Winning Bizness Desk
Mumbai.After the United States imposed a 50 percent tariff on Indian goods, exporting to the US has become expensive for Indian exporters. Over the last four months, India’s exports to the US have dropped sharply, reflecting the impact of the increased duties. Businesses, particularly in textiles and jewelry, are finding it costly to send products, causing a substantial decline in overall trade.
Export Decline from May to September 2025
According to a report by the Global Trade Research Initiative (GTRI), this decline is the largest seen this year. In May 2025, India exported goods worth 8.8 billion dollars to the US, but by September 2025, this figure had dropped to 5.5 billion dollars. This represents a reduction of 3.3 billion dollars, approximately 28,000 crore rupees, within just four months.
September Records Biggest Monthly Fall
September was the first month when the full 50 percent duty was applied to Indian products. During this month, exports fell by 20.3 percent, marking the steepest monthly decline. However, the fall had already started in June, with a decrease of 5.7 percent, followed by 3.6 percent in July and 13.8 percent in August.
Textiles and Jewelry Hit Hardest by Tariffs
The GTRI report highlights that industries such as textiles, gems and jewelry, engineering goods, and chemicals were most affected. Shipments from these sectors reduced significantly, contributing the most to the overall decline in exports. High-value items like clothing and jewelry became less competitive in the US market due to increased costs, affecting both manufacturers and exporters.
Understanding Tariffs and US Policy on India
A tariff is a tax imposed on goods imported from another country. Former US President Donald Trump argued that India charged high tariffs on American goods while applying lower taxes on Indian imports. In response, the US implemented a 25 percent tariff, later adding another 25 percent on certain Indian goods, including those linked to oil and defense purchases from Russia. This brought the total tariff on many Indian exports to 50 percent, creating significant trade challenges.
India-US Trade Talks in Progress
India and the United States have been negotiating a trade deal for some time. A sixth round of discussions was scheduled for August 25, but it was postponed due to disagreements on issues like agricultural trade. Talks resumed in September, and Indian officials are hopeful of reaching a significant agreement by the end of this year to stabilize trade relations and reduce the impact of tariffs on exports.
Key Points in a Nutshell
1. India’s exports to the US fell 37.5 percent over four months due to high tariffs.
2. Export value dropped from 8.8 billion dollars in May to 5.5 billion dollars in September.
3. September saw the largest monthly fall of 20.3 percent after full 50 percent tariffs.
4. Textiles, gems, jewelry, engineering goods, and chemicals were most affected sectors.
5. Tariffs were imposed by Trump, citing unequal duties on US and Indian goods.
6. Additional tariffs were applied on oil and defense-related Indian imports from Russia.
7. India-US trade talks continue, with hopes for a major deal by year-end.
