New Delhi. The Indian government has announced a five-billion dollar economic plan aimed at boosting the competitiveness of its export industries by offsetting the impact of high tariffs on the US.

The US recently imposed import tariffs of up to 50 per cent on New Delhi for continuing India’s trade ties with Russia, particularly buying Russian oil. Washington has put pressure on India by linking war and peace policies with trade.

In a statement issued by Prime Minister Narendra Modi on Thursday, Prime Minister Narendra Modi said that the government has approved the Export Promotion Mission (EPM) to improve export competitiveness.

The $3 billion program will run until 2030-31. It will integrate various previous schemes to provide cheaper trade finance to small and medium producers and help them meet international quality standards.

The commerce ministry said in a statement late on Wednesday that priority support would be extended to sectors impacted by the recent increase in tariffs globally. This mission is designed to directly address the structural challenges that impede Indian exports. ’

Information and Technology Minister Ashwini Vaishnaw also launched the $2.3 billion ‘Exporters’ Credit Guarantee Scheme’ and said that this step is necessary in the current international business environment. He said, “The current situation in the world is such that the policies of some countries are directly affecting other countries. India must take the lead in empowering its exporters. ’

The government has said that it will give priority to labour-intensive industries such as textiles, leather, gems and jewellery, engineering and marine products.

As the world’s fifth-largest economy, India posted its fastest five-quarter economic growth in the first quarter of the current fiscal on the back of higher government spending and improved consumer confidence.

However, analysts believe that the US tariffs are putting pressure on India’s overall economy. If a concession or deal is not achieved soon, it is expected to cut India’s gross domestic product (GDP) growth rate by 60 to 80 basis points in the current financial year.

However, the two countries have been at odds over agricultural trade, with the US accusing India of indirectly supporting the war in Ukraine through Russian oil purchases. According to Indian government sources, the two countries are currently negotiating an economic settlement and tariff agreement.