Big shift in export zones in H1 to soften tariff blow

EVEN BEFORE EXPORTS to the US—India’s largest market— became tougher due to steep 50% tariffs, Indian exporters had already shifted focus to other destinations, recording strong gains across several product categories. Diversification of export markets has increased the share of key Asian economies in India’s export basket, particularly for products most exposed to the additional US tariffs.

- FE BUREAU

Exports of textiles, gems and jewellery, and marine products to the UAE, Vietnam, Belgium, and Saudi Arabia posted sharp increases, supported by rising demand across Asia and Europe. Signs of escalating US tariffs had emerged well before the election of President Donald Trump in November last year, prompting Indian exporters to hedge their risks through diversification.