RBI Holds Talks with Exporters as US Tariffs Loom
The Reserve Bank of India (RBI) has started consultations with exporters to understand what support they may need as the US prepares to impose steep tariffs on Indian goods. These discussions are expected to continue through the week, with small and medium-sized enterprises flagged as the most at risk.
Tariff Impact on Exports
The US is set to impose an additional 25% duty on Indian imports from August 27, effectively doubling tariff levels to 50%. This increase threatens to hit key export sectors such as textiles, gems, jewelry, and marine products. Analysts estimate that more than half of India’s merchandise exports to the US—worth around $86 billion annually—could face disruptions. Exporters have already rushed shipments to beat the deadline.
Economic Pressures and Currency Concerns
The looming tariffs have also raised concerns about India’s trade deficit and the rupee’s stability. The currency has weakened against the US dollar in recent sessions, reflecting growing market anxiety. To ease the pressure, the RBI is considering steps such as enhanced liquidity support, repo adjustments, and targeted credit lines for affected exporters.
Strategic Outlook
Industry leaders are urging greater trade diversification to reduce dependence on the US market. Experts suggest India will need swift policy action and strategic export planning to maintain growth momentum amid intensifying global trade tensions.
