New Delhi, August 6, 2025 — In response to former U.S. President Donald Trump’s aggressive stance on trade with India, the Indian government has announced a ₹20,000 crore Export Promotion Mission aimed at shielding its economy and exporters from the expected impact of new tariffs.
Trump has labeled India as “not a good trading partner” and hinted at steep tariff hikes, citing trade imbalances and national security concerns. The move could significantly affect India’s $78 billion annual exports to the U.S., particularly in sectors like textiles, gems & jewelry, seafood, spices, auto components, and electronics — all heavily reliant on American markets.
To counter this, the Indian government’s multi-ministerial initiative will focus on providing targeted relief to affected exporters. In Phase 1, ₹2,250 crore has been allocated to support high-risk sectors such as textiles and seafood. The initiative also plans to diversify export destinations by boosting trade with ASEAN nations, the Middle East, Africa, and Latin America.
The mission includes credit and regulatory support, digital infrastructure through a unified export portal, and promotion of “Brand India” via global campaigns and trade fairs. The government aims to remain WTO-compliant by avoiding direct subsidies and instead focusing on capacity building, quality upgrades, and indirect incentives.
The move is both a proactive and strategic step toward making the Indian economy more resilient and less dependent on the U.S. market. As the global trade environment becomes increasingly protectionist, India’s long-term export vision could offer its MSMEs the support needed to thrive internationally.
Whether this plan will neutralize the U.S. tariff shock remains to be seen, but it marks a significant shift in India’s trade and economic strategy.