Diversification beyond US helps India keep export volumes stable

India’s strategy to diversify its export markets beyond the United States has helped keep overall shipment volumes steady, even as trade headwinds emerged after higher US tariffs announced in late August. India’s merchandise exports rose to $38.51 billion in December from $38.13 billion in November, while imports increased to $63.55 billion from $62.66 billion, official data showed. The modest rise in exports comes amid a calibrated push by the government and industry to deepen trade ties with markets such as China, Russia, the Middle East and parts of Europe, supported by incentives and a pipeline of proposed free trade agreements, including with the European Union.
Commerce Secretary Rajesh Agrawal said India remains on track to post a strong export performance in the current financial year. “We are confident of crossing $850 billion of exports in the current financial year,” he told reporters in New Delhi. 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.

Commerce Secretary Rajesh Agrawal says, "We are going to cross $850 billion in exports in the current financial year. Merchandise we have grown by 1.86% to $38.51 billion in December 2025, as compared to $37.8 billion in December 2024. There has been a positive movement in our…

— ANI (@ANI) January 15, 2026

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.Marine exports climbed to $6.6 billion during April–December 2025 from $5.7 billion in the same period last year. Although the U.S. continues to be the largest buyer, exports to Vietnam and Belgium surged by 99.9% and 90.3% year-on-year, respectively. Shipments to China rose to $1.056 billion in April–November 2025, registering a 20% annual growth.