India’s Trade Outlook: India remains at the top among the fastest growing countries not only in South Asia but also in the world. When US President Donald Trump imposed a 25 percent tariff on India and an additional 25 percent tariff on buying oil from Russia, i.e. a total of 50 percent, many experts feared a deep negative impact on India’s economy. But the facts that have come to the contrary may surprise even President Trump himself.
Tariff had no impact
US tariffs have had almost no impact on Indian GDP. On the contrary, India’s exports have registered further growth. According to SBI’s research report, despite fluctuations in the global market, India’s exports have grown strongly.
According to news agency ANI, India’s merchandise exports increased to $220 billion during April to September in the financial year 2025-26. In the same period last year, this figure was 214 billion dollars, which means there has been an increase of about 2.9 percent.
Increase in exports to America
Despite the high tariffs imposed by America, exports from India to America have increased by about 13 percent, i.e. 45 billion dollars. However, if seen on an annual basis, the shipments sent to America in September 2025 have declined by about 12 percent as compared to the previous year.
The report said that America is still India’s main export market, but after July 2025, a big decline was recorded in the total exports to America. This reduction reached approximately 15 percent in September 2025. Apart from this, there has also been a significant decline in marine products and precious stones sent to America.
turning to new markets
On the other hand, India has changed the direction of its exports towards countries like UAE, China, Vietnam, Japan, Hong Kong, Bangladesh, Sri Lanka and Nigeria. It is noteworthy that American high tariffs have had the biggest impact on Indian products like textiles, jewelery and lobster. To deal with this situation, the government has approved an assistance amount of Rs 45,000 crore to help exporters, which also includes a credit guarantee of Rs 20,000 crore.
Also read: Amidst tariff bitterness from US, India took such a step, neighboring China will be happy to know
