India's exports to US plunge as Trump's 50% tariffs bite

India's goods exports to the US, its largest foreign market, dropped sharply by 20% in September and nearly 40% in the last four months, as Trump's steep tariffs took effect, data shows. September was the first full month of Washington's 50% tariffs on Indian goods, which kicked in on 27 August. This includes a 25% penalty for Delhi's refusal to stop buying oil from Russia.

"US has become India's most severely affected market since the tariff escalation began," said Ajay Srivastava of Global Trade Research Initiative (GTRI), a Delhi-based think tank.

Negotiations for a trade deal between the two countries are under way, with the goal of concluding an agreement by next month. According to GTRI, the most significant impact of the tariffs has been felt by labour-heavy sectors such as textiles, gems and jewellery, engineering goods, and chemicals, which have suffered the heaviest losses.

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