India has announced a ₹450.6 billion (about USD 5.1 billion) support package to soften the impact of the steep tariffs recently imposed by the United States. Washington’s latest measures—which include punitive duties of up to 50% on Indian apparel, leather goods, jewelry, chemicals, and several labor-intensive categories—have pushed Indian exporters into a difficult corner. In September alone, India’s exports to the U.S. dropped 12% year-on-year, with many industries reporting pressure on both margins and order volumes.

To stabilize the situation, New Delhi’s new package offers credit guarantees, trade-finance assistance, and market-expansion support. The plan is designed to help exporters absorb tariff-driven cost increases and prevent a deeper contraction in shipments. Indian officials described the relief as an urgent “stop-the-bleeding” measure, noting that roughly 55% of India’s USD 48 billion annual exports to the U.S. have already lost price competitiveness compared with China, Vietnam, and Bangladesh.

Amid the pressure, an unexpected twist emerged. President Donald Trump said this week that the U.S. and India are “very close” to a new trade and security agreement—a signal many observers interpret as a possible step toward future tariff reductions. If that happens, India’s relief package effectively becomes a bridge, buying time for exporters while negotiations advance.

From a global supply-chain viewpoint, this shift will ripple far beyond India. If Indian exporters stabilize their prices with government backing, competition will intensify in product segments where China, India, and Southeast Asia overlap—especially textiles, leather goods, and light consumer manufacturing. And if a U.S.–India trade deal later brings tariff cuts, freight routes, container demand, and port traffic will likely see another round of adjustments.

For forwarders and logistics operators, this marks yet another phase of volatility in global trade. Proactive monitoring, scenario planning, and early communication with clients will matter far more than reacting after policies land. HANYUE International will continue to track U.S.–India negotiations and provide timely trade-risk guidance and routing strategies for our clients.