India's Exports Surge Despite U.S. Tariffs, Diversify Trade Relations
Despite U.S. tariffs, India's exports have shown resilience, growing by 6.7% year-over-year. This growth was driven by a 9% surge in the second quarter of the 2025 fiscal year. Notably, electronics exports surged by 50.5%, and rice shipments grew by 33.2% to $924.8 million.
The U.S. tariffs, imposed on over 60% of Indian exports to America since September 1, 2025, have had a significant impact. Labor-intensive sectors such as textiles, gemstones and jewelry, seafood, and leather goods were particularly affected. However, India's trade strategy is adapting. The Indian government has recently signed a Free Trade and Economic Partnership Agreement (TEPA) with the EFTA countries—Iceland, Liechtenstein, Norway, and Switzerland—effective from October 1, 2025. This aims to increase exports to India through tariff reductions and investment opportunities. Meanwhile, exports to other nations like Spain, the United Arab Emirates, China, Bangladesh, South Korea, Germany, Vietnam, Mexico, Russia, and African countries such as Kenya, Nigeria, and Tanzania have increased. India's export destinations have diversified, with 24 countries accounting for $129.3 billion in exports between April and September 2025, representing 59% of India's total exports. Despite the challenges, seafood exports rose by 23.4% to $781 million.
While U.S. tariffs have impacted Indian exports, the country's trade strategy is evolving. The recent TEPA with EFTA countries and increased exports to other nations show India's commitment to diversifying its trade relations. Despite the challenges, India's exports remain robust, with electronics and rice shipments leading the growth.
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