New Delhi [India], November 29 (ANI): India’s exports to its largest export market, the United States, have suffered a pointy reversal below the influence of aggressive tariff hikes. Between May and October 2025, shipments fell 28.5 per cent, plunging from USD 8.83 billion to USD 6.31 billion, in accordance with trade-focused think-tank Global Trade Research Initiative (GTRI).
The decline in exports adopted a speedy escalation in US duties that started at 10 per cent on April 2, rose to 25 per cent on August 7, and reached 50 per cent by late August.
The spike in tariffs made Indian items among the many most closely taxed of any US buying and selling associate, in accordance with a GTRI report Saturday.
For comparability, China confronted tariffs of about 30 per cent, whereas Japan at 15 per cent.
India’s exports to the US in the course of the interval has been divided into three tariff regimes within the GTRI report — Tariff-exempt objects reminiscent of smartphones, prescribed drugs and petroleum merchandise accounted for 40.3 per cent of October exports however nonetheless fell 25.8 per cent, from USD 3.42 billion in May to USD 2.54 billion in October–a contraction of USD 881 million.
Products dealing with uniform international tariffs–mainly iron, metal, aluminum, copper and auto parts–formed simply 7.6 per cent of shipments in October. Exports on this class fell 23.8 per cent, sliding from USD 629 million in May to USD 480 million in October, or about USD 149 million, knowledge maintained by GTRI confirmed.
The steepest decline in exports occurred in labour intensive merchandise the place India alone confronted 50 per cent tariffs. Gems and jewelry, photo voltaic panel, textiles and garment, chemical substances, seafoods,
These items, which represented 52.1 per cent of October exports, collapsed 31.2 per cent, falling from USD 4.78 billion to USD 3.29 billion–nearly USD 1.5 billion erased in simply 5 months, GTRI has asserted.
Even tariff-free merchandise felt the shock.
Smartphones, India’s single greatest product line to the US, suffered a 36 per cent decline, sliding from USD 2.29 billion in May to USD 1.50 billion in October–a lack of nearly USD 790 million.
Monthly exports fell persistently from USD 2.0 billion in June to USD 1.52 billion in July, crashed to USD 964.8 million in August, eased additional to USD 884.6 million in September, and eventually recovered to USD 1.5 billion in October, GTRI stated, with out giving any rationale.
Pharmaceutical exports dipped only one.6 per cent, whereas petroleum product shipments declined 15.5 per cent.
In the metals (US Tariffs of fifty per cent) and auto components (US Tariffs of 25 per cent) class, the export drop displays weakening US industrial demand somewhat than lack of competitiveness, as tariff remedy was equal throughout suppliers, GTRI opined.
Against that stark backdrop, GTRI urges the federal government to roll out the Export Promotion Mission and press Washington to drop the Russia-related extra tariff of 25 per cent imposed on Indian items.
‘First, the Export Promotion Mission–announced in March and authorized by the Cabinet on Nov. 12–still exists solely on paper. Nearly eight months into the fiscal yr, no schemes are operational, whereas lengthy working applications such because the Market Access Initiative and the Interest Equalisation Scheme have made no funds this yr,’ GTRI famous.
With annual funding capped beneath Rs 4,200 crore, GTRI believes that the Mission will miss its objectives until the federal government shortly points pointers, restores common disbursals and offers exporters clear eligibility guidelines and timelines.
The Union Cabinet chaired by Prime Minister, Narendra Modi earlier this month has authorized the Export Promotion Mission (EPM) — a flagship initiative introduced within the Union Budget 2025-26 to strengthen India’s export competitiveness, significantly for MSMEs, first-time exporters, and labour-intensive sectors.
The Mission will present a complete, versatile, and digitally pushed framework for export promotion, with a complete outlay of Rs.25,060 crore for 2025-26 to 2030-31.
Besides, GTRI argued that eradicating 25 per cent extra tariffs would halve the efficient US tariff burden on Indian items to 25 per cent, providing reduction to labour-intensive sectors. GTRI urged the Government to make these two steps central to restoring half export competitiveness and resetting talks with the US on a ‘extra even footing’. (ANI)