EEPC Urges Govt Support For MSMEs Hit By US Tariffs

New Delhi, Sep 9 (KNN) The Engineering Export Promotion Council (EEPC) India on Monday called on the central government to extend financial support to micro, small and medium enterprises (MSMEs) affected by the US-imposed tariffs on Indian goods, which came into effect on August 27.

EEPC Chairman Pankaj Chadha recommended interest equalisation schemes to reduce the high cost of capital for MSMEs, which currently face interest rates of around 9 percent or higher, limiting their global competitiveness, according to the Deccan Herald.

He also suggested negotiating free trade agreements with Latin American nations such as Chile, Peru, and Mexico to diversify export markets and mitigate reliance on the US. 

“We need to have some advantage over our competitors. The only way we can have a better advantage with government support is to have an FTA with Chile, Peru, and Mexico. If we can get duty-free access to them, we can derisk a substantial part of the US exports to South America and possibly West and North Africa,” Chadha said.

Highlighting the sudden impact of US tariffs on ratings, he urged rating agencies not to factor in US exposure for this year to prevent widespread downgrades.

Speaking at EEPC India’s platinum jubilee celebrations, President Droupadi Murmu emphasised that global trade challenges should be transformed into opportunities by leveraging India’s capabilities and making the country a global innovation hub.

Commerce and Industry Minister Piyush Goyal noted the growth of India’s engineering exports from USD 10 million in 1955 to USD 116 billion in 2024–25, and urged import-dependent businesses to source domestically. He also stressed that GST rate cuts should benefit end consumers.

(KNN Bureau)