India’s exports to the US fell in the first full month since 50% US tariffs on Indian goods came into effect, underscoring the country’s reliance on its biggest export market. Imports increased.
India’s US exports fell 11.93% year-on-year to $5.46 billion in September even as imports increased 11.78% to $3.98 billion, according to data released by the Union Ministry of Commerce & Industry. That was despite Indian merchants front-loading shipments in the months leading up to punitive tariffs.
The US imposed 50% tariffs on Indian goods on 27 August 2025 in response to trade barriers and New Delhi’s purchase of Russian oil, making India’s apparel and leather-goods exports uncompetitive against Bangladesh and Vietnam.
Nearly 55% of India’s exports to the US were affected by the tariffs, Commerce Secretary Rajesh Agrawal was quoted as saying by Reuters on Wednesday.
“Despite turbulence in global market, exports have maintained momentum,” he said, “but the imports have grown at faster pace in September, driven by increase in gold, silver, fertilisers and electronics.”
India US Exports, Imports
According to think tank GTRI, India’s exports to the US witnessed the sharpest monthly decline of 2025 in September.
“September was also the first full month when Indian goods faced 50% US tariff on most products,” GTRI founder Ajay Srivastava said.
India’s exports to the US have been falling since June 2025 on a monthly basis. In May, exports rose by 4.8% to $8.8 billion.
Between May and September, India’s exports to the US have dropped by almost 37.5%, wiping out more than $3.3 billion in monthly shipments.
“The data confirms that the US has become India’s most severely affected market since the tariff escalation began, with sectors such as textiles, gems and jewellery, engineering goods, and chemicals suffering the heaviest losses,” Srivastava said.
India-US Trade Deal Talks
India is fast-tracking trade talks with the US with the goal of concluding deal negotiations by next month, Bloomberg reported on Tuesday, even as Russian oil imports remain a sticking point.
New Delhi is working on a plan that would be mutually acceptable to address the issue, the people said, asking not to be identified as the matter is still private. They however did not share other details. Most of the other trade issues between the two nations have been resolved, they said.
“An Indian delegation is in the US this week to advance trade talks amid the government shutdown,” Agrawal said on Wednesday.
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India’s government officials are cautiously optimistic about the renewed momentum in talks and believe that, at the current pace, negotiations could be wrapped up by November, the people said. The US and India had earlier agreed to finalise a bilateral deal by the fall.