Indian exporters are gearing up for a crucial meeting with RBI Governor Sanjay Malhotra next week. They’re pushing for easier loan repayment rules and a waiver on penal interest to tackle the tough times caused by the recent US tariff hikes. These new tariffs have made Indian goods less competitive against rivals like Vietnam and Bangladesh, especially in key sectors such as textiles, leather, and footwear.
According to reports from NDTV Profit, the meeting is set for Thursday. Exporters plan to ask for a 12-month moratorium on credit repayments. They also want relaxed norms for classifying non-performing assets (NPA) on export loans up to 180 days. This comes as the Trump administration slaps a 25% punitive tariff on India for buying Russian oil, on top of the existing 25% base customs duty. That totals a whopping 50% tariff—one of the highest out there—putting Indian products at a real disadvantage in labor-intensive industries. Experts worry this could lead to big job losses if the US market slips away.
On top of that, exporters are calling for a sovereign guarantee scheme. This would help them branch out into new markets and diversify beyond the US, easing the blow from these trade tensions.
RBI Governor Sanjay Malhotra has already signaled the central bank’s support for the economy. Speaking at an annual banking conference last month, he said, “Whatever is required to support economic growth, including those of sectors that are impacted more, we will not be found wanting in our job.” He stressed the need to grab new opportunities amid global challenges, adding, “We are now at a critical juncture as we navigate a choppy global environment characterised by heightened trade uncertainty and persisting geopolitical tensions. We need to push the frontiers of growth. We must step up our efforts to address the emerging challenges, and at the same time, seize the opportunities that are coming our way.”
Malhotra also pointed out the world’s tough phase with ongoing trade frictions and geopolitical issues. Regarding the US tariff hike, he’s optimistic. “We are hopeful that negotiations on tariffs will play out and there will be minimal impact on India’s economic growth,” he noted. This reassurance could be a big boost as exporters seek RBI’s help to navigate these US-India trade challenges and protect jobs in export sectors.
