UAE, Singapore anchor India's re-route in new trade waters

India is moving to soften the blow of US tariffs by redirecting exports to trusted partners

- Dhirendra Kumar

Confronted with a steep 50% tariff from the US, India's commerce ministry is moving to soften the blow by redirecting exports to trusted partners such as Singapore and the United Arab Emirates (UAE), two government officials directly involved in the process told Mint on the condition of anonymity.

The tariff setback can act as a push for India to achieve its long-desired trade diversification, experts said.

Early signs of success on India's push are already visible, as Singapore has agreed to raise purchases of Indian farm goods and is likely to open its market to seafood, offering relief to marine exporters, while the UAE is being lined up as an alternative hub for textiles, one of the worst-hit sectors, officials said.

India had shipped $2.68 billion worth of marine products to the US in fiscal year 2025 (FY25), up from $2.50 billion in the previous year, but exporters now face a major disruption due to the tariff barrier and the resulting supply chain disruption.