Anticipating potential trade disruptions from US tariff measures, Indian exporters began diverting shipments of key products to alternative markets at the start of the financial year. The strategy was aimed at cushioning the impact of reciprocal tariffs that came into effect in two tranches of 25% each in August.
According to a government official, 15 products were identified where exports to the US saw year-on-year declines ranging from 5% to 22% during April–June 2025. This was despite an overall 21.6% increase in India’s exports to the US between April and July, prior to the tariff rollout.
Sectors including vehicles, rice, gems and jewellery, along with 10 other product categories, recorded reduced shipments to the US but saw corresponding increases in exports to Europe, West Asia, and Africa.
The official added that India has mapped alternate destinations as part of a two-tier diversification strategy: strengthening exports to established markets in Europe, Australia, Canada, and West Asia, while also expanding its footprint across Africa, Latin America, and CIS countries.
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