Share of India’s merchandise exports to other countries increased as shipments to the US declined since July 2025, indicating diversification of export basket across product categories, according to an SBI research report.India’s total merchandise exports during April-September 2025 inched up by 2.9% to $220 billion compared to $214 billion in the year-ago period, the report said.
Cumulative exports to the US also registered a growth of 13% to $45 billion in the April-September period from $40 billion in the year-ago period, though there could be some front-loading effects to the aftermath, with September figures registering negative year-on-year growth of about 12%, said ‘Ecowrap’, the SBI’s research report.
The report further said the share of the US in India’s exports has been declining since July 2025, falling to 15% in September, mainly because of a decline in exports of marine products, precious and semi-precious stones, ready-made cotton garments, and cotton fabrics.Also Read: How the stalled US–India trade deal is reshaping the future of Indian exports”Interestingly, the share of India’s merchandise exports to other countries during this period has increased significantly, indicating the diversification of our export basket with the UAE, China, Vietnam, Japan, and Hong Kong, as also Bangladesh, Sri Lanka, and Nigeria being among the top destinations (over FY25) across different product categories,” the report said.
“So, could it be that some destinations are exporting more to the USA after procuring from India?” it said.According to the report, Australia’s share in the US imports of pearls, precious, semi-precious stones has increased to 9% YTD in January-August 2025 from 2% during the same period in the previous year.Hong Kong, too, registered an increase in share from 1% to 2% to the US during the same period.The SBI research report further said the buoyancy in trade talks reaffirms India’s desire to come out of the highest (among Asian peers) tariff structure while enhancing capability building across several loops, with recently concluded LPG deals and strategic defence deals last month, bolstering the fair probability of a mutually amicable, fruitful negotiation.Tariffs have impacted India’s labour-intensive sectors such as textiles, jewellery, and seafood, particularly shrimp, which operates with a lower margin, the report said.To support the exporters, the government has approved ₹45,060 crore, including ₹20,000 crore in credit guarantees on bank loans.This is aimed at enhancing the global competitiveness of Indian exporters and supporting diversification into new and emerging markets, it said.Credit access under CGTMSE will strengthen liquidity, as it also ensures smooth business operations since the tariffs have led to a steep drop in container volume of shipments to the US, the report added.
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