India Export Mart: India's Exports Resilient Despite Trump Tariffs, SBI Report Reveals Growth and Diversification

A recent report by SBI Research has shed light on the solid performance of India's export sector, indicating that the high US tariffs imposed under the Trump administration didn't inflict the anticipated negative impact on India's overall export performance. Despite global market volatility and trade challenges, India's exports have remained stable, with significant growth observed in several key areas.

Export Growth and the Role of the US Market

During the April-September period of FY26, India's total exports reached $220 billion, marking a 2. 9 percent increase from $214 billion in the corresponding period of the previous year. This growth underscores the resilience of Indian exporters amidst global trade uncertainties. Exports to the United States, a crucial market for India, also witnessed a notable surge,. Increasing by 13 percent to $45 billion during this period, highlighting strong bilateral trade ties. However, September saw an approximate 12 percent year-on-year decline in overall exports, which could indicate short-term fluctuations.

Restructuring of US Market Share

The report also points out that the United States' share in India's total exports has decreased to 15 percent in September, down from July 2025 levels, while this suggests a strategic geographical diversification of India's export markets. Specifically, the US share in India's marine product exports fell from 20 percent in FY25 to 15 percent in September, while similarly, its share in precious stones exports declined Importantly from 37 percent to 6 percent. This shift could be a result of Indian exporters exploring new markets and reducing over-reliance on a single destination.

Government Support for Exporters

The high US tariffs under the Trump administration had impacted certain Indian products, including textiles, jewelry, and seafood, particularly shrimp. To counter these challenges and support exporters, the Indian government has taken substantial measures. It approved aid amounting to 45,060 crore rupees for exporters, which includes a credit guarantee of 20,000 crore rupees. This financial assistance is crucial for exporters to maintain competitiveness in the global arena and expand into new markets.

Geographical Diversification of Export Markets

SBI Research's report emphasizes that India's export sector has become more geographically diversified. Both marine products and readymade cotton garments recorded growth during the April-September period. India's share in various product groups has increased in countries such as the. United Arab Emirates, China, Vietnam, Japan, Hong Kong, Bangladesh, Sri Lanka, and Nigeria. This diversification strategy helps India mitigate risks associated with over-dependence on any single market and provides stability in global trade. The report also suggests that some of this might indicate indirect imports of Indian goods, as Australia's share in US imports of. Precious stones from India increased from 2 percent to 9 percent, while Hong Kong's share rose from 1 percent to 2 percent.

Fiscal Deficit and Rupee Pressure

On the economic front, India's fiscal deficit in the first quarter of FY26 reduced to 0. 2 percent of GDP, an improvement from 0. 9 percent a year ago, supported by service exports and remittances, while sBI Research anticipates a slight increase in the deficit over the next two quarters, eventually turning positive by the end of the fiscal year. For the full year, SBI Research estimates the deficit to be between 1. 0-1. 3 percent of GDP, with a balance of payments gap of up to $10 billion. Meanwhile, amidst global financial turmoil, the rupee also faced pressure against the dollar on Friday, closing at 89. 49, reflecting the impact of broader economic conditions.