India's exports to US plummet 28.5% due to tariff hikes
What's the story
India's exports to the US, its largest export market, have taken a major hit due to aggressive tariff hikes. According to the Global Trade Research Initiative (GTRI), shipments fell by 28.5% between May and October 2025. The decline was from $8.83 billion in May to $6.31 billion in October, thanks to a rapid rise in US duties starting at 10% on April 2 and reaching as high as 50% by late August.
Tariff impact
India's goods now among most taxed by US
The GTRI report highlights that the recent tariff hikes have made Indian goods some of the most heavily taxed by any US trading partner. To put it in perspective, China's tariffs are around 30%, while Japan's are at 15%. The report also breaks down India's exports to the US during this period into three tariff regimes.
Export categories
Tariff-exempt items and uniform global tariffs
According to the GTRI report, tariff-exempt items like smartphones, pharmaceuticals, and petroleum products made up 40.3% of October exports but still saw a 25.8% decline from $3.42 billion in May to $2.54 billion in October. Meanwhile, products facing uniform global tariffs, mainly iron, steel, aluminum, copper and auto parts, made up just 7.6% of shipments in October with exports falling by 23.8%.
Product impact
Labor-intensive products face steepest export decline
Labor-intensive products have seen the steepest decline in exports, with India alone facing a 50% tariff. These include gems and jewelry, solar panels, textiles and garments, chemicals, and seafoods. They made up 52.1% of October exports but fell by a whopping 31.2%, from $4.78 billion to $3.29 billion, nearly $1.5 billion lost in just five months, according to GTRI data.
Export downturn
Smartphones and pharmaceuticals also witness export decline
Even tariff-free products have been affected by the tariff hikes. Smartphones, India's biggest export to the US, saw a 36% decline from $2.29 billion in May to $1.50 billion in October, a loss of nearly $790 million. However, pharmaceutical exports only dipped by 1.6% while petroleum product shipments fell by 15.5%.
Call for action
GTRI urges government to expedite export promotion mission
In light of these challenges, the GTRI has urged the government to expedite its Export Promotion Mission and press Washington to remove a 25% additional tariff on Indian goods related to Russia. "First, the Export Promotion Mission, announced in March and approved by the Cabinet on November 12, still exists only on paper," GTRI said. It also stressed that schemes under this mission are yet to be operational with no payments made this year.