To soften tariff blow, govt plans major reform & export promotion push

As the United States imposes a steep 50 per cent tariff on Indian goods, the Indian government is rethinking its trade and economic strategy—shifting focus to long-term reforms aimed at strengthening manufacturing, improving ease of doing business, and boosting export competitiveness.

While talks around a bilateral trade agreement with the US remain uncertain, New Delhi is moving proactively. In his Independence Day address on August 15, Prime Minister Narendra Modi announced the formation of a Reform Task Force, signaling a fresh push for next-generation economic reforms to help India reach its target of becoming a $10 trillion economy by 2047.

As part of this broader vision, the government is working to minimize the impact of tariffs through structural reforms. According to Zee Business sources, empowered groups have been formed to outline both economic and social reform agendas. A high-level meeting at the Prime Minister’s Office is likely to take place this week to review these plans.

One key move in the pipeline is a new export promotion scheme, which the government is expected to announce soon. First reported by Zee Business on August 9, the scheme will run for six years and focus on high-potential export sectors such as Gems and Jewellery, Textiles, Shrimp, Electronics, Handicrafts, and Diamonds.

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These steps come at a critical time. India’s manufacturing sector, which contributes around one-sixth of the GDP, is showing signs of slowing down. According to CMIE estimates, manufacturing growth is expected to moderate to 3.8 per cent in FY26, down from 4.3 per cent projected for FY25—highlighting the urgency for reform and targeted support.

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