New Delhi: The Commerce and Industry Ministry is exploring a relief package to help Indian companies cope with the liquidity crunch triggered by steep U.S. tariffs, a senior ministry official said on Thursday.
The move follows Washington’s decision to impose a 50% tariff on Indian goods, which took effect Wednesday, alongside an additional 25% levy on oil. The official indicated that negotiations for a trade deal with the U.S. may only resume after the oil duty issue is resolved.
“Several firms, particularly in textiles, chemicals and other export-oriented sectors that are heavily dependent on the U.S. market, are expected to face immediate cash flow challenges as orders slow down,” the official said. Industry groups have sought measures similar to those announced during the COVID-19 crisis to ease liquidity stress.
The government is considering options to enable businesses to sustain operations without directly offering subsidies. “A relief package can be announced, but the focus is on long-term measures. Unless there is sufficient demand, any package risks falling flat,” the official added.
