With uncertainty and the prospect of reciprocal tariffs by the United States looming large since 2nd April of this year, Indian exporters had started diversifying exports into other markets since the start of the financial year in a bid to insulate themselves from the imposition of any tariffs.A government official has indicated that 15 such products have been identified where exports to the US had declined from 5% to 22% year-on-year in the 3-month period of April to June 2025, even as there was an overall jump of over 21.6% in year-on-year exports from April to July to the US before the tariffs eventually came into effect in two tranches of 25% each in August.
The government official pointed out that the fall in exports of vehicles, rice, gems, jewellery, and 10 more products to the US was accompanied by an increase in exports of these commodities to parts of Europe, West Asia, and Africa.
The government has already mapped alternate markets for specific export commodities as part of a two-pronged diversification plan, by increasing exports to traditional markets in Europe, Australia, Canada, and West Asia, followed by an increased market presence in Africa, Latin America, and CIS countries.Read More: Anand Rathi Wealth shares hit record highs on strong volumes above its 20-day average