As significant U.S. taxes go into effect, India’s exports to the United States have plummeted dramatically over the past four months, dropping by an estimated 37.5%. A fresh study by GTRI claims that dampening trade flows results from this.
From around USD 8.8 billion in May to USD 5.5 billion in September 2025, Indian exports to the United States decreased according to data from the Global Trade Research Initiative (GTRI)
India’s shipments to the U.S. dropped by 20.3% from August to September, going from USD 6.87 billion to USD 5.5 billion. This marked the steepest monthly drop observed thus far in 2025 and continued a run of four straight contractionary months. GTRI noted that several labor-intensive and export-oriented industries were hardest hit: textiles, gems & jewellery, engineering products, and chemicals were especially badly affected.
According to the study, persistent pressure on these sectors might erode India’s export competitiveness and influence manufacturing and related sector employment. Trade analysts see the abrupt decline in U.S. exports as a warning regarding overdependence on a single market. To lessen the impact, many exporters are already turning toward other markets in Europe Southeast Asia
From a policy point of view, GTRI encourages more proactive government support, via export incentives, better logistical network, and diversification programs, to offset foreign shocks. It also asks for quick bilateral communication with the United States to solve the tariff growth and protect India’s trade ties. As India fights this quick contraction, fresh trade negotiations are expedited. New Delhi is working to relieve and rearrange its export strategy before Trump’s tariffs on India
