Can India’s exports beat US tariffs?

India’s exports have defied high US tariffs, showing strong growth and giving the country a stronger position in ongoing trade talks. Exports to the US hit $7 billion in November 2025, up 22.6% from the previous year, despite additional tariffs of up to 50% being imposed by the US. This growth was driven by sectors like engineering, electronics, pharmaceuticals, gems, and textiles, proving India’s ability to adapt and compete in global markets.

India’s merchandise exports to the US reached about $86.5 billion in FY 2024-25, a rise of 11.6% over the previous year. In June 2025 alone, exports surged 23.5% to $8.3 billion. The US remains India’s largest export destination, and Indian exporters are diversifying markets to offset tariff impacts. This resilience has strengthened India’s hand in negotiations, with both sides aiming to finalise an interim trade deal soon.

Trade talks between India and the US are progressing, with both sides discussing tariff cuts, market access, and digital trade. India is pushing for the removal of additional tariffs and seeking preferential access for labor-intensive sectors. The US is pressing for duty concessions on industrial goods, automobiles, and agricultural products. India’s strong export performance has given it more leverage, making it clear that tariffs alone are not enough to deter its trade momentum.