America is imposing 50 percent tariff on Indian goods.
India’s exports to the US have declined, while exports to non-US countries remain strong and have surpassed previous growth figures. Rating agency CRISIL has given this information in its October report. According to the report, after registering a growth of 7 percent in August 2025, merchandise exports to America declined by 11.9 percent to US $ 5.5 billion in September. The agency said that if the consignment had not been loaded before the tariff increase, this decline would have been even sharper.
In contrast, exports to non-US markets grew by 10.9 percent in September, which is faster than the 6.6 percent growth in August 2025. Due to decline in exports to America, US President Donald Trump has imposed a 50 percent tariff on India, which has become effective from August 27. 50 percent tariff is being imposed on Indian goods.
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These challenges face exports
CRISIL has warned that India’s merchandise exports US duty Challenges are being faced due to widespread slowdown in growth and global growth. The World Trade Organization has estimated that the volume of global merchandise trade will increase by 2.4 percent in 2025, while it has increased by 2.8 percent in 2024.
Good hope on GDP front
Despite these challenges, CRISIL expects India’s current account deficit (CAD) to remain within manageable limits due to strong services exports and lower crude oil prices. It has said in its forecast that CAD will be about one percent of the gross domestic product (GDP) in the current financial year, which is more than 0.6 percent last year.