India approves $5 billion in aid for exporters amid US tariffs

India has announced aid measures worth more than $5 billion for its exporters affected by high US tariffs, Bloomberg reports, citing a government statement.

The Indian federal government has approved unsecured loans worth 200 billion rupees ($2.3 billion). Another 250.6 billion will be allocated over the next six years as part of a program aimed at improving access to trade finance, simplifying compliance, and logistics.

According to the statement, this move will boost liquidity, ensure business continuity, and strengthen India’s progress toward its $1 trillion export target.

In August, the US doubled tariffs on Indian goods due to the purchase of Russian oil, bringing the total rate for the country to 50%. American tariffs have hit the country’s labor-intensive sectors, such as the textile industry, the hardest. According to official data, Indian exports to the US fell by almost 12% year-on-year in September.

At the same time, Donald Trump said on November 10 that the United States is close to reaching an agreement with India. It is intended to expand economic and security ties between the two countries, increase US energy exports, and promote investment in key US sectors.

In September this year, the South Korean government promised to introduce a new export guarantee program for the steel industry in response to US tariffs. As reported, the government, steel producers, financial institutions, and lenders will work together to create a guaranteed scheme to strengthen the metallurgical supply chain. The measure is expected to provide financial support of approximately 400 billion won ($290 million).