Centre will help exporters maintain growth momentum, says Sitharaman

Finance Minister Nirmala Sitharaman on Thursday affirmed that the government would extend comprehensive support to exporters to sustain growth momentum and uphold India’s resilience in international trade in the wake of 50% tariffs imposed by the US.

Sitharaman emphasised the government’s commitment to addressing all concerns of the exporting community and asserted that the government would explore every possible avenue to safeguard their interests.

Sitharaman was meeting a delegation of the Federation of Indian Export Organisations (FIEO). The FIEO delegation led by its president SC Ralhan apprised her of the immediate concerns of the exporting community, particularly the adverse impact of higher tariffs on market access, competitiveness and employment generation. He underscored the need for quick and calibrated policy measures to mitigate the strain on India’s exporters, who have been key drivers of growth and job creation.

The minister also underlined the importance of protecting workers’ livelihoods and called upon industry leaders to reassure employees of job continuity even amidst global headwinds.

The 50 per cent US duties, which came into effect on Wednesday, are projected to impact $48.2 billion worth of Indian exports to the US, potentially shaving 0.4–0.8 per cent off India’s GDP growth in FY26, according to estimates from economists and think tanks like the Global Trade Research Initiative. However, India’s diversified export base and strong macroeconomic fundamentals, including low inflation may help protect the country’s fiscal health.

The US is the largest trading partner of India with the bilateral trade in goods standing at $131.8 billion in 2024-25. India exported goods worth $86.5 billion to the US last year, which accounts for about 20 percent of the country’s $437.42 billion.