India has begun diversifying its export markets as shipments to the United States show signs of moderation, according to a recent research report by the State Bank of India (SBI). The trend reflects the country’s expanding global footprint across multiple product categories and destinations.
Key Export Trends
- Total merchandise exports from India during April–September 2025 rose 2.9% year-on-year to $220 billion, compared to $214 billion in the same period last year.
- Exports to the US cumulatively increased 13% to $45 billion from $40 billion, although September 2025 saw a 12% year-on-year decline, possibly reflecting front-loading effects.
Declining US Share and Export Diversification
Since July 2025, the share of US-bound shipments has steadily declined, dropping to 15% in September. Key affected sectors include:
- Marine products
- Precious and semi-precious stones
- Ready-made cotton garments
- Cotton fabrics
Meanwhile, India’s exports to other countries have surged, highlighting diversification in both products and destinations. Major markets include:
- UAE
- China
- Vietnam
- Japan
- Hong Kong
- Bangladesh
- Sri Lanka
- Nigeria
SBI’s report notes that some countries may be re-exporting Indian goods to the US, helping offset the decline in direct shipments.
Shifts in Global Trade Patterns
- Australia increased its share of US imports of pearls and precious stones from 2% to 9% between January–August 2025.
- Hong Kong’s share in similar US imports grew from 1% to 2% during the same period.
These shifts underscore changing trade flows and India’s strategic positioning in global supply chains.
Challenges and Government Support
High tariffs have pressured India’s labour-intensive sectors, including textiles, jewellery, and seafood (especially shrimp), leading to reduced margins. Container volumes to the US have also declined, affecting shipment efficiency.
To support exporters, the Indian government has approved ₹45,060 crore in relief, including ₹20,000 crore in credit guarantees for bank loans. The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) program aims to enhance liquidity and competitiveness, facilitating smoother operations amid tariff challenges.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.