New Delhi32 minutes ago
- Copy link
India’s export to America has fallen for the third consecutive month in August. In August, exports declined by 16.3% to $ 6.7 billion, or Rs 58,816 crore, which is the biggest monthly decline in 2025.
According to Ajay Srivastava, founder of Global Trade Research Initiative (GTRI), this decline in India’s exports is the impact of 50% tariff imposed by Donald Trump. However, there is no tariff on one -third of India’s one -third exports such as medicines and smartphones, but the rest of the sectors are under heavy pressure.
The process of decline in export
- august: Export was Rs 58,816 crore, which is 16.3% less than Rs 70,233 crore in July.
- july: Export fell 3.6% to Rs 70,233 crore, which was less than Rs 72,861 crore in June.
- june: June fell by 5.7% when exports were Rs 72,861 crore.
- May: Export increased 4.8% to Rs 77,252 crore, which was the last positive growth of this year.
- april: India’s export to America was Rs 73,739 crore in April.
Results of increasing export tariff in export: GTRI
According to GTRI, this fall is the result of increasing tariffs. Till 4 April, India’s export general was under MFN (Most Paid Nation) duty. On April 5, the US implemented 10% tariff, after which the importers in May quickly purchased and increased exports.
At the same time, 10% tariffs and discussion of country-specific measures from June affected India’s cost competition, which made the buyers towards other suppliers. The decline continued in July as well. The situation worsened in August, when the tariff increased to 25% on August 7 and 50% on August 27.
GTRI said that exporters did not get the opportunity for adjustment, which saw the biggest decline in August. In September, the 50% tariff will show full effect and the decline in export may increase.
Which sector affected the most?
Sectors like cloth, gems and jewelery, leather, shrimp and carpet have been hit the most. Their 30-60% exports depend on America. GTRI estimates that if 50% of tariffs continue till 2026, India may lose $ 30-35 billion exports in the US.
This is about 20% of India’s total goods export, as America is the largest export market in India. At the same time, industry organizations have demanded immediate intervention from the government. His recommendations include …
- Subsidy interest rates under the Interest Equality Plan.
- Duty refund gains through export promotion program.
- Financial aid to protect manufacturing units from closing.
However, the government has reduced GST rates on many products to increase consumption, but special measures have not been taken to promote exports yet. GTRI has warned that if there is no quick relief, jobs will go and India’s trade performance could be weak in 2026.
India-US trade deal expected
At the same time, there have been positive indications about the discussion on the trade deal between India and the US. The US team reached India on Tuesday (September 16) to talk on the trade deal for the first time after Trump’s 50% tariff was imposed. After the meeting with the US team, the Commerce Ministry said in a statement that India and the US have decided to intensify their efforts to finalize the trade deal as soon as possible.
According to the statement, there was a positive discussion on several aspects of the trade agreement in the meeting. The goal of the two countries is to make an agreement that is beneficial for both and strengthens bilateral trade. This step is considered important towards deepening the economic relationship between the two countries.
The Commerce Ministry released this statement after a meeting of about 7 hours in New Delhi. In this meeting, a team led by Brandon Lynch, Chief of the US Trade Representative Office, discussed with Rajesh Aggarwal, Special Secretary, Commerce Department of India. Both sides acknowledged the importance of business relations between India and the United States.
The date of the next round negotiation was not fixed
This statement of the Commerce Ministry is a ray of hope for exporters, who are expecting 50% tariffs to be removed. America is the largest export market in India, where there was an export of $ 86 billion i.e. 7.54 lakh crores last year. Out of which 40-45% of goods are currently more tariff.
However, it has not been decided in this meeting when the sixth round conversation will be held on the trade deal. The sixth round of talks on trade between the two countries were to be held between 25 and 29 August, but it was postponed by the US for 50% tariff on Indian goods. The US imposed this tariff on India due to buying oil from Russia.
Us wants to open India’s dairy market, so the deal is delayed
The US wants its dairy products such as milk, cheese, ghee to be imported into India. India is the largest milk producing country in the world and crores of small farmers are engaged in this sector.
The Indian government is afraid that if American dairy products come to India, they can cause huge damage to local farmers. Apart from this, religious sentiments are also attached.
In the US, cows are added to animal bones (eg ranet) to their food for better nutrition. India considers the milk of such cows as ‘non -veg milk’ ie non -vegetarian milk.
Target to $ 500 billion by 2030 by 2030
India and the US aims to increase bilateral trade from the current $ 191 billion to $ 500 billion by 2030. According to Commerce Ministry data, India’s exports to the US increased by 21.64% to $ 33.53 billion in April-July 2025, while imports increased by 12.33% to $ 17.41 billion.
The US was India’s largest trading partner during this period, with a trade of $ 12.56 billion. India’s exports to the US have been continuously increasing since April.
Piyush Goyal had said- the deal will be finalized by November
Earlier, Union Commerce Minister Piyush Goyal had hoped to have a trade deal with the US. On September 2, Piyush Goyal said at a global investor conference, I hope that things will soon return to track and we will finalize the Bilateral Trade Agreement (BTA) by November.
———————
Read this news too …
India said- will finalize trade deal with America: The purpose of both countries will make a beneficial agreement; Trump imposed a total of 50% tariff
The US team reached India today (September 16, Tuesday) to talk on the trade deal for the first time after Donald Trump’s 50% tariff was imposed. After a meeting with the US team, the Commerce Ministry said in a statement that India and the US have decided to intensify their efforts to finalize the trade deal as soon as possible. Read full news …
Read these news related to Indo-US tariff and trade …
Source link
[ad_3]
