Indian export to US drop by 37.5% in four months due to tariffs: GTRI Report

New Delhi: Indian exports to the United States have plunged sharply by 37.5 per cent following Washington's decision to impose 50 per cent tariffs on most Indian goods, according to a report by the Global Trade Research Initiative ( GTRI).

The report showed that shipments to the U.S. fell 37.5 per cent over four months, from USD 8.8 billion in May 2025 to USD 5.5 billion in September 2025, marking the sharpest and most sustained decline of the year.

GTRI stated "Washington's 50 per cent Tariffs lead to a 37.5 per cent drop in Indian Exports to the USA in 4 months"

September was the first full month in which Indian goods faced the 50 per cent tariff.

As per the data, exports to the U.S. dropped 20.3 per cent in September alone, falling to USD 5.5 billion from USD 6.87 billion in August. This was the steepest monthly fall recorded in 2025 and also the fourth consecutive decline.

The downturn began in May 2025, which was the last month of growth before the tariffs took effect. Exports had then risen 4.8 per cent to USD 8.8 billion.

However, from June onwards, shipments consistently fell by 5.7 per cent in June to USD 8.3 billion, 3.6 per cent in July to USD 8.0 billion, and 13.8 per cent in August to USD 6.9 billion, before sliding even further in September.

GTRI also noted that between May and September, India's exports to the U.S. lost over USD 3.3 billion in monthly value, highlighting the severe impact of Washington's tariff decision on bilateral trade.

The United States has now emerged as India's most severely affected export market since the escalation of tariffs.

Sectors such as textiles, gems and jewellery, engineering goods, and chemicals have been hit the hardest, the report noted.

The decline in shipments from these industries has contributed significantly to the overall drop, raising concerns over the medium-term impact on India's manufacturing and export competitiveness in its largest market.

The GTRI report highlighted that the steep fall in Indian exports to the United States over the past four months directly reflects the impact of the 50 per cent tariff regime and signals the need for a policy review to safeguard India's trade interests.