India’s merchandise exports to the United States have already touched 50% of the total value recorded in FY25—within just the first five months of FY26—according to Union Commerce and Industry Minister Piyush Goyal. Speaking at a trade review meeting in New Delhi on September 5, 2025, Goyal emphasized that despite the pressure of elevated US tariffs and global economic uncertainty, Indian exporters have shown remarkable resilience and adaptability.
The announcement comes amid concerns over the impact of President Donald Trump’s 50% tariff hike on select Indian goods, which took effect in August 2025. While sectors like textiles, gems and jewellery, and auto components have felt the pinch, India’s overall export momentum to the US remains strong, driven by pharmaceuticals, electronics, and services.
🧭 India–US Export Performance Snapshot: FY26 vs FY25
| Metric | FY25 (Full Year) | FY26 (Apr–Aug) | % of FY25 Achieved | Key Drivers |
|---|---|---|---|---|
| Merchandise Exports to US | $87.2 billion | $43.6 billion | 50% | Pharma, electronics, services |
| Services Exports to US | $58.4 billion | $29.1 billion | 49.8% | IT, fintech, consulting |
| Total Exports to US | $145.6 billion | $72.7 billion | 49.9% | Despite tariff headwinds |
Goyal noted that the figures reflect “India’s growing competitiveness and the trust global buyers place in our supply chains.”
🔍 Sector-Wise Export Trends to US in FY26 (Apr–Aug)
| Sector | Export Value (USD Billion) | YoY Growth (%) | Commentary |
|---|---|---|---|
| Pharmaceuticals | 9.8 | +12.4% | Strong demand for generics and APIs |
| Electronics | 7.3 | +18.7% | Smartphones, semiconductors lead surge |
| Textiles & Apparel | 5.1 | –9.2% | Hit by tariffs and demand slowdown |
| Gems & Jewellery | 4.6 | –11.5% | Tariff impact and price volatility |
| Auto Components | 3.2 | –6.8% | Supply chain disruptions |
| IT & Services | 29.1 | +6.3% | Stable growth in digital transformation |
While traditional sectors face headwinds, India’s tech-driven exports continue to expand, cushioning the overall impact.
📉 US Tariff Impact: What’s at Stake
| Tariff Category | Affected Indian Goods | Estimated Export Loss (FY26) | Sectoral Risk Level |
|---|---|---|---|
| 50% Tariff | Textiles, gems, auto parts | $8.5 billion | High |
| 25% Tariff | Leather, chemicals, steel | $3.2 billion | Moderate |
| Services (No Tariff) | IT, consulting, fintech | Minimal impact | Low |
According to India Shipping News, the tariff hikes could lead to a 30% decline in exports from vulnerable sectors.
🔥 Government Response and Trade Strategy
Minister Goyal outlined several measures to mitigate the impact of US tariffs and sustain export growth:
- Diversification of Markets: Increased focus on EU, ASEAN, and Latin America to reduce dependency on US.
- FTA Acceleration: Fast-tracking trade agreements with UK, UAE, and Australia.
- Export Incentives: Enhanced support under RoDTEP and PLI schemes for affected sectors.
- Digital Trade Corridors: Strengthening B2B platforms and e-commerce exports.
Goyal reiterated that “India will not be bullied by tariff threats. We will respond with strategy, scale, and speed.”
🧠 Expert Commentary on India–US Trade Dynamics
| Expert Name | Role | Comment |
|---|---|---|
| Meera Iyer | Trade Policy Analyst | “India’s export resilience is commendable, but tariff diplomacy must intensify.” |
| Rajiv Bansal | Former DGFT Advisor | “Pharma and electronics are India’s new export pillars to the US.” |
| Dr. Rakesh Sinha | Global Trade Historian | “This phase will test India’s ability to pivot and innovate.” |
Experts agree that India’s export strategy must evolve to navigate geopolitical shifts and protectionist policies.
📦 India–US Bilateral Trade Outlook
| Year | Total Bilateral Trade (USD Billion) | Commentary |
|---|---|---|
| FY23 | $191.3 | Record high, driven by services |
| FY24 | $203.7 | Growth despite global slowdown |
| FY25 | $215.8 | Tariff threats begin to emerge |
| FY26 (Est.) | $220–225 | Depends on tariff rollback and FTA progress |
Despite challenges, India remains the US’s third-largest trading partner, with mutual interest in expanding digital and clean energy trade.
📅 Upcoming Trade Milestones
| Event | Date | Relevance |
|---|---|---|
| India–US Strategic Trade Dialogue | October 2025 | May address tariff rollback and FTA roadmap |
| WTO Ministerial Conference | November 2025 | India expected to raise tariff concerns |
| Budget 2026–27 | February 2026 | Export incentives and trade policy updates |
These events will shape the trajectory of India–US trade relations in the coming quarters.
📌 Conclusion
India’s exports to the US reaching half of FY25’s total within just five months of FY26 is a powerful indicator of economic resilience and strategic agility. While tariff challenges loom large, the government’s proactive measures and sectoral shifts are helping India maintain momentum. As global trade dynamics evolve, India’s ability to adapt, diversify, and negotiate will determine whether it can sustain this growth and achieve its ambitious $1 trillion export target.
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Disclaimer: This article is based on publicly available trade data, government statements, and expert commentary as of September 6, 2025. It is intended for informational purposes only and does not constitute financial or policy advice.
