The Indian export sector is facing one of its toughest challenges in recent times. With 50% US tariffs (a 25% base duty plus a 25% punitive tariff) applied to key Indian goods, competitiveness in global markets has declined drastically. This move, in response to India’s continued purchase of Russian oil, is affecting exports worth billions of dollars and endangering jobs in important industries.

On September 11, 2025, leading Indian exporters are scheduled to meet with the RBI Governor to request immediate relief measures, including loan moratoriums, NPA relaxations, and policy support, to mitigate the fallout.

Background on US Tariffs and Their Impact

The tariffs, enacted by US authorities, create a 30% price disadvantage for Indian products compared to competitors such as Vietnam, South Korea, and Bangladesh. The Indian government estimates $48.2 billion worth of exports could be affected.

Key affected industries include:

Textiles and Apparel – facing steep competition and potential market share loss.

Footwear and Leather Goods – hit by punitive duties, leading to cancelled orders.

Gems and Jewelry –declining demand and rising prices pose a challenge to profit margins.

Exemptions exist for pharmaceuticals and electronics, but the overall strain has resulted in 30% revenue dips for exporters, with warnings of widespread job losses if urgent relief is not provided.

Nirmala Sitharaman, the finance minister, has pledged specific relief packages and acknowledged the gravity of the situation.

Details of the September 11 Meeting

The meeting with the RBI Governor is being arranged by the Federation of Indian Export Organisations (FIEO) to discuss:

Liquidity crunch

Credit difficulties

Immediate financial safeguards

The agenda reflects the urgency of the situation, as exporters navigate a strategic shock to trade dynamics caused by US tariffs.

Key Demands from Indian Exporters

Exporters are looking for a framework of all-encompassing support:

1. Loan Repayment Moratorium – 12-month deferment on credit repayments.

2. Relaxed NPA Classification – for export loans up to Rs 10 crore.

3. Penal Interest Waivers – to reduce additional financial burden.

4. Sovereign Guarantee Scheme – enabling access to new markets and diversification.

5. Currency Adjustments – targeting a weaker rupee for competitiveness (REER 103).

These measures are seen as critical to prevent a deeper crisis and ensure survival in global markets.

Government and RBI’s Potential Response

The Indian government has signaled proactive intervention, while the RBI’s role will be crucial in implementing monetary tools such as:

Liquidity infusion

Export credit support

Targeted policy adjustments

Experts anticipate short-term relief alongside long-term strategies to build resilience against future trade shocks.

Why This Meeting Matters

The Sept 11 meeting is not just a formal discussion—it could:

Determine immediate relief measures for exporters

Influence India’s trade policy and RBI interventions

Protect jobs and maintain India’s export growth trajectory

Without timely action, small and medium exporters risk defaults, declining revenues, and job losses.

The Bigger Picture: India’s Export Challenges

The crisis highlights structural challenges in India’s trade ecosystem:

Heavy dependence on the US market

Slow diversification into alternative markets

Vulnerability to global tariff shocks

The outcome of this meeting could shape India’s trade resilience for years to come.

Conclusion

The Sept 11, 2025, meeting between Indian exporters and the RBI Governor is a turning point for India’s export sector. Relief measures such as loan moratoriums, NPA relaxation, currency adjustments, and policy support are critical to prevent a deepening crisis.

IndiaBusiness.com will provide live updates and detailed analysis as this story unfolds, keeping readers informed on the strategies that could safeguard India’s exports, jobs, and economic growth.

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