Government engaged on complete package deal to help exporters hit by U.S. tariffs: Nirmala Sitharaman

“The Union Government is engaged on a complete package deal to help exporters impacted by a steep 50% tariff imposed by the U.S.,” Finance Minister Nirmala Sitharaman has stated, asserting a multi-departmental engagement is underneath solution to assess the impression on Indian shipments.

In an interview with PTI, Ms. Sitharaman stated varied industries are sharing the impression with the departments involved or Ministries because the second half (25%) of the tariff kicked in from August 27, 2025.

“So, we are getting their inputs…something is being worked out to do some hand-holding for those exporters who have been affected by the U.S. tariff of 50%,” she stated.

“Till the time we get that assessment, how can we assume how much the impact is? So every respective Ministry is speaking to their stakeholders and asking for an assessment of ‘Kitne Tak Apke Upar Iska Asar Padega‘ (how much will be the impact). We will have to see,” she stated.

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The tariffs — among the many highest on this planet — embrace a 25% penalty for getting crude oil from Russia. On August 7, the Trump administration enforced a 25% tariff on Indian items, citing India’s persistent oil imports from Russia and long-standing commerce obstacles.

The sectors that are impacted owing to excessive import duties embrace labour-intensive segments reminiscent of textiles/clothes, gems and jewelry, shrimp, leather-based and footwear, animal merchandise, chemical substances, and electrical and mechanical equipment.

Sectors reminiscent of pharma, vitality merchandise and digital items are out of the ambit of those sweeping duties. The U.S. accounted for about 20% of India’s $437.42 billion value of products exports in 2024-25.

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The U.S. has been the most important buying and selling companion of India since 2021-22. In 2024-25, the bilateral commerce in items stood at $131.8 billion ($86.5 billion exports and $45.3 billion imports).

Calling the landmark GST overhaul a ‘folks’s reform’, Ms. Sitharaman stated rationalisation of tax charges for a large swath of merchandise will profit each household, increase consumption, and bolster the financial system.

The Finance Minister stated she’s going to personally monitor passing on of products and companies tax (GST) fee cuts within the type of worth discount, at the same time as among the industries have already introduced worth moderation.

“Within days of the choice, from automotive makers to public sector insurance coverage corporations and shoe and attire manufacturers have already introduced important worth cuts, and the remaining are more likely to comply with go well with by the point new GST charges are applied,” she stated.

GST reforms will increase consumption, financial system: Finance Minister Sitharaman

Nearly 400 merchandise — from soaps to automobiles, shampoos to tractors and air conditioners — will price much less when the rejig of the GST is efficient from the primary day of Navaratri on September 22. Premium paid on particular person well being and life insurance coverage shall be tax-free. A 3rd slab of 40% tax has been earmarked for a small listing of sin items and ultra-luxury gadgets.

“This is a reform which touches the lives of all 140 crore people. There is no individual in this country who is untouched by GST. The poorest of the poor also have something small that they buy, touched by GST,” she stated.

Starting from September 22, the GST slab construction will change — 5% for widespread use items and 18% for all the things else. The present slab of 12% and 28% charges has been achieved away with.

In the revamped GST construction, most every day meals and grocery gadgets will fall underneath the 5% GST slab, with bread, milk and paneer attracting no tax in any respect.

Ms. Sitharaman stated the reform — the only greatest for the reason that 2017 roll-out of the one-nation, one tax regime — has been carried out with a give attention to the widespread man. Every tax on daily-use gadgets has gone by means of a rigorous assessment, and normally, the charges have come down drastically.