Indian exports to US decline 37.5% in 5 months

India’s exports to the United States fell for the fourth consecutive month across all sectors, a recent analysis by the Global Trade Research Initiative (GTRI) revealed. Between May and September 2025, Indian shipments to the US declined by 37.5%, dropping from $8.8 billion to $5.5 billion, highlighting the impact of the Trump administration’s tariffs. India now faces a 50% duty on its exports, its largest trading market, exerting significant pressure on trade.

The steep decline marks one of the sharpest short-term drops in recent years. Products that previously had zero tariffs were hit the hardest, falling 47% from $3.4 billion in May to $1.8 billion in September. Smartphone exports, which surged 197% from April to September 2024, fell 58% in 2025. Pharmaceuticals dropped 15.7%, from $745.6 million to $628.3 million.

Labour-intensive sectors, including textiles, gems and jewellery, chemicals, agri-foods, and machinery, which account for nearly 60% of India’s US exports, fell 33%. Gems and jewellery exports collapsed 59.5%, while solar panel exports fell 60.8%, weakening India’s renewable energy edge. Industrial metals and auto parts faced a milder impact. With China and Vietnam facing lower tariffs, India’s competitiveness in the US market has sharply declined, affecting chemicals, marine products, seafood, processed foods, and other sectors, GTRI noted.