US tariff impact: FM Nirmala Sitharaman assures full support to Indian exporters

Finance minister Nirmala Sitharaman on Thursday told a visiting trade delegation that the government will extend comprehensive support to exporters to sustain growth momentum, a day after an extra 50% US tariff on most Indian goods took effect.At the same time, Sitharaman underscored “the importance of protecting workers’ livelihoods, calling upon industry leaders to reassure employees of job continuity even amidst global headwinds,” according to a statement by the Federation of Indian Export Organisations (FIEO).The minister told the FIEO delegation that the government is committed to addressing the exporting community’s concerns and exploring all possible steps to safeguard its interest, according to the statement by the apex exporters’ body. The additional tariff is estimated to impact about 55% of India’s goods exports to the US.Protecting Trade InterestsBoth the countries have kept the communications channel open to resolve the ongoing tariff discord. The US accounted for a fifth of India’s merchandise exports last fiscal. The delegation that met Sitharaman was headed by FIEO president SC Ralhan and comprised its other senior representatives, along with Pankaj Chadha, chairman of the engineering goods exporters' body EEPC India.“The finance minister’s commitment that the government will stand shoulder-to-shoulder with exporters demonstrates the priority being accorded to safeguarding India’s trade interests and employment,” Ralhan said. “FIEO reaffirmed its resolve to work closely with the government to overcome current challenges, diversify export markets and further strengthen India’s position in global trade,” it said in the statement.