Finance Ministry to Review Impact of U.S. Tariffs on MSME Sector

New Delhi, Oct 13 (KNN) The Ministry of Finance is set to hold a crucial meeting on Monday to assess the impact of new U.S. tariffs on India’s micro, small, and medium enterprises (MSMEs).

The meeting, chaired by Department of Financial Services (DFS) Secretary M. Nagaraju, will involve senior officials fr0m public sector banks and aim to evaluate the challenges faced by exporters and small businesses.

The review comes after the United States imposed an additional 50% tariff on select imports fr0m India, which could significantly affect the country’s export-driven MSME sector.

India’s MSMEs contribute over 45% of the nation’s total exports, making them a vital component of the economy and a key source of employment.

According to officials, the ministry will examine the ripple effects of the tariff increase, including disruptions in supply chains, delays in payments, and challenges in accessing credit.

The discussion will also cover the performance of ongoing credit schemes such as the Pradhan Mantri MUDRA Yojana and Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), assessing whether these programs need to be expanded or modified to support affected firms.

The government aims to ensure continued liquidity for small businesses and may consider targeted relief measures, including extended credit guarantees or concessional loans.

The meeting underscores the Centre’s proactive approach in safeguarding the MSME sector amid changing global trade dynamics.

Officials noted that insights fr0m the session could shape future policy interventions to protect exporters and strengthen India’s trade resilience against external shocks.

(KNN Bureau)