India approves $5.1 billion package for exporters after US tariffs hit

(Refiles to hole slug points)

By Manoj Kumar

NEW DELHI (Reuters) -India's furniture has approved spending 450.6 cardinal rupees ($5.1 ​billion) connected enactment for exporters, including 200 cardinal rupees successful recognition guarantees ‌on slope loans, Information Minister Ashwini Vaishnaw said connected Wednesday.

The program includes the allocation of 250.6 cardinal rupees ‌over six years for affordable commercialized concern for tiny exporters, logistics and marketplace enactment nether an export promotion bundle to assistance offset the interaction of caller U.S. tariff hikes.

The caller U.S. tariffs, including a 25% punitive levy implicit New Delhi's Russian lipid purchases,⁠ raised duties to arsenic ‌high arsenic 50% connected items specified arsenic garments, jewellery, leather goods and chemicals.

Exporters said labour-intensive sectors specified arsenic textiles, jewellery and ‍seafood, peculiarly shrimp – which each run connected margins of conscionable 3%-5% - person been deed hardest, causing occupation losses successful concern hubs successful Tamil Nadu and Prime Minister ​Narendra Modi’s location authorities of Gujarat.

The program includes a 200-billion-rupee recognition warrant programme moving ‌until March 2026 for collateral-free slope loans to exporters to boost their competitiveness and assistance research caller markets, Vaishnav said.

It would supply recognition guarantees connected loans of up to 500 cardinal rupees, helium said.

Nearly 55% of India's exports to the U.S., worthy astir $48 billion, faced a outgo disadvantage against rivals from Vietnam, China ⁠and Bangladesh, Federation of Indian Export Organisations President ​S.C. Ralhan told the government, portion seeking ​support.

India's merchandise exports to the U.S., its largest market, fell astir 12% year-on-year to $5.43 cardinal successful September,‍ aft the 50%⁠ tariffs took effect successful precocious August, with engineering goods shipments down astir 10%.

On Monday, Trump said Washington was adjacent to a woody with India to ⁠expand economical and information ties, an statement New Delhi hopes could pb to an archetypal chopped successful punitive ‌tariffs.

($1 = 87.8950 Indian rupees)

(Additional repoting by Nikunj Ohri;‌ Editing by Devika Syamnath and Toby Chopra)