News

India is countering the impact of the recent US tariff hike by expanding its exports across Europe, Africa, the Middle East and Latin America. Data from the Commerce Ministry, reported by IANS, shows that this diversification has helped sustain export growth even as shipments to the US fell sharply after the Trump administration’s 50 per ccent tariff increase.

Merchandise exports grew 9 per cent during the July–September quarter of the current financial year, reflecting resilience in India’s trade performance despite global uncertainty. In September alone, exports were up 6.7 per cent year-on-year, driven by strong demand for electronics, engineering goods and marine products, the Commerce Ministry data showed.

Shipments to 24 countries - including Germany, Belgium, Italy, Poland, South Korea, the UAE, Oman, Iraq, Egypt, Russia, Canada, Mexico, Brazil, Kenya, Nigeria, Tanzania, Thailand, Vietnam and Sri Lanka - recorded positive growth in the first half of FY2025–26. These markets together contributed $129.3 billion, representing 59 per cent of India’s total merchandise exports during the April-September period.

The expansion into new markets marks a deliberate shift in India’s export strategy as it seeks to reduce dependence on the US. Commerce Ministry officials said that ongoing negotiations for free trade agreements (FTAs) with the UK and the European Union are expected to further strengthen India’s export diversification and open greater access to western markets.

In contrast, India’s exports to the US fell 11.93 per cent to $5.46 billion in September, reflecting the direct effect of the tariff hike on key sectors.

Despite the strain, both countries are continuing discussions to find common ground. A bilateral trade agreement aimed at resolving the tariff dispute is under negotiation. According to official sources, Commerce Secretary Rajesh Agrawal led a trade delegation to Washington last week, where “constructive and forward-looking” meetings were held with US officials.

The talks also covered energy cooperation, as Washington has urged India to boost imports of American oil and gas to help reduce the US trade deficit. India, the world’s second-largest consumer of oil and gas, has assured that it will expand purchases from the US as part of a balanced trade approach.

Commerce and Industry Minister Piyush Goyal said that discussions with the US were progressing in a “very cordial atmosphere”, but India would not compromise its domestic interests.

“There is no agreement unless we fully address the interests of India’s farmers, fishermen and the country’s MSME sector,” Goyal said, underlining that trade negotiations would not be rushed.

Ankit Kumar is a Senior Sub Editor at Zee Business. He covers international affairs, politics, climate change, business, finance and global elections. With experience acros