India has faced a significant challenge as the US imposed steep 50% tariffs on Indian exports starting August 27, 2025, affecting key labor-intensive sectors such as textiles, gems, jewelry, shrimp, and leather. This led to a notable 11.93% decline in India's merchandise exports to the US in September 2025, with exports falling from $6.87 billion in August to $5.46 billion in September. Over the period from May to September 2025, India's exports to the US dropped by nearly 37.5%, losing over $3.3 billion in monthly shipment value due to these tariffs.
Despite this, India demonstrated resilience by diversifying its export markets. During April to September 2025, Indian exporters recorded positive growth in 24 countries, including markets such as Korea, UAE, Germany, Mexico, Russia, Canada, and Brazil. These countries collectively accounted for $129.3 billion in exports, making up 59% of India's total exports during this period. Overall, India's merchandise exports grew by 3.02% to $220.12 billion in the first half of fiscal 2025-26, even as imports rose, leaving a trade deficit of $154.99 billion.
The export growth in these diverse markets helped offset the setback from the US, supporting India's strategic efforts to reduce overdependence on the US market amid trade tensions. However, exports to certain countries like the Netherlands, Singapore, and France saw declines. Sectors most affected by the US tariffs include textiles, gems, jewelry, engineering goods, and chemicals, but sectors like electronics showed strong performance.
In summary, while the new US tariffs have significantly impacted Indian exports to the US, India's overall exports sustained positive growth in many other countries during April-September 2025, reflecting a strategic diversification of export markets to counteract the US tariff blow.
Post a Comment