New Delhi: Indian exports of goods to the US, its largest business partner, fell by 22.2% of 8.8 billion to $ 6.9 billion between May and August 2025, according to the new report by Global Trade Research Initiative (GTRI). American tariffs to Indian goods increased from 10% at the beginning of August to 25% from August 7 and finally a record 50% until the end of the month.
Gtri analysis showed that the impact of tariffs was uneven across industries. Surprisingly, exports liberated from tariffs, which represented 28.5% of the Indian shipments, recorded the greatest contraction and in May dropped by 41.9% of $ 3.37 billion to $ 1.96 billion in August.
Export of smartphone – the largest Indian category to the US – dropped by 58% to just $ 965 million, although it faced no duties. Pharmaceutical consignments dropped by 13.3% to $ 647 million, raising issues regarding production shifts, components’ deficiency and supply chain disruption affecting the Indian assembly units. Goods, such as smartphones, pharmacies, API and oil products, are classified as “category A” items and are exempt from steep American tariffs.
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Products in category B, including iron, steel, aluminum, copper and car, face 50% of the tariff, but recorded only 4% from $ 630 million to $ 600 million, reflecting a weaker industrial demand than a unique loss of competitiveness for India.
Category C, which includes fabrics, gems and jewelry, agriculture, machines, chemicals and other products, is the largest segment that represents 62.7% of American imports from India. These goods also face 50% of the tariff.
Seafood export more than half
Export demanding on work, such as textiles, gems and jewelry, shrimp and chemicals, were hit by the hardest. Jewelry exports fell by $ 9.1% to $ 228 million, while gold jewelry with diamond jewelry dropped by 25.5% and reduced and polished diamonds by 15.2%. On the contrary, laboratory diamonds increased by 40.7%, indicating a shift in the US consumer preference to more affordable and sustainable possibilities, GTRi report said.
Fabrics and clothing fell by 9.3%, while non -alleged clothing fell by 22.2%and the cotton dress crashed by 66.7%, reflection of the weakening demand in the American fashion retail retail. While home fabrics remained resistant, they increased by 14.2% to $ 263 million, technical fabrics, carpets and fabrics have seen a sharp decline, signaling a significant loss of high value and specialized exports.
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The exports of seafood, especially Vannamei shrimp, threw 52.2% to $ 98.6 million, which represents a threat to jobs in coastal processing clusters. Solar panels slipped by 34.6%, which risked another loss of share in the market in China and Vietnam, which faces lower tariffs. The agrochemicals fell by 26.7% and edible oils fell by 69.7%, emphasizing the vulnerability of agricultural exports under high American tariffs.
September is expected to reflect the first full month of 50% of tariffs for all category C exports, which is likely to deepen the decline in work -intensive industries. The GTRi report warned that the ongoing image of exports, especially in categories without tariffs, is a risk to Indian flagship production motivation (PLI) and may undermine political efforts to increase production and global competitiveness.
Calls for help
Industrial bodies called on the government to provide targeted relief from exports, including faster remission of the CLA, interest subsidies within the interest leveling system and increased liquidity support. While GST cuts have increased home consumption, relief specific to export is still missing.
“We are increasing our demand and applying for support through the interests, solving questions related to the export of goods from the India Scheme (Meis) for MSMES and Rodtep (remission of duties and taxes on a balanced product for steel exports.
“It is urgently necessary to stabilize exports, maintain an Indian market share in the US and protect jobs in critical sectors such as textiles, gems and jewelry, seafood and pharmacies. Without fast interventions that are found, find, risk long -term obstacles for Indian growth.
Questions sent to the Ministry of Trade were not immediately answered.
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