India’s exports of key labour-intensive products — including garments, leather goods, engineering items, gems & jewellery, and chemicals — came under pressure in October, as the 50% tariff imposed by the United States at the end of August continued to erode the competitiveness of Indian shipments in its largest export market.
According to preliminary trade data, India’s exports to the US fell 8.6% year-on-year in October to $6.3 billion, compared to $6.9 billion in the same month of 2024. This marked the second consecutive monthly decline. However, in a positive sign, shipments improved 14.5% month-on-month, up from $5.5 billion in September 2025.
Exporters remain cautiously optimistic that New Delhi and Washington will soon conclude negotiations on the first tranche of reciprocal tariff rollbacks. Industry representatives say a resolution is critical for restoring demand and stabilising order flows.
“Although between April and October this year India’s exports to the US grew 10.15% to $52.11 billion, the concern is that exports took an immediate hit once the 50% tariff came into effect,” said a Delhi-based exporter.
Textiles Among the Worst Hit
The textiles and apparel sector, traditionally a strong contributor to India’s labour-intensive export basket, witnessed a sharp setback. Overall textile exports dropped 12.9% in October to $2.66 billion, as major buyers deferred orders amid tariff uncertainty.
“There has been a double-digit fall across all categories. The US tariffs are hurting,” said Sanjay Jain, former chairman of the Confederation of Indian Textile Industry (CITI).
Engineering Goods Slide After Four Months of Growth
Engineering exports — one of India’s largest export categories — saw a steep 16.71% decline to $9.37 billion in October, snapping a four-month growth streak. The Engineering Export Promotion Council (EEPC) noted that the downturn was anticipated due to the tariff’s late-August implementation. With government support measures in place, the sector has been able to soften some of the impact, EEPC added.
Leather, Gems & Jewellery Also Face Sharp Declines
The leather sector posted a 15.66% fall to $314 million, while gems & jewellery exports slumped 29.5% to $2.28 billion in October.
“Our US buyers are awaiting the India–US trade deal. There is hope of an early resolution; otherwise, competitors like Vietnam and Indonesia will take our orders,” said a Chennai-based leather exporter.
