With tariff no longer just an empty threat and businesses finally coming to the bitter realisation that they'll have to live with it, exporters are mobilising to present a comprehensive wish list aimed at securing vital support from the government and the Reserve Bank of India (RBI), The Times of India reported on August 27.
Indian industry's tariff-era wish list includes measures such as relaxation of loan repayment terms, government-backed loans, interest subsidies, and support for employees’ provident funds and the Employees' State Insurance Corporation (ESIC), ToI's report (by Sidhartha) said.
Kirit Bhansali, chairman of the Gems & Jewellery Export Promotion Council, recently underscored the seriousness of the situation, saying, "This is an earthquake which will impact the workforce. Relief must be given to the industry."
Following a meeting with the RBI, Bhansali highlighted the potential for delayed payments, prompting a plea for banks to ease the burden of loan repayments.
The Federation of Indian Export Organisations (FIEO) is advocating for a one-year moratorium on both principal and interest payments. This measure, they argue, would enable exporters to allocate resources more effectively towards diversifying markets and managing cash flows during a time of dwindling orders and extended payment cycles.
FIEO president SC Ralhan expressed concern over the impending crisis facing the industry, stating, "We are staring at a crisis which will force shutdowns and cause unemployment."
Moreover, Ralhan drew attention to the government’s suggestion for exporters to shift their focus to the domestic market, questioning how this could be feasible when many goods were originally intended for export to the US.
The Apparel Export Promotion Council (AEPC) is also voicing its concerns, calling upon multiple government agencies, including finance, textiles, commerce, labour, and environment ministries, for assistance.
They have pointed to the disparity in interest rates, with Indian rates ranging between 8% to 12%, compared to just 3% in countries like China and Malaysia.
As a solution, AEPC is urging the revival of the interest subvention scheme and the reintroduction of pre-shipment rupee export credit for a period of five years.
Their demands extend to a reduction in the corporate tax rate to 15% for new companies, support for the expansion of garment manufacturing through a Textile Upgradation Fund Scheme, and the establishment of warehouses for storing inventory overseas.
Additionally, AEPC has proposed that the government cover the employers' share of PF and ESIC contributions for workers in the apparel sector from August 2025 to March 2026.
Both AEPC and FIEO are also advocating for training and skilling initiatives for workers in export units to enhance workforce capabilities in this challenging economic climate.
While the RBI has indicated that it is considering forbearance options, the government appears reluctant to provide significant fiscal support in the immediate term. Officials are exploring alternative avenues for assistance, including potential collaboration with domestic retailers and overseas buyers.
The Centre believes that policy reforms, such as a reduction in Goods and Services Tax (GST), may help stimulate domestic demand and bolster Indian enterprises facing the repercussions of the US tariffs.
Indian industry's tariff-era wish list includes measures such as relaxation of loan repayment terms, government-backed loans, interest subsidies, and support for employees’ provident funds and the Employees' State Insurance Corporation (ESIC), ToI's report (by Sidhartha) said.
Kirit Bhansali, chairman of the Gems & Jewellery Export Promotion Council, recently underscored the seriousness of the situation, saying, "This is an earthquake which will impact the workforce. Relief must be given to the industry."
Following a meeting with the RBI, Bhansali highlighted the potential for delayed payments, prompting a plea for banks to ease the burden of loan repayments.
The Federation of Indian Export Organisations (FIEO) is advocating for a one-year moratorium on both principal and interest payments. This measure, they argue, would enable exporters to allocate resources more effectively towards diversifying markets and managing cash flows during a time of dwindling orders and extended payment cycles.
FIEO president SC Ralhan expressed concern over the impending crisis facing the industry, stating, "We are staring at a crisis which will force shutdowns and cause unemployment."
Moreover, Ralhan drew attention to the government’s suggestion for exporters to shift their focus to the domestic market, questioning how this could be feasible when many goods were originally intended for export to the US.
The Apparel Export Promotion Council (AEPC) is also voicing its concerns, calling upon multiple government agencies, including finance, textiles, commerce, labour, and environment ministries, for assistance.
They have pointed to the disparity in interest rates, with Indian rates ranging between 8% to 12%, compared to just 3% in countries like China and Malaysia.
As a solution, AEPC is urging the revival of the interest subvention scheme and the reintroduction of pre-shipment rupee export credit for a period of five years.
Their demands extend to a reduction in the corporate tax rate to 15% for new companies, support for the expansion of garment manufacturing through a Textile Upgradation Fund Scheme, and the establishment of warehouses for storing inventory overseas.
Additionally, AEPC has proposed that the government cover the employers' share of PF and ESIC contributions for workers in the apparel sector from August 2025 to March 2026.
Both AEPC and FIEO are also advocating for training and skilling initiatives for workers in export units to enhance workforce capabilities in this challenging economic climate.
While the RBI has indicated that it is considering forbearance options, the government appears reluctant to provide significant fiscal support in the immediate term. Officials are exploring alternative avenues for assistance, including potential collaboration with domestic retailers and overseas buyers.
The Centre believes that policy reforms, such as a reduction in Goods and Services Tax (GST), may help stimulate domestic demand and bolster Indian enterprises facing the repercussions of the US tariffs.
