New DelhiAn interesting change has emerged in India’s export sector, According to the latest Ecowrap Research report of SBI, India’s export share to America has been continuously declining for the last few months, especially after July 2025, In September 2025, it fell to 15 percent, This decline is mainly due to reduced shipment of marine products, precious and semi-precious stones, cotton garments and cotton fabric,
But on the other hand, this time has proved positive for India’s export diversification. SBI data shows that India’s export share has increased rapidly in markets like UAE, China, Vietnam, Japan, Hong Kong, Bangladesh, Sri Lanka and Nigeria. That means there has been weakness in the US, but India’s presence in other countries is getting stronger.
Less shipments to US, but total exports increased
The report shows that between April and September 2025, India’s total merchandise exports increased by 2.9 percent to reach $220 billion. During this period, exports to the US also increased from $40 billion to $45 billion, but a sudden decline of 12 percent was seen in September. This is the reason why US stocks are continuously going down since July. SBI’s question is whether some countries are first purchasing goods from India and then exporting large quantities to the US. This issue arose because the share of some countries in the US market has increased rapidly.
Which countries will become India’s new strong market?
The report clearly states that India’s export basket has now become more diverse than before. The share of the following countries in different categories is increasing rapidly.
- UAE
- China
- vietnam
- Japan
- hong kong
- bangladesh
- Sri Lanka
- Nigeria
India’s strong presence in these countries means that India is no longer dependent on any one big market. This is especially important during geopolitical uncertainty.
Australia and Hong Kong increased share in US market
SBI report has also revealed an interesting data. Between January and August 2025, Australia’s share in imports of precious and semi-precious stones into the US increased from 2 percent to 9 percent. Hong Kong’s share also increased from 1 percent to 2 percent.
The report indicates that this change may point towards India’s hub model, where some countries are taking raw or finished products from India and further selling them to the US.
High tariff structure is a big challenge for India
The report reminds that India’s tariff structure is still the highest among Asian countries. Its direct loss is being caused to those labor intensive sectors whose margins are already low. Prominent among these are:
- textile
- jewelery
- Seafood (especially shrimp)
- Tariffs have a greater impact on these sectors, which reduces competition in the global market.
- Big support to exporters from the government
In view of this challenge, the government has approved a support package of Rs 45,060 crore. These include:
- Credit guarantee on bank loans worth Rs 20,000 crore
- Financial assistance to increase the capacity of export sector
- Efforts to reduce trade disputes
The report also suggests that the recent LPG and strategic defense deals have given further impetus to trade discussions. It is expected that India will gradually move towards exiting the high tariff structure.
