India's Exports to the US Decline in December 2025
India's merchandise exports to the United States fell by 1.83% in December 2025 compared to the same month a year earlier. The Commerce Ministry released this data on Thursday, as reported by PTI. Exports dropped to $6.88 billion from $7.01 billion in December 2024.
Impact of Higher US Tariffs
The decline comes as Washington imposed a sweeping 50% tariff on Indian goods entering American markets starting August 27. This higher tariff burden weighed down export performance. The December contraction follows earlier declines in September and October 2025, though shipments rebounded sharply by 22.61% in November.
Imports from the US Show Growth
While exports slipped, India's imports from the United States increased by 7.57% to $4.03 billion in December 2025. This contrasting trend highlights the shifting dynamics in bilateral trade flows.
Cumulative Performance for April-December
On a cumulative basis for the first nine months of the current fiscal year (April-December 2025), India's exports to the US grew by 9.75% to $65.87 billion. Imports from the US during the same period rose by 12.85% to $39.43 billion.
Trade Negotiations Continue
Despite the tariff challenges, India and the United States remain engaged in negotiations for a bilateral trade agreement. Both countries aim to boost two-way commerce through this ongoing dialogue.
Commerce Secretary's Perspective
Commerce Secretary Rajesh Agrawal commented on the trade data. He noted that despite challenges, India's exports continue to remain in positive territory overall. "We have been holding well. We are in positive territory... Going forward, we hope that we will be in positive territory," Agrawal told reporters.
Agrawal also mentioned that India continues to source oil from all its traditional suppliers, indicating stability in energy imports despite trade fluctuations.
