India’s exports brave US tariffs, global churn to log rise

New Delhi (TIP)- Defying global headwinds and hefty US tariffs, India’s merchandise exports increased 1.9% to $38.51 billion in December from $37.8 billion a year earlier, and 2.44% to $330.29 billion in the first nine months of fiscal 2026, which was primarily driven by double-digit export growth in key markets such as China, the US and the UAE, according to data released on Thursday, Jan 15.
“Despite global trade turmoil, merchandise exports in December have grown by 1.86% from $37.8 billion to $38.51 billion,” commerce secretary Rajesh Agrawal said on Thursday while releasing trade data for December and the nine-month period.
Crucially, shipments to the US rose nearly 10% year-on-year to $65.88 billion in April-December 2025 from $60.03 billion in the corresponding period last year, although December exports logged a marginal drop to $6.88 billion from $7.01 billion a year earlier and edged down from $6.92 billion in November. “US exports have grown on-year in the first nine months of the (fiscal) year,” Agrawal said, adding that “as of now” exports to the US remain in positive territory.
The resilience comes despite the Trump administration imposing a 50% additional tariff on Indian goods from August, with exemptions for electronics and pharmaceuticals helping sustain momentum. Overall exports — merchandise and services combined — grew 4.33% to $634.26 billion in the nine-month period, with services exports estimated to have jumped 6.46% to $303.97 billion from $285.53 billion.
“One thing very clear with this trajectory, we are going to cross $850 billion of exports in the current financial year,” Agrawal said. India’s exports in 2024-25 stood at a record $824.9 billion.
Federation of Indian Export Organisations (FIEO) president SC Ralhan said the performance was “particularly encouraging given the volatility in global trade flows, and reflects the effectiveness of government initiatives aimed at boosting exports and focused support to MSME exporters.”
“The performance assumes greater significance against the backdrop of ongoing geo-political tensions, supply-chain realignments, inflationary pressures and rising protectionism across major economies,” he added.
China emerges as bright spot
India’s exports to China surged 37% to $14.25 billion in April-December 2025 from $10.42 billion in the same period of the previous year. “We are also doing very well in China, where the growth has been very good,” Agrawal said.
The growth accelerated sharply after the US tariff action, with December exports to China jumping 67.3% to $2.05 billion from $1.22 billion a year earlier. Indian exporters of marine products, hit by US tariffs, diversified significantly to China and other markets, the commerce secretary said.
Merchandise imports from China also rose just over 13% year-on-year to $95.95 billion in the first nine months of 2025-26.
India has also raised energy imports from the US, with purchases growing 13% to $39.43 billion in the nine-month period. December imports rose 7.57% to $3.75 billion. Electronic goods exports increased 16.78% to $4.17 billion in December 2025 from $3.57 billion a year earlier.