Falling exports of tariff-free products to US cause of concern: Congress

The Congress on Tuesday, 23 September, raised alarm over a sharp fall in India’s tariff-free exports to the United States, including key sectors like pharmaceuticals and smartphones, calling the trend “certainly not a seasonal fall.”

In a post on X, Congress leader Jairam Ramesh said it was expected that exports hit by higher Trump-era tariffs would decline. “But why and how are India’s tariff-free exports to the USA falling?” he asked, citing fresh data from the Global Trade Research Initiative (GTRI).

According to GTRI, India’s tariff-free exports to the US shrank from USD 3.37 billion in May 2025 to USD 1.96 billion in August 2025—a 41.9 per cent drop. This includes pharmaceuticals and smartphones, which traditionally face no import duties.

Smartphone shipments, India’s single largest export to the US, plunged 58 per cent during the period, from USD 2.29 billion in May to USD 964.8 million in August. Exports of pharmaceuticals fell 13.3 per cent, from USD 745 million to USD 646.6 million. Other sectors such as gems and jewellery, seafood, textiles, garments, and chemicals also reported declines.

GTRI described the fall as “alarming and counter-intuitive” and urged an urgent probe to uncover the underlying reasons.

“This is certainly not a seasonal fall,” Ramesh reiterated, pressing the Modi government to address what could signal deeper trouble for India’s export engine.

With PTI inputs