The Indian government is planning a significant ₹25,000 crore Export Promotion Mission aimed at boosting the country’s exports and cushioning the impact of recently increased tariffs imposed by the United States. These tariffs, which have raised duties on Indian goods to as high as 50%, threaten to disrupt India’s export growth and affect sectors including textiles, chemicals, leather, footwear, and marine products that heavily depend on the US market.

This export support mission spans a proposed six-year period and is currently awaiting approval from the Finance Ministry and the Union Cabinet. The initiative is being jointly driven by the ministries of Commerce and Industry, Micro, Small and Medium Enterprises (MSME), and Finance. It is designed to be compliant with World Trade Organization (WTO) rules and focuses on easing market access for exporters through various schemes.

Key components of the mission will include trade finance support such as easy, collateral-free loans and credit schemes tailored especially for MSMEs and e-commerce exporters. The plan also involves developing overseas warehousing facilities, which help Indian exporters store and distribute their products more efficiently in foreign markets. Another important aspect is enhancing global branding efforts to elevate "Brand India" on the international stage, akin to the success stories of countries such as Japan and South Korea.

India’s approach to mitigating the tariff impact involves a strategic diversification of export markets. The government is targeting about 50 countries, including emerging markets in West Asia and Africa, to reduce dependence on any single market and manage risks better. This product-by-product and country-specific review is meant to identify competitive advantages and explore new opportunities beyond the US. For example, exports to the US had grown over 20% during April-May 2025 despite prior trade uncertainties, showing resilience fueled by steady government efforts.

The backdrop to these measures is the steep tariff hikes imposed by the US administration, which doubled tariffs from 25% to 50% on numerous Indian goods citing geopolitical reasons related to India's energy purchases. These tariffs affect nearly half of India’s US-bound exports worth over $85 billion annually, creating a need for robust countermeasures to sustain the sector’s growth and protect economic interests.

Experts and export bodies have welcomed the government’s plan, emphasizing the importance of such a large financial commitment to shield exporters. The Export Promotion Mission is expected to not only support foreign trade but also stimulate domestic manufacturing and employment, particularly in MSMEs, which play a vital role in India’s economy.

While the tariffs pose a challenge, the overall outlook for India’s export sector remains cautiously optimistic due to the government's proactive stance on reforms, digital trade facilitation, and strategic market expansion. This approach aims to ensure that export growth continues alongside domestic economic priorities, without sacrificing one for the other.

In summary, the ₹25,000 crore Export Promotion Mission reflects a comprehensive government effort to soften the blow from US tariffs by providing financial aid, expanding market access, enhancing branding, and diversifying trade partnerships. Such a balanced and forward-looking strategy aims to maintain India’s export momentum in a challenging global environment, benefiting a broad range of stakeholders including MSMEs, large exporters, and the overall economy.

With inputs from agencies

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