NEW DELHI– India has successfully diversified its export destinations, recording year-on-year growth in shipments to more than 20 countries across Europe, the Middle East, Africa, and Latin America—helping to cushion the blow from higher U.S. tariffs.
According to Commerce Ministry data, India’s merchandise exports rose 9 percent during the July–September quarter of the current fiscal year. Despite the recent 50 percent tariff hike by the United States, exports remained resilient, climbing 6.7 percent year-on-year in September. Growth was led by strong performances in high-value sectors such as electronics, engineering goods, and marine products.
Among the 24 nations showing increased demand for Indian exports were Germany, Belgium, Italy, Poland, South Korea, the UAE, Oman, Iraq, Egypt, Russia, Canada, Mexico, Brazil, Kenya, Nigeria, Tanzania, Thailand, Vietnam, and Sri Lanka. Shipments to these markets totaled $129.3 billion between April and September 2025–26, accounting for nearly 59 percent of India’s total exports.
Officials said ongoing free trade agreement (FTA) negotiations with the UK and the European Union are expected to further reinforce India’s export diversification strategy.
In contrast, India’s merchandise exports to the United States dropped 11.9 percent in September to $5.46 billion, following the tariff hikes announced by the Trump administration.
To address the trade friction, New Delhi and Washington are in talks for a bilateral trade agreement. A delegation led by Commerce Secretary Rajesh Agrawal held what officials described as “constructive meetings” with U.S. counterparts in Washington last week.
Amid U.S. concerns about India’s purchase of Russian oil, New Delhi has reportedly assured Washington that Indian companies plan to increase imports of American oil and gas. As the world’s second-largest energy consumer, India’s increased energy imports could help narrow the U.S. trade deficit—a key issue in bilateral talks.
Commerce and Industry Minister Piyush Goyal said discussions with the U.S. were proceeding in a “very cordial atmosphere” but emphasized that India would not rush into an agreement.
“There is no agreement unless we fully address the interests of India’s farmers, fishermen, and the country’s MSME sector,” Goyal said. (Source: IANS)
