Trade Tensions: US Tariffs Impact India's Export Dynamics

India's exports to the US dropped due to a new 50% tariff, while imports increased, reflecting ongoing trade tensions. The April-October period saw a 10.15% increase in exports and 9.73% rise in imports. Meanwhile, exports to China grew significantly, but challenges persist with other trade partners.

In October, India's merchandise exports to the United States saw a decline for the second consecutive month, falling by 8.58% to USD 6.3 billion. This decrease comes in response to the substantial 50% tariffs imposed by Washington. Meanwhile, imports from the US rose by 13.89% to USD 4.46 billion, as reported by the commerce ministry.

For the fiscal period from April to October, exports from India to the US increased by 10.15%, reaching USD 52.11 billion, while imports grew 9.73% to USD 30 billion. The tariff, implemented on August 27, has complicated India's trade dynamics, as both nations negotiate a bilateral trade agreement to enhance commercial exchanges. An Indian delegation is currently in Washington for trade discussions.

Commerce Secretary Rajesh Agrawal commented on the challenging scenario, stating that India has managed to maintain its position despite high duties. Notably, exports to China surged by 42.35% in October, and 24.77% for the April-October window, reaching USD 10.03 billion. However, other countries like the UAE, the Netherlands, and the UK witnessed a drop in exports, while positive export growth was seen with Hong Kong and Spain. Import activities from nations such as the UAE and Singapore rose, whereas imports from Russia and other countries saw a decline.

(With inputs from agencies.)