India's exports to US plunge as Trump's 50% tariffs take effect

"According to government data, India's goods exports to the US dropped 20% in September alone and nearly 40% over the past four months, as Washington's 50% import duties came fully into effect. The tariffs, introduced on 27 August, include an additional 25% penalty tied to New Delhi's continued purchases of Russian oil. The new duties have struck hardest at India's labour-intensive export industries, including textiles, gems and jewellery, engineering goods, and chemicals - all key sectors that employ millions of workers."

"Shipments to the US have now fallen for four consecutive months, dropping from $8.8 billion (£6.5 billion) in May to $5.5 billion in September, a 37.5% decline, GTRI's analysis shows. The slump has also worsened India's overall trade position. The country's merchandise trade deficit widened to a 13-month high of $32.15 billion in September, according to official figures, reflecting both weaker exports and resilient import demand."

"The tariffs, introduced on 27 August, include an additional 25% penalty tied to New Delhi's continued purchases of Russian oil. "The US has become India's most severely affected market since the tariff escalation began," said Ajay Srivastava, co-founder of the Global Trade Research Initiative (GTRI), a Delhi-based think tank. The new duties have struck hardest at India's labour-intensive export industries, including textiles, gems and jewellery, engineering goods, and chemicals - all key sectors that employ millions of workers and contribute significantly to foreign exchange earnings."

Steep US tariffs introduced on 27 August, including a 50% duty plus an additional 25% penalty linked to Indian purchases of Russian oil, caused Indian goods exports to the US to plunge. Exports to the US fell 20% in September and nearly 40% over four months, with shipments sliding from $8.8bn in May to $5.5bn in September. Labour-intensive sectors such as textiles, gems and jewellery, engineering goods and chemicals suffered most. The export slump widened the merchandise trade deficit to $32.15bn in September, while some lost US shipments were partially absorbed by stronger trade with the UAE and China.

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