Synopsis: India’s exports fell sharply in October as US tariffs, geopolitical tensions, and weak global demand hit 15 of India’s top 20 markets. Only five countries showed growth, leaving MSMEs, textiles, and major export sectors under intense pressure.
Trump Tariffs Slam India as Exports Sink Across Key Markets
India's export sector faced a severe setback in October, with newly imposed tariffs by former US President Donald Trump, rising geopolitical tensions, and weakening global demand leading to a sharp decline across major markets. According to fresh data from the Global Trade Research Institute (GTRI), exports dropped in 15 out of India’s top 20 destinations, revealing the mounting vulnerabilities in the country’s trade ecosystem.
GTRI founder Ajay Srivastava noted that this time, export performance showed significant contrasts across countries. Major destinations such as Singapore, Australia, Italy, and the United Kingdom recorded steep double-digit declines. Regulatory hurdles and heightened tariff barriers have further weakened India's competitive edge in global markets.
Growth Recorded in Only 5 Countries
Overall exports fell by 11.8% in October. Growth was visible in just five markets, with Spain leading at 43.43% and China following closely with a 42.35% rise — both driven by strong petroleum product shipments.
Hong Kong saw a modest 6% increase, while Brazil (3.54%) and Belgium (2.22%) experienced slight gains.
15 Major Markets Record Sharp Declines
The steepest fall came from Singapore at 54.85%, followed by Australia (52.42%), Italy (27.66%), the UK (27.16%), and the Netherlands (22.75%).
Other major markets such as Malaysia, South Korea, Germany, France, Bangladesh, Nepal, South Africa, and Saudi Arabia also saw exports dip significantly, some in double digits.
MSMEs Take the Hardest Hit
Micro, small, and medium enterprises (MSMEs), which contribute around 40% of India's total exports, are facing the toughest challenges.
Rajat Mehra, co-coordinator of the CII UP MSME panel, stated that tightening global conditions naturally increase stress on MSME exporters. Many are struggling with shrinking margins, cancelled orders, and rising working capital burdens.
Textile Sector Under Pressure
The textile industry is also feeling the heat. Sanjay K. Jain, Chairman of the ICC National Textiles Committee, shared that US tariffs have already dented textile shipments.
He warned that the current 10–12% drop could cross 15% in the coming months as existing inventory dries up.
The Road Ahead Looks Tough
India’s export slowdown paints a challenging picture for the economy. With tariffs, geopolitical tensions, and unstable global demand continuing to pressure exporters, the months ahead remain uncertain. The need for strategic policy support, diversification of markets, and boosting export competitiveness has never been more urgent.
Disclaimer: The information in this article is based on publicly available reports and data. It is intended for informational purposes only and should not be used as the basis for financial or business decisions.
