India’s Relief Measures for Exporters Hit by US Tariff Hike — What It Actually Means

Softlink Global
2 days ago
2 min read

The recent US tariff spike on several Indian products has created immediate pressure on exporters—cash-flow strain, shipment delays, and payment risk.

To absorb the shock, the Government of India and the RBI have rolled out a mix of financial and operational relaxations.

Here is the clean breakdown.

1. What the Government Announced

A six-year export support programme (~₹25,060 crore) split into two parts:

Niryat Protsahan

Financial support: easier trade finance, factoring, credit guarantees, support for MSME exporters, and credit enhancements.

Niryat Disha

Non-financial enabling: market diversification, branding, packaging support, logistics improvements, warehousing, and trade-intelligence programmes.

Priority sectors include textiles, leather, gems & jewellery, engineering goods, and marine products.

2. RBI’s Direct Relief for Exporters

These measures matter because they change the operational timelines inside which exporters work.

Moratorium on export-linked loans

Installments and interest falling due Sept–Dec 2025 can be deferred.

Interest accrues on a simple basis—not compounded.

Export credit tenor extended to 450 days

Gives exporters more time to collect payments without violating loan terms.

Export proceeds realisation extended to 15 months

Earlier 9 months. Useful when US buyers delay payments.

Advance-payment shipment window increased to 3 years

Earlier 1 year. Reduces compliance pressure.

Loan-classification relief

Delays caused by tariff impact won’t automatically push accounts into “stressed”.

3. Practical Impact for Exporters

This is where most readers care:

Fewer compliance breaches: Longer realisation windows reduce the risk of violating FEMA timelines.
Less cash-flow stress: Loan deferrals and extended credit periods help exporters manage working capital.
Breathing space on shipments: Advance-payment exports get more flexibility if goods cannot move quickly.
Reduced risk of banking penalties: Classification relaxations prevent exporters from getting flagged unfairly.