India diversifies export market to counter US tariff hike

New Delhi, Oct 21 (IANS) India has succeeded in diversifying its export market with overseas shipments recording a year-on-year growth in over 20 countries across Europe, the Middle East, Africa and Latin America which has helped to offset the adverse impact of the US tariff turmoil.

This is reflected in the 9 per cent increase in India’s merchandise exports during the July-September quarter of the current financial year.

India's exports performance remains resilient despite the recent 50 per cent US tariff hike, with merchandise exports rising 6.7 per cent year-on-year in September, led by robust growth in high-value commodities such as electronics, engineering goods and marine products.

The 24 countries which recorded a rise in Indian exports include Germany, Belgium, Italy, Poland, South Korea, the UAE, Oman, Iraq, Egypt, Russia, Canada, Mexico, Brazil, Kenya, Nigeria, Tanzania, Thailand, Vietnam and Sri Lanka.

Exports to these countries recorded positive growth in April-September 2025-26 with the turnover touching $129.3 billion, which constitutues a 59 per cent share in India's total exports, according to figures compiled by the Commerce Ministry.

India’s free trade agreements (FTAs) with the UK and Europe are expected to further strengthen this diversification in the country’s export market.

On the other hand, India's merchandise exports to the US declined by 11.93 per cent to $5.46 billion in September due to the hike in tariffs imposed by the Donald Trump administration.

Meanwhile, India and the US are also engaged in talks to sign a bilateral trade agreement as a way out of the current impasse. The two countries have made some headway in their trade talks to resolve the tariff issue even as New Delhi has said that it will not rush into an agreement.

India’s trade delegation, led by Commerce Secretary Rajesh Agrawal, is reported to have held constructive meetings with US officials in Washington last week, a senior official said.

While the US under the Trump administration hardened its stand on Russian oil purchases by India, New Delhi has assured Washington that Indian companies would increase purchases of American oil and gas. Since India is the second largest consumer of oil and gas in the world these imports would help to reduce the USA’s trade deficit with India, an issue that Washington has flagged.

Commerce and Industry Minister Piyush Goyal has stated that while the talks with the US are progressing in a “very cordial atmosphere”, these talks are not based on deadlines.

“There is no agreement unless we fully address the interests of India's farmers, fishermen and the country’s MSME sector,” the minister said.

--IANS

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