India's merchandise exports decline by 11.8% YoY since last year
This follows a 50% tariff imposed by Trump govt on August 27 year, says Crisil
image for illustrative purpose
Kolkata: India's merchandise exports fell 11.8 per cent year-on-year, since August 2024, to $34.38 billion in October, Crisil said in its report. This follows a 50 per cent increase in US tariffs on August 27 this year, a move that has subdued exports for the second month in a row, the report said.
The decline in exports was broad-based across petroleum products, gems and jewellery and core sectors. Petroleum products exports declined 10.4 per cent year-on-year in October, compared to a growth of 15.1 per cent in September.
Similarly, core exports slipped to 10.2 per cent compared to 6.1 per cent growth in September 2025, the report said.
Merchandise exports to US decreased 8.6 per cent year-on-year to $6.3 billion in October. This was an improvement from the 11.9 per cent decline in September, according to the report.
The announcement by the US on November 16 to cut tariffs on 254 food items bodes well for some of the agricultural exports, such as tea and spices, the report said.
Exports to non-US markets fell 12.5 per cent year-on-year, compared to 10.9 per cent growth in September. The report said that India's current account deficit (CAD) is expected to remain manageable, supported by robust services trade, remittances and softer crude prices. India's merchandise imports remained stable in October 2025 at $76.06 billion, the report said.
However, India’s electronic goods exports jumped 37.9% to $26.29 billion in the first seven months of 2025-26, compared to $19.07 billion in the same period of the previous year, according to government data. The exports were primarily led by the US, followed by the United Arab Emirates and China
The US saw a robust 135.9% jump in the value of electronics exports to $12.08 billion in the first half of FY26 compared to $5.12 billion in the first half of FY25, topping the list in terms of absolute value, commerce ministry data showed.
Certain electronics and smart phones are among the sectors exempted from the Trump administration’s 50% tariff regime on Indian goods, allowing Indian manufacturers to maintain competitiveness in the crucial American market.
The UAE became the second-largest export destination in terms of absolute value, registering 62.6% annualised growth to $2.30 billion in the period.
