The RBI and the government announced a set of measures last week to cushion exporters and MSMEs from ongoing external headwinds, including the US’s 50% tariffs on Indian goods exports. The RBI introduced targeted “Trade Relief Measures” for eligible exporters in select industries, offering a temporary moratorium on payments, extended FEMA timelines for export realisation and shipments, working-capital relief, and longer export-credit tenors.

Additionally, the Government approved the Credit Guarantee Scheme for Exporters, and the Export Promotion Mission (EPM) for FY26–FY31. The EPM provides both financial and non-financial support for MSMEs, first-time exporters and labour-intensive sectors. However, relatively modest allocation for EPM and pending operational guidelines suggest limited near-term impact. Overall, the policy approach appears to provide targeted and near-term support to affected segments, with possible expectations that progress on a potential US–India trade deal could offer more durable relief ahead.