RBI Weighs New Relief for Exporters Hit by US Tariffs
Why in the news
RBI is seeking fresh ways to aid exporters squeezed by US import duties, since earlier relief saw little take-up.
Key facts
- US duties reach up to 50% on certain Indian products, including a 25% component linked to India buying Russian oil.
- Hit sectors: garments, jewellery, leather goods, chemicals.
Earlier relief and why it fell short
| Aspect | Detail |
|---|---|
| Measure (November) | Exporters with US exposure could defer term-loan repayments |
| Period covered | Instalments due between September and December |
| Condition | Banks wanted proof of revenue loss |
| Result | Fewer than 20% of eligible exporters applied |
Options under study
- Looser eligibility conditions for the moratorium.
- Fresh loans at subsidised interest rates.
- Bankers’ view: direct cash subsidies could work better, helping firms absorb losses and thinner margins.
Exam angle
- Relief type: term-loan repayment moratorium; uptake below 20%.