India’s merchandise exports grew 6.7% year-on-year in September 2025, reaching $36.38 billion, even as the country faced the full impact of 50% US tariffs. This resilience came from strategic export diversification and stellar performance by electronics and marine products. The growth occurred despite exports to the US falling 12% to $5.43 billion in September, marking a sharp sequential decline of 21% from August. The US imposed a 25% reciprocal tariff on 7 August 2025, followed by an additional 25% penalty tariff on 27 August, bringing the total to 50%. This affected around 55% of India’s export basket to the US, including textiles, gems, leather, and engineering goods.<\/p>\n\n\n\n
What cushioned the blow was India’s deliberate shift towards alternative markets. Exports to Spain, the UAE, China, and Bangladesh registered steady sequential gains. Electronic goods exports surged 50.5% to $3.11 billion, driven by mobile phone shipments that rose 95% in September alone. Marine product exports, initially expected to be the worst hit, defied expectations and grew 23.4%, reflecting robust market diversification. Engineering goods posted 2.9% growth, and rice exports rose 33.2%. Hong Kong saw 26.19% growth, China registered 19.65% growth, and Germany recorded 11.73% growth in exports.<\/p>\n\n\n\n
India’s export strategy focused on expanding into 50 countries instead of relying on a few key markets. The government accelerated free trade agreement negotiations with the EU, UK, and EFTA to secure preferential access, while strengthening integration with ASEAN and Indo-Pacific blocs. The IMF upgraded India’s growth forecast for FY26 to 6.6%, up from 6.4%, citing strong domestic momentum that offset the tariff impact. Continued diversification and support for labor-intensive sectors remain critical as India navigates this challenging trade environment.<\/p>\n\n\n\n\n
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