A delegation from the Federation of Indian Export Organisations (FIEO), led by President S C Ralhan and including Vice President Ravikant Kapur, Director General & CEO Ajay Sahai, Director Israr Ahmed of Farida Group, and Pankaj Chadha, Chairman of EEPC, met Finance Minister Nirmala Sitharaman on Thursday.
The delegation briefed the finance minister on the challenges confronting Indian exporters in the wake of the recent surge in US-imposed tariffs.
Ralhan emphasised the immediate concerns of the exporting community, highlighting how higher tariffs are affecting market access, competitiveness, and employment. He called for prompt and focused policy measures to alleviate the pressure on exporters, who play a crucial role in driving India’s economic growth and generating jobs.
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Centre reaffirms commitment to exporters
Finance Minister Sitharaman reassured the delegation that the central government is fully committed to supporting Indian exporters during this challenging period. She emphasised that all possible measures would be explored to protect the interests of the exporting community.
Sitharaman also highlighted the importance of safeguarding workers’ livelihoods and urged industry leaders to reassure employees about job continuity amid global uncertainties. She affirmed that the government would extend comprehensive support to sustain growth momentum and strengthen India’s trade resilience.
Exporters welcome govt’s support
Expressing gratitude, S C Ralhan said: “The finance minister’s reassurance has come as a great source of confidence for the exporting fraternity. Her commitment that the government will stand shoulder-to-shoulder with exporters demonstrates the priority being accorded to safeguarding India’s trade interests and employment.”
FIEO reaffirmed its commitment to collaborate closely with the government to tackle current challenges, diversify export markets, and further consolidate India’s position in global trade.
US’s 50% tariff blow to Indian goods
The US President Donald Trump’s administration doubled tariffs on imports from India to as much as 50 per cent, effective Wednesday, straining ties between the two strategic partners. A 25 per cent tariff, imposed in response to New Delhi’s purchases of Russian oil, was added to the previous 25 per cent levy, impacting products like garments, gems and jewellery, footwear, sporting goods, furniture, and chemicals. These are among the highest US tariffs globally, on par with Brazil and China.
The steep duties have raised concerns that exports in textiles, gems and jewellery, and mechanical appliances may be hit hardest, potentially slowing India’s economic growth by up to 1 per cent. Notably, key sectors such as pharma, semiconductors, electronics, and IT remain exempt.
Meanwhile, the central government is actively working to mitigate the impact of the tariffs. Measures include stimulating domestic demand through proposed GST rate cuts and diversifying export markets to offset the adverse effects of the US tariffs.