Indian Exports to US Drop 37.5% in 4 Months Amid Tariff Turmoil: GTRI Report

India’s trade performance with the US has taken a sharp hit, with exports declining by 37.5% in just four months after the US government imposed 50% import tariffs on most Indian products. 

According to the GTRI, shipments dropped from $8.8 billion in May 2025 to $5.5 billion in September 2025, the steepest and most sustained fall of the year. The research body noted that “Washington’s 50% tariffs led to a 37.5% drop in Indian exports to the USA in four months,” underlining how the tariff policy has disrupted one of India’s largest export markets.

Steep Decline Across Consecutive Months

GTRI data shows the decline began immediately after tariffs were enforced. Exports rose 4.8% in May 2025 to $8.8 billion, but then slid 5.7 % in June ($8.3 billion), 3.6% in July ($8.0 billion), and 13.8% in August (US $6.9 billion) before tumbling another 20.3% in September ($5.5 billion), the sharpest monthly fall of 2025.

GTRI further stated that “between May and September, India’s exports to the USA lost over $3.3 billion in monthly value,” identifying the US as “India’s most severely affected export destination since the escalation of 50% tariffs.”

Industries Bearing the Brunt

The hardest-hit sectors include textiles, gems & jewellery, engineering goods, and chemicals. According to the GTRI, the decline in these sectors has substantially contributed to the overall fall in exports, raising concerns about India’s manufacturing resilience and job stability.

The report emphasised that “the 50% tariff regime has exposed India’s export vulnerability and underlines the need for urgent policy intervention.” Experts added that diversifying export destinations, reducing dependence on the US market, and strengthening domestic competitiveness are critical to mitigating such shocks.

Read More: RBI Governor Sanjay Malhotra Says India Can Withstand US Tariff Impact!

Conclusion

The 37.5% fall in exports to the US vividly illustrates the wide-ranging effects of Washington’s 50% tariff policy. Moving ahead, a balanced trade strategy that combines market diversification, policy reform, and targeted export incentives will be essential for protecting India’s global trade position.

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