India’s exports to the United States dropped sharply in September — the first full month after Washington imposed 50% tariffs on Indian goods — highlighting how dependent Indian manufacturers remain on their biggest export market.
According to data from the Union Ministry of Commerce & Industry, exports fell 11.93% year-on-year to $5.46 billion, while imports rose 11.78% to $3.98 billion. This came even after Indian traders had front-loaded shipments before the new tariffs took effect on August 27, 2025.
The United States introduced the punitive tariffs in retaliation for what it called India’s “unfair trade barriers” and continued purchase of Russian crude oil — a decision that has made Indian goods such as apparel and leather products significantly more expensive compared with rivals from Bangladesh and Vietnam.
Commerce secretary Rajesh Agrawal told Reuters that nearly 55% of India’s exports to the US were affected. “Despite turbulence in the global market, exports have maintained momentum,” he said, “but imports have grown faster, driven by gold, silver, fertilisers and electronics.”
According to the Global Trade Research Initiative (GTRI), September recorded the sharpest monthly fall in India’s exports to the US this year.
“September was also the first full month when Indian goods faced a 50% US tariff on most products,” GTRI founder Ajay Srivastava said.
India’s exports to the US have been sliding since June 2025. Back in May, shipments had actually risen by 4.8% to $8.8 billion. But by September, exports had fallen almost 37.5%, wiping out over $3.3 billion in monthly trade value.
“The data confirms that the US has become India’s most severely affected market since the tariff escalation began,” Srivastava said. “Textiles, gems and jewellery, engineering goods, and chemicals have suffered the most.”
In response to the trade disruption, India has begun fast-tracking negotiations for a bilateral trade deal with Washington. According to Bloomberg, both sides are aiming to wrap up talks by November, although differences over Russian oil imports remain unresolved.
Sources familiar with the matter reportedly said New Delhi is working on a proposal that would address US concerns while safeguarding India’s energy security.
Commerce secretary Agrawal confirmed that an Indian delegation is currently in the US to push the discussions forward, despite a partial government shutdown there. Officials said both governments are cautiously optimistic that an agreement could be finalised “at the current pace.”
The tariff war has added fresh strain to India–US trade relations. Earlier this year, Trump’s administration imposed a 25% tariff on Indian exports after talks broke down, later doubling the rate to 50% following India’s continued purchase of discounted Russian oil.
India criticised the move, pointing out that other major buyers — including China and Turkey — have not faced similar penalties.
Trade analysts say the coming weeks will determine whether Washington and New Delhi can bridge their differences and prevent a further escalation. A successful trade deal could restore access to the US market for key Indian sectors, while failure could push exporters to seek new destinations in Europe, Africa, and Southeast Asia.
