India’s exports to US down by around 31.7 per cent in September compared to July

India’s exports to the US saw a dip of 31.7 per cent in September compared to July, as 50 per cent tariffs on Indian goods came into effect from August. According to the data released by the Commerce and Industry Ministry, exports to the US in September were USD 5.4 billion, a contraction of 11.93 per cent compared to the same period last year and 20.3 per cent down from August. In July, India exported goods worth USD 8 billion to the US, while in August, shipments were USD 6.87 billion. Despite the tariffs, the US remained top export destination for India in September. 

The US imposed 50 per cent tariffs on Indian goods, effective August this year, including a 25 per cent penalty for Russian oil purchases. While the 25 per cent tariffs took effect in the first week of August, the other 25 per cent penalty came into effect in the last week of August. September marked the first full month under Washington’s 50 per cent tariffs.

Amid the ongoing trade talks, Commerce Secretary Rajesh Agarwal said on Wednesday that India is open to purchasing more crude oil and gas from the US, subject to it being at the right price. “If you look at the data, energy purchases from the US in the past seven to eight years have gone up. Our energy purchases in the past have also touched USD 23 to 24 billion. Right now, we are at an average of USD 12 to 13 billion annually. There is a headroom for USD 14 to 15 billion, which we can purchase without worrying about the configuration of refineries,” Agarwal said during a briefing.

He also informed that an Indian team is currently in the US, holding discussions with US counterparts on energy trade and related cooperation. Agarwal, who is India’s chief negotiator for the bilateral trade agreement with the US, expressed optimism about reaching a deal with the US at the earliest. A team of Indian officials is already in Washington, DC, for the trade talks. Agarwal left for the US on Wednesday night.

On the sixth round of negotiations, Agarwal said that the US is in shutdown and the strength of the government is down. “It is not right to have full trade negotiations, but both sides are seeing how to proceed,” he said. India and the US announced a bilateral trade agreement in February with an objective to double bilateral trade to USD 500 billion by 2030. So far, five rounds of negotiations have been held.

The trade talks went south following President Donald Trump’s administration’s decision to impose 50 per cent tariffs on Indian goods. As a result, the sixth round of negotiations, scheduled for August, was postponed. However, discussions resumed in September after Trump struck a conciliatory tone in public remarks and spoke to Prime Minister Narendra Modi, raising hopes for a breakthrough. Recently, US Ambassador-designate Sergio Gor also visited India and held meetings with Modi and later with Commerce Secretary Rajesh Agarwal on trade and investment.

“During my visit to India, I met with Commerce Secretary Agrawal and discussed US-India economic ties, including increased investment in the United States,” Gor said on X on Sunday. The negotiations for the deal began in February, with both sides agreeing to conclude the first tranche by fall this year.