India’s exports have seen a major change in recent months after the United States, one of the country’s largest export markets, imposed steep tariffs. The US applied a 50 per cent tariff on several Indian products in August 2025, which came into effect in September. The tariff caused a sharp drop in exports to the US, forcing Indian exporters to look for alternative markets across Asia, the Gulf, and other emerging economies.
Data from the Directorate General of Commercial Intelligence and Statistics shows the impact clearly. Exports to the US fell from about USD 8.8 billion in May to USD 5.5 billion in September—a 37.5 per cent decline in just four months. The US’ share of India’s total exports dropped from 24 per cent in June to 15 per cent in September. This was the largest reduction in US demand in recent years and affected multiple sectors.
The tariff shock hit labour-intensive industries that depend heavily on the US market. Sectors such as textiles, readymade garments, gems and jewellery, marine products, and engineering goods all experienced significant declines in shipments to the US. Despite this, India’s overall merchandise exports grew by 4.2 per cent in September, thanks to strong exports in petroleum products and a rapid push into alternative markets.
Indian exporters have successfully shifted their focus to new markets. Exports to Hong Kong, the UAE, Spain, China, and Brazil rose strongly in September. For example, shipments of gems and jewellery to Hong Kong more than doubled, even as exports to the US fell. The UAE also saw a noticeable increase in shipments of precious stones. Rising global gold prices also contributed to higher export values in this sector.
Marine exports followed a similar pattern. Shrimp shipments to the US declined, but exports to China and Thailand increased. Overall marine exports grew by 31 per cent month-on-month in September. Other sectors, such as electronics and pharmaceuticals, also recorded growth, supported by rising demand from the Gulf, Africa, and Europe.
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To support exporters, the Indian government approved a Rs 45,060-crore package. This includes credit guarantees for MSMEs and a new Export Promotion Mission to help businesses find overseas markets. The support aims to reduce the pressure caused by the US tariffs and boost India’s export competitiveness globally.
The shift in India’s trade map shows that the country is no longer dependent on a single dominant buyer. The US tariff has accelerated a long-discussed strategy to diversify exports. By finding new markets in Asia, the Gulf, and other emerging regions, India is strengthening its position in global trade and reducing risks from trade restrictions in any one country.
Despite the challenges, India’s exporters have shown resilience and adaptability. The experience also highlights the importance of diversifying trade partnerships to reduce dependence on a single market. Moving forward, India is likely to continue exploring emerging markets and expanding its presence in sectors like textiles, gems, jewellery, electronics, and marine products.
In summary, while the US tariffs initially caused a sharp decline in exports, Indian businesses quickly adapted, exploring new markets and maintaining overall growth. The move demonstrates the country’s ability to respond to global trade challenges and reflects a long-term shift toward a more balanced export strategy.
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