India export plan worth $5bn launched as Modi moves to counter US tariff pressure and boost competitiveness amid global trade tensions
India export plan worth $5 billion has been unveiled by Prime Minister Narendra Modi to boost the country’s global trade competitiveness as it reels under punishing US tariffs linked to its continued purchase of Russian oil.
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Washington has tied issues of war and peace to trade, imposing 50 per cent duties on Indian goods in retaliation for New Delhi’s stance on Russian energy imports.
Announcing the decision on Thursday, Mr Modi said the government had approved a new Export Promotion Mission (EPM) designed to “improve export competitiveness.”
The nearly $3 billion programme, running until 2030–31, will consolidate several existing schemes into a single framework aimed at helping small manufacturers secure cheaper trade finance and meet global quality benchmarks.
A Ministry of Commerce statement said “priority support will be extended to sectors impacted by recent global tariff escalations,” emphasising that the mission seeks to “directly address structural challenges that constrain Indian exports.”
Information Minister Ashwini Vaishnaw separately announced a $2.3 billion credit guarantee scheme for exporters, calling it vital in the “current global environment where the policies of some countries are causing hardship to others.”
The initiative will target labour-intensive sectors such as textiles, leather, gems and jewellery, engineering, and marine products, with hopes of cushioning the impact of trade restrictions and enhancing market access.
India’s economy, now the world’s fifth largest, grew at its fastest pace in five quarters during the three months ending June 30, buoyed by higher public spending and rising consumer confidence.
Yet, analysts warn that sustained US tariffs could shave up to 80 basis points off GDP growth this fiscal year if relief is not secured soon.
Despite the tensions, New Delhi and Washington continue to engage in delicate trade negotiations, with disagreements persisting over agricultural imports and US claims that India’s Russian oil purchases undermine sanctions linked to the war in Ukraine.
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For now, the India export plan represents a bold attempt to shield the country’s trade sector from geopolitical headwinds — and reaffirm its ambition to remain a competitive global exporter.
