India's Export Blues: Skyrocketing US Tariffs Shrink Shipments

Between May and October 2025, India's exports to the US plummeted by 28.5%, driven by soaring tariffs. Global Trade Research Initiative cites the impact on labor-intensive goods, urging the Indian government to implement the Export Promotion Mission for recovering competitiveness.

India is grappling with a staggering 28.5% drop in exports to the United States, its largest market, reports the Global Trade Research Initiative (GTRI). This sharp decline, experienced between May and October 2025, is attributed to a series of aggressive tariff hikes imposed by the US.

The tariff escalation began at 10% in early April, climbed to 25% in August, and peaked at 50% by late August. This hike rendered Indian products among the most heavily taxed by any US trading partner, with China's rates at 30% and Japan's at 15%, according to a GTRI report.

Despite the challenging environment, the Indian government has announced the Export Promotion Mission, aimed at revitalizing export competitiveness. The mission features a Rs.25,060 crore outlay until 2030-31, though its operational status and execution remain in question, as noted by GTRI.