India-US Tariff War / 20,000 crore export mission, this is how India will deal with US tariffs

India-US Tariff War: Tensions in global trade are increasing, and now US President Donald Trump has talked about a huge increase in tariffs on India. Trump claims that India is buying a large amount of oil from Russia, which Russia is using in the war against Ukraine. Recently, the US announced a 25% tariff on Indian goods, and Trump has warned that if this situation continues, more tariffs will be imposed on India. To deal with this challenge, the Indian government has taken steps towards preparing a long-term plan, which aims to protect Indian exporters from the uncertainties of global trade and strengthen "Brand India".

Impact of US tariffs

The announcement of a 25% tariff on Indian goods by the US has raised new challenges for Indian exporters. Trump has objected to India buying oil from Russia, and linked it to global geopolitical tensions. This tariff increase may affect Indian exports, especially in sectors such as textiles, pharmaceuticals, and electronics. Trump has made it clear that if India does not change its policies, more stringent measures can be taken.

India's counter strategy

The Indian government has decided to formulate a comprehensive and long-term strategy to deal with this tariff crisis. According to a recent report by the Economic Times (ET), India is planning to launch a new Export Promotion Mission by September 2025. A budget of Rs 20,000 crore is proposed for this mission, which aims to protect Indian exporters from the uncertainties of global trade and tariff pressures.

Main objectives of Export Promotion Mission

Cheap and easy loans: Under the mission, cheap and easily available loans will be provided to exporters so that they can expand their business. This will particularly benefit small and medium enterprises (MSMEs).

Solution to non-tariff barriers: Special measures will be taken to deal with non-tariff barriers, such as quality standards and regulatory challenges, in foreign markets.

Brand India Identity: On the lines of countries like Japan, Korea and Switzerland, India will establish its products as a strong brand globally. For this, e-commerce hubs will be set up and districts will be converted into export hubs.

Domestic Brand Building: The Commerce Ministry has urged exporters to develop and promote indigenous brands, so that Indian products are recognized in the global market.

Structure and Implementation of the Mission

• This mission will operate in collaboration with the Ministry of Commerce, Ministry of MSME, and Ministry of Finance. According to officials, the scheme will be finalized by August 2025, and will be implemented from September 2025. The following steps will be taken under the scheme:
• E-commerce hubs: Online platforms will be developed to increase the reach of Indian products in global markets.
• Transforming districts into export hubs: Districts will be developed as export hubs to promote exports locally.
• Technical and financial assistance: Technical assistance and financial incentives will be provided to exporters so that they remain globally competitive.

India's position in the global scenario

Despite the challenge of US tariffs, India is set to strengthen its position in global trade. This strategy of promoting Brand India and supporting exporters will not only reduce the impact of US tariffs but also establish India as an important player in the global supply chain.