India’s exports to the United States have fallen sharply after the U.S. imposed 50% tariffs on Indian goods, making shipments from India significantly more expensive. Over the past four months, exports to the U.S. have declined by 37.5%, according to a report by the Global Trade Research Initiative (GTRI) — marking the largest drop this year.

In May 2025, India’s exports to the U.S. totaled $8.8 billion, but by September 2025, the figure had fallen to $5.5 billion, a decline of $3.3 billion (approximately ₹28,000 crore) in just four months.

Sharp Monthly Decline in September

September was the first full month in which the 50% tariffs were applied, leading to a 20.3% drop in monthly exports, the largest single-month decline observed. The downward trend had already begun, with exports falling 5.7% in June, 3.6% in July, and 13.8% in August.

Sectors Most Affected

According to the GTRI report, textiles, gems and jewelry, engineering goods, and chemicals were the hardest hit. Significant drops in shipments from these industries were the main contributors to the overall decline in exports.

Background: Reciprocal Tariffs

The tariffs are part of a reciprocal tariff policy by the U.S., which had imposed 25% duties in response to India’s purchases of oil and military equipment from Russia. The Trump administration added an additional 25% import duty, bringing the total tariff on Indian goods to 50%, making Indian products far more expensive and reducing demand in the U.S.

Outlook

Indian Prime Minister Narendra Modi is currently visiting the U.S. During this visit, reports suggest that Modi has expressed a willingness to limit oil imports from Russia, which may help ease tensions with the U.S. If relations improve, there is a possibility that the 50% tariff on Indian goods could be lifted, potentially stabilizing exports.