New Delhi, November 14: India’s central bank, the Reserve Bank of India (RBI), unveiled a set of relief measures on Friday aimed at exporters affected by new U.S. tariffs, designed to ease pressure on India’s trade-facing industries. According to the Reuters report, the stimulus includes moratoriums and extended repayment windows for export loans.
Under the package, exporters whose term loans fall due between September 1 and December 31, 2025 will benefit from a repayment moratorium. Interest on those loans will accrue but only on a simple-interest basis — no compounding — the RBI said.
The bank also permitted firms in 20 listed sectors impacted by the tariffs to repatriate export earnings in 15 months instead of the earlier nine-month timeline. Export loans disbursed until March 31, 2026 will now carry a maximum credit period of 450 days (up from 270), while the duration for goods shipments post advance payment has been extended to three years from one year.
The measures follow Washington’s imposition of tariffs of up to 50% on certain Indian imports— including garments, jewellery, leather and chemicals—after higher duties were triggered by imports of Russian oil, according to U.S. trade data cited by Reuters.
Why It Matters
The move comes at a critical moment for India, where export growth has stalled and U.S. remains the country’s largest merchandise market. The longer export credit periods and repayment moratorium help shore up working-capital pressures for export firms. Analysts say the RBI’s steps signal that India is prepared to provide targeted relief to shield its outward-oriented sectors from global trade shocks.
Outlook & Risks
While the relief package eases short-term liquidity and repayment burdens, the underlying trade friction with the U.S.—and the potential for further tariffs—remains unresolved. Exporters will still face competitive pressures, currency fluctuations and rising global input costs. Monitoring of the approved 20 sectors will be crucial to gauge how quickly firms can translate relief into stable performance.
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