Govt Will Help the Sectors Affected by the Reciprocal Tariff, Say Sources

The introduction of reciprocal tariffs on April 2 has kindled mixed reaction from Indian exporters. While some anticipate leveraging India’s newfound competitive edge over rival economies which have been levied higher tariffs than India, others brace for significant headwinds due to the levies. However, a government source has confirmed that the Ministry of Commerce stands ready to support industries that are more vulnerable to the tariff’s impact.

“There has been assurance that the department will engage with the sectors who will be affected, and those affected sectors can be helped,” said a source from the Ministry who was aware of the development.  

Earlier in the day, the Ministry of Commerce announced that it would engage with all stakeholders—including Indian industry and exporters—to gather feedback on the impact of the tariffs and assess the broader implications. The ministry will also explore potential opportunities arising from this shift in US trade policy.

Against this backdrop, an official confirmed that exporters concerned about the tariffs could approach the department, which would evaluate their challenges and extend support where possible.

On April 2, U.S. President Donald Trump unveiled a 27% reciprocal tariff on Indian imports, alongside a 25% levy on automobile imports. While certain sectors, such as apparel and textiles, stand to gain from India’s relative competitive advantage, others face growing uncertainty.

“In agri sector there might be few market diversifications such as for shrimp some business might go to Venezuela or tea to Sri Lanka and Kenya.  In fact, in the long run the NTBs will see more rationalization and Indian companies will be pushed to better efficiencies and quality products,” said Mohit Signla, Chairman, Trade Promotion Council of India (TPCI).  

The negotiations for the Bilateral Trade Talk will continue virtually between India and the USA for the entire month of April, confirmed the source. India is aiming to more than double the bilateral trade to US $500 Billion by 2030.