The exporters are under heavy challenges and tensions after the recent US Tariff imposed by US President Donald Trump. Heavy US tariff has forced several banks from India to increase scrutiny over the new loan applications given by the exporters. As per the reports shared by officials working at large Indian lenders on the condition of anonymity, banks are assessing the financial ramifications of the punitive levies on their clients, especially those in the export-dependent textile, gem and jewelry sectors. Since the information is not public officials shared the info to a reputed news agency on the condition of anonymity.
Lenders to avoid any risk and future issues are asking pointed questions while reviewing new export financing proposals or renewals of such funding. US Tariff has also forced lenders to put some export orders on hold while trade negotiations play out between New Delhi and Washington.
No doubt this strict action by lenders is one of the major consequences after the newly imposed 50% US Tariff on India-made items. Businesses worry that this will severely disrupt shipments to the US by making Indian exports prohibitively expensive. The industries hit hardest – they are also among the most labor-intensive -have asked the Narendra Modi-led government to introduce measures to reduce the pain from the new trade barriers.