India’s October exports to the US rebounded partially but remain “well below” the $6.9 billion recorded in the same month last year
Despite the Trump administration’s high 50% tariff, India’s shipments to the US saw a slight increase in October, providing a momentary respite after months of falling exports. Exports to the US increased to $6.3 billion in October, a 14.5% month-over-month increase and the first since May, according to new trade data from the commerce ministry.
This recuperation is still only partial, though. The Global Trade Research Initiative’s (GTRI) co-founder, Ajay Srivastava, claims that India’s October exports to the US are still far less than the $6.9 billion reported in the same month the previous year. According to GTRI’s data, as the tariff regime tightened, US-bound shipments shrank by 28.4% between May and October, wiping out more than $2.5 billion in monthly export value.
India’s overall export situation was still poor. October saw year-over-year reductions in 15 of the top 20 markets in the nation. Significant double-digit losses were also observed in the UK, Italy, France, and the Netherlands, while exports to Singapore and Australia showed sharp declines of 54.9% and 52.4%, respectively. India’s total merchandise exports decreased 11.8% from the previous year.
Only a few important markets showed any growth, including Belgium, Brazil, China, Hong Kong, and Spain. Spain topped the list with a 43.4% increase, mostly due to increased shipments of petroleum products.
Although the US market’s October surge is positive, GTRI pointed out that it does not indicate a reversal of the general decline. After reaching $8.8 billion in May, India’s exports to the US began to decline each month, reaching $8.3 billion in June, $8 billion in July, $6.9 billion in August, and $5.5 billion in September when the tariff went into full effect.
Although specific product-level data for October has not yet been made public, tariff-exempt industries like pharmaceuticals and smartphones are anticipated to have fared better. On the other hand, tariff-affected industries like engineering goods, leather, and textiles are still under a lot of strain.
In October, engineering goods, which had grown for four straight months earlier in the fiscal year, saw a significant decline. The sector’s shipments fell 16.7% year over year to $9.37 billion from $11.25 billion in October 2024, highlighting the effect of US tariff obstacles on India’s main export market.
SOURCE – MARITIME GATEWAY
