India’s Exports to US Dip 37.5% After Tariff Imposition: GTRI
Issue: To analyze the sharp decline in India’s exports to the United States (US) following the imposition of significant tariffs by the US on a wide range of Indian products.
Facts:
- The US imposed a total of 50% tariff on a wide range of Indian products, effective from August 27, 2025.
- The period analyzed by the Global Trade Research Initiative (GTRI) spanned May to September 2025.
- Exports fell from $8.8 billion in May to $5.5 billion in September.
Decision:
The GTRI report found that India’s exports to the US dipped sharply by 37.5% during the May-September 2025 period, with the decline being deep and widespread across various sectors, following the imposition of new tariffs.
Key TakeDowns:
- Widespread Decline: The decline was severe across multiple key sectors:
- Labour-Intensive Sectors: Exports in textiles, garments (down 44%), home textiles, gems and jewelry, chemicals, agri-foods, and machinery endured a combined 33% decline (from $4.8 billion to $3.2 billion).
- Marine/Seafood: Exports in this highly labour-intensive sector declined by 49%.
- High-Tech: Exports of solar panels dropped 60.8%.
- Industrial Goods: Industrial metals and auto parts facing uniform tariffs for all countries saw a modest 16.7% drop, with declines in aluminum (37%), copper (25%), and auto parts (12%).
- Mixed Causes: The dip in exports for industrial metals and auto parts is likely attributed to softer US industrial activity rather than lost competitiveness. However, the sharp, widespread dip in labour-intensive sectors suggests a direct impact of the tariffs. * Pharmaceuticals: Pharmaceutical product exports also dipped 15.7%.
Source :- The Hindu Business Line