Union Cabinet likely to approve financial package for MSMEs hit by US tariffs

In a move aimed at shielding micro, small and medium enterprises (MSMEs) from the impact of steep US tariffs, the Union Cabinet is expected to clear a financial-support package for them.

According to sources, the Cabinet—which is meeting on Wednesday—may also give its clearance to a credit facility that includes a loan guarantee scheme backed by the Centre.

Key sectors affected by the 50 per cent US tariffs include textiles, apparel, gems and jewellery, leather and footwear, and chemicals.

Last week, a delegation of exporters led by the Federation of Indian Export Organisations (FIEO) met Finance Minister Nirmala Sitharaman, highlighting the severe implications of the US tariff hike on MSMEs.