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Exports

India's Exports to US Plummet Amid Rising Tariffs

Strategic Insights

— 1 min read

India's exports to the American market continued to slide for the fourth consecutive month, with a 37.5% dip in the May-September 2025 period, according to an analysis by the India-based trade think tank Global Trade Research Initiative (GTRI). The massive US tariffs, reaching as high as 50%, have significantly impacted various sectors, including textiles, gems and jewellery, chemicals, agriculture products and foods, and machinery, which collectively account for nearly 60% of India's US exports. These sectors suffered a 33% decline, from $4.8 billion in May to $3.2 billion in September, GTRI found in its analysis.

Key Takeaways:

  • India's exports to the US market fell for the fourth consecutive month, with a 37.5% dip in the May-September 2025 period, according to GTRI's analysis.
  • The US tariffs, reaching up to 50%, have caused significant losses in various sectors, including textiles, gems and jewellery, chemicals, agriculture products and foods, and machinery, which account for nearly 60% of India's US exports.
  • These sectors suffered a 33% decline, from $4.8 billion in May to $3.2 billion in September.
  • Tariff-free products, accounting for nearly one-third of India's total shipments, saw the steepest contraction of 47%, from $3.4 billion in May to $1.8 billion in September.
  • Exporters are urging the government to respond swiftly and provide emergency credit lines for MSME exporters.
  • India risks losing market share to Vietnam, Mexico, and China if urgent intervention is not taken.

Statistics:

  • India's exports to the US market fell by $3.3 billion, from $8.8 billion in May to $5.5 billion in September.
  • The US tariffs caused a 33% decline in exports from $4.8 billion in May to $3.2 billion in September for labour-intensive sectors.
  • Tariff-free products suffered a 47% contraction from $3.4 billion in May to $1.8 billion in September.
  • India's competitiveness has sharply deteriorated compared to China (30% tariffs) and Vietnam (20% tariffs).

Sources:

  • GTRI's analysis, as reported by ANI.
  • Hindustan Times

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