NEW DELHI: Amid worries over the impact of US tariffs, finance minister Nirmala Sitharaman on Thursday assured exporters that govt will extend “comprehensive support” and urged them to protect livelihoods amid global headwinds.“FM reassured the delegation that govt stands firmly behind Indian exporters in this hour. She emphasised that govt is committed to addressing all concerns of the exporting community and will explore every possible avenue to safeguard their interests. She also underlined the importance of protecting workers’ livelihoods, calling upon industry leaders to reassure employees of job continuity even amidst global headwinds,” a statement issued by Federation of Indian Export Organisations (Fieo) said after a meeting of exporters with Sitharaman.Her comments come a day after a 50% additional tariff on Indian exports to the US were imposed by the Trump administration, raising fears over shipments getting hit, resulting in adverse impact on the functioning of export units and workers employed in these factories.Exporters have petitioned govt for a set of measures to deal with the crisis, which commerce department officials said is being readied, while stating that the “package” will not be rushed through. Besides, the measures are proposed to be tailored in a way that they are not seen as a subsidy to the industry, which is not allowed under global trade rules.Apart from rolling out the much-awaited Export Promotion Mission – which will offer interest subsidy and assistance to foray into new markets – liquidity issues raised by businesses due to disruption of their shipments to the US will also be addressed, a senior official said.
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As reported first by TOI on Tuesday, the RBI has begun consultations with exporters to address some of their demands, which includes a moratorium of one-two years on loan repayment. The demand for restoring some of the schemes are also being examined, the official said.Officials said that reform initiatives such as amendments to the SEZ law and steps to unshackle businesses from undue regulations are also on the table.“Announcing a package is easy but the rollout and implementation has to be tangible so that we can address the challenges and there is long-term benefit,” the senior official said.Govt sources said that measures such as the proposed reduction in GST will boost domestic demand and help businesses sell more within the country and ensure that worker displacement is minimised.
