In an exclusive interview with the Financial Express, Finance Minister Nirmala Sitharaman has said that the government is closely studying the impact of the steep 50% tariffs imposed by the United States before deciding on any support measures. She explained that while relief measures are being considered, a sector-wise assessment must be completed first.
Why the delay in support to tariff hit sectors? Sitharaman answers
When asked if the government is going to extend liquidity or credit guarantee support to the US tariff-hit sectors, Sitharaman said, “Something is being worked out, but the reason why we cannot arrive at something immediately is because we should have a sectoral understanding of the impact of the 50% (US) tariff.”
She added that different departments and ministries are already in talks with affected industries to understand the extent of the damage. She revealed that the different departments are expected to share estimates of losses after the tariffs came into effect on August 27. “Let those numbers be known,” she said.
‘Reforms will continue,’ says Sitharaman
Sitharaman also addressed the concerns regarding broader economic reforms that may have slowed down in recent years. She said reforms “have never been on the backburner”, even during the Covid-19 pandemic, when major policy changes were rolled out. For Prime Minister Narendra Modi, she added, reforms are always a top priority and not treated as secondary.
While global and domestic challenges have limited the pace of progress, Sitharaman assured that the reform process will continue in the coming months. “In the last few years, the situation has been such that we could not move as fast as we expected to. Reforms will continue,” she added.