India is moving quickly to diversify its export markets, shifting its focus from heavy reliance on the United States to a broader network of 50 countries , with West Asia and Africa taking centre stage , in a bid to cushion the economic shock from steep US tariff hikes.
According to The Economic Times, these targeted markets together account for around 90 per cent of India’s total exports. Officials from the Ministry of Commerce and Industry have confirmed that a detailed product-by-product review is under way to identify India’s competitive strengths and benchmark them against rival suppliers. This effort is being closely coordinated with export promotion bodies to craft targeted strategies for each sector.
The urgency comes after Washington’s recent decision to double import duties on Indian goods , raising them from 25 per cent to 50 per cent, matching Brazil’s rate and making them the highest levied on any country. The first 25 per cent hike took effect last week, with the additional 25 per cent set to begin on 27 August 2025. Sectors such as textiles, leather, marine products, and gems and jewellery are expected to bear the brunt of the blow.
In contrast, key competitors such as Turkey, Vietnam, and Thailand will continue to face significantly lower US import duties of 15, 20, and 19 per cent respectively, putting Indian exporters at a competitive disadvantage. “The US is our single largest market, accounting for over $10 billion in exports, nearly 30% of our industry’s total global trade. A blanket tariff of this magnitude is severely devastating for the sector,” said Kirit Bhansali, chairman of the Gem and Jewellery Export Promotion Council.
To counter these headwinds, the government is introducing customised schemes under the proposed Export Promotion Mission, while actively promoting under-exported products domestically. It is also redirecting goods to alternative, high-growth markets and has expanded its list of priority countries from 20 to 50.
However, industry leaders have cautioned that trade diversion via low-tariff nations such as Mexico, Canada, Turkey, UAE, or Oman could threaten the transparency and integrity of legitimate trade practices , an issue policymakers will need to address alongside diversification efforts.