Shift in India's Export Dynamics Amid US Sales Decline

India's merchandise exports are diversifying as US-bound shipments decline. Despite a slight growth in total exports to USD 220 billion, the US share fell to 15% by September 2025, according to SBI's report. Exports to alternative destinations surged, aided by a government support package.

India's merchandise exports are experiencing diversification, as indicated by a decline in shipments to the US since July 2025, an SBI research report reveals.

Total merchandise exports inched up by 2.9% to USD 220 billion from April to September 2025, while the US registered a 13% growth during the same period despite negative figures in September.

The report highlights a reduced US share in India's exports, down to 15% in September due to weakened marine products and textiles, while destinations like UAE and China have gained prominence, with supporting government measures and credit guarantees bolstering export capacity.