Cabinet approves $5.1 bn package for exporters to mitigate US tariffs

India’s cabinet has approved spending 450.6 billion rupees ($5.1 billion) on support for exporters, including 200 billion rupees in credit guarantees on bank loans. The plan involves allocating 250.6 billion rupees over six years for affordable trade finance for small exporters, logistics, and market support under an export promotion package to help offset the impact of recent US tariff hikes. The plan includes a 200-billion-rupee credit guarantee programme running until March 2026 for collateral-free bank loans to exporters to boost their competitiveness and help explore new markets. It would provide credit guarantees on loans of up to 500 million rupees. Nearly 55% of India’s exports to the US, worth about $48 billion, faced a cost disadvantage against rivals from Vietnam, China and Bangladesh, as per a report.

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