Have US tariffs begun impacting India's exports?

India's overall exports held up in August, but shipments to the US, its biggest trading partner, saw a sharp decline. This is just the beginning, say economists, with the full impact of the US's 50% tariffs expected to kick in from September. Mint breaks down the latest trade numbers.

- BY NANDITA VENKATESAN

What does the latest trade data show?

India's merchandise exports grew 6.7% year-on-year (y-o-y) to $35.1 billion in August. While this paints a healthy picture in a tough trade environment, a closer look reveals some weakness. First, the year-onyear growth is aided by a low base (exports had contracted 14% in August 2024). Second, exports were 5.7% lower than in July. The overall exports were buoyed by a y-o-y rise in electronic goods and gems and jewellery, which jumped 25.9% and 15.6%, respectively, in August. These two groups, which together account for nearly 15% of India's total exports, however, saw a sequential decline of 26% and 3.3% respectively.

Have exports to the US 2 slowed?