India's Exports to U.S. Face Deepening Slump Amid Tariff Surge

India's exports to the U.S. are witnessing a downward trend as September marks the first full month of 50% tariffs on key products. The decline has substantially hit sectors like textiles and solar panels, with unexpected contractions in tariff-free exports like smartphones and pharmaceuticals adding to concerns.

India's exports to the United States are experiencing a significant decline, as September becomes the first full month where 50 percent tariffs on key products such as textiles, gems and jewellery, and solar panels take full effect. This is according to a report by the Global Trade Research Initiative (GTRI), which highlighted the compounding impact of increased tariffs.

The data from August only partially captured the repercussions, given the staggered tariff increments from 10 percent to 50 percent throughout the month. September, however, presents the first continuous period of heightened tariffs, with sectors like textiles and gems projected to face even more pronounced declines.

Alongside this, exports previously unaffected by tariffs, notably smartphones and pharmaceuticals, have also diminished sharply. These sectors are central to India's production-linked incentive (PLI) programme. Industry groups are calling on the Indian government for swift measures, including interest subsidies and fast-tracked duty refunds, to support the beleaguered exports sector.

(With inputs from agencies.)