India’s exports to the US picked up in November to touch $7 billion, a year-an-year growth of 23%.
Tariff Paradox
However, a sharp sequential decline in exports between May and October, and the fact that even November shipments were significantly lower than the pre-tariff level reveal how Trump tariffs have hit India’s foreign trade hard.
Also, what holds the shipments from falling further are items which are exempt from the extra 50% tariff like petroleum products and electronic goods, which have high import content, and relatively low value addition. Labour-intensive sectors are reporting sharp negative growth in shipments.
Structural Shifts
What is visible is a sharp fall until September and a partial recovery by November, notes GTRI. Exporters are also trying to cover the losses by agile market diversification.