Stories
US Tariffs Fail to Halt India’s Export Surge as Shipments Hit USD 50.81 Billion
- •India’s exports to the United States grew by 11.1 per cent to $50.81 billion in April-September 2026 despite higher US tariffs.
- •Growth was primarily driven by expanding electronics manufacturing, petroleum products, engineering goods, and chemicals.
- •Approximately 45 per cent of exports, including smartphones and generic medicines, received exemptions from additional Section 301 duties.
- •Sectors like textiles, gems and jewellery, and leather continue to face margin pressures and increased competition.
- •A weaker rupee and global supply chain shifts away from China have helped bolster Indian export competitiveness.
Key Questions Answered
India's exports to the United States rose 11.1 per cent to $50.81 billion during April-September 2026. This growth was supported by expanding electronics manufacturing—particularly smartphones—alongside stronger shipments of petroleum products, engineering goods, chemicals, and agricultural products. Additionally, approximately 45 per cent of exports fell outside additional Section 301 duties, including key exempt items like smartphones and generic medicines.
The impact of US tariffs varied because some product categories received exemptions from additional levies while others faced higher costs. Around 45 per cent of exports, such as smartphones and generic medicines, fell outside the additional 10 per cent Section 301 duty. In contrast, sectors like textiles, leather, and gems and jewellery experienced margin pressures and heightened costs, forcing businesses to absorb extra expenses or face demands for discounts from American buyers.
Commerce Secretary Rajesh Agrawal stated that negotiations for the proposed India-US bilateral trade agreement are progressing in the right direction, with both nations aiming to conclude the deal at the earliest. The eventual impact of the agreement will depend on its final terms, product-specific tariff concessions, and the formalization of the broader tariff framework in the United States.
