New Delhi: The tariffs imposed by former U.S. President Donald Trump on India have adversely affected the country’s Micro, Small, and Medium Enterprises (MSME) sector. In response, the Modi government is preparing to introduce several measures to mitigate this impact. The plan includes targeted support for small and medium businesses in sectors such as textiles, apparel, and carpets.
In addition to a credit guarantee scheme, several other initiatives are expected to be implemented for sectors affected by the Trump tariffs. According to reports, the government is likely to roll out four to five key steps to assist those MSMEs that have been hit the hardest. Rising non-performing assets (NPAs) and unemployment in these industries have become major concerns, prompting the Centre to take timely action.
The U.S. administration has imposed tariffs of up to 50 percent on Indian exports from industries such as textiles, garments, carpets, gems, jewelry, and seafood. Earlier, the Ministry of Finance had announced that MSMEs impacted by these tariffs would receive support through a new credit assistance scheme, which may be launched soon. The objective of the Modi government’s measures is to help exporters minimize losses arising from reduced competitiveness in the U.S. market, while also assisting them in identifying new global markets.
Many MSMEs are also facing capital shortages due to delayed payments, and with an estimated credit exposure of ₹40 lakh crore, this issue could worsen further. The government fears that this may lead to an increase in NPAs (loan defaults), underscoring the urgency of the planned interventions.
