India’s cabinet has approved 450.6 billion rupees (US$5.1 billion) for its exporters crushed by steep United States tariffs as the nations continue working toward a trade deal.
The federal cabinet approved collateral-free loans worth 200 billion rupees, with another 250.6 billion rupees to be handed out over the next six years through a program to improve access to trade finance, ease compliance and logistics.
India’s Minister for Information and Technology, Ashwini Vaishnaw, said this would provide credit guarantees on loans of up to 500 million rupees.
Indian exporters had been seeking relief since President Donald Trump singled India out for purchasing Russian oil and slammed the country with a 50% tariff.
Labour-intensive industries were hit hardest, according to exporters.
Sectors including textiles, jewellery and seafood, particularly shrimp, which all operate on margins of just 3%-5% saw the biggest impact, causing job losses in industrial hubs in Tamil Nadu and Gujarat.
This made their goods uncompetitive compared to Asian rivals like Vietnam and Bangladesh and caused Indian exports to the U.S. to fall 12% in September to $5.43 billion, with engineering goods shipments down around 10%.
