India has successfully diversified its export markets, with shipments to over 20 countries across Europe, the Middle East, Africa, and Latin America showing year-on-year growth, helping offset the impact of rising US tariffs.
Merchandise exports rose 9 per cent in the July-September quarter of the current financial year, reflecting the resilience of India’s trade sector. In September, exports increased 6.7 per cent year-on-year, driven by strong demand for high-value commodities such as electronics, engineering goods, and marine products.
The 24 countries registering export growth 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 markets accounted for $129.3 billion during April-September 2025-26, representing 59 per cent of India’s total exports, according to Commerce Ministry data.
India’s free trade agreements (FTAs) with the UK and Europe are expected to further strengthen export diversification, reducing reliance on any single market.
However, merchandise exports to the US declined by 11.93 per cent to $5.46 billion in September, primarily due to a 50 per cent tariff hike imposed under the Donald Trump administration. India and the US are engaged in ongoing talks to reach a bilateral trade agreement to address the tariff issues. Recent discussions in Washington, led by Commerce Secretary Rajesh Agrawal, were described by officials as constructive, although India has emphasized that it will not rush into an agreement.
Amid the US tariff dispute, India has assured Washington that Indian companies will increase purchases of American oil and gas, a move aimed at helping reduce the US trade deficit. India is the world’s second-largest consumer of oil and gas, and these imports are expected to address Washington’s concerns over trade imbalances.
Commerce and Industry Minister Piyush Goyal said that negotiations are progressing in a “very cordial atmosphere,” but stressed that no agreement would be signed unless the interests of India’s farmers, fishermen, and MSME sector are fully addressed.
The export growth underscores India’s strategy of diversifying its markets to mitigate risks from global trade disruptions, while ongoing dialogues with the US signal efforts to stabilize bilateral trade relations.
