NextFin news, New Delhi – On Tuesday, India’s Finance Minister Nirmala Sitharaman announced that the government is preparing a comprehensive economic package to support Indian exporters facing the impact of steep US tariffs. The announcement was made in New Delhi amid growing concerns over the 50% import duties imposed by the United States on various Indian exports.
The US tariffs, which reached 50% following an additional 25% duty implemented on August 27, 2025, primarily affect sectors such as textiles, garments, jewelry, shrimp, leather products, chemicals, and machinery. These tariffs were introduced in response to India’s continued oil imports from Russia and longstanding trade disputes.
Finance Minister Sitharaman told the Press Trust of India (PTI) that the government is conducting a multi-ministry assessment to evaluate the full impact of these tariffs on affected industries. She emphasized that ministries are actively engaging with exporters to understand the challenges posed by the tariffs and to formulate appropriate support measures.
India’s exports to the US accounted for approximately 20% of the country’s total exports in the 2024-25 fiscal year, making the US India’s largest trading partner since 2021-22. The total bilateral trade between the two countries stood at around USD 131.8 billion, with exports valued at USD 86.5 billion.
In addition to the relief package for exporters, Sitharaman highlighted ongoing reforms in the Goods and Services Tax (GST) system aimed at reducing tax slabs from four to two, effective September 22, 2025. This reform is expected to lower prices on nearly 400 products, including essential goods, thereby easing the cost of living for Indian consumers.
The Finance Minister stated she is personally monitoring the implementation of GST reforms to ensure that the benefits are passed on to consumers. She noted that sectors such as automobile manufacturing, insurance, and fashion have already announced price reductions in anticipation of the new GST rates.
The government’s dual approach of providing targeted support to exporters affected by US tariffs and implementing GST reforms reflects its efforts to mitigate external trade challenges while boosting domestic economic consumption.
These developments were reported by Mathrubhumi and corroborated by additional sources including the Free Press Journal and Organiser Weekly on Monday and Tuesday, September 8 and 9, 2025.
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