India Export to US: India has suffered a big blow due to Trump’s tariffs. Due to this there has been a huge decline in exports to America. According to think-tank Global Trade Research Initiative (GTRI), due to American tariffs, India’s exports to America have declined by 28.5 percent between May and October 2025, from $ 8.83 billion to $ 6.31 billion.
America first imposed a baseline tariff of 10 percent on India on April 2, which was increased to 25 percent on August 7 and doubled by the end of August. In America, 25 percent extra tariff was imposed as penalty on India for purchasing oil from Russia. Trump’s increased taxes on Indian goods made them expensive in the American markets.
America is the largest export market
America is the biggest export market for India. This had a strong impact on India’s exports to America. According to GTRI, this also affected tariff-free products. India exports smartphones to the US on a large scale, which declined by 36 percent after the imposition of tariffs. It dropped from $2.29 billion in May to $1.50 billion in October.
Similarly, exports of labour-intensive products like gems and jewellery, solar panels, textiles, garments, chemicals and seafood also fell by 31.2 per cent from $4.78 billion to $3.29 billion between May and October. The impact of the tariff was seen on everything from metal to auto parts. Apart from this, there was a decline of 23.8 percent in the exports of iron, steel, aluminium, copper, products with similar tariffs across the world.
GDP growth surprised everyone
Meanwhile, when the GDP growth figures came out in the second quarter, it surprised everyone. During this period, India’s GDP growth rate was 8.2 percent. This was shocking because despite the damage caused by tariffs, the growth of the Indian economy surprised people. Of course, due to decline in India’s exports to America, all the industries in the country had to suffer losses.
To overcome this, India started looking for more export options. To sell its country’s goods, India found other markets such as gems and jewelery were sent on a large scale to Hong Kong, Belgium and UAE. Similarly, there was good demand for auto parts from countries like Germany and Thailand. Another major reason for support to the country’s GDP growth is GST Reforms. This increased domestic demand, to meet which manufacturing increased. This also strengthened the service sector and overall gave a boost to the country’s economy.
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