Alarming Decline in India's Tariff-Free Exports to the US

India's tariff-free exports, including smartphones and pharmaceuticals, to the US have significantly dropped, drawing concerns from Congress and calls for investigation. The alarming 58% fall in smartphone exports from May to August highlights a worrying trend without obvious causes, according to GTRI research.

The Congress has raised alarms over a decline in India's tariff-free exports to the US, questioning the sudden drop in sectors like pharmaceuticals and smartphones. This decline is beyond seasonal fluctuations, according to Congress leader Jairam Ramesh.

Ramesh cited a GTRI analysis showing that exports of tariff-free products, including gems, seafood, and textiles, have seen unexpected drops. Notably, exports of smartphones and pharmaceuticals fell from USD 3.37 billion in May 2025 to USD 1.96 billion in August 2025.

The think tank, Global Trade Research Initiative, highlighted that smartphone exports alone fell 58% during the period, with calls for urgent investigations into this counterintuitive trend.

(With inputs from agencies.)