Amid an escalating tariff war, the U.S. imposed 50% duties on a broad range of Indian exports, prompting New Delhi to “fight back” with defense procurement freezes and diplomatic protests. Exporters, particularly in textiles and jewellery, could see growth dented by up to 60 basis points due to reduced competitiveness, according to analysts.
To counteract the pressure, the Indian government is rolling out ₹4,000 crore in credit guarantees aimed at small firms and exporters affected by U.S. duties. Additional support includes term loans with 70–75% government-backed guarantees. This lifeline is designed to soften the blow until trade diversifications take hold.
