Trump’s tariffs drag down Indian exports to US by 9% in October, Pg19

Key Highlights:

• India's goods exports to the US decreased by 9% year-on-year in October 2025, following a 12% decrease the previous month.
• The decline is attributed to the 50% tariffs imposed by the US, which took effect in August 2025.
• India's goods trade deficit reached a record high of $42 billion in October 2025, with exports falling 12% and imports rising to $76 billion.
• Gold imports tripled to $14.72 billion, contributing significantly to the surge in overall imports.

Detailed Insights:

• The US tariffs have particularly impacted labor-intensive sectors such as engineering goods and textiles, making Indian products less competitive.
• The surge in gold imports is speculated to be driven by increased demand ahead of the festive season, which may stabilize in the coming months.
• Non-oil and non-gold imports also increased by 12.4%, led by fertilizers, machinery, electronic goods, non-ferrous metals, and silver.
• Engineering goods shipments fell by 16.71% to $9.37 billion, while exports of readymade garments slipped over 8%, and gems and jewellery exports declined over 26%.
• Increased logistics costs and volatile input prices are challenging the competitiveness of Indian exporters amidst the global economic slowdown.
• Strengthening domestic supply chains and ensuring timely availability of raw materials are crucial for enhancing self-reliance in key sectors.

Key Concepts Involved:

• Tariffs: Taxes imposed on imported goods, making them more expensive and potentially less competitive.
• Trade Deficit: The amount by which a country's imports exceed its exports.
• Exports: Goods and services produced in one country and sold to buyers in another.