India's exports remain strong despite high US tariffs: Economic survey
What's the story
India's exports have remained resilient, even in the face of steep trade barriers imposed by the United States. The Economic Survey highlighted that India is currently facing an effective export tariff rate of nearly 50% on goods sent to the US. This is one of the highest rates levied on any trading partner. Despite these challenges, India's overall export performance has remained stable, owing to market diversification strategies employed by exporters.
Sectoral impact
Tariffs impact labor-intensive and small-scale sectors
The Economic Survey noted that while the high US tariffs have affected some labor-intensive and small-scale sectors, India's overall export performance has remained stable. This stability can be attributed to the country's efforts in diversifying its export markets. The data from April-November FY26 shows a clear contrast between exports to the US and other global markets.
Market shift
Diversification strategy shields India's exports
Exports to the US fell on a year-on-year basis across several sectors. This decline was observed despite India's global exports witnessing growth. The survey emphasized that this trend underlines the importance of diversification strategies for Indian exporters, which have helped mitigate the impact of high US tariffs on overall export performance.