Exports brave US tariffs, global churn to log rise

Despite headwinds

- Rajeev Jayaswal

Defying global headwinds and hefty US tariffs, India's merchandise exports increased 1.9% to $38.51 billion in December from $37.8 billion a year earlier, and 2.44% to $330.29 billion in the first nine months of fiscal 2026, which was primarily driven by double-digit export growth in key markets such as China, the US and the UAE, according to data released on Thursday.

"Despite global trade turmoil, merchandise exports in December have grown by 1.86% from $37.8 billion to $38.51 billion," commerce secretary Rajesh Agrawal said on Thursday while releasing trade data for December and the nine-month period.

Crucially, shipments to the US rose nearly 10% year-on-year to $65.88 billion in April-December 2025 from $60.03 billion in the corresponding period last year, although December exports logged a marginal drop to $6.88 billion from $7.01 billion a year earlier and edged down from $6.92 billion in November. “US exports have grown on-year in the first nine months of the (fiscal) year,” Agrawal said, adding that “as of now” exports to the US remain in positive territory.

The resilience comes despite the Trump administration imposing a 50% additional tariff on Indian goods from August, with exemptions for electronics and pharmaceuticals helping sustain momentum. Overall exports—merchandise and services combined—grew 4.33% to $634.26 billion in the nine-month period, with services exports estimated to have jumped 6.46% to $303.97 billion from $285.53 billion.

"One thing very clear with this trajectory, we are going to cross $850 billion of exports in the current financial year," Agrawal said. India's exports in 2024-25 stood at a record $824.9 billion.