US Tariff Threatens Indian Exporters

• US tariff on Indian exports could lead to substantial business loss if it remains, according to exporters of engineering and textile products.

• The US is the top market for several Indian products, and exporters hope the tariff will be withdrawn.

• The US accounted for 27% of the $22.9 billion auto components exported from India and 7% of $22.4 billion imports of auto components into India in 2024-2025.

• The increase in tariff threatens to derail ongoing trade talks between the two countries.

• Engineering exports from India to the U.S. in 2024-2025 were nearly $20 billion, with iron and steel products, aluminium, and electrical and industrial machinery being major exports.

• The U.S. is a key market for Indian ready-made garment exports, with the country holding a share of 33% in India’s total garment exports in 2024.

• The U.S. decision to temporarily exempt Indian pharma exports from increased tariffs reiterates India’s critical role in ensuring affordable, high-quality medicines for the American population.