India to offer credit guarantees for exporters hit by U.S. tariffs

India is rolling out a financial aid package featuring credit guarantees and term loans to support small businesses and exporters hit by steep U.S. tariffs. The initiative includes 10–15% credit guarantees for short-term loans (up to 90 days overdue) and up to 75% government-backed guarantees on term loans, aiming to ease pressure on stressed exporters, notably those reliant on the U.S. market.

Building on this, the government is also coordinating with banks to ease lending criteria and considering measures such as waiving processing and forex hedging fees. These efforts, according to the Economic Times, are part of a larger strategy to diversify markets and bolster export resilience in the face of ongoing trade disruptions.