Government Readies Support Package for MSMEs Facing 50% US Duty

ENA MSME 2025-09-03 15:38:45 New Delhi, Sep 3 (KNN) The Indian government is finalising a package of four targeted relief schemes to support exporters facing the impact of a steep 50% tariff imposed by the United States. The measures are likely to be reviewed by the Union Cabinet this week and will focus on providing liquidity and credit support, especially to micro, small, and medium enterprises (MSMEs) in sectors like textiles, gems, and engineering goods. The schemes are expected to be modeled on COVID-era guarantee programmes, ensuring easier credit access. They may also include initiatives under the Rs 2,250 crore Export Promotion Mission, such as branding, overseas warehousing, e-commerce facilitation, and market diversification support. These steps aim to help exporters remain competitive in global markets despite the high-duty regime. Beyond financial aid, the government is exploring regulatory relaxations to lower compliance and logistics costs. Proposals under consideration include reforms in Special Economic Zone (SEZ) rules and the introduction of an inventory-model for e-commerce exports, which would allow third-party facilitators to handle compliance and shipment processes on behalf of MSMEs. Exporters in the chemicals sector may also benefit from extended timelines, with the export obligation period under the Advance Authorisation Scheme being increased from six months to 18 months. This move would provide greater flexibility to manage overseas orders amid ongoing trade disruptions. The urgency of these measures arises from the significant risks posed by the tariffs, which could impact $48.2 billion worth of Indian exports. By cushioning key sectors, the government aims to safeguard jobs, sustain export volumes, and preserve Indias standing in global trade. (KNN Bureau) 43376 https://knnindia.co.in/news/newsdetails/msme/government-readies-support-package-for-msmes-facing-50-us-duty 2025-09-03 15:38:45 knnindia.co.in Government Readies Support Package for MSMEs Facing 50% US Duty