Five-yr mission to ease US tariff hit likely soon

The Union cabinet may soon consider a five-year export-promotion mission which will also have the immediate aim of cushioning key sectors hit by the US's 50% tariffs, for which inter-ministerial consultations were concluded recently, three government officials said.

- Zia Haq and Rajeev Jayaswal

The multidimensional programme to boost exports is likely to have both fiscal and non-fiscal measures, including sector-specific strategies, ease of compliance and trade-facilitation measures, the officials added, requesting anonymity.

According to draft proposals reviewed by HT, relief measures to boost outbound shipments, especially of farm and marine products, will include injecting liquidity into small and medium businesses through cheaper credit and subsidised interest rates. Small and medium enterprises account for nearly 46% of exports. To fund the support measures, the government is likely to utilise ₹25,000 crore set aside in this year's Union budget for a plan to boost exports.

The government may "frontload" the mission with measures worth ₹10,000 crore to provide immediate support to exporters hit by tariffs, one of the officials said. Frontloading refers to a strategy of allocating a higher share of funds upfront at the beginning of a programme's implementation.