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New Delhi: In a bid to shield micro, small and medium enterprises (MSMEs) from the fallout of steep tariff hikes imposed by the United States, the Union Cabinet is expected to clear a financial support package on Wednesday.
According to sources, the package may include a credit facility backed by a government loan guarantee scheme, designed to ease working capital pressures on exporters. The move comes after Washington recently imposed 50 per cent tariffs on a range of Indian exports, dealing a blow to key sectors such as textiles, apparel, gems and jewellery, leather and footwear, and chemicals—all heavily dependent on MSME units.
Last week, a delegation led by the Federation of Indian Export Organisations (FIEO) met Finance Minister Nirmala Sitharaman, flagging the severe implications of the tariff hike on India’s MSME exporters, many of whom operate on thin margins and limited liquidity. Officials said the proposed relief measures are intended to protect jobs, sustain export competitiveness, and provide immediate liquidity support to vulnerable enterprises until alternative trade arrangements are in place.
