The impact of the additional tariff imposed by the US on imports from India is evident in the export numbers for September. Share of exports to the US is down to 15 per cent in September from 20 per cent in the April to August 2025 period. But the share of China and the UAE in total exports has increased in the same period. Export of textiles and leather goods has declined, while other sectors have recorded lower growth
Textiles and gems hit
According to the GTRI report, “September was the first full month in which Indian goods faced Washington’s 50 per cent tariff on most products, with sectors such as textiles, gems and jewellery suffering the heaviest losses”. In September, ready-made garments exports declined by 10.1 per cent y-o-y, compared to 5.8 per cent y-o-y growth in the April to August period. Exports of cotton yarn and fabrics, too, fell by 11.7 per cent in September, while growth in the export of gems and jewellery collapsed to 0.4 per cent. In contrast, electronic goods bucked the trend, with growth accelerating to 50.5 per cent, due to higher smartphone shipments from India.
US vs Others
Exports to the US declined 12 per cent in September as higher tariffs dented demand. But exporters appear to have shifted to other markets, particularly China and the UAE. Exports to China increased 34 per cent in September, while exports to the UAE grew 24 per cent. Spain and Bangladesh are other countries that recorded higher growth in exports from India.