The relief measures worth more than $5 billion announced by the Indian government late Wednesday will help Indian exporters badly hit by tariffs imposed by the United States with which it continues to negotiate a trade deal while seeking alternative markets, insiders said.

The support, approved by the federal Cabinet chaired by Prime Minister Narendra Modi on Wednesday, comes by way of collateral-free loans worth $2.3 billion as well as disbursal of $2.82 billion over the six years through a specific program – Export Promotion Mission (EPM) – with the aim to strengthen India's export ecosystem.

The EPM would help boost India’s export competitiveness, particularly for micro, small and medium enterprises, first-time exporters, and labor-intensive sectors, India’s information and broadcasting minister Ashwini Vaishnaw announced after the cabinet meeting.

The latest move marks a strategic shift from multiple fragmented schemes to a single, outcome-based, and adaptive mechanism that can respond swiftly to global trade challenges and evolving exporter needs, the minister said.

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“Ensuring ‘Made in India’ resonates even louder in the world market! The Union Cabinet approved the Export Promotion Mission (EPM), which will improve export competitiveness, help MSMEs, first-time exporters and sectors that are labor-intensive. It brings together key stakeholders to build a mechanism that is outcome based and effective,” Modi said in a post on the X social media platform later Wednesday.

“By enabling collateral-free credit access under CGSE, it will strengthen liquidity, ensure smooth business operations, and reinforce India’s progress towards achieving the $1 trillion export target. This will further reinforce India’s journey towards Aatmanirbhar Bharat (self-reliant India),” an Indian government statement issued Wednesday evening reads. CGSE refers to Credit Guarantee Scheme for Exporters.

Indian exporters have been seeking relief since Washington imposed a total tariff of 50 percent on Indian exports, including a 25 percent punitive levy over New Delhi's purchase of Russian oil, that pushed up duties to as high as 50 percent on items such as garments, jewelry, leather goods and chemicals. India’s labor-intensive textiles, leather, sea fish, footwear, and gems and jewelry industries have been hit the hardest.

Exports and trade organizations and Indian experts hailed the move, saying it will provide much-needed relief to Indian exporters.  

The Federation of Indian Export Organisations president SC Ralhan said: “It reflects a pragmatic and forward-looking vision for India’s trade sector. By bringing together financial and non-financial interventions under a unified framework, the EPM provides much-needed continuity, flexibility, and responsiveness to global trade dynamics.”

It can be a game changer for India’s export ecosystem, Ralhan added.

“A much-needed measure that will ensure textile and apparel sector to become globally competitive, better placed to leverage the opportunities, diversify into newer markets, and be able to create more and better quality jobs for our young people,” The Confederation of Indian Textile Industry Chairman Shri Ashwin Chandran said.

India’s textile and apparel exports to the US stood at nearly $11 billion in 2024-25. According to CITI’s analysis, in September 2025, textile exports slid 10.45 percent over the previous year, while apparel exports declined 10.14 percent during the same period.

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A timely intervention by the Indian government to support MSMEs sail through the unjustified tariffs by the US, said Rajeev Singh, director general of Indian Chamber of Commerce. This will help Indian export to remain competitive while this move will support a large number of employees, workers, suppliers, others associated with these MSMEs, said Singh.

India’s exports to the US have witnessed a sharp and sustained fall, plunging 37.5 percent between May and September 2025, following steep tariff hikes imposed by the US, according to an analysis by Global Trade Research Initiative, a New Delhi-based think-tank.

The move came at a most appropriate time as Indian sea fish industry was going through its most difficult phase, Pawan Kumar G, president of Seafood Exporters' Association of India said. He said this will help sea fish exporters find new markets, alternative markets, to increase export and turnover and also encourage farmers.

US is the single-largest market for Indian seafood exports. In fiscal year of 2024–25, India exported 342,534 tons of marine products to the US, with exports to the US valued at $2.71 billion, according to Indian government data.

EPM is a welcome step, but its success will depend on quickly issuing detailed guidelines, ensuring adequate funding, and building strong coordination mechanisms, Global Trade Research Initiative founder Ajay Srivastava said.

Bank of Baroda chief economist Madan Sabnavis described the government move as very useful and timely. Kirit Bhansali, chairman of Gem & Jewellery Export Promotion Council, said the announcement will boost Indian exports and help exporters tide over the tariff turbulence.  

On Monday, US president Donald Trump said his administration was working on "a very different deal" with India from those negotiated in the past.

The writer is a freelance journalist for China Daily.