Faced with some of the highest US tariffs in the world, Indian exporters are set to knock on the door of the Reserve Bank of India seeking relief. Industry persons are set to meet with Governor Sanjay Malhotra on Thursday, Sept. 11, seeking easier loan repayment norms and waiver of penal interest, sources told NDTV Profit on Sunday.
The exporters have pushed for a 12-month moratorium on credit repayment and demand a relaxed NPA classification on export loans up to 180 days, sources said. They also want a sovereign guarantee scheme to aid entry into new markets.
The Trump administration has imposed a 25% punitive tariff on India for purchasing Russian oil, on top of a 25% base rate. The 50% tariff is one of the highest in Asia, making Indian goods uncompetitive compared with manufacturing rivals like Vietnam, South Korea and Bangladesh.
The US is India’s biggest export market, and the tariffs are expected to hurt labor-intensive businesses like textiles, footwear, and gems and jewelry the most.
