India’s merchandise exports to the US fell 11.93% to $5.46 billion in September due to Washington’s 50% tariff on Indian goods. Imports from the US rose 11.78% to $3.98 billion. From April to September FY26, exports to the US increased 13.37% to $45.82 billion, and imports grew 9% to $25.6 billion, as negotiations for a bilateral trade agreement continue with an Indian delegation in Washington.
The decline follows the tariff hike from August 27, with GTRI data showing a 17.9% drop in shipments to the US in September from $6.87 billion in August, marking the sharpest monthly decline this year and the fourth consecutive month of contraction.
GTRI founder Ajay Srivastava noted that September was the first full month Indian goods faced the 50% tariff, and from May to September, exports to the US declined nearly 37.5%, losing over $3.3 billion in shipment value.
He added that the US has become India’s most impacted market since the tariff increase, with sectors like textiles, gems and jewellery, engineering goods, and chemicals bearing the heaviest losses.
Conversely, exports to China increased 34.18% in September to $1.46 billion and grew 21.96% in the first half of FY26 to $8.41 billion. Imports from China also rose 16.35% in September to $11.31 billion and 11.25% from April to September to $62.88 billion.
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Other trading partners saw variable changes: exports expanded to the UAE, UK, Germany, Saudi Arabia, Australia, Bangladesh, Brazil, and Italy, while shipments to the Netherlands, Singapore, and France declined. Imports from countries such as Russia, Korea, Australia, Vietnam, Germany, and Taiwan decreased, but increased from the UAE, Saudi Arabia, Singapore, Japan, Malaysia, the UK, and Thailand.
