India Moves to Mitigate Impact of Trump Tariffs, Pushes for Swift US Trade Pact:

India is taking urgent steps to support its exporters and accelerate trade negotiations with the United States, after US President Donald Trump imposed a 26% tariff on imports from India—a move that surprised many and poses a risk to one of Asia’s largest economies.

According to an official from India’s ministry of commerce and industry, virtual meetings will be held this month to push forward a bilateral trade agreement. At the same time, the government has directed exporters to assess potential losses and identify areas where government support might be needed.

Exporter Relief Measures Under Review

The government is reviewing an extension of the Remission of Duties and Taxes on Export Products (RoDTEP) scheme, which is set to expire in September. Introduced in 2021, the initiative refunds various taxes to Indian exporters during production and shipping.

“It would be helpful if the government extends the scheme... Predictability would help exporters plan future contracts,” said Ajay Sahai, Director General of the Federation of Indian Export Organizations (FIEO).

Major Export Sectors Hit Hard

Industry experts warn that key sectors are already feeling the pinch. India’s engineering goods exports—its largest export category to the US—could fall by $4 billion to $5 billion in the first year. This category includes auto parts, power equipment, and industrial machinery.

The gems and jewelry sector, another major contributor to India’s exports, is also bracing for substantial losses.

“In the short run, we anticipate challenges in sustaining India’s current export volume of $10 billion to the US,” the Gem & Jewellery Export Promotion Council (GJEPC) said in a statement, emphasizing that a trade agreement is essential to ensure long-term sector stability.

Trade Talks to Focus on Duty Concessions and Market Access

During this month’s talks, Indian and US officials will negotiate duty relief and market access across sectors. Despite the recent tariff hike, India is continuing to engage diplomatically with the Trump administration to forge stronger trade relations.

The Modi government, which has previously made several trade and immigration-related concessions to Washington, remains committed to a shared vision of growing bilateral trade to $500 billion by 2030, up from $127 billion in 2023.

As India navigates this challenging trade climate, its exporters are hoping that decisive action—both domestic and diplomatic—will help buffer the immediate shock and pave the way for greater predictability and access in the US market.