India’s Export Engine Holds Steady Despite US Tariff Headwinds

India’s exports have shown remarkable resilience in June 2025, even as the United States imposed baseline tariffs and sector-specific hikes on key product categories. According to the Trade Ministry, strategic diversification and competitive pricing have helped Indian exporters maintain momentum across chemicals, apparel, and processed goods.

Key Highlights From Trade Ministry And Think Tank Reports

- India’s merchandise exports to the US remain stable despite a 10 percent baseline tariff and additional sectoral duties  
- Chemicals and pharmaceuticals continue to lead, with India gaining share from China and Singapore due to tariff differentials  
- Apparel exports are also holding firm, with India poised to capture market share from Bangladesh, Cambodia, and Indonesia  
- NITI Aayog reports India enjoys a tariff advantage in 22 of the top 30 US import categories, covering over 60 percent of India’s exports to the US  
- SBI Research estimates that capturing just 2 percent of the US chemical import market could add 0.2 percent to India’s GDP  

Strategic Outlook

- India is leveraging global tariff realignments to expand exports to ASEAN and other tariff-impacted Asian markets  
- Non-tariff barriers in pharmaceuticals and AYUSH products are being addressed to unlock $1–2 billion in new export potential  
- The government is reviewing the ASEAN-India FTA to curb Chinese goods routed through ASEAN and strengthen origin rules  
- Trade officials remain optimistic about concluding a US-India deal that balances tariff relief with protection for agriculture and dairy  

Sources: Economic Times, Financial Express, Tribune India, Times of India, Logistics Insider.