‘Something being worked out’: Nirmala Sitharaman signals relief for exporters hit by US tariffs; government keeping close watch on rupee

Finance minister Nirmala Sitharaman has said the government is preparing a comprehensive package to support Indian exporters impacted by the steep 50 per cent tariff imposed by the US. She noted that a multi-departmental exercise is underway to assess the effect on shipments.In an interview with PTI, Sitharaman explained that different industries are sharing their inputs with the concerned ministries after the second part of the tariff, an additional 25 per cent, came into force on August 27. “So, we are getting their inputs...something is being worked out to do some hand-holding for those exporters who have been affected by the US tariff of 50 per cent,” she said.She added that ministries are gathering industry-wise assessments.

“Till the time we get that assessment, how can we assume how much the impact is? So every respective ministry is speaking to their stakeholders and asking for an assessment of 'Kitne Tak Apke Upar Iska Asar Padega' (how much will be the impact). We will have to see,” the minister said.The US tariffs, among the highest in the world, include an additional 25 per cent penalty on India for crude oil purchases from Russia. Earlier, the Trump administration had enforced a 25 per cent tariff on Indian goods, citing India’s trade barriers.

According to news agency ANI, labour-intensive sectors such as textiles, gems and jewellery, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical machinery are among those impacted. Pharma, energy and electronics, however, remain outside the ambit of these duties. The US accounted for about 20 per cent of India’s $437.42 billion worth of goods exports in 2024-25.Sitharaman also termed the recent GST overhaul a “people’s reform,” stressing that rationalised tax rates for nearly 400 products – from soaps to cars, tractors, and air conditioners – will reduce household costs and boost consumption. The new slab structure, effective September 22, will replace the earlier 12 per cent and 28 per cent rates with a simplified 5 per cent for common goods and 18 per cent for most others. Essential food items such as bread, milk and paneer will remain tax-free.On the rupee, Sitharaman said the government is “keeping a good watch” on exchange rates. She highlighted that the slide is largely against the US dollar, which has strengthened globally, and not against other currencies. The rupee recently closed at a record low of 88.27 against the greenback.