24 and 2024-25 for Marine Products is provided below: (Values in USD Billion) 1April-November April- November April- November 2023 2024 2025 Export 5.22 4.95 5.75 Source: DGCIS (iii) The export performance of the state of Andhra Pradesh for merchandise exports to the world is provided below: Andhra Pradesh to World Andhra Pradesh to World (Values in 2023-24 2024-25 USD Million ) Export from 19759.86 20782.81 AP Source: DGCIS (c) and (d) The Government remains engaged with all stakeholders to assess the evolving impact of the U.S. tariff measures and raise awareness of the Government’s mitigation steps. The Government continues to work to mitigate the impact of the US tariff measures on Indian exports through a comprehensive multi- pronged strategy encompassing intensive engagement with the US Government for a mutually beneficial India-US Bilateral Trade Agreement, immediate relief through Trade relief measures of RBI, Credit Guarantee Scheme for Exporters, enhancement of domestic demand through next generation GST reforms, Export Promotion measures such as the new Export Promotion Mission which provide support and assistance to our exporters, pursuing FTAs with new countries and better utilization of existing FTA. It is expected that collectively these measures will enhance diversification and resilience in India’s marine exports. Details of some of the aforementioned measures are as follows: 1. Export Promotion Mission (EPM) The Mission will provide a comprehensive, flexible, and digitally driven framework for export promotion, with a total outlay of Rs.25,060 crore for FY 2025–26 to FY 2030– 31. EPM marks a strategic shift from multiple fragmented schemes to a single, outcome- based, and adaptive mechanism that can respond swiftly to global trade challenges and evolving exporter needs. The Mission will operate through two integrated sub-schemes: i. NIRYAT PROTSAHAN – focuses on improving access to affordable trade finance for MSMEs through a range of instruments such as interest subvention, export factoring, collateral guarantees, credit cards for e- commerce exporters, and credit enhancement support for diversification into new markets. ii. NIRYAT DISHA – focuses on non-financial enablers that enhance market readiness and competitiveness, including export quality and compliance support, assistance for international branding, packaging, and participation in trade fairs, export warehousing and logistics, inland transport reimbursements, and trade intelligence and capacity-building initiatives. The Mission is designed to directly address structural challenges that constrain Indian exports, including:  limited and expensive trade finance access,  high cost of compliance with international export standards,  inadequate export branding and fragmented market access, and  logistical disadvantages for exporters in interior and low-export-intensity regions. 2Under EPM, priority support will be extended to sectors impacted by recent global tariff escalations, such as textiles, leather, gems & jewellery, engineering goods, and marine products. The interventions will help sustain export orders, protect jobs, and support diversification into new geographies. 2. Credit Guarantee Scheme for Exporters has also been approved to provide 100% credit guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs) for extending additional collateral free credit facilities up to Rs.20,000 crore to eligible exporters, including MSMEs. The Scheme is expected to enhance the global competitiveness of Indian exporters and support diversification into new and emerging markets. Enabling collateral-free credit access will strengthen liquidity, ensure smooth business operations, and reinforce India’s progress towards achieving the USD 1 trillion export target. 3. Trade Relief Measures :-The Reserve Bank of India (RBI) has also initiated trade relief measures for eligible affected exporters including provision for debt repayment moratorium and extension of tenor for export credit. 4. Leveraging Free Trade Agreements:- The Government aims for promotion of Export Diversification and has signed 15 Free Trade Agreements (FTAs) and 6 Preferential Trade Agreements (PTAs) with its trading partners. Government is working with all stakeholders to enable our exporters to better utilize the benefits of India’s FTAs with major markets such as Japan, Korea, UAE etc. and effectively utilize the opportunities that have been created with the recent concluded FTAs such as with the EFTA countries and the UK. The Government is also engaged in negotiations for early conclusion of mutually beneficial FTAs with the EU, Peru, Chile, New Zealand, Oman etc. 5. Diversification Measures: Through consistent efforts, the number of listed fishery establishments for export to the EU and Russia have increased recently. As per data from the Department of Fisheries, through the Pradhan Mantri Matsya Sampada Yojana, projects with a total outlay of Rs. 21274.13 crore have been approved for the development of fisheries and aquaculture in the country. This has contributed to India’s exports in the sector more than doubling from Rs. 30,213 crore in 2013-14 to Rs. 62,408 crore in 2024-25, with the share of value added products rising from 2% to 11%. The Government remains engaged with all stakeholders—including exporters, Export Promotion Councils (EPCs), industry associations, and state governments— to assess the evolving impact of the U.S. tariff measures. ***** 3

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