New Delhi : Indian exporters are set to meet RBI Governor Sanjay Malhotra next week to seek RBI loan support, including easier repayment terms and waiver of penal interest, following the recent US tariff hike that has made Indian goods less competitive globally.
The exporters are expected to request a 12-month moratorium on credit repayment and a relaxed NPA classification on export loans of up to 180 days. They are also likely to propose a sovereign guarantee scheme to facilitate diversification into alternative markets. The Trump administration’s tariff hike imposes a 25% punitive duty on top of the existing 25% base customs duty for Indian goods tied to Russian oil purchases, resulting in a 50% combined tariff.
These tariffs severely impact labor-intensive sectors such as textiles, leather, and footwear, where India competes with countries like Vietnam and Bangladesh. Exporters fear significant market losses could lead to job cuts, affecting thousands of workers across these industries.
At an annual banking conference last month, RBI Governor Sanjay Malhotra assured that the central bank is ready to take appropriate measures to support the economy and stressed the need to seize opportunities despite global uncertainties. “We are at a critical juncture in navigating trade challenges and must step up efforts to protect growth while exploring new avenues,” he said.
He also expressed optimism about ongoing negotiations, stating, “We are hopeful that discussions on tariffs will progress positively and the impact on India’s economic growth will be minimal.”
The upcoming meeting with the RBI is expected to provide exporters with guidance on financial relief measures, including credit flexibility and policy support, helping India’s export sector mitigate the effects of escalating global trade tensions and maintain competitiveness.
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