India's smartphone exports to US are falling for reasons unknown
What's the story
India's smartphone exports to the United States, its largest market, have witnessed a staggering 58% decline between May and August 2025. The Global Trade Research Initiative (GTRI) flagged this as an alarming trend, especially since there are no tariffs on smartphones. The fall has been consistent over the months with exports dropping from $2.29 billion in May to $964.8 million in August.
Investigation demand
Urgent investigation needed to understand decline in exports
The GTRI has called for an urgent investigation to find out the real reasons behind this sharp decline in smartphone exports. The think tank noted that this trend is counter-intuitive as there are no tariffs on smartphones. In FY2025, the US was India's largest smartphone market with $10.6 billion worth of imports, accounting for 44% of India's global exports worth $24.1 billion.
Sectoral impact
Other sectors also impacted by decline
Along with smartphones, other sectors have also witnessed a decline in exports. Tariff-free products, which made up 28.5% of India's August exports, saw the sharpest contraction of 41.9%. Exports fell from $3.37 billion in May to $1.96 billion in August. Pharmaceuticals saw a drop of 13.3%, while jewelry exports fell by 9.1% and seafood shipments plummeted by a whopping 43.8%.
Others
Textile, chemical exports fell
Textile, garment, and other related exports to the US also fell 9.3% between May and August. Chemical exports dipped by 15.9% during this period. GTRI Founder Ajay Srivastava noted that India's exports to the US have fallen for three consecutive months, with steep tariffs imposed in August expected to further impact exports in September.