US tariffs on Indian goods: Exporters seek government, RBI help
Indian exporters, especially those relying on the US market, are urging the RBI and government to step in after new US tariffs made business tougher.
Sectors like engineering, which send about $20 billion worth of goods to the US each year, are feeling the pinch.
Exporters want the Interest Equalisation Scheme (IES)—which ended in 2024—brought back to make loans cheaper.
Exporters want 1-year break on loan repayments
Exporters are also asking for longer credit periods and lower interest rates to get through this tough patch.
MSMEs say strict collateral rules and the credit rating system used by banks are making it harder and more expensive to access finance.
Ajay Sahai from the Federation of Indian Export Organizations is encouraging banks and rating agencies to show some flexibility so these businesses can survive.
Sectors like home textiles and carpets, with up to 60% sales in the US, are hoping for a one-year break on loan repayments to weather these challenges.