Why exporters hit by US tariffs need urgent help

At a macro level merchandise exports are holding despite the stinging 50% tariff imposed by the US, India's largest trading partner. But a look at the numbers reveal concerns which could worsen in the absence of an immediate support package for affected exporters. Mint explains.

- BY N. MADHAVAN

1 How are merchandise exports faring?

In September, the first full month after US President Donald Trump put a punitive 50% tariff on Indian goods, merchandise exports registered a growth of 6.7%. The increase is similar to what was posted in August. For the first six months of the current fiscal (AprilSeptember 2025), exports were $220 billion as against $214 billion in the corresponding period of the previous year. This was possible largely due to diversification of export destinations. In September, exports to Spain rose sharply by 151%. Other countries such as Egypt (67%), China (34%), Bangladesh (23%) and UK (12%) saw significant increases.

2 How are exports to the US impacted?