India Exports to US Plunged in August
By Reuters | 15 Oct, 2025

Up to 50% Trump tariffs on goods from India caused India's August exports to the US to plunge 20% and the trade deficit to hit a 13-month high.

Trucks with shipping containers are parked at Jawaharlal Nehru Port, in Navi Mumbai, India, August 27, 2025. REUTERS/Francis Mascarenhas/File Photo

India's merchandise trade deficit widened to a 13-month high of $32.15 billion in September, driven by gold and silver imports and a drop in exports to the U.S. following President Donald Trump's up to 50% tariffs on Indian goods, data showed on Wednesday. 

The September figure marks the full month reflecting the impact of those steep U.S. tariffs following and comes just ahead of a new round of trade talks between New Delhi and Washington scheduled for this week. 

Goods exports to the U.S. fell to $5.43 billion from $6.87 billion in August, as tariffs hit shipments of goods such as textiles, shrimp, and gems and jewellery, data released by the Commerce ministry showed. 

Imports from the U.S. rose to $3.98 billion from $3.6 billion in the previous month. 

IMPORTS GROW AT QUICK CLIP IN SEPTEMBER

"Despite turbulence in the global market, our exports have maintained momentum," said Commerce Secretary Rajesh Agrawal, "But the imports have grown at faster pace in September, driven by increase in gold, silver, fertilisers and electronics."

India and U.S. are holding discussions to finalise the first tranche of a bilateral deal by the end of next month. 

"An Indian delegation is in Washington for further trade talks," Agrawal said, adding that exporters were battling tariff challenges and striving to maintain supply chains. 

Nearly 55% of Indian exports to the U.S. were affected by 50% U.S. tariff hikes, he said, adding that the impact of the duties will start to be felt from September onwards.

During April-September, India's goods exports rose to $220.12 billion from $213.68 billion a year earlier, while imports climbed to $375.11 billion from $358.85 billion, widening the merchandise trade gap.

SURGE IN GOLD IMPORTS 

A sharp rise in gold, fertiliser and silver imports pushed up the trade deficit in September, well above economists' forecast of $25.13 billion in a Reuters poll. 

Gold imports nearly doubled to $9.6 billion from $5.14 billion in the previous month, aided by strong demand for physically backed gold exchange traded funds amid weak stock market returns. 

The first half of the current fiscal year has seen India's merchandise trade deficit widen to nearly $10 billion higher than the same period a year earlier.

Economists warned that a widening gap could weigh on current account balance and rupee, which remains near record lows against the dollar.

Merchandise exports rose to $36.38 billion in September from $35.10 billion in August, while imports climbed to $68.53 billion from $61.59 billion. Crude oil imports rose to $14 billion from $13.2 billion.

The government estimated September services exports at $30.82 billion and imports at $15.29 billion, suggesting a total goods and services trade surplus at $15.53 billion.

India's central bank publishes detailed monthly services trade data with a one-month lag, following government estimates.

(Reporting by Manoj Kumar and Nikunj Ohri; Editing by Mrigank Dhaniwala, Ronojoy Mazumdar and Bernadette Baum)